10-K

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TABLE OF CONTENTS
PART IV

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 29, 2012
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to

Commission file number: 0-21116

USANA HEALTH SCIENCES, INC.
(Exact name of registrant as specified in its charter)

Utah (State or other jurisdiction of incorporation or organization)	87-0500306 (I.R.S. Employer Identification No.)
3838 West Parkway Blvd., Salt Lake City, Utah 84120 (Address of principal executive offices, Zip Code)

(801) 954-7100
(Registrant's telephone number, including area code)

         Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)	(Name of each exchange on which registered)
Common Stock, Par Value $0.001 Per Share	New York Stock Exchange

         Securities registered pursuant to Section 12(g) of the Act: None

         Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o    No ý

         Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o    No ý

         Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

         Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

         Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

         Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer ý Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

         Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o    No ý

         The aggregate market value of common stock held by non-affiliates of the registrant as of June 29, 2012 was approximately $262,342,000, based on a closing market price of $41.12 per share.

         There were 13,499,699 shares of the registrant's common stock outstanding as of March 1, 2013.

Documents incorporated by reference.    The registrant incorporates information required by Part III (Items 10, 11, 12, 13, and 14) of this report by reference to the registrant's definitive proxy statement to be filed pursuant to Regulation 14A for its 2013 Annual Shareholders Meeting.

USANA HEALTH SCIENCES, INC.
FORM 10-K
For the Fiscal Year Ended December 29, 2012
INDEX

Part I
Item 1	Business	4
	General	4
	Recent Developments	4
	Products	6
	Geographic Presence	7
	Research and Development	8
	Manufacturing and Quality Assurance	9
	Distribution and Marketing	10
	Operating Strengths	12
	Growth Strategy	15
	Competition	17
	Product Returns	17
	Major Customers	18
	Compliance by Associates	18
	Information Technology	18
	Regulatory Matters	19
	Intellectual Property	22
	Seasonality	23
	Backlog	23
	Working Capital Practices	23
	Environment	23
	Employees	23
	Additional Available Information	23
Item 1A	Risk Factors	23
Item 1B	Unresolved Staff Comments	38
Item 2	Properties	38
Item 3	Legal Proceedings	38
Item 4	Mine Safety Disclosures	39
Part II
Item 5	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	39
Item 6	Selected Financial Data	42
Item 7	Management's Discussion and Analysis of Financial Condition and Results of Operations	44
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	60
Item 8	Financial Statements and Supplementary Data	62
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	62
Item 9A	Controls and Procedures	62
Item 9B	Other Information	63
Part III
Item 10	Directors, Executive Officers and Corporate Governance	63

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Item 11	Executive Compensation	63
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	63
Item 13	Certain Relationships and Related Transactions, and Director Independence	63
Item 14	Principal Accounting Fees and Services	63
Part IV
Item 15	Exhibits, Financial Statement Schedules	64
Signatures		67

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The statements contained in this report on Form 10-K that are not purely historical are considered to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include, but are not limited to, any projections of net sales, earnings, or other financial items; any statements of the strategies, plans and objectives of management for future operations; any statements concerning proposed new products or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words "may," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" and any other similar words. These statements represent our expectations, beliefs, anticipations, commitments, intentions, and strategies regarding the future and include, but are not limited to, the risks and uncertainties outlined in Item 1A Risk Factors and Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations. Readers are cautioned that actual results could differ materially from the anticipated results or other expectations that are expressed in forward-looking statements within this report. The forward-looking statements included in this report speak only as of the date hereof and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

In this Annual Report on Form 10-K, unless otherwise expressly indicated, references to "dollars" and "$" are to United States dollars.

PART I

Item 1.    Business

General

        USANA Health Sciences, Inc. was founded in 1992 by Myron W. Wentz, Ph.D. We develop and manufacture high-quality, science-based nutritional and personal care products with a primary focus on promoting long-term health and reducing the risk of chronic degenerative disease. In so doing, we are committed to continuous product innovation and sound scientific research. We have operations in 18 markets worldwide where we distribute and sell our products by way of direct selling. Our net sales in fiscal year 2012 were $648.7 million, of which 76.5% were in markets outside of the United States. As a U.S.-based multi-national company with an expanding international presence, our operating results are becoming more sensitive to currency fluctuations, as well as economic and political conditions in markets throughout the world. Additionally, we are subject to the various laws and regulations unique both to the products that we sell and to our method of distribution.

        Our customer base comprises two types of customers: "Associates" and "Preferred Customers." Associates are independent distributors of our products, who also purchase our products for personal use. Preferred Customers purchase our products strictly for personal use and are not permitted to resell or to distribute the products. As of December 29, 2012, we had 247,000 active Associates and 64,000 active Preferred Customers worldwide.

Recent Developments

        During 2012, we executed several strategies designed to grow our business. These strategies are discussed in the following categories:

•

Personalization.  We officially launched our global marketing strategy, which focuses on personalizing our product and incentive offerings to our customer base around the world. Under this strategy, we expanded the availability of our flagship MyHealthPak™ product to all of our international markets. MyHealthPak is a fully personalized supplement pack that can include any of our Essential and Optimizer products. Under this strategy, we also introduced two proprietary

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health assessment applications for our Associates and Preferred Customers called True Health Assessment and True Health Companion. These applications are designed for use on iPads and other platforms through the web and are intended to provide our Associates with a new and personalized way to market USANA to potential customers. We launched these new applications at our 2012 International Convention and also gave every Associate in attendance a free iPad with a pre-loaded version of the True Health Assessment. Personalization will be our marketing and operating strategy over the next several years. We believe this strategy will facilitate our short-and long-term growth objectives, which include: (i) returning our North America region to growth; (ii) growing our business in Greater China, and (iii) international expansion.

•

North America Growth Strategy.  In North America/Europe, we continued to execute our growth strategy, which focuses on strengthening our partnership with our Associate sales force, introducing North America-specific incentives, and innovating to develop new products and technologies. During 2012, we held an increased number of meetings and events where members of our management team worked closely with our Associate Leaders to grow our business. We also launched our new Lifetime Matching Bonus, which was well received by our Associates and provides us with the flexibility to offer other incentives specifically for North America. We also offered a new bonus for our Associates in Mexico periodically during 2012, which helped drive results in that market and North America in general. Finally, in 2012, we hired a new executive to lead our Research and Development group who shares our passion for innovation. With his leadership, we plan to launch a variety of new products and technologies under our personalization strategy over the next several years.

•

China-Growth Strategy.  We continued our efforts to grow our Greater China region in 2012 and are encouraged by the results in that region. This strategy included integrating our mainland China ("China" or "PRC") operations and systems, to the extent possible, with our worldwide operations. It also included educating our Associates on the USANA products that we have introduced in China, as well as on our China business opportunity. Additionally, we opened a new branch office in Shenzhen, which is a key city for our business in southern China, and held our Annual Celebration where new products and sales tools were introduced. During 2013, we plan to continue to execute our strategy in Greater China, or more specifically China. This strategy will continue to focus on educating Associates and opening a new branch office, and will also include registering for additional provincial licenses. Notably, subsequent to December 29, 2012, we received three additional provincial direct selling licenses in China. We now have direct selling licenses in Beijing, Jiangsu, Shaanxi, and Tianjin.

•

International Expansion.  We increased our international expansion efforts in 2012 by commencing operations in Thailand, France and Belgium. Each of these markets is heavily consumer focused, which means that it will take time for our Associate leaders to develop entrepreneurs to grow these markets. We continue to believe that Thailand, France and Belgium will be successful markets for USANA and we will continue to support the efforts of our Associates to grow these markets. In 2013, we will continue our international expansion efforts by opening a new market around the middle of the year.

        In 2013, our primary objective will be to strengthen and grow our Active Associate counts throughout the world. To this end, we will continue to execute each of the strategies mentioned above, as well as introduce additional market-specific strategies. For example, beginning in January 2013 we implemented a pricing initiative in several of our mature markets, which includes price reductions in certain markets. This pricing initiative is intended to make our products more consistently priced for our Associates and Preferred Customers in all of our markets. Our launch of this initiative may create some short-term pressure on our net sales and earnings in these markets. We believe, however, that this strategy will create greater long-term customer growth in these markets.

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Products

        The following table summarizes our product lines.

Product Line/Category	Description	Percent of Product Sales by Fiscal Year	Product examples
USANA® Nutritionals
Essentials	Includes core vitamin and mineral supplements that provide a foundation of advanced total body nutrition for every age group beginning with children 13 months of age.	2010—30% 2011—29% 2012—28%	USANA® Essentials HealthPak 100™
Optimizers	Consists of targeted supplements designed to meet individual health and nutritional needs. These products support needs such as cardiovascular health, skeletal/structural health, and digestive health, and are intended to be used in conjunction with the Essentials.	2010—47% 2011—50% 2012—52%	Proflavanol CoQuinone® 30 BiOmega-3™
Foods	Includes low-glycemic meal replacement shakes, snack bars, and other related products that provide optimal macro-nutrition (complex carbohydrates, complete proteins, and beneficial fats) in great tasting and convenient formats. These products can be used along with Essentials and Optimizers to provide a complete and healthy diet, and sustained energy throughout the day.	2010—12% 2011—11% 2012—11%	Nutrimeal Fibergy RESET™ weight-management program and accompanying RESET kit
Sensé—beautiful science®	Includes premium, science-based, personal care products that support healthy skin and hair by providing advanced topical nourishment, moisturization, and protection. These products are designed to complement inner nutrition for the skin provided by the USANA Nutritionals and are manufactured with our patented, self-preserving technology, which uses a unique blend of botanicals, antioxidants, and active ingredients to keep products fresh without adding traditional chemical preservatives.	2010—8% 2011—7% 2012—7%	Daytime Protective Emulsion Night Renewal Perfecting Essence
All Other	Includes materials and online tools that are designed to assist our Associates in building their businesses and in marketing our products.	2010—3% 2011—3% 2012—2%	Associate Starter Kit Product Brochures

        In addition to the products described above, we offer products designed specifically for prenatal, infant, and young child age groups in China. As we continue to increase our focus on personalization and innovation, we will look for product opportunities such as our MyHealthPak™ product.

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        The approximate percentage of total product sales represented by our top-selling products for the last three fiscal years is as follows:

	Year Ended
Top-selling products	2010			2011			2012
USANA® Essentials		18	%		18	%		19	%
Proflavanol®		11	%		12	%		12	%
HealthPak 100™		10	%		9	%		7	%

Geographic Presence

        Our products are distributed and sold in 18 markets. We have organized our markets into two geographic regions: North America/Europe and Asia Pacific, with three sub-regions under Asia Pacific.

North America / Europe

        North America / Europe is our most mature region and includes the United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France and Belgium. We commenced operations in France and Belgium during 2012. North America has been our most challenging region. Our North America growth strategy, which is discussed elsewhere in this report, is intended to improve our operating trend in this region and generate growth.

Asia Pacific

        Asia Pacific is organized into three sub-regions: Southeast Asia Pacific, Greater China, and North Asia. Markets included in each of these sub-regions are as follows:

•

Southeast Asia Pacific—Australia, New Zealand, Singapore, Malaysia, the Philippines and Thailand.

•

Greater China—Hong Kong, Taiwan, and China(1)

•

North Asia—Japan and South Korea

        Growth in our Asia Pacific region over the last several years has been led by the Philippines and Hong Kong. Our most recent market expansions in this region include our entry into Thailand in 2012 and our entry into mainland China in 2010 through our acquisition of BabyCare. Going forward, we anticipate that growth in this region will continue to be led by the Philippines and China, but we expect other markets in this region to grow as well.

Net Sales by Region

        The following table shows net sales by geographic region for our last three fiscal years. We report net sales in a geographic region if a product shipment originates in that geographic region. Additional

(1)

Our business in China is that of BabyCare, our wholly-owned subsidiary.

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financial information relating to our geographic regions can be found in Note L to the Consolidated Financial Statements included in this report.

	Years Ended
Region	2010				2011				2012
	(in thousands)
North America/Europe	$	242,147	46.8	%	$	236,386	40.6	%	$	244,333	37.7	%
Asia Pacific
Southeast Asia Pacific		99,311	19.2	%		111,447	19.2	%		139,651	21.5	%
Greater China		152,280	29.4	%		204,822	35.2	%		235,626	36.3	%
North Asia		23,906	4.6	%		29,284	5.0	%		29,116	4.5	%
Asia Pacific Total		275,497	53.2	%		345,553	59.4	%		404,393	62.3	%
	$	517,644	100.0	%	$	581,939	100.0	%	$	648,726	100.0	%

Research and Development

        Our research and development efforts are focused on developing and providing high-quality, science-based products that promote long-term health and reduce the risk of chronic degenerative disease. Our research and development activities include developing products that are new to USANA and new to the industry, updating existing formulas to keep them current with the latest science, and adapting existing formulas to meet ever-changing regulations in new and existing international markets. Our scientific staff includes experts on human nutrition, cellular biology, biochemistry, natural product chemistry, and clinical research. These experts continually review the latest published research on nutrition, attend scientific conferences, and work with a number of third-party research institutions and researchers to identify possible new products and opportunities to reformulate our existing products.

        In 2012, we continued our relationship with the Linus Pauling Institute ("LPI") at Oregon State University. Our goal is to better determine and understand the function and role of micronutrients such as vitamins, minerals, and antioxidants in promoting optimal health and preventing disease. As part of this relationship, our in-house research team works closely with LPI on nutritional and clinical research. In 2013, we plan to continue our research efforts with LPI and maintain our ongoing nutrition research in preventing oxidative stress, glycemic stress, and chronic inflammation.

        Our goal is to maintain a sharp focus on nutrition—both inside and outside the body—in promoting health and preventing chronic degenerative disease. Because we believe in focusing primarily on key health issues within our society rather than on fads, we typically do not introduce a new product unless we believe that it can provide health benefits to a significant number of our customers. As a result, we maintain a focused and compact line of products, which we believe simplifies the selling and buying process for our Associates and Preferred Customers.

        We follow pharmaceutical standards established by the U.S. Pharmacopeia and other pharmacopeias in the development and formulation of our products. Our ingredients are selected to meet a number of criteria, including, but not limited to: safety, potency, purity, stability, bio-availability, and efficacy. We control the quality of our products beginning at the formulation stage, and we maintain our quality control through controlled sourcing of raw ingredients, manufacturing, packaging, and labeling. In fiscal years 2010, 2011, and 2012 we expended $3.8 million, $4.1 million, and $4.7 million, respectively, on product research and development activities. Going forward, we intend to increase our spending and resources for research and development in connection with our personalization strategy.

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Manufacturing and Quality Assurance

        We conduct nearly all of the manufacturing, production and quality control operations for our nutritional and personal care products in-house. We have established and maintain a manufacturing and quality control facility in Salt Lake City, Utah. BabyCare manufactures and produces nearly all of its products in-house and maintains manufacturing and quality control facilities in Beijing, China and Tianjin, China. Additional information about our U.S. manufacturing, production and quality control operations is set out below.

Tablet Manufacturing

        Tablet manufacturing is conducted at our Salt Lake City, Utah manufacturing facility. Our tablet production process uses automatic and semi-automatic equipment and includes the following activities: identifying and evaluating suppliers of raw materials, acquiring raw materials, analyzing raw material quality, weighing or otherwise measuring raw materials, mixing raw materials into batches, forming mixtures into tablets, coating and sorting the tablets, analyzing tablet quality, packaging finished products, and analyzing finished product quality. We conduct sample testing of raw materials, in-process materials, and finished products for purity, potency, and composition to determine whether our products conform to our internal specifications, and we maintain complete documentation for each of these tests. We employ a qualified staff of professionals to develop, implement and maintain a quality system designed to assure that our products are manufactured to our internal and applicable regulatory agency specifications.

        Our Salt Lake City manufacturing facility is registered with the U.S. Food and Drug Administration ("FDA"), Health Canada Natural Health Products Directorate, the Australian Therapeutic Goods Administration ("TGA"), and other governmental agencies, as required. This facility is audited regularly by various organizations and government agencies to assess, among other things, compliance with Good Manufacturing Practice regulations ("GMPs") and with labeling claims. Based on these audits, our Salt Lake City manufacturing facility has received and maintains certifications from the Islamic Foods and Nutrition Counsel of America in compliance with Halal, NSF International in compliance with product testing and GMPs, and the TGA in compliance with the Therapeutic Goods Act of 1989.

        The manufacture of nutritional or dietary supplements and related products in the United States requires compliance with dietary supplement GMPs, which are based on the food-model GMPs and pharmaceutical GMPs, with additional requirements that are specific to dietary supplements. We believe our manufacturing processes comply with the GMPs for dietary supplements.

Personal Care Manufacturing

        Historically, we have manufactured the majority of our personal care products at our Draper, Utah manufacturing facility. In 2011, we moved the manufacturing of our personal care products to our Salt Lake City facility to maximize efficiency and reduce costs on these items. The production process for personal care products includes identifying and evaluating suppliers of raw materials, acquiring raw materials, analyzing raw material quality, weighing or otherwise measuring the raw materials, mixing raw materials into batches, analyzing liquid batch quality, packaging finished products, and analyzing finished product quality. We conduct sample testing of raw materials, in-process materials, and finished products for purity, potency, and composition to determine whether our products conform to our internal specifications, and we maintain complete documentation for each of these tests.

        At our Salt Lake City facility, we have standard technology for producing batches of personal care items, and we have semi-automatic packaging equipment for packaging end products. We employ qualified staff to develop, implement, and maintain a quality system. Although the FDA has not promulgated GMPs for personal care items, it has issued guidelines for manufacturing personal care products. We voluntarily maintain compliance with the guidance established by FDA and the Personal Care Products Council.

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Third-Party Suppliers and Manufacturers

        We contract with third-party suppliers and manufacturers for the production of some of our products, which account for approximately 25% of our product sales. These third-party suppliers and manufacturers produce and, in most cases, package these products according to formulations that have been developed by, or in conjunction with, our in-house product development team. These products include most of our gelatin-capsulated supplements, Rev3 Energy™ Drink, Probiotic, our powdered drink mixes and nutrition bars, and certain of our personal care products. Products manufactured at these locations must also go through quality control and assurance procedures to ensure they are manufactured in conformance with our specifications.

Quality Control/Assurance

        We conduct quality control processes in two in-house laboratories that are located in Salt Lake City, Utah. In our microbiology laboratory, scientists test for biological contamination of raw materials and finished goods. In our analytical chemistry laboratory, scientists test for chemical contamination and accurate levels of active ingredients in both raw materials and finished products. Both laboratories conduct stability tests on finished products to determine the shelf life of our products. Our laboratory staff also performs chemical assays on vitamin and mineral constituents, using United States Pharmacopoeia methods and other internally validated methods. In addition to our quality control and clinical laboratories, our headquarters facility also houses a laboratory designated for research and development. We also perform processes similar to those described above at our labs in China.

Raw Materials

        Most of the raw ingredients that are used in the manufacture of our products are available from a number of suppliers. We have not generally experienced difficulty in obtaining necessary quantities of raw ingredients. When supplies of certain raw materials have tightened, we have been able to find alternative sources of raw materials, and believe we will be able to do so in the future, if the need arises. Accordingly, we are not subject to a single-source supplier for our required supplies of raw ingredients. Our raw material suppliers must demonstrate stringent process and quality control before we use their products in our manufacturing process.

Distribution and Marketing

General

        We distribute our products internationally through a network marketing system, which is a form of person-to-person direct selling. Under this system, distributors purchase products at wholesale prices from the manufacturer for resale to consumers and for personal consumption. The concept of network marketing is based on the strength of personal recommendations that frequently come from friends, neighbors, relatives, and close acquaintances. We believe that network marketing is an effective way to distribute our products because it allows person-to-person product education and testimonials as well as higher levels of customer service, all of which are not as readily available through other distribution channels.

Structure of Network Marketing Program

        Associates.    A person who wishes to sell USANA products must join our independent sales force as an Associate. A person becomes an Associate by completing an application under the sponsorship of an existing Associate. The new Associate then becomes part of the sponsoring Associate's "down-line" sales organization. New Associates sign a written contract and agree to adhere to the USANA policies and procedures. Under the policies and procedures, Associates may not, among other things: (i) use deceptive or unlawful practices to sell USANA products; (ii) make deceptive or unlawful claims or

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representations concerning our products or Compensation Plan; or (iii) sell competitive products to other USANA Associates or solicit USANA Associates to participate in other network marketing opportunities. New Associates are required to purchase a starter kit that includes a detailed manual describing our business and products as well as our policies and procedures. We sell these kits at a nominal cost averaging $30 in each of our markets. No other investment is required to become an Associate.

        Once a person becomes an Associate, he or she may purchase products directly from us at wholesale prices for personal use and resale to customers. Our Associates are also entitled to build sales organizations by attracting and enrolling new Associates and establishing a network of product users. The sponsoring of new Associates results in the creation of multiple levels within our network marketing structure. Sponsored Associates are referred to as part of the "down-line" of the sponsoring Associate. Down-line Associates may also sponsor new Associates, creating additional levels in their network, but also forming a part of the same down-line as the original sponsoring Associate. As outlined below, Associates who are interested in earning additional income must successfully sell USANA products and establish a business network/down-line in order to qualify for commissions, including bonuses. Subject to payment of a minimal annual account renewal fee, Associates may continue to distribute or consume our products as long as they adhere to our policies and procedures.

        Individuals who reside in China and who are interested in being part of USANA's organization in China may do so by joining BabyCare as an Associate. The process for joining BabyCare is very similar to the process for joining USANA and requires an initial Associate application and an agreement by the Associate to adhere to the policies and procedures in China. Much like our operations in other markets, an Associate in China is provided with opportunities to build a sales organization and receive compensation for sales generated by that organization. Associates in China do not participate in USANA's Compensation Plan and, therefore, are compensated under the plan created and implemented by BabyCare specifically for China.

        Preferred Customers.    We also sell directly to customers who purchase products only for personal use. This program is our "Preferred Customer" program. Preferred Customers may not resell or distribute our products. We believe this program gives us access to a market that would otherwise be missed, by targeting customers who enjoy USANA products, but who prefer not to maintain a distribution relationship with us. Although our policies prohibit Preferred Customers from engaging in retail sales of products, they may enroll as Associates at any time, if they desire. Preferred Customers are not eligible to earn commissions or to participate in our Compensation Plan. Our China operations also utilize a Preferred Customer program, which is similar to USANA's Preferred Customer program in its other markets.

Associate Training and Motivation

        Initial training of Associates about the products, the Compensation Plan, network marketing, and USANA is provided primarily by an Associate's sponsor and others in their sales organization. We develop and sell training materials and sales tools to assist Associates in building their businesses, as well as provide reprints from other commercial publications that feature USANA and may be used as sales tools. We also sponsor and conduct regional, national, and international Associate events, as well as intensive leadership training seminars. Attendance at these sessions is voluntary, and we undertake no generalized effort to provide individualized training to Associates, although experience shows that the most effective and successful Associates participate in training activities. Although we provide leadership training and sales tools, we ultimately rely on our Associates to: sell our products, attract new Associates and Preferred Customers to purchase our products, and educate and train new Associates regarding our products and Compensation Plan.

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Associate Compensation

        As outlined below, our Compensation Plan provides several opportunities for Associates to earn compensation, provided they are willing to consistently work at building, training, and retaining their down-line organizations to sell USANA products to consumers. The purpose behind each form of compensation under our Compensation Plan is to reward Associates for generating product sales either directly or indirectly through their down-line sales organization and network of product consumers. We believe our Compensation Plan is distinctive for its weekly payouts to Associates.

        Associates can earn compensation in four ways:

•

Commissions.  The primary way an Associate is compensated is through earning commissions. Associates earn commissions through generating sales volume points, which are a measure of the product sales of their down-line sales organization. Sales volume points are assigned to each of our products and comprise a certain percent of the product price in U.S. dollars. To be eligible to earn commissions, an Associate must sell a certain amount of product each month ("Qualifying Sales"). Qualifying Sales may include product that the Associates use personally or that they resell to consumers. Associates do not earn commissions on these Qualifying Sales. Associates may earn commissions on their sale of products above the Qualifying Sales as well as the sale of products by Associates in their down-line organization and Preferred Customers. Additionally, Associates do not earn commissions for simply recruiting and enrolling others in their down-line organization. Commissions are paid only when products are sold. We pay Associate commissions on a weekly basis. As noted elsewhere in this report, our China operations maintain their own compensation plan, which has been implemented by BabyCare specifically for China.

•

Bonuses.  We offer Associates several bonus opportunities, including our leadership bonus, elite bonus, and lifetime matching bonus. These bonus opportunities are based on a pay-for-performance philosophy and, therefore, are paid out when the Associate achieves the required performance measures.

•

Retail Mark-Ups.  As discussed previously, our Associates purchase products from us at wholesale prices and may resell them to consumers at higher retail prices. The Associate retains the retail mark-up as another form of compensation.

•

Contests and Promotions.  We periodically sponsor contests and promotions designed to incentivize Associates to generate sales and grow their down-line organization and product users. These promotions are also based on a pay-for-performance philosophy and, therefore, are only paid upon the achievement of the promotion objectives.

        We endeavor to integrate our Compensation Plan seamlessly across all markets where legally permissible, allowing Associates to receive commissions for global—not merely local—product sales. This seamless down-line structure is designed to allow Associates to build a global network by establishing or expanding their down-line in any of the markets where we operate. We believe our Compensation Plan significantly enhances our ability to expand internationally, and we intend, where permitted, to continue to integrate new markets into our Compensation Plan. Our Associates in China do not participate in USANA's Compensation Plan. Instead, they are compensated under a plan that has been created and implemented by BabyCare specifically for China.

Operating Strengths

        Our principal objective is to be a leading developer, manufacturer and distributor of science-based nutritional and personal care products and to create a rewarding opportunity through network marketing for our Associates who distribute our products. Our strategy is to capitalize on our operating strengths, which include: a strong research and development program; in-house manufacturing

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capability; science-based products; an attractive Associate Compensation Plan; a scalable business model; and an experienced management team.

        Emphasis on Research and Development.    We have a technical team of experienced scientists, including several holding Ph.D. degrees, quality engineers, and regulatory specialists who contribute to our research and development activities. In our research and development laboratories, our scientists and researchers:

•

Investigate activities of natural extracts and formulated products in laboratory and clinical settings;

•

Identify and research combinations of nutrients that may be candidates for new products;

•

Develop new nutritional ingredients for use in supplements;

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Study the metabolic activities of existing and newly identified nutritional ingredients;

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Enhance existing products, as new discoveries in nutrition and skin care are made;

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Formulate products to meet diverse regulatory requirements across all of our markets; and

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Investigate processes for improving the production of our formulated products.

        Our scientists and researchers also conduct double-blind, placebo-controlled, clinical studies which are intended to further evaluate the efficacy of our products. In addition, we work with outside research organizations to further support various aspects of our research and development efforts. One of these organizations is the Linus Pauling Institute at Oregon State University. Our work with the Linus Pauling Institute advances the science of human nutrition and health, provides us with valuable information to formulate and upgrade our nutritional products, and allows us to better advise our customers on how to use USANA products. We have also funded clinical research programs at Boston University, the University of Colorado, the University of Utah, Sydney University in Australia, The Orthopedic Specialty Hospital ("TOSH") and Utah State University. Additionally, our Scientific Advisory Council, comprised of health care professionals and nutritional science experts worldwide, provides us with valuable insights into product applications and efficacy. It is through our internal research and development efforts and our relationships with outside research organizations and health care providers that we can provide what we believe to be some of the highest quality health products in the industry.

        In-house Manufacturing.    We manufacture products that account for approximately 75% of our product sales. We believe that our ability to manufacture our own products in-house is a significant competitive advantage for the following reasons:

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We can better control the quality of raw materials and finished products;

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We can more reliably monitor the manufacturing process to better guarantee potency and bioavailability and to reduce the risk of product contamination;

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We can better control production schedules to increase the likelihood of maintaining an uninterrupted supply of products for our customers;

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We are able to produce most of our own prototypes in the research phase of product development; and

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We are better able to manage the underlying costs associated with manufacturing our products.

        Science-based Products.    As a result of our emphasis on research and development and our in-house manufacturing capabilities, we have developed a focused line of high-quality health products that we believe provides health benefits to our customers. Our products have been developed based on

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a combination of published research, in-house laboratory and third-party clinical studies, and sponsored research.

        Attractive Associate Compensation Plan and Support.    We are committed to increasing our product sales by providing a highly competitive compensation plan to attract and retain Associates who constitute our sales force. We incent our Associates by paying incentives on a weekly basis. Additionally, our Compensation Plan is, where permissible, a global-seamless plan, meaning that Associates can be compensated each week for their business success in any market in which they have a down-line organization where we conduct business. As noted elsewhere in this report, our China operations maintain their own compensation plan, which is structured differently than USANA's plan in other markets.

        To support our Associates, we sponsor meetings and events throughout the year, which offer information about our products and our network marketing system. These meetings are designed to assist Associates in business development and to provide a forum for interaction with some of our Associate leaders and with members of the USANA management team. We also provide low-cost sales tools and resources, which we believe are an integral part of building and maintaining a successful home-based business for our Associates. For example, we offer an interactive presentation tool, called Health and Freedom Solution, which was created and designed to help our Associates easily explain and share the USANA opportunity, including the benefits of our products and our Compensation Plan.

        In addition to Company-sponsored meetings, sales tools and resources, we maintain a website exclusively for our Associates, where they can keep up on the latest USANA news, obtain training materials, manage their personal information, enroll new customers, shop for products, and register for Company-sponsored events. Additionally, through this website, Associates can access other online services to which they may subscribe. For example, we offer an online business management service, which includes a tool that helps Associates track and manage their business activity, a personal webpage to which prospects or retail customers can be directed, e-cards for advertising, and a tax tracking tool.

        We also believe that recognition is an important factor in supporting and retaining our Associates. We understand that being a successful USANA Associate requires hard work and dedication. We frequently hold a variety of contests and promotions, rewarding our Associates for their achievements to help motivate them and recognize their efforts. We also celebrate key achievements and rank advancements of our Associates. We believe that our recognition programs and contests greatly contribute to our ability to retain our Associates.

        Business Model.    We believe that our business model provides, among others, the following advantages:

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No requirement for a company-employed sales force to sell our products, with a relatively low incremental cost to add a new Associate;

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Commissions paid to our Associates are tied to sales performance;

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Accounts receivable are minimal because payment is required at the time an Associate or Preferred Customer purchases product;

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A stream of recurring revenue from our monthly product subscription program known as "Autoship," which we utilize in all of our markets (for the year ended December 29, 2012, this program represented 31% of our sales); and

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We can expand into new international markets with moderate investment because, for markets other than China, we generally maintain minimal administrative, customer support, and warehouse facilities in each of these markets.

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        Experienced Management Team.    Our management team includes individuals with expertise in various scientific and managerial disciplines, including nutrition, product research and development, international development, marketing, customer network development, information technology, finance, legal, regulatory and operations. This team is responsible for supporting growth, research and development, international expansion, strengthening our financial condition, and improving our internal controls.

Growth Strategy

        We seek to grow our business by pursuing the following strategies:

        Personalization.    Our personalization initiative will be our marketing and operating strategy going forward. This strategy focuses on personalizing each aspect of our business to our customer base around the world. We will use our personalization initiative to facilitate growth through the other strategies set out below.

        Attract and Retain Associates.    Our Associates are the key to the growth of our business. Accordingly, we must continue to attract and retain Associates. For this reason, our management team maintains a close working relationship with our Associate leaders. One of our key initiatives in 2012 was to continue to strengthen this working relationship by holding more in-person meetings between management and Associates and by providing additional leadership training for Associates. In addition to our Annual International Convention and our Asia Pacific Convention, we hold several regional events in key growth areas to provide support and training to new Associates. We continue to increase our investment in these events and in the marketing of our Compensation Plan to aid Associates in improving the productivity of their businesses.

        Over the last couple of years we have also worked closely with certain of our Associate leaders to develop new and unique training tools to assist in the personal development and growth of our new Associates. These training tools are designed to serve as a guide for someone new to USANA and network marketing who has the entrepreneurial spirit to own and operate a home-based business. In addition to these new sales tools, we have also increased our emphasis on building global awareness of the USANA brand. This includes our new sponsorship of the U.S. Ski Team, as well as our partnership with the Women's Tennis Association ("WTA"). Not only are we the official health supplement supplier to the WTA, but we now have six top players who are dedicated to promoting our products and brand. We seek to leverage this relationship to build brand credibility and increase product consumption and loyalty. In addition to our sponsorship of professional athletes, we seek to advertise and collaborate with credible, nationally recognized organizations and individuals to enhance our global brand. In 2012, we began a strategic relationship with Dr. Mehmet Oz through his charity, Healthcorps. Over the past 5 or 6 years, the world has witnessed the overwhelming rise in popularity of Dr. Oz and, now, he has become a nationally recognized part of American culture. Dr. Oz participated in a number of our Associate events during 2012 and was a key speaker at our 2012 International Convention in Salt Lake City, Utah. We plan to continue our relationship with Dr. Oz through Healthcorps in 2013 and going forward. This relationship will include Dr. Oz's participation on future Associate leadership calls and, more importantly, his continued participation at Associate events. While branding efforts such as this have a global reach, the primary objective of this initiative is to grow sales and the number of Associates in North America.

        In 2013, our primary initiative will be to strengthen and grow our Active Associate counts throughout the world. To this end, we will continue to execute our growth strategies in North America and Greater China as well as introduce additional market-specific strategies. One of these new strategies is a pricing initiative that we implemented in several of our mature markets, which includes price reductions in certain markets. This pricing initiative is intended to make our products more consistently priced for our Associates and Preferred Customers in all of our markets. We believe that

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this strategy will create greater long-term customer growth in these markets and our business in general.

        Successfully Grow our Greater China Region.    In light of the strength of our Asia Pacific region and our growing Asian Associate base, we believe that Greater China currently represents the most significant and imminent growth opportunity for us. Our strategy in this region is focused on generating Associate growth in each of Taiwan, Hong Kong and China, with an emphasis on China. To capitalize on this opportunity, in August 2010, we indirectly acquired BabyCare, a direct selling company organized under the laws of China. We believe our acquisition of BabyCare accelerates our growth potential in China for several reasons, including: (i) the license granted to BabyCare from the Chinese government, which allows BabyCare to engage in direct selling in the municipality of Beijing; and (ii) BabyCare's existing management team, which continues to operate BabyCare and has extensive experience in the Chinese direct selling market as well as in Chinese government relations and regulations. BabyCare is working to obtain similar direct selling licenses in other provinces within China. Notably, subsequent to the year ended December 29, 2012, we received three additional provincial direct selling licenses in Jiangsu, Shaanxi, and Tianjin. During 2012, we continued integrating our China operations and systems, to the extent possible, with our worldwide operations in an effort to make it easier, more efficient, and more enjoyable for BabyCare's Associates to conduct business in China. We also continued educating our Associates on the USANA products that we have introduced in China, as well as on our China business opportunity. The launch of several USANA products in China has expanded our presence in China's adult supplement market and, as a result, expanded the sales opportunities for BabyCare Associates to existing and prospective Chinese customers. In 2013, we will continue to execute our Greater China growth strategy to generate Associate and sales growth in this region.

        Introduce New and Re-formulate Existing Products.    Our research and development team is continually reviewing the latest scientific findings related to nutrition, conducting in-house research and clinical trials, looking at new technologies, and attending scientific conferences. If, in the process, we see potential for a new product or ingredient that provides a measurable and important health benefit, and if we believe this benefit can be realized by our customers, we will generally pursue development of that product. Our research and development focus in 2012 and going forward will be centered on personalization and innovation. To the extent reasonably possible, we intend to personalize our product offering and product delivery systems to our customers' individual needs. An example of our personalization efforts is our MyHealthPak™ product, which is a fully customized, pre-packaged supplement regimen that can include any of our Essentials and Optimizers. We will also enhance our focus on innovation to develop new products and technologies. To facilitate this, we have expanded our research and development team, increased our research and development investment, and expanded our collaborations with outside scientific experts and organizations. In particular, we hired a new executive during 2012 to lead our research and development team. With his leadership, we will launch a variety of new products and technologies under our personalization strategy over the next several years.

        Enter New Markets.    We believe that significant growth opportunities continue to exist in markets where we currently conduct business and in new international markets. In 2011, we announced our intent to become more aggressive in our international expansion efforts. To this end, we commenced operations in Thailand, France and Belgium in 2012. We will also open another new market during 2013. These new markets, as well as any future markets we may consider, are selected following an assessment of several factors, including market size, anticipated demand for USANA products, receptiveness to network marketing, and the market entry process, which includes consideration of possible regulatory restrictions on our products or our network marketing system. We have also begun to register certain products with regulatory and government agencies in other countries in preparation for further international expansion. Wherever possible, we expect to seamlessly integrate the

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Compensation Plan in each market to allow Associates to receive commissions for global—not merely local—product sales. This seamless down-line structure is designed to allow an Associate to build a global network by creating a down-line across national borders. We believe our seamless Compensation Plan significantly enhances our ability to expand internationally, and we intend, where permitted, to integrate the future markets that we open into this plan. While we deem new market expansion as a key growth strategy, given the significant opportunity that currently exists in China, we plan to focus the majority of our time and resources on growing sales in that market.

        Pursue Strategic Acquisitions.    We believe that attractive acquisition opportunities may arise in the future. We intend to pursue strategic acquisition opportunities that would grow our customer base, expand our product lines, enhance our manufacturing and technical expertise, allow vertical integration, or otherwise complement our business or further our strategic goals.

Competition

        We compete with manufacturers, distributors, and retailers of nutritional products for consumers, and with network marketing companies for distributors. On both fronts, some of our competitors are significantly larger than we are, have a longer operating history, higher visibility and name recognition, and greater financial resources than we do. We compete with these entities by emphasizing the underlying science, value, and superior quality of our products, the simplicity in our product offerings, and the convenience and financial benefits afforded by our network marketing system and global seamless Compensation Plan.

        Our business is driven primarily by our distributors, whom we refer to as Associates. Our ability to compete with other network marketing companies depends, in significant part, on our success in attracting and retaining Associates. There can be no assurance that our programs for attracting and retaining Associates will be successful. The pool of individuals interested in network marketing is limited in each market and is reduced to the extent other network marketing companies successfully attract these individuals into their businesses. Although we believe that we offer an attractive opportunity for our Associates, there can be no assurance that other network marketing companies will not be able to recruit our existing Associates or deplete the pool of potential Associates in a given market.

        We believe that the leading network marketing company in the world, based on total sales, is Amway Corporation and its affiliates, and that Avon Products, Inc. is the leading direct seller of beauty and related products worldwide. Leading competitors in the nutritional network marketing and nutritional product industry include Herbalife Ltd., Inc.; Nu Skin Enterprises, Inc.; and NBTY, Inc. Based on information that is publicly available, 2011 net sales of the aforementioned companies ranged from $1.7 billion to $11.1 billion. There are other manufacturers of competing product lines that have or may launch direct selling enterprises that compete with us in certain product lines and in the recruiting of Associates. There can be no assurance that we will be able to successfully meet the challenges posed by increased competition.

Product Returns

        Product returns have not been a material factor in our business, totaling approximately 1.1% of net sales in both 2010 and 2011 and 0.8% in 2012. Because our emphasis on customer satisfaction is a hallmark of our business model, our standard policy allows Associates to return any unused product from their first purchase within the first 30 days following their purchase for a 100% refund of the sales price. Thereafter, any returned product that is unused and resalable is refunded up to one year from the date of purchase at 100% of the sales price, less a 10% restocking fee. According to the terms of the Associate agreement, return of product where the purchase amount exceeds $100 and was not damaged at the time of receipt by the Associate may result in cancellation of the Associate's

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distributorship. Depending upon the conditions under which product was returned Associates and Preferred Customers may either receive a refund based on their original form of payment, or credit on account for a product exchange. This standard policy differs slightly in a few of our international markets due to the regulatory environment in those markets.

Major Customers

        Sales are made to independent Associates and Preferred Customers. No single customer accounted for 10% or more of net sales. Notwithstanding the foregoing, the nature of our business model results in a significant amount of sales to several different Associate leaders and their downline sales organizations. Although no single Associate accounted for 10% or more of our net sales, the loss of a key Associate leader or that Associate's downline sales organization could adversely affect our net sales and our overall operating results.

Compliance by Associates

        We continually monitor and review our Associates' compliance with our policies and procedures as well as the laws and regulations applicable to our business around the world. Part of this review entails an assessment of our Associates' sales activities to ensure that Associates are actually selling products to consumers. Our policies and procedures require Associates to present our products and the USANA opportunity ethically and honestly. Associates are not permitted to make claims about our products or Compensation Plan that are not consistent with our policies and procedures and applicable laws and regulations. The majority of our Associates must use marketing and promotional materials provided by USANA. Associates who have achieved a certain leadership threshold are permitted, however, to produce their own marketing and promotional materials, but only if such materials are approved by USANA prior to use.

        From time to time, some Associates fail to adhere to our policies and procedures. We systematically review reports of alleged Associate misbehavior. Infractions of the policies and procedures are reported to our compliance group, who determine what disciplinary action is warranted in each case. More serious infractions are reported to our Compliance Committee, which includes USANA executives. If we determine that an Associate has violated any of our policies and procedures, we may take a number of disciplinary actions, such as warnings, fines or probation. We may also withdraw or deny awards, suspend privileges, withhold commissions until specific conditions are satisfied, or take other appropriate actions in our discretion, including termination of the Associate's purchase and distribution rights.

        We believe that Associate compliance is critical to the integrity of our business, and, therefore, we are aggressive in ensuring that our Associates comply with our policies and procedures. As explained above, when an Associate fails to comply with our policies and procedures, we may terminate their purchase and distribution rights. From time to time, we become involved in litigation with Associates whose purchase and distribution rights have been terminated. We consider such litigation to be routine and incidental to our business and will continue to be aggressive in ensuring that our Associates comply with our policies and procedures.

Information Technology

        We believe that the ability to efficiently manage distribution, compensation, manufacturing, inventory, and communication functions through the use of sophisticated and dependable information processing systems is critical to our success. Our information technology resources are maintained primarily by our in-house staff to optimally support our customer base and core business processes.

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Our IT staff manages an array of systems and processes which support our global operations 24 hours a day and 365 days a year. Three of our most critical applications include:

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A web-based application that provides online services to Associates, such as training sessions and presentations, online shopping, enrollment, real-time reporting engine, Company and product information, web-hosting, email, and other tools to help Associates effectively manage their business and down-line organizations.

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A web-based order-entry system that handles order entry, customer information, compensation, the hierarchy of Associates, returns, invoices, and other transactional-based processes.

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A fully integrated world-wide Enterprise Resource Planning ("ERP") system that handles accounting, human resources, inventory management, production processes, quality assurance, and reporting requirements in a multinational environment.

        Our web applications are supported by a clustered environment and a redundant system outside of our home office, which serves as a disaster recovery site.

Regulatory Matters

        Product Regulation.    Numerous governmental agencies in the United States and other countries regulate the manufacturing, packaging, labeling, advertising, promoting, distributing, and the selling of nutrition, health, beauty, and weight-management products. In the United States, advertisement of our products is regulated by the Federal Trade Commission ("FTC") under the FTC Act and, where such advertising is considered to be product labeling by the FDA, under the Food, Drug, and Cosmetic Act ("FDCA") and the regulations thereunder. USANA products in the U.S. are also subject to regulation by, among others, the Consumer Product Safety Commission, the U.S. Department of Agriculture, and the Environmental Protection Agency. The manufacturing, labeling, and advertising of our products are also regulated by various governmental agencies in each country in which they are distributed. For example, in Australia, product registration, labeling and manufacturing is regulated by the TGA and, in Japan, the Ministry of Health, Labor and Welfare. In China, the State Food and Drug Administration ("SFDA") regulates product registration, labeling and manufacturing.

        Our largest selling product group includes products that are regulated as dietary supplements under the FDCA. Dietary supplements are also regulated in the United States under the Dietary Supplement Health and Education Act of 1994 ("DSHEA"), which we believe is generally favorable to the dietary supplement industry. Some of our powdered drink, food bar, and other nutrition products are regulated as foods under the Nutrition Labeling and Education Act of 1990 ("NLEA"). The NLEA establishes requirements for ingredient and nutritional labeling including product labeling claims.

        The manufacture of nutritional or dietary supplements and related products in the United States requires compliance with dietary supplement GMPs, which are based on the food-model GMPs and Pharmaceutical GMP's, with additional requirements that are specific to dietary supplements. We believe our manufacturing processes comply with these GMPs for dietary supplements.

        In general, our personal care products, which are regulated as cosmetic products by the FDA, are not subject to pre-market approval by that agency. Cosmetics, however, are subject to regulation by the FDA under the FDCA adulteration and misbranding provisions. Cosmetics also are subject to specific labeling regulations, including warning statements, if the safety of a cosmetic is not adequately substantiated or if the product may be hazardous, as well as ingredient statements and other packaging requirements under the Fair Packaging and Labeling Act. Cosmetics that meet the definition of a drug (i.e., that are intended to treat or prevent disease or affect the structure or function of the body), such as sunscreens, are regulated as drugs. Over-the-counter ("OTC") drug products, including cosmetics, may be marketed if they conform to the requirements of the OTC monograph that is applicable to that drug. Drug products not conforming to monograph requirements require an approved New Drug

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Application ("NDA") before marketing may begin. Under these provisions, if the agency were to find that a product or ingredient of one of our OTC drug products is not generally recognized as safe and effective or is not included in a final monograph that is applicable to one of our OTC drug products, we would be required to reformulate or cease marketing that product until it is the subject of an approved NDA or until the time, if ever, that the monograph is amended to include such product.

        Advertising of our products in the U.S. is subject to regulation by the FTC under the FTC Act. Under the FTC's Substantiation Doctrine, an advertiser is required to have a "reasonable basis" for all objective product claims before the claims are made. Failure to adequately substantiate claims may be considered either deceptive or unfair practices. Pursuant to this FTC requirement, we are required to have adequate substantiation for all material advertising claims that we make for our products in the U.S.

        In recent years, the FTC has initiated numerous investigations of and actions against companies that sell dietary supplement, weight-management, and cosmetic products. The FTC has issued guidance to assist companies in understanding and complying with its substantiation requirement. We believe that we have adequate substantiation for all material advertising claims that we make for our products in the U.S., and we believe that we have organized the documentation to support our advertising and promotional practices in compliance with these guidelines. However, no assurance can be given that the FTC would reach the same conclusion if it were to review or question our substantiation for our advertising claims in the U.S.

        The FTC may enforce compliance with the law in a variety of ways, both administratively and judicially, using compulsory process, cease and desist orders, and injunctions. FTC enforcement can result in orders requiring, among other things, limits on advertising, corrective advertising, consumer redress, divestiture of assets, rescission of contracts, and such other relief as the agency deems necessary to protect the public. Violation of these orders could result in substantial financial or other penalties. Although, to our knowledge, we have not been the subject of any action by the FTC, no assurance can be given that the FTC will not question our advertising or other operations in the U.S. in the future. Any action in the future by the FTC could materially and adversely affect our ability to successfully market our products in the U.S.

        The Dietary Supplement & Nonprescription Drug Consumer Protection Act requires manufacturers of dietary supplement and over-the-counter products to notify the FDA when they receive reports of serious adverse events occurring within the United States. We have an internal adverse event reporting system that has been in place for several years and believe that we are in compliance with this law.

        In markets outside the United States, prior to commencing operations or marketing products, we may be required to obtain approvals, licenses, or certifications from a country's Food Administration, Ministry of Health or comparable agency. Approvals or licensing may be conditioned on reformulation of USANA products for the market or may be unavailable with respect to certain products or product ingredients. We must also comply with local product labeling and packaging regulations that vary from country to country. For example, China extensively regulates the registration, labeling and marketing of our products. In China, our nutritional products are typically classified as "health foods" and our personal care products are typically classified as "non-special use cosmetics". The registration process for health foods is complex and generally requires extensive analysis and approval by the SFDA. As a result, it may take several years to register a product as a health food in China. We continue to work through the registration process for other health food products, which we also hope to begin selling through BabyCare in the future.

        We cannot predict the nature of any future laws, regulations, interpretations, or applications, nor can we determine what effect additional governmental regulations or administrative orders, when and if promulgated, would have on our business. Future changes could include requirements for the

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reformulation of certain products to meet new standards, the recall or discontinuation of certain products that cannot be reformulated, additional record keeping, expanded documentation of the properties of certain products, expanded or different labeling, and additional scientific substantiation. Any or all of these requirements could have a material adverse effect on our business, financial condition, and operating results.

        Network Marketing Regulation.    Laws and regulations in each country in which we operate prevent the use of deceptive or fraudulent practices that have sometimes been inappropriately associated with legitimate direct selling and network marketing activities. Generally these laws are directed at ensuring that product sales ultimately are made to consumers and that advancement within sales organizations is based on sales of the enterprise's products, rather than on investments in the organizations or on other criteria or activity that are not related to retail sales. Where required by law, we obtain regulatory approval of our network marketing system, or, where approval is not required or available, the favorable opinion of local counsel as to regulatory compliance.

        In addition to the FTC, each state has enacted its own "Little FTC Act" to regulate sales and advertising. Occasionally, we receive requests to supply information regarding our network marketing plan to regulatory agencies. Although we have, from time to time, modified our network marketing system to comply with interpretations of various regulatory authorities, we believe that our network marketing program is compliant with the laws and regulations relating to network marketing activities in our current markets. Nevertheless, we remain subject to the risk that, in one or more of our present or future markets, the marketing system or the conduct of certain Associates could be found not to be compliant with applicable laws and regulations. Failure by an Associate or by us to comply with these laws and regulations could have a material adverse effect on our business in a particular market or in general.

        The direct selling laws and regulations in China require us to operate under a business model, which is different from our global business model. In China, we operate through BabyCare's business model, which has been designed specifically for China. China's direct selling regulations contain both financial and operational restrictions for direct selling companies. Additionally, BabyCare is required to obtain various licenses and approvals to conduct its direct selling business in China. BabyCare has been granted a license to engage in direct selling activities in the municipalities of Beijing, Jiangsu, Shaanxi, and Tianjin and continues working to obtain similar licenses in other cities and provinces. These licenses allow BabyCare to operate under its direct selling business model in the approved provinces by utilizing non-employee sales representatives to sell products away from fixed retail locations. In cities and provinces where BabyCare has not been issued a direct selling license, it must operate under a retail and wholesale sales model. Under this model, BabyCare utilizes non-employee sales representatives to sell its products through retail stores in the applicable city or province. BabyCare has also engaged independent service providers that meet both the requirements to operate their own business under Chinese law as well as the conditions set forth by BabyCare to sell products and provide services to BabyCare customers. If, and when, BabyCare receives a direct selling license in additional cities and provinces, it will continue to transition away from this retail model and integrate its direct selling business model in these cities and provinces.

        We cannot predict the nature of any future law, regulation, interpretation, or application, nor can we predict what effect additional governmental legislation or regulations, judicial decisions, or administrative orders, when and if promulgated, would have on our business. It is possible that future legal requirements may require that we revise our network marketing program. Such new requirements could have a material adverse effect on our business, financial condition, and operating results.

        Transfer Pricing Regulation.    In the U.S. and many other countries, we are subject to transfer pricing and other tax regulations that are designed to ensure that appropriate levels of income are reported by our U.S. or international entities and are taxed accordingly. We have adopted transfer

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prices, which are supported by a formal transfer pricing study for the sale of products to our subsidiaries in accordance with applicable transfer pricing laws. In addition, we have entered into agreements with our subsidiaries for services and other contractual obligations, such as the payment of Associate incentives that are also supported by the same formal transfer pricing study. If the U.S. Internal Revenue Service or the taxing authorities of any other jurisdiction were to successfully challenge these agreements or require changes in our standard transfer pricing practices for products, we could become subject to higher taxes and our earnings may be adversely affected. The tax treaties between the U.S. and most countries provide competent authority for relief to avoid any double taxation. We believe that we operate in compliance with all applicable transfer pricing regulations. There can be no assurance, however, that we will continue to be found to be operating in compliance with transfer pricing regulations or that those laws will not be modified, which may require that we change our operating procedures.

Intellectual Property

        Trademarks.    We have developed and we use registered trademarks in our business, particularly relating to our corporate and product names. We own 17 trademarks that are registered with the United States Patent and Trademark Office. Federal registration of a trademark enables the registered owner of the mark to bar the unauthorized use of the registered mark in connection with a similar product in the same channels of trade by any third-party anywhere in the United States, regardless of whether the registered owner has ever used the trademark in the area where the unauthorized use occurs. We have filed applications and own trademark registrations, and we intend to register additional trademarks in countries where USANA products are or may be sold in the future. Protection of registered trademarks in some jurisdictions may not be as extensive as the protection in the United States.

        We also claim ownership and protection of certain product names, unregistered trademarks, and service marks under common law. Common law trademark rights do not provide the same level of protection that is afforded by the registration of a trademark. In addition, common law trademark rights are limited to the geographic area in which the trademark is actually used. We believe these trademarks, whether registered or claimed under common law, constitute valuable assets, adding to recognition of USANA and the effective marketing of USANA products. Trademark registration once obtained is essentially perpetual, subject to the payment of a renewal fee. We therefore believe that these proprietary rights have been and will continue to be important in enabling us to compete.

        Trade Secrets.    We own certain intellectual property, including trade secrets that we seek to protect, in part, through confidentiality agreements with employees and other parties. Even where these agreements exist, there can be no assurance that these agreements will not be breached, that we would have adequate remedies for any breach, or that our trade secrets will not otherwise become known to or independently developed by competitors. Our proprietary product formulations are generally considered trade secrets, but are not otherwise protected under intellectual property laws.

        Patents.    We have three U.S. patents. Two of our patents relate to the method of extracting an antioxidant from olives and the byproducts of olive oil production. These patents were issued in 2002 and will continue in force until December 20, 2019. In 2003, we entered into a licensing agreement with a supplier to make olive extract using our patented process. Our third patent relates to a method of self-preserving our Sensé™ line of personal care products. This patent was issued in May 2007 and will continue in force until August 5, 2024.

        We intend to protect our legal rights concerning intellectual property by all appropriate legal action. Consequently, we may become involved from time to time in litigation to determine the enforceability, scope, and validity of any of the foregoing proprietary rights. Any patent litigation could result in substantial cost and divert the efforts of management and technical personnel.

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Seasonality

        Although we are not significantly affected by seasonality, we do experience slight variations in the activity of our Associates in many of our markets in the first and fourth quarters around major cultural events such as Chinese New Year and Christmas.

Backlog

        Our products are typically shipped within 72 hours after receipt of an order. As of March 1, 2013 we had no significant backlog of orders.

Working Capital Practices

        We maintain sufficient amounts of inventory in stock in order to provide a high level of service to our Associates and Preferred Customers. Substantial inventories are required to meet the needs of our dual role as manufacturer and distributor. We also watch seasonal commodity markets and may buy ahead of normal demand to hedge against cost increases and supply risks.

Environment

        We are not aware of any instance in which we have contravened federal, state, or local laws relating to protection of the environment or in which we otherwise may be subject to liability for environmental conditions that could materially affect operations.

Employees

        As of March 1, 2013 we had approximately 1,330 employees worldwide, as measured by full-time equivalency. Our employees are not currently represented by a collective bargaining agreement, and we have not experienced work stoppages as a result of labor disputes. We believe that we have a good relationship with our employees.

Additional Available Information

        We maintain executive offices and principal facilities at 3838 West Parkway Boulevard, Salt Lake City, Utah 84120. Our telephone number is (801) 954-7100. We maintain a World Wide Web site at www.usanahealthsciences.com. The information on our web site should not be considered part of this report on Form 10-K.

        We make available, free of charge at our corporate web site, copies of our annual reports on United States Securities and Exchange Commission ("SEC") Form 10-K, quarterly reports on SEC Form 10-Q, current reports on SEC Form 8-K, proxy statements, and all amendments to these reports, as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act. This information may also be obtained from the SEC's on-line database, which is located at www.sec.gov.

Item 1A.    Risk Factors

Forward-Looking Statements and Certain Risks

We encounter substantial risks in our business, any one of which may adversely affect our business, results of operations or financial condition. The fact that some of these risk factors may be the same or similar to those that we have filed with the Securities and Exchange Commission in past reports, means only that the risks are present in multiple periods. We believe that many of the risks that are described here are part of doing business in the industry in which we operate and will likely be present in all periods. The fact that certain risks are endemic to the industry does not lessen their significance. These risk factors should be

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read together with the other items in this report, including Item 1, "Business," and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations." Among others, risks and uncertainties that may affect our business, financial condition, performance, development, and results of operations include the following:

        As a network marketing company, we are dependent upon an independent sales force and we do not have direct control over the marketing of our products.    We rely on non-employee, independent Associates to market and sell our products and to generate our sales. Associates typically market and sell our products on a part-time basis and likely will engage in other business activities, some of which may compete with us. We have a large number of Associates and a relatively small corporate staff to implement our marketing programs and to provide motivational support to our Associates. We rely primarily upon our Associates to attract, train and motivate new Associates. Our sales are directly dependent upon the efforts of our Associates. Our ability to maintain and increase sales in the future will depend in large part upon our success in increasing the number of new Associates, retaining and motivating our existing Associates, and in improving the productivity of our Associates. Moreover, our ability to continue to attract and retain Associates can be affected by a number of factors, some of which are beyond our control, including:

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General business and economic conditions;

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Adverse publicity or negative misinformation about us or our products;

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Public perceptions about network marketing programs;

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High-visibility investigations or legal proceedings against network marketing companies by federal or state authorities or private citizens;

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Public perceptions about the value and efficacy of nutritional, personal care, or weight management products generally;

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Other competing network marketing organizations entering into the marketplace that may recruit our existing Associates or reduce the potential pool of new Associates; and

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Changes to the Compensation Plan required by law or implemented for business reasons that make attracting and retaining Associates more difficult.

        We can provide no assurance that the number of Associates will increase or remain constant or that their productivity will increase. Our Associates may terminate their services at any time, and, like most direct selling companies, we experience a high turnover among new Associates from year to year. In previous fiscal years, we have experienced both increases and declines in our overall number of active Associates. A few of our mature markets, however, including the United States, have experienced a decline in the number of active Associates for several years. If our initiatives for 2013 do not drive growth in our Associate numbers, particularly in the United States and other markets where our Associate numbers have declined, our operating results could be harmed. We cannot accurately predict any fluctuation in the number and productivity of Associates because we primarily rely upon existing Associates to sponsor and train new Associates and to motivate new and existing Associates. Our operating results in other markets could also be adversely affected if we and our existing Associates do not generate sufficient interest in our business to successfully retain existing Associates and attract new Associates.

        Our Hong Kong market accounts for a significant part of our business. Any decline in sales or customers in this market, without a corresponding increase in sales and customers in our China market through BabyCare, would harm our business, financial condition and results of operations.    Over the past few years, the majority of our sales and Associate growth has occurred in our Hong Kong market, which represented 27.9% of our net sales in 2012. Following our acquisition of BabyCare in China, we announced that we would shift our international attention to growing our business in

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China. As a result of this strategy, we will likely experience a decline in sales and/or customers in our Hong Kong market. Any decline in the performance of our Hong Kong market without a corresponding increase in the performance in China would harm our business, financial condition and results of operations. We must comply with significant legal and regulatory requirements to engage in direct selling in China and use a separate compensation plan for our Associates in China. Although we believe that, in light of our successful Asian Associate base, we will be successful in growing our business in China, it is difficult to assess the extent to which our Chinese business model and Associate compensation plan will be accepted or successful in that market. Although we are required to conduct our operations in China through BabyCare, we believe that our long-term success in China will depend on our ability to successfully integrate, to the extent possible, our operations with BabyCare's operations. This includes, among other things, continuing to register current and future USANA products, in a timely manner, for sale in China and educating our Associates on our Compensation Plan in China. In light of the factors listed above, and the other risks to our business, there can be no assurance that we will not experience a decline in sales and/or customers in our Hong Kong market or that we will be successful in growing sales and customers in China.

        Difficult economic conditions may adversely affect our business.    Over the past few years, economic conditions in many of the markets where we sell our products have resulted in challenges to our business. This is particularly true in our North America region, where, although we have seen a recent improvement, we continue to experience difficulty generating meaningful growth. We cannot predict whether world or market specific economies will improve or deteriorate in the future. If difficult economic conditions continue or worsen, we could experience declines in net sales, profitability and cash flow due to lower demand for our products or other factors caused by economic challenges faced by our customers, potential customers or suppliers. Additionally, these conditions may result in a material adverse effect on our liquidity and capital resources or otherwise negatively impact our operations or overall financial condition.

        The loss of a significant USANA Associate or downline sales organization could adversely affect our business.    We rely on the successful efforts of our Associates that become leaders within our Compensation Plan. Our Compensation Plan is designed to permit Associates to sponsor new Associates, creating multiple "business centers," or levels in the downline organization. Sponsored Associates are referred to as "downline" Associates within the sponsoring Associate's "downline network." If these downline Associates in turn sponsor new Associates, additional business centers are created, with the new downline Associates becoming part of the original sponsoring Associate's downline network. As a result of this network marketing system, Associates develop business relationships with other Associates. The loss of a key Associate or group of Associates, large turnover or decreases in the size of the key Associate force, seasonal or other decreases in purchase volume, sales volume reduction, the costs associated with training new Associates, and other related expenses may adversely affect our business, financial condition, or results of operations.

        Our Associate Compensation Plan, or changes we make to it, may be viewed negatively by some Associates, could fail to achieve our desired objectives, and could have a negative impact on our business.    Our line of business is highly competitive and sensitive to the introduction of new competitors, new products and/or new distributor compensation plans. Network marketing companies commonly attempt to attract new distributors by offering generous distributor compensation plans. From time to time, we modify components of our Compensation Plan in an effort to (i) keep it competitive and attractive to existing and potential Associates, (ii) cause or address a change in Associate behavior, (iii) incent Associates to grow our business, (iv) conform to legal and regulatory requirements, and (v) address other business needs. In light of the size and diversity of our Associate force and the complexity of our Compensation Plan, it is difficult to predict how any changes to the plan will be viewed by Associates and whether such changes will achieve their desired results. For example, in 2012, we made changes to the matching bonus component of our Compensation Plan in an

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effort to make it a more long-term focused incentive and to make it successful in all of our regions. Our old matching bonus program was successful in certain of our Asia Pacific markets, but was unsuccessful in North America. In 2010, we also made changes to our Compensation Plan to encourage more entrepreneurial Associates to join the Company and build a sales organization at an accelerated pace. While these changes successfully caused us to enroll more entrepreneurial Associates, they have made it more challenging for us to enroll Associates in general, including those who simply consume our products and are less entrepreneurial. As a result, our Associate counts have decreased in many of our markets, including North America. There can be no assurance that our Associate Compensation Plan will allow us to successfully attract new Associates or retain existing Associates, nor can we assure that any changes we make to our Compensation Plan will achieve our desired results.

        The violation of marketing or advertising laws by Associates in connection with the sale of our products or the improper promotion of our Compensation Plan could adversely affect our business.    All Associates sign a written contract and agree to adhere to our policies and procedures. Although these policies and procedures prohibit Associates from making false, misleading and other improper claims regarding products or income potential from the distribution of the products, Associates may, from time to time, without our knowledge and in violation of our policies, create promotional materials or otherwise provide information that does not accurately describe our marketing program. They also may make statements regarding potential earnings, product claims, or other matters in violation of our policies or applicable laws and regulations concerning these matters. These violations may result in legal action against us by regulatory agencies, state attorneys general, or private parties. Legal actions against our Associates or others who are associated with us could lead to increased regulatory scrutiny of our business, including our network marketing system. We take what we believe to be commercially reasonable steps to monitor the activities of our Associates to guard against misrepresentation and other illegal or unethical conduct by Associates and to assure that the terms of our policies and procedures and Compensation Plan are observed. There can be no assurance, however, that our efforts in this regard will be sufficient to accomplish this objective, particularly in times/regions where we may experience rapid growth. Adverse publicity resulting from such activities could also make it more difficult for us to attract and retain Associates and may have an adverse effect on our business, financial condition, and results of operations.

        Legal action by former Associates or third parties against us could harm our business.    We continually monitor and review our Associates' compliance with our policies and procedures as well the laws and regulations applicable to our business. From time to time, some Associates fail to adhere to our policies and procedures. If this happens, we may take disciplinary action against the particular Associate. This disciplinary action is based on the facts and circumstances of the particular case and may include anything from warnings for minor violations to termination of an Associate's purchase and distribution rights for more serious violations. From time to time, we become involved in litigation with an Associate whose purchase and distribution rights have been terminated. We consider this type of litigation to be routine and incidental to our business. While neither the existence nor the outcome of this type of litigation is typically material to our business, in the past we have been involved in litigation of this nature that resulted in a large cash award against the Company. Our competitors have also been involved in this type of litigation, and in some cases class actions, where the result has been a large cash award against the competitor or a large cash settlement by the competitor. These types of challenges, awards or settlements could provide incentives for similar actions by other former Associates against us in the future. Any such challenge involving us or others in our industry could harm our business by resulting in fines or damages against us, creating adverse publicity about us or our industry, or hurting our ability to attract and retain customers. We believe that Associate compliance is critical to the integrity of our business, and, therefore, we will continue to be aggressive in ensuring that our Associates comply with our policies and procedures. As such, there can be no assurance that this type of litigation will not occur again in the future or result in an award or settlement that has a materially adverse effect on our business.

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        Network marketing is subject to intense government scrutiny and regulation, which adds to the expense of doing business and the possibility that changes in the law might adversely affect our ability to sell some of our products in certain markets.    Network marketing systems, such as ours, are frequently subject to laws and regulations, both in the U.S. and internationally, that are directed at ensuring that product sales are made to consumers of the products and that compensation, recognition, and advancement within the marketing organization are based on the sale of products rather than on investment in the sponsoring company. Regulatory authorities, in one or more of our present or future markets, could determine that our network marketing system does not comply with these laws and regulations or that it is prohibited. Failure to comply with these laws and regulations or such a prohibition could have a material adverse effect on our business, financial condition, or results of operations. Further, we may simply be prohibited from distributing products through a network-marketing channel in some countries, or we may be forced to alter our Compensation Plan.

        We are also subject to the risk that new laws or regulations might be implemented or that current laws or regulations might change, which could require us to change or modify the way we conduct our business in certain markets. This could be particularly detrimental to us if we had to change or modify the way we conduct business in markets that represent a significant percentage of our net sales. For example, the FTC released a proposed New Business Opportunity Rule in April 2006. As initially drafted, the proposed rule would have required pre-sale disclosures for all business opportunities, which may have included network marketing compensation plans such as ours. However, in March 2008 the FTC issued a revised notice of proposed rulemaking, and, in December 2011, the FTC issued its final rule. This final rule does not attempt to cover multi-level marketing companies.

        We may have or incur obligations relating to the activities of our Associates.    Our Associates are subject to taxation, and, in some instances, legislation or governmental agencies impose an obligation on us to collect taxes, such as sales taxes or value added taxes, and to maintain appropriate records of such transactions. In addition, we are subject to the risk in some jurisdictions of being responsible for social security and similar taxes with respect to our Associates. In the event that local laws and regulations or the interpretation of local laws and regulations change to require us to treat our independent Associates as employees, or if our Associates are deemed by local regulatory authorities in one or more of the jurisdictions in which we operate to be our employees rather than independent contractors, under existing laws and interpretations, we may be held responsible for a variety of obligations that are imposed upon employers relating to their employees, including social security and related taxes in those jurisdictions, plus any related assessments and penalties, which could harm our financial condition and operating results.

        Our business is subject to the effects of adverse publicity and negative public perception.    Our ability to attract and retain Associates and to sustain and enhance sales through our Associates can be affected by adverse publicity or negative public perception regarding our industry, our competition, or our business generally. This negative public perception may include publicity regarding the legality of network marketing, the quality or efficacy of nutritional supplement products or ingredients in general or our products or ingredients specifically, and regulatory investigations, regardless of whether those investigations involve us or our Associates or the business practices or products of our competitors or other network marketing companies. In 2007, we were the victim of false statements made to the press and regulatory agencies, causing us to incur significant expense in defending and dispelling the allegations during 2007 and 2008. More recently, in November 2012, we were again the target of false and misleading statements concerning our business practices, particularly in China and Hong Kong. This adverse publicity also adversely impacted the market price of our stock and caused insecurity among our Associates. There can be no assurance that we will not be subject to adverse publicity or negative public perception in the future or that such adverse publicity will not have a material adverse effect on our business, financial condition, or results of operations.

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        The loss of key management personnel could adversely affect our business.    Our Founder, Dr. Myron Wentz, is a highly visible spokesman for our products and our business, and our message is based in large part on his vision and reputation, which helps distinguish us from our competitors. Any loss or limitation on Dr. Wentz as a lead spokesman for our mission, business, and products could have a material adverse effect upon our business, financial condition, or results of operations. In addition, our executive officers are primarily responsible for our day-to-day operations, and we believe our success depends in part on our ability to retain our executive officers, to compensate our executive officers at attractive levels, and to continue to attract additional qualified individuals to our management team. We cannot guarantee continued service by our key executive officers. We do not maintain key man life insurance on any of our executive officers, nor do we have an employment agreement with any of our executive officers. The loss or limitation of the services of any of our executive officers or the inability to attract additional qualified management personnel could have a material adverse effect on our business, financial condition, or results of operations.

        The beneficial ownership of a significant percentage of our common stock gives our founder and parties related to or affiliated with him effective control, and limits the influence of other shareholders on important policy and management issues.    Gull Holdings, Ltd., an entity that is solely owned and controlled by Dr. Wentz, owned 48% of our outstanding common stock at December 29, 2012. By virtue of this stock ownership, Dr. Wentz is able to exert significant influence over the election of the members of our Board of Directors and our business affairs. This concentration of ownership could also have the effect of delaying, deterring, or preventing a change in control that might otherwise be beneficial to shareholders. In addition, Dr. Wentz also currently serves as Chairman of our Board of Directors and his son, David Wentz, is our Chief Executive Officer. There can be no assurance that conflicts of interest will not arise with respect to these relationships or that conflicts will be resolved in a manner favorable to other shareholders of the Company.

        Sales by our shareholders of a substantial number of shares of our common stock in the public market could adversely affect the market price of our common stock.    A large number of outstanding shares of our common stock are held by several of our principal shareholders. If any of these principal shareholders were to decide to sell large amounts of stock over a short period of time such sales could cause the market price of our common stock to decline.

        Our stock price has been volatile and subject to various market conditions.    There can be no assurance that an active market in our stock will be sustained. The trading price of our common stock has been subject to wide fluctuations. We have a relatively small public float compared to the number of our shares outstanding. Accordingly, we cannot predict the extent to which investors' interest in our common stock will provide an active and liquid trading market. Due to our limited public float, we are vulnerable to investors taking a "short position" in our common stock, which is likely to have a depressing effect on the price of our common stock and add increased volatility to our trading market. The price of our common stock also may fluctuate in the future in response to quarter-to-quarter variations in operating results, material announcements by us or our competitors, governmental regulatory action, conditions in the nutritional supplement industry, negative publicity, or other events or factors, many of which are beyond our control. In addition, the stock market has historically experienced significant price and volume fluctuations, which have particularly affected the market prices of many dietary and nutritional supplement companies and which have, in certain cases, not had a strong correlation to the operating performance of these companies. Our operating results in future quarters may be below the expectations of securities analysts and investors. If that were to occur, the price of our common stock would likely decline, perhaps substantially.

        Our products and manufacturing activities are subject to extensive government regulation, which could limit or prevent the sale of our products in some markets.    The manufacture, packaging, labeling, advertising, promotion, distribution, and sale of our products are subject to regulation by

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numerous national and local governmental agencies in the United States and other countries, including the U.S. Food and Drug Administration ("FDA") and the U.S. Federal Trade Commission ("FTC"). For example, failure to comply with FDA regulatory requirements may result in, among other things, injunctions, product withdrawals, recalls, product seizures, fines, and criminal prosecutions. Any action of this type by the FDA could materially adversely affect our ability to successfully market our products. With respect to FTC matters, if the FTC has reason to believe the law is being violated (e.g., failure to possess adequate substantiation for product claims), it can initiate an enforcement action. The FTC has a variety of processes and remedies available to it for enforcement, both administratively and judicially, including compulsory process authority, cease and desist orders, and injunctions. FTC enforcement could result in orders requiring, among other things, limits on advertising, consumer redress, divestiture of assets, rescission of contracts, or such other relief as may be deemed necessary. Violation of these orders could result in substantial financial or other penalties. Any action against us by the FTC could materially and adversely affect our ability to successfully market our products.

        The manufacture of nutritional or dietary supplements and related products in the United States requires compliance with dietary supplement GMPs, which are based on the food-model GMPs, with additional requirements that are specific to dietary supplements. We believe our manufacturing processes comply with these GMPs for dietary supplements. Nevertheless, any action by the FDA which determined that our processes were non-compliant with dietary supplement GMPs, could materially adversely affect our ability to manufacture and market our products. Additionally, the Dietary Supplement & Nonprescription Drug Consumer Protection Act requires manufacturers of dietary supplement and over-the-counter products to notify the FDA when they receive reports of serious adverse events occurring within the United States. Potential FDA responses to any such report could include injunctions, product withdrawals, recalls, product seizures, fines, or criminal prosecutions. We have an internal adverse event reporting system that has been in place for several years and believe that we are in compliance with this new law. Nevertheless, any action by the FDA in response to a serious adverse event report that may be filed by us could materially and adversely affect our ability to successfully market our products.

        In markets outside the United States, prior to commencing operations or marketing our products, we may be required to obtain approvals, licenses, or certifications from a country's ministry of health or a comparable agency. For example, our manufacturing facility has been registered with the FDA and Health Canada and is certified by Australia's TGA. Approvals or licensing may be conditioned on reformulation of products or may be unavailable with respect to certain products or product ingredients. We must also comply with product labeling and packaging regulations that vary from country to country. These activities are also subject to regulation by various agencies of the countries in which our products are sold.

        We cannot predict the nature of any future laws, regulations, interpretations, or applications, nor can we determine what effect additional governmental regulations or administrative orders, when and if promulgated, could have on our business. These potential effects could include, however, requirements for the reformulation of certain products to meet new standards, the recall or discontinuance of certain products, additional record keeping and reporting requirements, expanded documentation of the properties of certain products, expanded or different labeling, or additional scientific substantiation. Any or all of these requirements could have a material adverse effect on our business, financial condition, or results of operations.

        Risks associated with operating in international markets could restrict our ability to expand globally and harm our business and prospects, and we could be adversely affected by our failure to comply with the laws applicable to our foreign activities, including the U.S. Foreign Corrupt Practices Act and other similar worldwide anti-bribery laws.    Our international operations are presently conducted in various foreign countries, and we expect that the number of countries in which we

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operate could expand over the next few years. Economic conditions, including those resulting from wars, civil unrest, acts of terrorism and other conflicts or volatility in the global markets, may adversely affect our customers, their demand for our products and their ability to pay for our products. In addition, there are numerous risks inherent in conducting our business internationally, including, but not limited to, potential instability in international markets, changes in regulatory requirements applicable to international operations, currency fluctuations in foreign countries, political, economic and social conditions in foreign countries and complex U.S. and foreign laws and treaties, including tax laws and the U.S. Foreign Corrupt Practices Act (FCPA). These risks could restrict our ability to sell products to or to obtain international customers or to operate our international business profitably, and our overall business and results of operations could be negatively impacted by our foreign activities.

        The FCPA and similar anti-bribery laws in other jurisdictions prohibit U.S.-based companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or retaining business. We pursue opportunities in certain parts of the world that experience government corruption, and in certain circumstances, compliance with anti-bribery laws may conflict with local customs and practices. Our policies mandate compliance with all applicable anti-bribery laws. Further, we require our partners, subcontractors, agents and others who work for us or on our behalf to comply with the FCPA and other anti-bribery laws. Although we have policies and procedures designed to ensure that we, our employees, our agents and others who work with us in foreign countries comply with the FCPA and other anti-bribery laws, there is no assurance that such policies or procedures will protect us against liability under the FCPA or other laws for actions taken by our agents, employees and intermediaries. If we are found to be liable for FCPA violations (either due to our own acts or our inadvertence, or due to the acts or inadvertence of others), we could incur severe criminal or civil penalties or other sanctions, which could have a material adverse effect on our reputation, business, results of operations or cash flows. In addition, detecting, investigating and resolving actual or alleged FCPA violations is expensive and could consume significant time and attention of our senior management.

        Our net sales are significantly affected by our success in growing existing markets, as well as opening new markets. As we continue to expand into international markets, our business becomes increasingly subject to political, economic, legal and other risks. Changes in these markets could adversely affect our business.    We have a history of expanding into new international markets. We believe that our ability to achieve future growth is dependent in part on our ability to continue our international expansion efforts. There can be no assurance, however, that we will be able to grow in our existing international markets, enter new international markets on a timely basis, or that new markets will be profitable. We must overcome significant regulatory and legal barriers before we can begin marketing in any international market. Also, before marketing commences in a new country or market, it is difficult to assess the extent to which our products and sales techniques will be accepted or successful in any given country. In addition to significant regulatory barriers, we may also encounter problems conducting operations in new markets with different cultures and legal systems from those encountered elsewhere. We may be required to reformulate certain of our products before commencing sales in a given country. Once we have entered a market, we must adhere to the regulatory and legal requirements of that market. No assurance can be given that we will be able to successfully reformulate our products in any of our current or potential international markets to meet local regulatory requirements or to attract local customers. Our failure to do so could have a material adverse effect on our business, financial condition, or results of operations. There can be no assurance that we will be able to obtain and retain necessary permits and approvals in new markets, or that we will have sufficient capital to finance our expansion efforts in a timely manner.

        In many market areas, other network marketing companies already have significant market penetration, the effect of which could be to desensitize the local Associate population to a new opportunity, such as USANA, or to make it more difficult for us to attract qualified Associates. Even if

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we are able to commence operations in new markets, there may not be a sufficient population of persons who are interested in our network marketing system. We believe our future success will depend in part on our ability to seamlessly integrate our Compensation Plan across all markets where legally permissible. There can be no assurance, however, that we will be able to utilize our Compensation Plan seamlessly in all existing or future markets. For example, in August 2010, we indirectly acquired BabyCare, a nutritional supplement company that is now licensed by the government of China to engage in direct selling in the Municipalities of Beijing, Jiangsu, Shaanxi, and Tianjin. In accordance with Chinese law, we utilize a compensation plan that has been designed specifically for China and implemented by BabyCare separately from our Compensation Plan in our other markets.

        Our operations in China are subject to significant government scrutiny and may be harmed by the results of such scrutiny.    Because of the government's significant concerns about direct selling activities, government regulators in China closely scrutinize activities of direct selling companies or activities that resemble direct selling. The regulatory environment in China with regard to direct selling is evolving, and officials in multiple national and local levels in the Chinese government often exercise broad discretion in deciding how to interpret and apply applicable regulations. In the past, the government has taken significant actions against companies that the government has found have been engaging in direct selling activities in violation of applicable law, including shutting down their businesses and imposing substantial fines.

        Any determination that our operations or activities, or the activities of our sales employees, contractual sales promoters, direct sellers or Associates are not in compliance with applicable regulations could result in substantial fines, extended interruptions of business, termination of necessary licenses and permits, including our direct selling licenses, or restrictions on our ability to open new stores, obtain approvals for service centers or expand into new locations, all of which could harm our business.

        Chinese regulations prevent persons who are not Chinese nationals from engaging in direct selling in China.    We cannot guarantee that any of our Associates living outside of China or any of our sales representatives or independent Associates in China have not engaged or will not engage in activities that violate our policies in this market, or that violate Chinese law or other applicable law, and therefore result in regulatory action and adverse publicity, which would harm our business in China.

        Our business will be adversely affected if Chinese regulatory authorities view our direct selling and other corporate activities as non-compliant with applicable Chinese laws and regulations.    Our operations in China may be deemed to be subject to numerous Chinese commercial laws, including restrictions on foreign investments. In addition, the Chinese regulatory authorities with jurisdiction over our operations may change applicable laws and regulations or impose additional requirements and conditions with which we may be unable to comply. Our operations in China are licensed to engage in direct selling activity in the Municipalities of Beijing, Jiangsu, Shaanxi, and Tianjin. We have not sought confirmation from Chinese regulatory governmental authorities whether our structure and business in China complies with applicable Chinese laws and regulations, including regulation of direct selling business in China. If:

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Chinese authorities deem our corporate activities as violating applicable Chinese laws and regulations (including restrictions on foreign investments);

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Chinese regulatory authorities change applicable laws and regulations or impose additional requirements and conditions with which we are unable to comply; or

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We are found to violate any existing or future Chinese laws or regulations;

the relevant Chinese authorities would have broad discretion to deal with such a violation by levying fines, revoking business licenses, requiring us to restructure our China ownership or operations, and/or

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require us to discontinue some or all of our business in China. Any of these actions would adversely affect our business.

        Our ability to expand our direct selling operations in China is dependent upon the Chinese government granting us additional direct selling licenses.    We will be required to obtain licenses from municipalities and provinces within China where we currently do not hold direct selling licenses. We currently hold four such licenses and we are in the process of applying for licenses in additional jurisdictions within China. If we are unable to obtain additional necessary national and local government approvals in China as quickly as we would like, our ability to expand and grow our business could be negatively impacted. The process for obtaining the necessary government approvals to conduct direct selling continues to evolve. The process is time-consuming and expensive. The complexity of the approval process, as well as the government's continued cautious approach as direct selling develops in China, makes it difficult to predict the timeline for obtaining additional approvals. If the results of the government's evaluation of our direct selling activities result in further delays in obtaining licenses elsewhere, or if the current processes for obtaining approvals are delayed for any reason or are changed or are interpreted differently than currently understood, our ability to expand direct selling in China and our growth prospects in this market, could be negatively impacted. We currently are only allowed by the PRC to sell through direct selling the limited number of products that we manufacture in China. If we wish to sell additional products (other than those already approved) through the direct-selling channel, we must successfully complete a product approval process similar to the process described above. We cannot assure that we will be successful in obtaining such additional product approvals on a timely basis or at all.

        If our operations in China are successful, we may experience rapid growth in China, and there can be no assurances that we will be able to successfully manage rapid expansion of our direct selling activities under license in China or the related manufacturing and retail operations required to support this expansion.    If we are unable to effectively manage such growth and expansion, including expansion of our retail stores, warehouses, and manufacturing operations, our government relations may be compromised and our operations in China may be harmed.

        A return to profit repatriation controls may limit the ability to expand business and reduce the attractiveness of investing in Chinese business opportunities.    Chinese law allows enterprises owned by foreign investors to remit their profits, dividends and bonuses earned in China to other countries, and the remittance does not require prior approval by the State Administration of Foreign Exchange ("SAFE"). SAFE regulations require extensive documentation and reporting, some of which are burdensome and slows payments. If there is a return to payment restrictions and reporting, the ability of a Chinese company to attract investors will be reduced. Also, current investors may not be able to obtain the profits of the businesses they own for other reasons. Relevant Chinese law and regulation permit payment of dividends only from retained earnings, if any, determined in accordance with Chinese accounting standards and regulations. It is possible that the Chinese tax authorities may require changes in the calculation of distributable net income of our operations in China that may limit our ability to pay dividends and other distributions to stockholders. Chinese law requires companies to set aside a portion of net income to fund certain reserves, which amounts are not distributable as dividends. These rules and possible changes could restrict us from repatriating funds.

        Our ability to enforce our material agreements in China is uncertain.    Chinese law governs our material operating agreements in China. There is no assurance that we will be able to enforce those material agreements or that remedies will be available outside China. The Chinese judiciary is relatively inexperienced in enforcing corporate and commercial laws, leading to a substantial degree of uncertainty as to the outcome of litigation. The inability to enforce or obtain a remedy under our agreements may have a material adverse impact on our operations.

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        Intellectual property rights are difficult to enforce in China.    Chinese commercial law is relatively underdeveloped compared to most of our other major markets, and, as a result, we may have limited legal recourse in the event we encounter significant difficulties with patent or trademark infringers. Limited protection of intellectual property is available under Chinese law, and the local manufacturing of our products may subject us to an increased risk that unauthorized parties may attempt to manufacture and sell counterfeited products or copy or otherwise obtain or use our product formulations. As a result, we cannot assure that we will be able to adequately protect our product formulations or other intellectual property in China.

        An increase in the amount of incentives paid to Associates reduces our profitability.    The payment of Associate incentives is our most significant expense. These incentives include commissions, bonuses, and certain awards and prizes. From time to time, we adjust our Compensation Plan to better manage these incentives as a percentage of net sales. We closely monitor the amount of Associate incentives that are paid as a percentage of net sales, and may periodically adjust our Compensation Plan to prevent Associate incentives from having a significant adverse effect on our earnings. There can be no assurance that changes to the Compensation Plan or product pricing will be successful in achieving target levels of Associate incentives as a percentage of net sales. Furthermore, such changes may make it difficult to attract and retain qualified and motivated Associates or cause us to lose some of our longer-standing Associates.

        Our business is subject to the risks associated with intense competition from larger, wealthier, and more established competitors.    We face intense competition in the business of distributing and marketing nutritional supplements, vitamins and minerals, personal care products, and other nutritional products, as described in greater detail in "Business—Competition." Numerous manufacturers, Associates, and retailers compete actively for consumers and, in the case of other network marketing companies, for Associates. There can be no assurance that we will be able to compete in this intensely competitive environment. In addition, nutrition and personal care products can be purchased in a wide variety of channels of distribution, including retail stores. Our product offerings in each product category are also relatively small, compared to the wide variety of products offered by many of our competitors.

        We are also subject to significant competition from other network marketing organizations for the time, attention, and commitment of new and existing Associates. Our ability to remain competitive depends, in significant part, on our success in recruiting and retaining Associates. There can be no assurance that our programs for recruiting and retaining Associates will be successful. The pool of individuals who may be interested in network marketing is limited in each market, and it is reduced to the extent other network marketing companies successfully recruit these individuals into their businesses. Although we believe we offer an attractive opportunity for Associates, there can be no assurance that other network marketing companies will not be able to recruit our existing Associates or deplete the pool of potential Associates in a given market.

        Taxation and transfer pricing considerations affect our operations.    In many countries, including the United States, we are subject to transfer pricing and other tax regulations that are designed to ensure that appropriate levels of income are reported by our U.S. and foreign entities and are taxed appropriately. Although we believe that we are in compliance with all material regulations and restrictions in this regard, we are subject to the risk that taxing authorities could audit our transfer pricing and related practices and assert that additional taxes are owed. We are also subject to the risk that taxing authorities in any of our markets could change the laws in a manner that may increase our effective tax rate and/or duties on our products. Under tax treaties, we are eligible to receive foreign tax credits in the United States for foreign taxes paid abroad. In the event any audits or assessments are concluded adversely to us, we may or may not be able to offset the consolidated effect of foreign income tax assessments through the use of U.S. foreign tax credits. Currently, we are utilizing all

33

foreign tax credits in the year in which they arise. Because the laws and regulations governing U.S. foreign tax credits are complex and subject to periodic legislative amendment, we cannot be sure that we would in fact be able to take advantage of any foreign tax credits in the future. As a result, adverse outcomes in these matters could have a material impact on our financial condition or operating results.

        Fluctuation in the value of currency exchange rates with the U.S. dollar affects our operations and our net sales and earnings.    Over the past several years, a majority of our net sales have been generated outside the United States. Such sales for the year ended December 29, 2012 represented 76.5% of our total net sales. We will likely continue to expand our operations into new markets, exposing us to expanding risks of changes in social, political, and economic conditions, including changes in the laws and policies that govern investment or exchange in these markets. Because a significant portion of our sales are generated outside the United States, exchange rate fluctuations will have a significant effect on our sales and earnings. Further, if exchange rates fluctuate dramatically, it may become uneconomical for us to establish or to continue activities in certain countries. For instance, changes in currency exchange rates may affect the relative prices at which we and our competitors sell similar products in the same market. As our business expands outside the United States, an increasing share of our net sales and operating costs will be transacted in currencies other than the U.S. dollar. Accounting practices require that our non-U.S. financial results be converted to U.S. dollars for reporting purposes. Consequently, our reported net earnings may be significantly affected by fluctuations in currency exchange rates, with earnings generally increasing with a weaker U.S. dollar and decreasing with a strengthening U.S. dollar. Product purchases by our subsidiaries are transacted in U.S. dollars. As our operations expand in countries where transactions may be made in currencies other than the U.S. dollar, our operating results will be increasingly subject to the risks of exchange rate fluctuations and we may not be able to accurately estimate the impact that these changes might have on our future business, product pricing, results of operations, or financial condition. In addition, the value of the U.S. dollar in relation to other currencies may also adversely affect our sales to customers outside the United States. Currently our strategy for reducing our exposure to currency fluctuation includes the timely and efficient repatriation of earnings from international markets and settlement of intercompany transactions. At times in the past we have sought to reduce exposure to fluctuations in currency exchange rates by creating offsetting positions through the use of currency exchange contracts on cash that we repatriate. We did not enter into any such contracts during 2012, but we may look to something like this in the coming year. We do not use derivative instruments for speculative purposes. There can be no assurance that we will be successful in protecting our operating results or cash flows from potentially adverse effects of currency exchange fluctuations. Any such adverse effects could also adversely affect our business, financial condition, or results of operations.

        Disruptions to shipping channels that we use to distribute our products to international warehouses may adversely affect our margins and profitability in those markets.    In the past, we have felt the impact of disruptions to the shipping channels used to distribute our products; these disruptions have included increased port congestion, a lack of capacity on the railroads, and a shortage of manpower. Although we have not recently experienced significant shipping disruptions, we continue to watch for signs of upcoming congestion. Congestion to ports can affect previously negotiated contracts with shipping companies, resulting in unexpected increases in shipping costs and reduction in our net sales.

        The inability to obtain adequate supplies of raw materials for products at favorable prices, or at all, or the inability to obtain certain products from third-party suppliers, could have a material adverse effect on our business, financial condition, or results of operations.    We acquire all of our raw materials for the manufacture of our products from third-party suppliers. Materials used in manufacturing our products are purchased through purchase order, often invoking pre-negotiated annual supply agreements. We have very few long-term agreements for the supply of these materials. We also contract with third-party manufacturers and suppliers for the production of some of our

34

products, including most of our gelatin-capsuled supplements, Probiotic, Rev3 Energy™ Drink, our powdered drink mixes and nutrition bars, and certain of our personal care products. These third-party suppliers and manufacturers produce and, in most cases, package these products according to formulations that have been developed by, or in conjunction with, our in-house product development team. There is a risk that any of our suppliers or manufacturers could discontinue manufacturing our products or selling their products to us. Although we believe that we could establish alternate sources for most of our products, any delay in locating and establishing relationships with other sources could result in product shortages or back orders for products, with a resulting loss of net sales. In certain situations, we may be required to alter our products or to substitute different products from another source. We have, in the past, discontinued or temporarily stopped sales of certain products that were manufactured by third parties while those products were on back order. There can be no assurance that suppliers will provide the raw materials or manufactured products that are needed by us in the quantities that we request or at the prices that we are willing to pay. Because we do not control the actual production of certain raw materials and products, we are also subject to delays caused by any interruption in the production of these materials, based on conditions not within our control, including weather, crop conditions, transportation interruptions, strikes by supplier employees, and natural disasters or other catastrophic events.

        Shortages of raw materials may temporarily adversely affect our margins or our profitability related to the sale of those products.    In the past, we have experienced temporary shortages of the raw materials used in certain of our nutritional products. Although we had identified multiple sources to supply such raw material ingredients, quantities of the materials we purchased during these shortages were at higher prices, which negatively impacted our gross margins for those products. While we periodically experience price increases due to unexpected raw material shortages and other unanticipated events, we have been able to manage this by increasing the price at which we sell our products, therefore, this has historically not resulted in a material effect on our overall cost of goods sold. However, there is no assurance that our raw materials will not be significantly adversely affected in the future, causing our profitability to be reduced.

        Nutritional supplement products may be supported by only limited availability of conclusive clinical studies.    Our products include nutritional supplements that are made from vitamins, minerals, herbs, and other substances for which there is a long history of human consumption. Some of our products contain innovative ingredients or combinations of ingredients. Although we believe that all of our products are safe when taken as directed, there is little long-term experience with human consumption of certain of these product ingredients or combinations of ingredients in concentrated form. We conduct research and test the formulation and production of our products, but we have performed or sponsored only limited clinical studies. Furthermore, because we are highly dependent on consumers' perception of the efficacy, safety, and quality of our products, as well as similar products distributed by other companies, we could be adversely affected in the event that those products prove or are asserted to be ineffective or harmful to consumers or in the event of adverse publicity associated with any illness or other adverse effects resulting from consumers' use or misuse of our products or similar products of our competitors.

        As a manufacturer, we may be subject to product liability claims.    As a manufacturer and a distributor of products for human consumption and topical application, we could become exposed to product liability claims and litigation. Additionally, the manufacture and sale of these products involves the risk of injury to consumers due to tampering by unauthorized third parties or product contamination. To date, we have not been a party to any product liability litigation, although, like any dietary supplement company, we have received reports from individuals who have asserted that they suffered adverse consequences as a result of using our products. The number of reports we have received to date is nominal. These matters historically have been settled to our satisfaction and have not resulted in material payments. We are aware of no instance in which any of our products are or

35

have been defective in any way that could give rise to material losses or expenditures related to product liability claims. Although we maintain product liability insurance, which we believe to be adequate for our needs, there can be no assurance that we will not be subject to such claims in the future or that our insurance coverage will be adequate.

        Our business is subject to particular intellectual property risks.    Most of our products are not protected by patents. The labeling regulations governing our nutritional supplements require that the ingredients of such products be precisely and accurately indicated on product containers. Accordingly, patent protection for nutritional supplements often is impractical given the large number of manufacturers who produce nutritional supplements having many active ingredients in common. Additionally, the nutritional supplement industry is characterized by rapid change and frequent reformulations of products, as the body of scientific research and literature refines current understanding of the application and efficacy of certain substances and the interactions among various substances. In this respect, we maintain an active research and development program that is devoted to developing better, purer, and more effective formulations of our products. We protect our investment in research, as well as the techniques we use to improve the purity and effectiveness of our products, by relying on trade secret laws. We have also entered into confidentiality agreements with certain of our employees involved in research and development activities. Additionally, we endeavor to seek, to the fullest extent permitted by applicable law, trademark and trade dress protection for our products, which protection has been sought in the United States, Canada, and in many of the other countries in which we are either presently operating or plan to commence operations in the future. Notwithstanding our efforts, there can be no assurance that our efforts to protect our trade secrets and trademarks will be successful. Nor can there be any assurance that third-parties will not assert claims against us for infringement of their intellectual proprietary rights. If an infringement claim is asserted, we may be required to obtain a license of such rights, pay royalties on a retrospective or prospective basis, or terminate our manufacturing and marketing of our infringing products. Litigation with respect to such matters could result in substantial costs and diversion of management and other resources and could have a material adverse effect on our business, financial condition, or operating results.

        Our manufacturing activity is subject to certain risks.    We manufacture approximately 75% of the products sold to our customers. As a result, we are dependent upon the uninterrupted and efficient operation of our manufacturing facilities. Those operations are subject to power failures, the breakdown, failure, or substandard performance of equipment, the improper installation or operation of equipment, natural or other disasters, and the need to comply with the requirements or directives of government agencies, including the FDA. There can be no assurance that the occurrence of these or any other operational problems at our facility would not have a material adverse effect on our business, financial condition, or results of operations. We are subject to a variety of environmental laws relating to the storage, discharge, handling, emission, generation, manufacture, use and disposal of chemicals, solid and hazardous waste, and other toxic and hazardous materials. Our manufacturing operations presently do not result in the generation of material amounts of hazardous or toxic substances. Nevertheless, complying with new or more stringent laws or regulations, or more vigorous enforcement of current or future policies of regulatory agencies, could require substantial expenditures by us that could have a material adverse effect on our business, financial condition, or results of operations. Environmental laws and regulations require us to maintain and comply with a number of permits, authorizations, and approvals and to maintain and update training programs and safety data regarding materials used in our processes. Violations of those requirements could result in financial penalties and other enforcement actions and could require us to halt one or more portions of our operations until a violation is cured. The combined costs of curing incidents of non-compliance, resolving enforcement actions that might be initiated by government authorities, or of satisfying new legal requirements could have a material adverse effect on our business, financial condition, or results of operations.

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        A failure of our information technology systems would harm our business.    The global nature of our business and our seamless global compensation plan requires the development and implementation of robust and efficiently functioning information technology systems. Such systems are vulnerable to a variety of potential risks, including damage or interruption resulting from natural disasters and telecommunication failures and human error or intentional acts of sabotage, vandalism, break-ins and similar acts. Although we have adopted and implemented a business continuity and disaster recovery plan, which includes routine back-up, off-site archiving and storage, and certain redundancies, the occurrence of any of these events could result in costly interruptions or failures adversely affecting our business and the results of our operations.

        We may incur liability under our "Athlete Guarantee" program, if and to the extent participating athletes make a successful claim against USANA for testing positive for certain banned substances while taking USANA nutritional supplements.    USANA believes that its nutritional supplement products are free from substances that have been banned by world-class training and competitive athletic programs. The Company retains independent testing agencies to conduct periodic checks for banned substances. The Company further believes that, while its products promote good health, they are not otherwise considered to be "performance enhancing" as that term has been used in defining substances that are banned from use in international competition by the World Anti-Doping Agency ("WADA"). For many years, USANA has been a sponsor of Olympic athletes and professional competitors around the world. These athletes have been tested on many occasions and have never tested positive for banned substances as a result of taking USANA nutritional products. To back up its claim that athletes who use the Company's products as part of their training regimen will not be consuming banned substances, the Company has offered to enter into agreements with select athletes, some of whom have high-profiles and are highly compensated, which state that, during the term of the agreement, should the athlete test positive for a banned substance included in the WADA, and should such positive result be the result of taking USANA nutritional products, USANA will compensate that athlete two times their current annual earnings up to one million dollars, based on the athlete's personal level of competition, endorsement, and other income, as well as other factors. To mitigate potential exposure under these agreements, we:

•

Designate lots identified as dedicated to the Athlete Guarantee program and retain additional samples;

•

Store designated lot samples externally with a third-party; and

•

Establish a chain of custody that requires signatures on behalf of USANA and the third-party to transfer possession of the product lots and that restricts access by USANA employees after the transfer.

        All applicants to this Athlete Guarantee program are subject to screening and acceptance by the Company in its sole discretion. Contracts are tailored to fit the athlete's individual circumstances and the amount of the Company's exposure is limited based on the level of sponsorship of the participating athlete. Although the Company believes that the pool of current and potential participants in the program is small, there is no guarantee that an athlete who is accepted in the program will not successfully make a claim against us. The Company currently has no insurance to protect it from potential claims under this program.

        Based on the mitigating factors, screening process and the Company's view that its products are not "performance enhancing," management believes there is a less than remote chance that the Company will incur a liability under the Athlete Guarantee program.

        Failure to maintain effective internal controls in accordance with the Sarbanes-Oxley Act of 2002 could negatively impact the market price of our common stock.    We are required by federal securities laws to document and test our internal control procedures in order to satisfy the requirements of the

37

Sarbanes-Oxley Act of 2002, which requires annual management assessments of the effectiveness of our internal control over financial reporting. Effective internal controls are necessary for us to provide reliable financial reports and to effectively prevent fraud. The SEC, as directed by Section 404 of the Sarbanes-Oxley Act of 2002, adopted rules requiring public companies to include a report by management on the effectiveness of our internal control over financial reporting in our Annual Reports on Form 10-K. In addition, our independent registered public accounting firm must report on the effectiveness of the internal control over financial reporting. Although we review our internal control over financial reporting in order to ensure compliance with the Section 404 requirements, if we or our independent registered public accounting firm are not satisfied with our internal control over financial reporting or the level at which these controls are documented, designed, operated or reviewed, or if our independent registered public accounting firm interprets the requirements, rules and/or regulations differently from our interpretation, then they may issue a report that is qualified. If we fail to maintain effective internal control over financial reporting, or our independent registered public accounting firm is unable to provide us with an unqualified attestation report on our internal control, we could be required to take costly and time-consuming corrective measures, be required to restate the affected historical financial statements, be subjected to investigations and/or sanctions by federal and state securities regulators, and be subjected to civil lawsuits by security holders. Any of the foregoing could also cause investors to lose confidence in our reported financial information and in our company and would likely result in a decline in the market price of our stock and in our ability to raise additional financing if needed in the future.

Item 1B.    Unresolved Staff Comments

        None.

Item 2.    Properties

Corporate Headquarters

        Our world-wide corporate headquarters is a 354,000 square foot company-owned facility located in Salt Lake City, Utah. This facility includes space for manufacturing, distribution, and administrative functions.

Additional Manufacturing

        We own a 31,000 square foot manufacturing facility in Tianjin, China, which is currently used to manufacture our Sensé products that are sold in China and a nominal amount of third-party skin-care products. The majority of our other China products are manufactured at leased facilities in this market.

Other Office and Distribution Warehouse Facilities

        We own a 45,000 square foot office/warehouse building in Sydney, Australia. In each of the remainder of our markets we lease regional offices and distribution warehouses. Additionally, we lease retail centers for our operations in China, and a packaging facility in Singapore, which fulfills orders for our MyHealthPak™ in our Asia Pacific markets.

        We believe that the facilities referenced above are in good condition and are adequately utilized. Further, we believe that our manufacturing facilities provide for the productive capacity to meet our foreseeable needs.

Item 3.    Legal Proceedings

        From time to time we are involved in litigation arising out of our operations. We maintain liability insurance, including product liability coverage, in amounts our management believes is adequate. We are not currently engaged in any legal proceedings that we expect would materially harm our business or financial condition.

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Item 4.    Mine Safety Disclosures

        None.

PART II

Item 5.    Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

        Our common stock trades on the New York Stock Exchange ("NYSE") under the symbol "USNA." The following table contains the reported high and low sales prices for our common stock as reported on the NYSE for the periods indicated:

2011	High		Low
First Quarter	$	44.22	$	32.00
Second Quarter	$	38.50	$	26.81
Third Quarter	$	33.68	$	23.10
Fourth Quarter	$	35.88	$	25.69

2012	High		Low
First Quarter	$	38.97	$	30.66
Second Quarter	$	42.14	$	35.76
Third Quarter	$	49.51	$	38.25
Fourth Quarter	$	50.23	$	30.51

        The market price of our common shares is subject to fluctuations in response to variations in our quarterly operating results, general trends in the market for our products and product candidates, economic and currency exchange issues in the markets where we operate, as well as other factors, many of which are not within our control. In addition, broad market fluctuations, as well as general economic, business and political conditions may adversely affect the market for our common shares, regardless of our actual or projected performance.

        On March 1, 2013, the high and low sales prices of our common stock as reported by NYSE were $44.39 and $43.34, respectively.

Shareholders

        As of March 1, 2013, we had 370 holders of record of our common stock.

Dividends

        We have never declared or paid cash dividends on our common stock. Future cash dividends, if any, will be determined by our Board of Directors and will be based on earnings, available capital, our financial condition, and other factors that the Board of Directors deems to be relevant.

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Share Repurchases

        Purchases made under our ongoing share repurchase program authorized by the Board of Directors during the quarter ended December 29, 2012 for each fiscal month therein are summarized in the following table:

Issuer Purchases of Equity Securities
(amounts in thousands, except per share data)

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs*
Fiscal October		117	$	43.71		117	$	59,385
(Sept. 30, 2012 through Nov. 3, 2012)
Fiscal November		555	$	42.53		555	$	35,774
(Nov. 4, 2012 through Dec. 1, 2012)
Fiscal December		95	$	42.86		95	$	31,707
(Dec. 2, 2012 through Dec. 29, 2012)
		767	$	42.75		767

*

The Company's share repurchase plan has been ongoing since the fourth quarter of 2000, with the Company's Board of Directors periodically approving additional dollar amounts for share repurchases under the plan. The Company began the fourth quarter with $14,499 remaining under the plan. As announced in a publicly issued press release on October 24, 2012, the Board of Directors approved an additional $50,000 for share repurchases under the plan. Subsequent to the year ended December 29, 2012 and through March 7, 2013, the Company repurchased and retired 414 shares for a total of $18,085. As of March 7, 2013, the remaining approved repurchase amount under the plan was $13,622 and there is no requirement for future share repurchases. There currently is no expiration date on the approved repurchase amount.

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Stock Performance Graph

        The following graph and table compares the performance of our common stock to the S&P 500 Index, and ten companies selected in good faith from our industry (the "Peer Group") over the last five years. The data shown assumes an investment on December 31, 2007, of $100 and reinvestment of all dividends into additional shares of the same class of equity, if applicable to the stock or index.

        Each of the companies included in the Peer Group markets or manufactures products similar to USANA's products or markets its products through a similar marketing channel. The Peer Group includes the following companies: Avon Products, Inc., NuSkin Enterprises, Inc., Herbalife Ltd., Natural Alternatives International, Inc., Perrigo Company, Reliv International, Inc., Hain Celestial Group, and Lifeway Foods, Inc.

Cumulative Shareholder Return
Dec. 2007 - Dec. 2012

	USNA		S&P 500		Peer Group
Dec 07	$	100	$	100	$	100
Dec 08	$	92	$	62	$	68
Dec 09	$	86	$	76	$	98
Dec 10	$	117	$	86	$	115
Dec 11	$	82	$	86	$	160
Dec 12	$	89	$	97	$	141

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Item 6.    Selected Financial Data

        The following selected consolidated financial data should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and related notes thereto that are included in this report.

	Fiscal Year(1)
	2008			2009			2010			2011			2012
	(in thousands, except per share data)
Consolidated Statements of Earnings Data:
Net sales	$	429,012		$	436,940		$	517,644		$	581,939		$	648,726
Cost of sales		88,878			89,803			95,482			101,692			115,804
Gross profit		340,134			347,137			422,162			480,247			532,922
Operating expenses:
Associate incentives		178,309			196,363			233,187			265,928			280,506
Selling, general and administrative(2)		113,828			99,983			120,759			137,063			154,237
Total operating expenses		292,137			296,346			353,946			402,991			434,743
Earnings from operations		47,997			50,791			68,216			77,256			98,179
Other income (expense), net		(1,676	)		187			648			222			247
Earnings before income taxes		46,321			50,978			68,864			77,478			98,426
Income taxes		16,376			17,422			23,213			26,726			31,993
Net earnings	$	29,945		$	33,556		$	45,651		$	50,752		$	66,433
Earnings per common share:
Basic	$	1.87		$	2.19		$	2.94		$	3.30		$	4.57
Diluted	$	1.85		$	2.17		$	2.86		$	3.26		$	4.45
Weighted-average common shares outstanding:
Basic		16,048			15,340			15,528			15,361			14,547
Diluted		16,163			15,432			15,942			15,574			14,923
Dividends per share		—			—			—			—			—
Cash Flow Related Data:
Net cash provided by (used in):
Operating activities	$	45,956		$	32,469		$	66,108		$	70,108		$	92,805
Investing activities		(15,206	)		(3,197	)		(46,853	)		(10,609	)		(8,278	)
Financing activities		(29,765	)		(29,502	)		(9,577	)		(33,372	)		(64,542	)
Purchase of property and equipment		(16,061	)		(4,128	)		(4,192	)		(10,643	)		(8,432	)
Repurchase of common stock		(39,873	)		(1,654	)		(17,031	)		(33,459	)		(68,294	)

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	As of
	Jan. 3, 2009			Jan. 2, 2010		Jan. 1, 2011		Dec. 31 2011		Dec. 29, 2012
	(in thousands, except other data)
Consolidated Balance Sheet Data:
Cash and cash equivalents	$	13,281		$	13,658	$	24,222	$	50,353	$	70,839
Working capital		(1,860	)		11,448		22,648		46,363		61,701
Current assets		52,674			51,926		81,677		106,059		132,545
Goodwill		5,690			5,690		17,267		17,740		17,890
Intangible assets, net		—			—		41,915		42,637		42,085
Total assets		122,572			123,438		216,636		244,496		267,355
Total current liabilities		54,534			40,478		59,029		59,696		70,844
Line of credit		34,990			7,000		—		—		—
Other long-term liabilities		1,212			1,587		1,012		942		938
Stockholders' equity		31,836			74,373		146,802		173,910		185,572
Other Data:
Active Associates		198,000			199,000		228,000		222,000		247,000
Active Preferred Customers		71,000			67,000		70,000		64,000		64,000

(1)

The Company's fiscal year ends on the Saturday that is closest to December 31. The 2009, 2010, 2011, and 2012 fiscal years were 52-week years. Fiscal year 2008 was a 53-week year. The extra week in 2008 added nearly $7,000 to net sales.

(2)

During 2008, an unanticipated arbitration award was rendered against the Company in the amount of $7,020.

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Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

        The following discussion and analysis of USANA's financial condition and results of operations is presented in ten sections:

•

Overview

•

Customers

•

Recent Developments

•

Presentation

•

Results of Operations

•

Quarterly Financial Information

•

Liquidity and Capital Resources

•

Contractual Obligations

•

Inflation

•

Critical Accounting Estimates

        This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and notes thereto appearing elsewhere in this report.

Overview

        We develop and manufacture high-quality, science-based nutritional and personal care products that are distributed internationally through a network marketing system, which is a form of direct selling. Our customer base includes two types of customer: "Associates" and "Preferred Customers." Associates purchase our products for their personal use and are also permitted to resell or distribute our products. Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. As of December 29, 2012, we had approximately 247,000 active Associates and approximately 64,000 active Preferred Customers worldwide.

        We have ongoing operations in the following markets, which are grouped and presented as follows:

•

North America/Europe—United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France(1), and Belgium(1)

•

Asia Pacific—

•

Southeast Asia Pacific—Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand(1)

•

Greater China—Hong Kong, Taiwan, and China(2)

•

North Asia—Japan and South Korea

        In 2012, net sales outside of the United States represented approximately 76.5% of consolidated net sales. Because we have operations in multiple markets, with sales and expenses being generated and incurred in multiple currencies, our reported U.S. dollar sales and earnings can be significantly affected by fluctuations in currency exchange rates.

(1)

We commenced operations in Thailand, France, and Belgium at the end of the first quarter of 2012.

(2)

Our business in China is that of BabyCare, our wholly-owned subsidiary.

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Customers

        Because we utilize a direct selling model for the distribution of our products the success and growth of our business is primarily based on our ability to attract new and retain existing Associates to sell and consume our products. Notably, sales to Associates account for the majority of our product sales and represented 91% of product sales during 2012. Changes in our product sales are typically the result of variations in product sales volume relating to fluctuations in the number of active Associates and Preferred Customers purchasing our products. The number of active Associates and Preferred Customers is, therefore, used by management as a key non-financial measure.

        The following tables summarize the changes in our active customer base by geographic region. These numbers have been rounded to the nearest thousand as of the dates indicated. For purposes of this report, we only count as active customers those Associates and Preferred Customers who have purchased from us at any time during the most recent three-month period, either for personal use or for resale.

	Active Associates By Region
	As of December 31, 2011				As of December 29, 2012				Change from Prior Year			Percent Change
North America/Europe		78,000	35.1	%		78,000	31.6	%		—			0.0	%
Asia Pacific:
Southeast Asia Pacific		49,000	22.1	%		58,000	23.5	%		9,000			18.4	%
Greater China		86,000	38.7	%		103,000	41.7	%		17,000			19.8	%
North Asia		9,000	4.1	%		8,000	3.2	%		(1,000	)		(11.1	)%
Asia Pacific Total		144,000	64.9	%		169,000	68.4	%		25,000			17.4	%
		222,000	100.0	%		247,000	100.0	%		25,000			11.3	%

	Active Preferred Customers By Region
	As of December 31, 2011				As of December 29, 2012				Change from Prior Year			Percent Change
North America/Europe		52,000	81.3	%		53,000	82.8	%		1,000			1.9	%
Asia Pacific:
Southeast Asia/Pacific		6,000	9.4	%		6,000	9.4	%		—			0.0	%
Greater China		5,000	7.8	%		4,000	6.2	%		(1,000	)		(20.0	)%
North Asia		1,000	1.5	%		1,000	1.6	%		—			0.0	%
Asia Pacific Total		12,000	18.7	%		11,000	17.2	%		(1,000	)		(8.3	)%
		64,000	100.0	%		64,000	100.0	%		—			0.0	%

Recent Developments

        During 2012, we executed several strategies designed to grow our business. These strategies are discussed in the following categories:

•

Personalization.  We officially launched our global marketing strategy, which focuses on personalizing our product and incentive offerings to our customer base around the world. Under this strategy, we expanded the availability of our flagship MyHealthPak™ product to all of our international markets. MyHealthPak is a fully personalized supplement pack that can include any of our Essential and Optimizer products. Under this strategy, we also introduced two proprietary health assessment applications for our Associates and Preferred Customers called True Health Assessment and True Health Companion. These applications are designed for use on iPads and

45

other platforms through the web and are intended to provide our Associates with a new and personalized way to market USANA to potential customers. We launched these new applications at our 2012 International Convention and also gave every Associate in attendance a free iPad with a pre-loaded version of the True Health Assessment. Personalization will be our marketing and operating strategy over the next several years. We believe this strategy will facilitate our short-and long-term growth objectives, which include: (i) returning our North America region to growth; (ii) growing our business in Greater China, and (iii) international expansion.

•

North America Growth Strategy.  In North America/Europe, we continued to execute our growth strategy, which focuses on strengthening our partnership with our Associate sales force, introducing North America-specific incentives, and innovating to develop new products and technologies. During 2012, we held an increased number of meetings and events where members of our management team worked closely with our Associate Leaders to grow our business. We also launched our new Lifetime Matching Bonus, which was well received by our Associates and provides us with the flexibility to offer other incentives specifically for North America. We also offered a new bonus for our Associates in Mexico periodically during 2012, which helped drive results in that market and North America in general. Finally, in 2012, we hired a new executive to lead our Research and Development group who shares our passion for innovation. With his leadership, we plan to launch a variety of new products and technologies under our personalization strategy over the next several years.

•

China-Growth Strategy.  We continued our efforts to grow our Greater China region in 2012 and are encouraged by the results in that region. This strategy included integrating our China operations and systems, to the extent possible, with our worldwide operations. It also included educating our Associates on the USANA products that we have introduced in China, as well as on our China business opportunity. Additionally, we opened a new branch office in Shenzhen, which is a key city for our business in southern China, and held our Annual Celebration where new products and sales tools were introduced. During 2013, we plan to continue to execute our strategy in Greater China, or more specifically China. This strategy will continue to focus on educating Associates and opening a new branch office, and will also include registering for additional provincial licenses. Notably, subsequent to the year ended December 29, 2012, we received three additional provincial direct selling licenses in China. We now have direct selling licenses in Beijing, Jiangsu, Shaanxi, and Tianjin.

•

International Expansion.  We increased our international expansion efforts in 2012 by commencing operations in Thailand, France and Belgium. Each of these markets is heavily consumer focused, which means that it will take time for our Associate leaders to develop entrepreneurs to grow these markets. We continue to believe that Thailand, France and Belgium will be successful markets for USANA and we will continue to support the efforts of our Associates to grow these markets. In 2013, we will continue our international expansion efforts by opening a new market around the middle of the year.

        In 2013, our primary objective will be to strengthen and grow our Active Associate counts throughout the world. To this end, we will continue to execute each of the strategies mentioned above, as well as introduce additional market-specific strategies. For example, beginning in January 2013 we implemented a pricing initiative in several of our mature markets, which includes price reductions in certain markets. This pricing initiative is intended to make our products more consistently priced for our Associates and Preferred Customers in all of our markets. Our launch of this initiative will likely create some short-term pressure on our net sales and earnings in these markets. We believe, however, that this strategy will create greater long-term customer growth in these markets.

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Presentation

        Product sales along with the shipping and handling fees billed to our customers are recorded as revenue net of applicable sales discounts when the product is delivered, title has transferred, and the risk of loss passes to the customer. Payments received for undelivered products are recorded as deferred revenue and are included in other current liabilities. Also reflected in net sales is a provision for product returns and allowances, which is estimated based on our historical experience. Additionally, the Company collects a nominal annual renewal fee from Associates that is deferred on receipt and is recognized as income on a straight-line basis over a twelve-month period.

        Cost of sales primarily consists of expenses related to raw materials, labor, quality assurance, and overhead costs that are all directly associated with the production and distribution of our products and sales materials, as well as duties and taxes that are associated with the import and export of our products. As our international sales increase as a percentage of net sales, cost of sales are increasingly affected by additional duties, freight, and other factors, such as changes in currency exchange rates.

        Associate incentives expense includes all forms of commissions, and other incentives paid to our Associates. Incentives paid to Associates include bonuses earned, rewards from contests and promotions, and base commissions, which makes up the majority of our Associate incentives expense. Bonuses are paid out to Associates based on certain business-related criteria, total base commission earnings, and leadership level. Contests and promotions are offered as an incentive and reward to our Associates and are typically paid out only after an Associate achieves specific criteria. Base commissions are paid out on the sale of products. Associates earn their commissions based on sales volume points that are generated in their down-line organization. Sales volume points are assigned to each commissionable product and comprise a certain percent of the product price. Items such as our starter kits and sales tools have no sales volume point value, and commissions are not paid on the sale of these items. Although insignificant to our financial statements, an Associate may earn commissions on sales volume points that are generated from personal purchases that are not considered to be part of their "Qualifying Sales." To be eligible to earn commissions, an Associate must reach a certain level of Qualifying Sales each month, which may include product that they use personally or that they resell to consumers. Associates do not earn commissions on their Qualifying Sales. Commissions paid to Associates on personal purchases are considered a sales discount and are reported as a reduction to our net sales.

        Selling, general and administrative expenses include wages and benefits, depreciation and amortization, rents and utilities, Associate event costs, advertising, professional fees, marketing, and research and development expenses. Wages and benefits represent the largest component of selling, general and administrative expenses. Significant depreciation and amortization expense is incurred as a result of investments in physical facilities, computer and telecommunications equipment, and systems to support our international operations.

        Sales to customers outside the United States are transacted in the respective local currencies and are translated to U.S. dollars at weighted-average currency exchange rates for each monthly accounting period to which they relate. Most of our raw material purchases from suppliers and our product purchases from third-party manufacturers are transacted in U.S. dollars. Consequently, our net sales and earnings are affected by changes in currency exchange rates. In general, sales and gross profit are affected positively by a weakening U.S. dollar and negatively by a strengthening U.S. dollar. Currency fluctuations, however, have the opposite effect on our Associate incentives and selling, general and administrative expenses. In our net sales discussions that follow, we approximate the impact of currency fluctuations on net sales by translating current year net sales at the average exchange rates in effect during the comparable prior year periods.

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Results of Operations

        The following table summarizes our consolidated operating results as a percent of net sales, respectively, for the periods indicated:

	Fiscal Year
	2010			2011			2012
Consolidated Statements of Earnings Data:
Net sales		100.0	%		100.0	%		100.0	%
Cost of sales		18.4	%		17.5	%		17.9	%
Gross profit		81.6	%		82.5	%		82.1	%
Operating expenses:
Associate incentives		45.0	%		45.7	%		43.2	%
Selling, general and administrative		23.3	%		23.6	%		23.8	%
Total operating expenses		68.3	%		69.3	%		67.0	%
Earnings from operations		13.3	%		13.2	%		15.1	%
Other income (expense), net		0.0	%		0.0	%		0.0	%
Earnings before income taxes		13.3	%		13.2	%		15.1	%
Income taxes		4.5	%		4.6	%		4.9	%
Net earnings		8.8	%		8.6	%		10.2	%

Summary of 2012 Financial Results

        Net sales increased 11.5%, or $66.8 million, to $648.7 million in 2012, when compared with 2011. This increase was driven by sales growth in each of our regions with the exception of North Asia. Price increases that were implemented earlier in the year in certain markets in our Asia Pacific region also contributed what we estimate to be between $17 million and $18 million. Further discussion on these and other factors contributing to our sales results during the year is provided below under our regional results.

        Net earnings increased 30.9%, or $15.7 million, to $66.4 million in 2012, when compared with 2011. This increase was the result of higher net sales, lower relative Associate incentives, and a lower effective tax rate, partially offset by lower gross profit margins and slightly higher relative selling, general and administrative expenses.

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Fiscal Year 2012 compared to Fiscal Year 2011

Net Sales

        The following table summarizes the changes in our net sales by geographic region for the fiscal years ended December 31, 2011, and December 29, 2012:

	Net Sales by Region (in thousands) Year Ended
									Change from prior year			Percent change
	2011				2012
North America/Europe	$	236,386	40.6	%	$	244,333	37.7	%	$	7,947			3.4	%
Asia Pacific:
Southeast Asia Pacific		111,447	19.2	%		139,651	21.5	%		28,204			25.3	%
Greater China		204,822	35.2	%		235,626	36.3	%		30,804			15.0	%
North Asia		29,284	5.0	%		29,116	4.5	%		(168	)		(0.6	)%
Asia Pacific Total		345,553	59.4	%		404,393	62.3	%		58,840			17.0	%
	$	581,939	100.0	%	$	648,726	100.0	%	$	66,787			11.5	%

        North America/Europe:    The increase in net sales in this region was primarily due to (i) increased sales volume per Associate and Preferred Customer due mainly to a growing number of Associate leaders within our active Associate base who are actively selling our products and building sales organizations, (ii) growth in Mexico, which contributed $5.5 million to the year-over-year increase in net sales in this region and was largely the result of growth in active Associates, and (iii) to a lesser extent, the addition of France and Belgium to this region, which contributed $1.8 million. During 2012, we increased our focus on strengthening our Associate sales force by holding additional events, trainings, and interaction with management. Sales in this region also benefitted from a short-term promotion that we offered with the introduction of our Lifetime Matching Bonus and a promotion for our Associates in Mexico. These improvements were partially offset by the impact on sales volume from a decrease in the number of active Associates throughout 2012 in the United States and Canada.

        As mentioned in our Recent Developments section above, in January 2013 we began implementing a pricing initiative in several of our mature markets, which will include price reductions in certain markets. This strategy may create some short-term pressure on our net sales in these markets, with Canada being one of the larger markets included.

        Asia Pacific:    The increase in net sales in this region was driven by growth in Southeast Asia Pacific (led by a $21.4 million increase in the Philippines), and Greater China (led by a $24.2 million increase in Hong Kong). Growth in this region was primarily the result of: (i) an increase in the average number of active Associates throughout the year, (ii) the impact of price increases that took place in certain markets (including the Philippines and Hong Kong) in the first quarter of 2012, (iii) a surge in sales ahead of these price increases, and (iv) the short-term promotion that we offered with the introduction of our Lifetime Matching Bonus. We estimate that price increases added between $17 million and $18 million to net sales for the year, that the surge in sales ahead of these price increases added $11 million, and that the short-term promotion added nearly $4 million. Net sales also benefited from the inclusion of Thailand in the current year. Although we expect continued growth in this region throughout 2013, certain markets in Southeast Asia Pacific could be negatively impacted by our pricing initiative in the short-term.

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Gross Profit

        The decrease in gross profit as a percent of net sales from 2011 to 2012 can primarily be attributed to: (i) increased raw material costs, (ii) production inefficiencies related to managing scrap throughout our personalization/rebranding process, and (iii) the change in sales mix by market. These decreases were partially offset by price increases in several of our international markets during the first quarter of 2012. In 2013, we expect gross profit margins to decrease further as a result of our 2013 pricing initiative and a continued change in sales mix by market as some of our lower gross profit markets are expected to increase as a percent of sales.

Associate Incentives

        The 250 basis point decrease in Associate incentives as a percent of net sales is due, primarily, to a lower payout under Matching Bonus associated with the implementation of our Lifetime Matching Bonus, and price increases. These improvements were partially offset by an increase in spending on contests and promotions. In 2013, we expect Associate incentives as a percent of net sales to decline modestly to around 42.5% as we will have a full year impact from our Lifetime Matching Bonus.

Selling, General and Administrative Expenses

        In absolute terms, our selling, general and administrative expenses increased $17.2 million from 2011 to 2012. The most significant components of this increase were as follows:

•

An increase in wages and benefits of approximately $5.4 million;

•

New market costs of approximately $4.0 million;

•

An increase in spending of approximately $2.0 million on our Annual International and Asia Pacific Conventions; and

•

An increase in credit card and bank fees of approximately $1.6 million that vary with sales.

Income Taxes

        Our effective income tax rate was 32.5% in 2012, compared with 34.5% in 2011. This decrease in our effective tax rate was primarily due to a favorable adjustment (approximately 100 basis points) in our manufacturing deduction for the 2011 tax year, which was recognized in 2012 following the completion of a formal study and subsequent to the issuance of the 2011 financial statements. In addition, we recognized a one-time tax benefit (approximately 60 basis points) from restructuring USANA's Hong Kong and Singapore operations as well as on-going tax benefits (approximately 30 basis points) from lower statutory tax rates in these markets.

Diluted Earnings Per Share

        Diluted earnings per share increased 36.5% in 2012 to $4.45. This increase was due to higher net earnings and a lower number of diluted shares outstanding, which was the result of share repurchases by the Company throughout the year.

Summary of 2011 Financial Results

        Net sales increased 12.4%, or $64.3 million, to $581.9 million in 2011, when compared with 2010. This increase was largely due to strong sales growth in certain markets within our Asia Pacific region and includes a full year of our China operations, compared with only partial results in 2010. Net sales during 2011 also benefited from favorable changes in currency exchange rates by approximately $15.0 million, without which net sales would have increased 9.5%. Notably, all of the benefit we received from favorable changes in currency exchange rates took place over the first three quarters in 2011.

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        Net earnings increased 11.2%, or $5.1 million, to $50.8 million in 2011, when compared with 2010. This increase was the result of improved gross profit margins on higher net sales, offset in most part by an increase in Associate incentives and selling, general and administrative expenses.

Fiscal Year 2011 compared to Fiscal Year 2010

        The tables below summarize the changes in our active customer base by geographic region as of the dates indicated:

	Active Associates By Region
	As of January 1, 2011				As of December 31, 2011				Change from Prior Year			Percent Change
North America/Europe		86,000	37.7	%		78,000	35.1	%		(8,000	)		(9.3	)%
Asia Pacific:
Southeast Asia Pacific		41,000	18.0	%		49,000	22.1	%		8,000			19.5	%
Greater China		93,000	40.8	%		86,000	38.7	%		(7,000	)		(7.5	)%
North Asia		8,000	3.5	%		9,000	4.1	%		1,000			12.5	%
Asia Pacific Total		142,000	62.3	%		144,000	64.9	%		2,000			1.4	%
		228,000	100.0	%		222,000	100.0	%		(6,000	)		(2.6	)%

	Active Preferred Customers By Region
	As of January 1, 2011				As of December 31, 2011				Change from Prior Year			Percent Change
North America/Europe		54,000	77.1	%		52,000	81.3	%		(2,000	)		(3.7	)%
Asia Pacific:
Southeast Asia Pacific		6,000	8.6	%		6,000	9.4	%		—			0.0	%
Greater China		9,000	12.9	%		5,000	7.8	%		(4,000	)		(44.4	)%
North Asia		1,000	1.4	%		1,000	1.5	%		—			0.0	%
Asia Pacific Total		16,000	22.9	%		12,000	18.7	%		(4,000	)		(25.0	)%
		70,000	100.0	%		64,000	100.0	%		(6,000	)		(8.6	)%

Net Sales

        The following table summarizes the changes in our net sales by geographic region for the fiscal years ended January 1, 2011 and December 31, 2011:

	Net Sales by Region (in thousands) Year Ended																Change excluding the impact of currency exchange
															Approximate impact of currency exchange
									Change from prior year			Percent change
	2010				2011
North America/Europe	$	242,147	46.8	%	$	236,386	40.6	%	$	(5,761	)		(2.4	)%	$	3,100		(3.7	)%
Asia Pacific:
Southeast Asia Pacific		99,311	19.2	%		111,447	19.2	%		12,136			12.2	%		8,300		3.9	%
Greater China		152,280	29.4	%		204,822	35.2	%		52,542			34.5	%		1,900		33.3	%
North Asia		23,906	4.6	%		29,284	5.0	%		5,378			22.5	%		1,700		15.4	%
Asia Pacific Total		275,497	53.2	%		345,553	59.4	%		70,056			25.4	%		11,900		21.1	%
	$	517,644	100.0	%	$	581,939	100.0	%	$	64,295			12.4	%	$	15,000		9.5	%

        North America/Europe:    The decrease in local currency net sales in this region was the result of lower product sales volume due to a decrease in the average number of active Associates in this region throughout 2011. We believe that this decrease in Associates was predominantly due to difficult

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economic conditions in North America, coupled with the changes that we made to the commission qualification requirements under our Compensation Plan in the third quarter of 2010. The intent of these changes was to incent more entrepreneurial Associates to join the Company and build a sales organization at an accelerated pace. While the changes caused us to enroll more entrepreneurial Associates, they made it more challenging for us to enroll Associates in general, including those who simply consume our products and are less entrepreneurial, particularly in North America. This decrease in active Associates was partially offset by an increase in average spending per Associate on a year-over-year basis, which was also due to the commission qualification changes for new Associates.

        Asia Pacific:    The increase in net sales in this region came from Hong Kong, China, the Philippines, and South Korea. Growth in these markets in 2011 resulted primarily from higher product sales volume, which was due mostly to an increase in the average number of active Associates throughout the year.

        Net sales in Hong Kong increased 29.0% to $156.7 million in 2011, compared with 2010. Notably, most of this growth was generated during the first half of the year. In addition to an increase in the average number of Associates purchasing, this sales growth was aided by several other events that took place in Hong Kong during 2011. These events included (i) recognition of deferred revenue in the first quarter due to a promotion that ended on the final day of 2010; (ii) a price increase and a surge in sales related to the anticipation of this increase in the first quarter; (iii) a surge in sales ahead of anticipated policy changes during the second quarter; and (iv) a larger than expected surge in sales in the fourth quarter from a successful promotion that we offered during December.

        Although Hong Kong's net sales increased in 2011, the number of active Associates in Hong Kong began to decrease during the last half of the year. Hong Kong had 61,000 active Associates at December 31, 2011, which is a 12.9% decrease from the same period of the prior year. Similar to North America, however, an increase in average spending per Associate in Hong Kong, resulting primarily from our commission qualification changes in 2010, helped to offset the effect on sales of the decline in active Associates in this market.

        Net sales in China increased 208.9% to $23.5 million in 2011, compared with 2010. This increase is due partially to a comparison of China's full year of operations in 2011 with a partial year of operations in 2010, as we acquired our China operations in August 2010. Net sales in the Philippines increased 138.9% to $22.3 million in 2011, compared with 2010, and net sales in South Korea increased 62.9% to $19.5 million. Growth in these markets resulted from higher product sales volume, which was due primarily to an increase in the average number of active Associates throughout the year.

Gross Profit

        The increase in gross profit as a percent of net sales can primarily be attributed to currency benefits received from our international subsidiaries, as the majority of our products sold are manufactured at our corporate headquarters in the United States and transferred to our international subsidiaries. Gross profit also benefitted from lower relative freight costs on shipments to our customers, price increases in Hong Kong, and leverage gained on higher net sales.

Associate Incentives

        The increase in Associate incentives as a percent of net sales can mostly be attributed to an increased payout under our Matching Bonus program. A higher payout of base commissions under our Associate compensation plan and the impact of currency fluctuations also contributed to the increase in Associate incentives as a percent of net sales. Partially offsetting these increases were (i) the inclusion of China in our operating results for a full year, compared with a partial year in 2010, as the relative payout under the China compensation plan is lower than the payout under the USANA Compensation Plan, and (ii) certain initiatives that the Company put in place in the second quarter of 2010 to manage Associate incentives as a percent of net sales.

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Selling, General and Administrative Expenses

        The increase in selling, general and administrative expense as a percent of net sales can primarily be attributed to the inclusion of China in our operating results for a full year, compared with a partial year in 2010 (our China operations carry significantly higher selling, general and administrative expense as a percentage of net sales than our other markets), and also to expenses associated with our increased branding efforts. This increase was partially offset by leverage gained on increased sales outside the United States in our markets where selling, general and administrative expenses are lower.

        In absolute terms, our selling, general and administrative expenses increased by $16.3 million in 2011, compared with 2010. The most significant components of this increase in absolute terms were as follows:

•

Added costs from China's operations of approximately $8.2 million;

•

An increase related to our corporate branding efforts of approximately $3.6 million;

•

An increase in credit card processing and bank fees of approximately $1.6 million; and

•

An increase in travel costs of approximately $1.1 million.

        Although reflected in some of the above items, changes in currency added approximately $3.0 million to overall selling, general and administrative expenses. These increases were partially offset by the decrease of $2.0 million in BabyCare acquisition costs compared with 2010.

Other Income (Expense)

        Other income decreased by $0.4 million due to lower currency exchange gains on intercompany transactions during 2011.

Income Taxes

        Income taxes were 34.5% of earnings before income taxes in 2011, compared to 33.7% in 2010. The income tax rate for 2010 was lower due to tax benefits related to changes in uncertain income tax positions, larger prior-year tax benefits, and the level of equity award exercises.

Diluted Earnings Per Share

        While net earnings increased 11.2%, diluted earnings per share increased 14.0% to $3.26. The increase in diluted earnings per share can be attributed to increased net earnings and a lower number of diluted shares outstanding as a result of share repurchases during 2011.

Quarterly Financial Information (Unaudited)

        The following tables set forth unaudited quarterly operating results for each of the last eight fiscal quarters, as well as percentages of net sales for certain data for the periods indicated. This information is consistent with the Consolidated Financial Statements herein and includes normally recurring adjustments that management considers to be necessary for a fair presentation of the data. Quarterly results are not necessarily indicative of future results of operations. This information should be read in

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conjunction with the audited Consolidated Financial Statements and notes thereto that are included elsewhere in this report.

	Quarter Ended
	Apr. 2, 2011		Jul. 2, 2011		Oct. 1, 2011		Dec. 31 2011			Mar. 31, 2012		Jun. 30, 2012			Sept. 29, 2012		Dec. 29, 2012
	(in thousands, except per share data)
Consolidated Statements of Earnings Data:
Net sales	$	143,566	$	148,925	$	143,501	$	145,947		$	154,120	$	160,901		$	165,175	$	168,530
Cost of sales		25,662		26,208		25,202		24,620			27,217		28,073			30,343		30,171
Gross profit		117,904		122,717		118,299		121,327			126,903		132,828			134,832		138,359
Operating expenses:
Associate incentives		64,807		67,760		66,158		67,203			68,009		70,901			70,406		71,190
Selling, general, and administrative		35,870		33,803		33,365		34,025			38,032		36,776			40,342		39,087
Total operating expenses		100,677		101,563		99,523		101,228			106,041		107,677			110,748		110,277
Earnings from operations		17,227		21,154		18,776		20,099			20,862		25,151			24,084		28,082
Other income (expense), net		101		—		133		(12	)		132		(222	)		267		70
Earnings from operations before income taxes		17,328		21,154		18,909		20,087			20,994		24,929			24,351		28,152
Income taxes		5,978		7,298		6,524		6,926			7,243		8,184			6,861		9,705
Net earnings	$	11,350	$	13,856	$	12,385	$	13,161		$	13,751	$	16,745		$	17,490	$	18,447
Earnings per common share*:
Basic	$	0.71	$	0.89	$	0.82	$	0.88		$	0.92	$	1.14		$	1.22	$	1.30
Diluted	$	0.70	$	0.88	$	0.81	$	0.87		$	0.90	$	1.11		$	1.18	$	1.27
Weighted-average shares outstanding:
Basic		15,911		15,530		15,043		14,958			14,964		14,691			14,365		14,169
Diluted		16,217		15,752		15,205		15,177			15,288		15,090			14,884		14,471

*

Earnings per common share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share amounts does not necessarily equal the total for the year.

Consolidated Statements of Earnings as a percentage of Net Sales:
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales	17.9		17.6		17.6		16.9		17.7		17.4		18.4		17.9
Gross profit	82.1		82.4		82.4		83.1		82.3		82.6		81.6		82.1
Operating expenses:
Associate incentives	45.1		45.5		46.1		46.0		44.1		44.1		42.6		42.2
Selling, general and administrative	25.0		22.7		23.3		23.3		24.7		22.9		24.4		23.2
Total operating expenses	70.1		68.2		69.4		69.3		68.8		67.0		67.0		65.4
Earnings from operations	12.0		14.2		13.0		13.8		13.5		15.6		14.6		16.7
Other income (expense), net	0.1		—		0.1		—		0.1		(0.1	)	0.2		—
Earnings from operations before income taxes	12.1		14.2		13.1		13.8		13.6		15.5		14.8		16.7
Income taxes	4.2		4.9		4.5		4.7		4.7		5.1		4.2		5.8
Net earnings	7.9	%	9.3	%	8.6	%	9.1	%	8.9	%	10.4	%	10.6	%	10.9	%

54

        We may experience variations in the results of operations from quarter to quarter as a result of factors that include, but are not limited to the following:

•

The recruiting and retention of Associates and Preferred Customers;

•

The opening of new markets;

•

The timing of Company-sponsored events, contests, and promotions;

•

Fluctuations in currency exchange rates;

•

New product introductions;

•

The timing of holidays, which may reduce the amount of time that our Associates spend selling products or recruiting new Associates;

•

The negative impact of changes in or interpretations of regulations that may limit or restrict the sale of certain products in some countries;

•

The adverse effect of a failure by us or an Associate (or allegations of such failure) to comply with applicable governmental regulations;

•

The integration and operation of new information technology systems;

•

The inability to introduce new products or the introduction of new products by competitors;

•

Entry into one or more of our markets by competitors;

•

Availability of raw materials;

•

General conditions in the nutritional supplement, personal care, and weight-management industries or the network marketing industry; and

•

Consumer perceptions of our products and operations.

        Because our products are ingested by consumers or applied to their bodies, we are highly dependent upon consumers' perception of the safety, quality, and efficacy of our products and nutritional supplements in general. As a result, substantial negative publicity, whether founded or unfounded, concerning one or more of our products or of other products that are similar to our products could adversely affect our business, financial condition, or results of operations.

        As a result of these and other factors, quarterly revenues, expenses, and results of operations could vary significantly in the future, and period-to-period comparisons should not be relied upon as indications of future performance. There can be no assurance that we will be able to increase revenues in future periods or be able to sustain the level of revenue or rate of revenue growth on a quarterly or annual basis that we have sustained in the past. Due to the foregoing factors, future results of operations could be below the expectations of public market analysts and investors. If that occurs, the market price of our common stock would likely decline.

Liquidity and Capital Resources

        We have historically met our working capital and capital expenditure requirements by using both net cash flow from operations and by drawing from our line of credit. Our principal source of liquidity is our operating cash flow. Although we are required to maintain cash deposits with banks in certain of our markets, there are currently no material restrictions on our ability to transfer and remit funds among our international markets. Repatriation of funds that are related to earnings considered permanently reinvested in certain of our markets would not result in a tax liability that would have a material impact on our liquidity at this time.

55

Operating cash flow

        We typically generate positive cash flow due to our strong operating margins. Net cash flow from operating activities totaled $92.8 million in 2012, compared with $70.1 million in 2011. This increase can primarily be attributed to higher (i) net earnings, (ii) changes in other liabilities resulting mostly from an increase in accrued items related to higher net sales, and (iii) an increase in deferred income taxes related to higher stock option exercises during 2011. Partially offsetting the increase in cash flow from operating activities, on a comparative basis, were changes in prepaid expenses and other assets, which related mostly to: (i) a term deposit from our acquisition of BabyCare in 2010 that matured in 2011; (ii) an increase in federal income taxes receivable in 2012; and (iii) an increase in deferred commissions related to an increase in deferred revenue at the end of 2012.

Line of credit

        We have a long-standing relationship with Bank of America. We currently maintain a $60 million credit facility pursuant to a credit agreement with Bank of America, which expires in April 2016. We did not draw on this line of credit at any time during the year, and, as of December 29, 2012, there was no outstanding balance on this line of credit.

        The agreement for this credit facility contains restrictive covenants, which require us to maintain a consolidated rolling four-quarter adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") equal to or greater than $60.0 million, and a ratio of consolidated funded debt to adjusted EBITDA of 2.0 to 1.0 at the end of each quarter. The adjusted EBITDA under this agreement is modified for certain non-cash expenses. As of December 29, 2012, we were in compliance with these covenants. Management is not aware of any issues currently impacting Bank of America's ability to honor their commitment to extend credit under this facility.

        Additionally, from time to time we will enter into short-term foreign currency credit arrangements in our international markets for strategic purposes, primarily as a way to reduce our exposure to negative effects of changes in foreign currency exchange rates. During 2012 we borrowed the foreign currency equivalent of $1.8 million for this purpose, and as of December 29, 2012 there was no outstanding balance related to these arrangements. Any balance that we accrue under these arrangements will be reported under other current liabilities.

Working capital

        Cash and cash equivalents increased to $70.8 million at December 29, 2012, from $50.4 million at December 31, 2011. Of the $70.8 million held at December 29, 2012, $38.6 million was held in the United States, and $32.2 million was held by international subsidiaries. Of the $50.4 million held at December 31, 2011, $34.8 million was held in the United States, and $15.6 million was held by international subsidiaries.

        Net working capital increased to $61.7 million at December 29, 2012, from $46.4 million at December 31, 2011. This increase in net working capital was due mostly to net cash provided by operating activities, which was offset in large part by share repurchases as discussed below, purchases of property and equipment, and an increase in other current liabilities. Our purchases of property and equipment of $8.4 million in 2012 included manufacturing and IT-related equipment as well as investments in infrastructure for our new markets. The increase in other current liabilities in 2012 related mostly to increases in unearned revenue, accrued employee compensation and Associate incentive/promotions, which were partially offset by a decrease in income taxes payable.

        We typically invest between $7 million and $10 million in capital improvements each year to maintain and support our current operations and plans for future growth. In 2013, we plan to invest between $20 million and $25 million on capital expenditures. This increase in planned capital spending can be attributed to expected investments in China and international development.

56

Share repurchase

        We have a share repurchase plan that has been ongoing since the fourth quarter of 2000. Our Board of Directors periodically approves additional dollar amounts for share repurchases under that plan. For example, the Board authorized an additional $21.8 million for share repurchases in the second quarter of 2012, and an additional $50.0 million in the fourth quarter. Share repurchases are made from time-to-time, in the open market, through block trades or otherwise, and are based on market conditions, the level of our cash balances, general business opportunities, and other factors. During 2012, we repurchased and retired 1.6 million shares of common stock for a total investment of $68.3 million, at an average market price of $41.55 per share. Subsequent to the year ended December 29, 2012 and through March 7, 2013, we repurchased and retired 0.4 million shares of common stock for a total investment of $18.1 million, at an average market price of $43.64 per share. As of March 7, 2013, the remaining approved repurchase amount under the plan was $13.6 million and there is no requirement for future share repurchases.

Summary

        We believe that current cash balances, future cash provided by operations, and amounts available under our line of credit will be sufficient to cover our operating and capital needs in the ordinary course of business for the foreseeable future. If we experience an adverse operating environment or unusual capital expenditure requirements, additional financing may be required. No assurance can be given, however, that additional financing, if required, would be available or on favorable terms. We might also require or seek additional financing for the purpose of expanding new markets, growing our existing markets, or for other reasons. Such financing may include the use of additional debt or the sale of additional equity securities. Any financing which involves the sale of equity securities or instruments that are convertible into equity securities could result in immediate and possibly significant dilution to our existing shareholders.

Contractual Obligations and Commercial Contingencies

        The following table summarizes our expected contractual obligations and commitments subsequent to December 29, 2012:

Payments Due By Period
(in thousands)

Contractual Obligations	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than 5 years
Operating Leases	$	18,240	$	10,006	$	7,336	$	898
Capital Commitments		154		154
Other Commitments		18,040		10,125		6,153		1,762
Purchase Obligations		—
Line of Credit		400		120		280
Total Contractual Obligations	$	36,834	$	20,405	$	13,769	$	2,660	$	—

        "Operating Leases" generally provide that property taxes, insurance, and maintenance expenses are the responsibility of the Company. Such expenses are not included in the operating lease amounts that are outlined in the table above.

        "Other Commitments" include consulting- and IT-related services, corporate and athlete sponsorships, facility maintenance, services related to the events that we hold for our Associates both locally and internationally, and uncertain tax positions. Additionally, throughout the year we will enter into various short-term contracts, mostly for services related to events that we hold for our Associates.

57

        The "Line of Credit" has a maturity date of April 2016. Although we currently have no balance outstanding on this line of credit, fees on the unused portion of this line are due periodically and are reflected in the table above. If we utilize this line of credit prior to its maturity, we will be required to pay it in full at maturity.

Inflation

        We do not believe that inflation has had a material impact on our historical operations or profitability.

Critical Accounting Estimates

        Our Consolidated Financial Statements included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Our significant accounting policies are described in Note A to the Consolidated Financial Statements herein. The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Those estimates and assumptions are derived and are continually evaluated based on our historical experiences, current facts and circumstances, and on changes in the business environment. Actual results, however, may sometimes differ materially from estimates under different conditions. Critical accounting estimates are defined as both those that are material to the portrayal of our financial condition and results of operations and those that require management's most subjective judgments. We believe that our most critical accounting estimates are described in this section.

Revenue Recognition.

•

Revenue is recognized at the estimated point of delivery of the merchandise, at which point the risks and rewards of ownership have passed to the customer. Revenue is realizable when the following four criteria are met: persuasive evidence of a sale arrangement exists, delivery of the product has occurred, the price is fixed or determinable, and payment is reasonably assured. We require cash or credit card payment prior to shipping and do not extend credit to customers.

•

Payments received for undelivered products are recorded as deferred revenue and are included in other current liabilities.

•

A provision for product returns and allowances is established and is based on our historical experience.

•

Amounts billed to customers for shipping and handling fees are classified as revenue.

•

Any compensation paid to an Associate on their personal orders are captured and reported as a reduction to net sales in the form of a sales discount. Management estimates, based on the structure of USANA's Compensation Plan, that an Associate who places an order with sales volume points in a personal sales position will eventually be paid commission on that purchase. Such reduction of revenue for Associates outside of the United States is converted to U.S. Dollars at the average currency exchange rate for the applicable period.

•

We collect an annual renewal fee from our Associates that is deferred when it is collected and is recognized as income on a straight-line basis over the subsequent twelve-month period.

        Inventory Valuation.    Inventories are stated at the lower of cost or market, using the first-in, first-out method. The components of inventory cost include raw materials, labor, and overhead. Market value is determined using various assumptions with regard to excess or slow-moving inventories,

58

non-conforming inventories, expiration dates, current and future product demand, production planning, and market conditions. A change in any of these variables could result in an adjustment to inventory.

        Impairment of Long-Lived Assets, Goodwill, and Other Intangible Assets.    Long-lived assets are reviewed for impairment to determine whether events or changes in circumstances exist that indicate the carrying amount of the assets may not be recoverable. A long-lived asset is considered to be impaired when the carrying amount of an asset exceeds its fair value. Events or changes in circumstances that would indicate the need for impairment testing include, among other factors: operating losses; unused capacity; market value declines; technological developments resulting in obsolescence; changes in demand for products manufactured; changes in competition and competitive practices; uncertainties associated with the world economies; and changes in governmental regulations or actions.

        Goodwill represents the excess of purchase price paid over the fair market value of identifiable net assets of companies acquired. Goodwill is not amortized, but rather it is tested at least annually for impairment (or more frequently if triggering events or changes in circumstances indicate impairment). The determination of impairment is made at the reporting unit level and an impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit's fair value. Initially, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, entity-specific events, a sustained decrease in share price, and consideration of the difference between the fair value and carrying amount of a reporting unit as determined in the most recent quantitative assessment. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit's fair value is less than its carrying amount, a two-step impairment analysis is performed to estimate the fair value of goodwill. The first step involves estimating the fair values of reporting units using widely-accepted valuation methodologies including the income, market, and transaction approach, which requires the use of estimates and assumptions. These estimates and assumptions include revenue growth rates, discounts rates, and determination of appropriate market comparables. If the carrying amount of goodwill exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit as determined in step one, less fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill.

        Our most recent annual goodwill impairment tests did not result in an impairment charge, nor have any events occurred subsequent to any of our acquisitions that have resulted in impairment of the original goodwill amounts that were initially recorded from the transactions. However, the fair value of the Company's Sense reporting unit calculated as part of the step one test exceeded its carrying value by around 1%. Therefore, any deterioration of the estimates and assumptions used to determine the fair value could potentially result in a future impairment charge to all or a portion of the $4.3 million of goodwill related to the Sense reporting unit. A sensitivity analysis was performed to determine the potential impact on the current Sense valuation of variations in two key underlying assumptions within the income approach; revenue growth and the discount rate. The results of this analysis indicate that a significant deterioration in either of these variables would not produce a deficit of fair value to carrying value that would be considered material by management neither would it likely result in an impairment charge determined under the step two test.

        Other intangible assets represent definite-lived and indefinite-lived intangible assets acquired in connection with the purchase of our China operations on August 16, 2010. These intangible assets have been measured at the acquisition-date fair value using various methodologies applied within the income approach. Definite-lived intangible assets are amortized over their related useful lives and are tested for

59

impairment if events or changes in circumstances indicate impairment. Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances indicate impairment. There have been no events or changes in circumstances that have occurred subsequent to the acquisition of the indefinite-lived intangible assets that would indicate impairment.

        Determining the fair value of our other intangible assets requires significant judgment in estimates and assumptions used under the income approach. A change in any of the estimates or assumptions used could result in impairment.

        Accounting for Income Taxes.    Income taxes are calculated in each of the jurisdictions in which we operate. This process involves estimating our current tax exposure, together with assessing temporary differences for items treated differently for tax and financial reporting. Tax benefits are recognized from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial position, results of operations, or cash flows. Additional information regarding income taxes is available in Note E to the Consolidated Financial Statements herein.

        On an interim basis, an estimate is made of what our effective tax rate will be for the full fiscal year, and a quarterly income tax provision in accordance with this anticipated effective rate is recorded. As the fiscal year progresses, we continually refine our estimate based upon actual events and earnings by jurisdiction during the year. This estimation process periodically results in changes to our expected effective tax rate for the fiscal year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision equals the expected annual rate.

        Equity-Based Compensation.    We record compensation expense in the financial statements for equity-based awards based on the grant date fair value and an estimate of forfeitures derived from historical experience. We use the Black-Scholes option pricing model to estimate the fair value of our equity awards. Equity-based compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. For more information regarding the assumptions and estimates used in calculating this equity-based compensation expense, see Note K to the Consolidated Financial Statements herein.

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

        Our earnings, cash flows, and financial position are affected by fluctuations in currency exchange rates, interest rates, and other uncertainties that are inherent in doing business and selling product in more than one currency. In addition, our operations are exposed to risks that are associated with changes in social, political, and economic conditions in our international operations. This includes changes in the laws and policies that govern investment in international countries where we have operations, as well as, to a lesser extent, changes in United States laws and regulations relating to international trade and investment.

        Foreign Currency Risks.    Net sales outside the United States represented 70.9%, 74.6%, and 76.5% of our net sales in 2010, 2011, and 2012, respectively. Because a significant portion of our sales are generated outside the United States, currency exchange rate fluctuations may have a significant effect on our sales and earnings. This risk is partially mitigated by the fact that 36.3% of net sales in 2012 occurred in our Greater China region (where the local currencies of the markets in this region

60

fluctuate very little relative to the U.S. dollar). The local currency of each international subsidiary is considered the functional currency, with all revenue and expenses being translated at weighted-average currency exchange rates for the applicable periods. In general, our reported sales and gross profit are affected positively by a weakening of the U.S. dollar and negatively by a strengthening of the U.S. dollar because we manufacture the majority of our products in the U.S. and sell them to our international subsidiaries in their respective functional currencies. Currency fluctuations, however, have the opposite effect on our Associate incentives and selling, general and administrative expenses. We are unable to reasonably estimate the effect that currency fluctuations may have on our future business, results of operations, or financial condition. This is due to the uncertainty in, and the varying degrees and type of exposure that we face from, fluctuation of various currencies.

        Currently our strategy for reducing our exposure to currency fluctuation includes the timely and efficient repatriation of earnings from international markets and settlement of intercompany transactions. Additionally, from time to time we will enter into short-term foreign currency credit arrangements in our international markets, primarily as a way to reduce our exposure to negative effects of changes in foreign currency exchange rates. At times in the past we have also sought to reduce exposure to fluctuations in currency exchange rates by creating offsetting positions through the use of currency exchange contracts on cash that we repatriate and we may look to something like this again in the coming year. We do not use derivative financial instruments for trading or speculative purposes. There can be no assurance that our practices will be successful in eliminating all or substantially all of the risks that may be encountered in connection with our currency transactions. As of December 29, 2012, we had no currency exchange contracts in place.

        Following are the average exchange rates of currency units to one U.S. dollar for each of the international markets in which we operated as of December 29, 2012 for the quarterly periods indicated:

	2011												2012
	First			Second			Third			Fourth			First		Second		Third		Fourth
Canadian Dollar		0.98			0.97			0.98			1.02			1.00		1.01		0.99		0.99
Australian Dollar		0.99			0.94			0.95			0.99			0.95		0.99		0.96		0.96
New Zealand Dollar		1.32			1.25			1.20			1.29			1.22		1.27		1.24		1.21
Hong Kong Dollar		7.79			7.78			7.79			7.78			7.76		7.76		7.76		7.75
Japanese Yen		82.27			81.39			77.52			77.39			79.49		80.00		78.59		81.28
New Taiwan Dollar		29.33			28.83			29.17			30.25			29.68		29.63		29.82		29.14
Korean Won		1,118.9			1,082.6			1,085.5			1,144.5			1,129.5		1,154.0		1,132.2		1,089.2
Singapore Dollar		1.28			1.24			1.23			1.29			1.26		1.27		1.25		1.22
Mexican Peso		12.05			11.72			12.37			13.66			12.93		13.56		13.15		12.95
Chinese Yuan		6.58			6.50			6.41			6.36			6.31		6.33		6.35		6.25
Malaysian Ringitt		3.05			3.02			3.02			3.15			3.06		3.12		3.12		3.06
Philippine Peso		43.67			43.23			42.74			43.42			43.04		42.74		41.90		41.10
Thailand Baht			*			*			*			*		30.94		31.31		31.33		30.67
Euro			*			*			*			*		0.76		0.78		0.80		0.77

*

USANA operations had not commenced during period indicated.

        Interest Rate Risks.    As of December 29, 2012, we had no outstanding debt, and therefore, we have no direct exposure to interest rate risk. It may become necessary to borrow in the future in order to meet our financing needs. In the event that it becomes necessary to borrow, there can be no assurance that we will be able to borrow, or at favorable rates.

61

Item 8.    Financial Statements and Supplementary Data

        The Financial Statements and Supplementary Data required by this Item are set forth at the pages indicated at Item 15 below.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

        None.

Item 9A.    Controls and Procedures

Disclosure Controls and Procedures

        We maintain disclosure controls and procedures that are designed to ensure that information that is required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding any required disclosure. In designing and evaluating these disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures.

        As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective to provide reasonable assurance as of December 29, 2012.

Management's Report on Internal Control Over Financial Reporting

        Our management is responsible for establishing and maintaining adequate internal control over financial reporting, (as defined in Rule 13a-15(f) under the Exchange Act). The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:

•

Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

•

Provide reasonable assurance that transactions are recorded, as necessary, to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

•

Provide reasonable assurance regarding the prevention or timely detection of any unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

62

        Our management, including our Chief Executive Officer and our Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting as of December 29, 2012. In making this assessment, management used the criteria that have been set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on its assessment, using those criteria, management concluded that, as of December 29, 2012, the Company's internal control over financial reporting was effective.

        The effectiveness of the Company's internal control over financial reporting, as of December 29, 2012, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.

Changes in Internal Control Over Financial Reporting

        There were no changes in our internal controls over financial reporting that occurred during the quarter ended December 29, 2012, that have materially affected or that are reasonably likely to materially affect the Company's internal control over financial reporting.

Item 9B.    Other Information

        None.

PART III

Item 10.    Directors, Executive Officers and Corporate Governance

        The information for this Item is incorporated by reference to the definitive proxy statement to be filed pursuant to Regulation 14A under the Exchange Act.

Item 11.    Executive Compensation

        The information for this Item is incorporated by reference to the definitive proxy statement to be filed pursuant to Regulation 14A under the Exchange Act.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

        The information for this Item is incorporated by reference to the definitive proxy statement to be filed pursuant to Regulation 14A under the Exchange Act.

Item 13.    Certain Relationships and Related Transactions, and Director Independence

        The information for this Item is incorporated by reference to the definitive proxy statement to be filed pursuant to Regulation 14A under the Exchange Act.

Item 14.    Principal Accounting Fees and Services

        The information for this Item is incorporated by reference to the definitive proxy statement to be filed pursuant to Regulation 14A under the Exchange Act.

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PART IV

Item 15.    Exhibits, Financial Statement Schedules

        (a)   The following documents are filed as part of this Form:

        1.     Financial Statements

Report of Independent Registered Public Accounting Firm	F-1
Consolidated Balance Sheets	F-2
Consolidated Statements of Comprehensive Income	F-3
Consolidated Statements of Stockholders' Equity	F-4
Consolidated Statements of Cash Flows	F-5
Notes to the Consolidated Financial Statements	F-6

        2.     Financial Statement Schedules.

For the years ended January 1, 2011, December 31, 2011, and December 29, 2012

Schedule II—Valuation and Qualifying Accounts

        3.     Exhibits.

Exhibit Number		Description
	3.1	Amended and Restated Articles of Incorporation (incorporated by reference to Current Report on Form 8-K, filed April 25, 2006)
	3.2	Bylaws (incorporated by reference to Current Report on Form 8-K, filed April 25, 2006)
	4.1	Specimen Stock Certificate for Common Stock (incorporated by reference to Registration Statement on Form 10, File No. 0-21116, effective April 16, 1993)
	10.1	2002 USANA Health Sciences, Inc. Stock Option Plan (incorporated by reference to Registration Statement on Form S-8, filed July 18, 2002)*
	10.2	Form of employee or director non-statutory stock option agreement under the 2002 USANA Health Sciences, Inc. Stock Option Plan (incorporated by reference to Annual Report on Form 10-K, filed March 6, 2006)*
	10.3	Form of employee incentive stock option agreement under the 2002 USANA Health Sciences, Inc. Stock Option Plan (incorporated by reference to Annual Report on Form 10-K, filed March 6, 2006)*
	10.4	Credit Agreement, dated as of June 16, 2004, by and between Bank of America, N.A. and USANA Health Sciences, Inc. (incorporated by reference to Quarterly Report on Form 10-Q for the period ended July 3, 2004, filed August 5, 2004)
	10.5	Amendment to Credit Agreement, dated as of May 17, 2006 (incorporated by reference to Quarterly Report on Form 10-Q for the period ended July 1, 2006, filed August 8, 2006)
	10.6	Amendment to Credit Agreement, dated as of April 24, 2007 (incorporated by reference to Quarterly Report on Form 10-Q for the period ended March 31, 2007, filed May 7, 2007)
	10.7	USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 25, 2006)*

64

Exhibit Number		Description
	10.8	Form of Stock Option Agreement for award of non-statutory stock options to employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.9	Form of Stock Option Agreement for award of non-statutory stock options to directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.10	Form of Incentive Stock Option Agreement for award of incentive stock options to employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.11	Form of Stock-Settled Stock Appreciation Rights Award Agreement for award of stock-settled stock appreciation rights to employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.12	Form of Stock-Settled Stock Appreciation Rights Award Agreement for award of stock-settled stock appreciation rights to directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.13	Form of Deferred Stock Unit Award Agreement for grants of deferred stock units to directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (incorporated by reference to Current Report on Form 8-K, filed April 26, 2006)*
	10.14	Form of Indemnification Agreement between the Company and its directors (incorporated by reference to Current Report on Form 8-K, filed May 24, 2006)*
	10.15	Form of Indemnification Agreement between the Company and certain of its officers (Incorporated by reference to Report on Form 8-K, filed May 24, 2006)*
	10.16	Share Purchase Agreement, dated as of August 16, 2010, among USANA Health Sciences, Inc., Petlane, Inc., Yaolan Ltd., and BabyCare Holdings Ltd. (Incorporated by Reference to Report on Form 8-K, filed August 16, 2010)
	10.17	Amended and Restated Credit Agreement, dated as of April 27, 2011 (Incorporated by reference to Report on Form 8-K, filed April 28, 2011)
	10.18	Form of Executive Confidentiality, Non-Disclosure and Non-Solicitation Agreement (incorporated by reference to Quarterly Report on Form 10-Q for the period ended October 1, 2011, filed November 9, 2011)*
	10.19	Separation and Release of Claims Agreement dated as of December 21, 2012 by and between USANA Health Sciences, Inc. and Roy Truett (incorporated by reference to Report on Form 8-K/A, filed December 26, 2012)*
	10.20	Amendment to Confidentiality, Non-Disclosure and Non-Solicitation Agreement dated as of December 21, 2012 by and between USANA Health Sciences, Inc. and Roy Truett (incorporated by reference to Report on Form 8-K/A, filed December 26, 2012)*
	11.1	Computation of Net Income per Share (included in Notes to Consolidated Financial Statements)

65

Exhibit Number		Description
	14	Code of Ethics of USANA Health Sciences, Inc. (posted on the Company's Internet web site at www.usanahealthsciences.com)
	21	Subsidiaries of the Registrant, as of March 1, 2013 (filed herewith)
	23.1	Consent of Independent Registered Public Accounting Firm (PricewaterhouseCoopers LLP) (filed herewith)
	31.1	Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
	31.2	Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
	32.1	Certification of Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 (filed herewith)
	32.2	Certification of Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 (filed herewith)
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*

Denotes a management contract or compensatory plan or arrangement.

66

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

USANA Health Sciences, Inc.
By:	/s/ DAVID A. WENTZ David A. Wentz Chief Executive Officer

Date: March 11, 2013

        Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ MYRON W. WENTZ Myron W. Wentz, PhD	Chairman	March 11, 2013
/s/ DAVID A. WENTZ David A. Wentz	Chief Executive Officer (Principal Executive Officer)	March 11, 2013
/s/ RONALD S. POELMAN Ronald S. Poelman	Director	March 11, 2013
/s/ ROBERT ANCIAUX Robert Anciaux	Director	March 11, 2013
/s/ JERRY G. MCCLAIN Jerry G. McClain	Director	March 11, 2013
/s/ GILBERT A. FULLER Gilbert A. Fuller	Director	March 11, 2013
/s/ PAUL A. JONES Paul A. Jones	Chief Financial Officer (Principal Financial and Accounting Officer)	March 11, 2013

67

REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
USANA Health Sciences, Inc.:

        In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of comprehensive income, statements of stockholders' equity, and cash flows present fairly, in all material respects, the financial position of USANA Health Sciences, Inc. and its subsidiaries at December 29, 2012 and December 31, 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 29, 2012 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 29, 2012, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

        A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/PricewaterhouseCoopers LLP

Salt Lake City, Utah
March 11, 2013

F-1

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

	As of December 31, 2011		As of December 29, 2012
ASSETS
Current assets
Cash and cash equivalents	$	50,353	$	70,839
Inventories		36,968		36,481
Prepaid expenses and other current assets		18,738		25,225
Total current assets		106,059		132,545
Property and equipment, net		60,754		61,751
Goodwill		17,740		17,890
Intangible assets, net		42,637		42,085
Deferred tax assets		11,033		5,956
Other assets		6,273		7,128
	$	244,496	$	267,355
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	7,952	$	7,040
Other current liabilities		51,744		63,804
Total current liabilities		59,696		70,844
Deferred tax liabilities		9,948		10,001
Other long-term liabilities		942		938
Stockholders' equity
Common stock, $0.001 par value; Authorized—50,000 shares, issued and outstanding 14,940 as of December 31, 2011 and 13,821 as of December 29, 2012		15		14
Additional paid-in capital		49,257		43,822
Retained earnings		118,799		134,800
Accumulated other comprehensive income		5,839		6,936
Total stockholders' equity		173,910		185,572
	$	244,496	$	267,355

The accompanying notes are an integral part of these statements.

F-2

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

	Year Ended
	2010			2011			2012
Net sales	$	517,644		$	581,939		$	648,726
Cost of sales		95,482			101,692			115,804
Gross profit		422,162			480,247			532,922
Operating expenses:
Associate incentives		233,187			265,928			280,506
Selling, general and administrative		120,759			137,063			154,237
Total operating expenses		353,946			402,991			434,743
Earnings from operations		68,216			77,256			98,179
Other income (expense):
Interest income		167			191			247
Interest expense		(94	)		(9	)		(20	)
Other, net		575			40			20
Other income (expense), net		648			222			247
Earnings before income taxes		68,864			77,478			98,426
Income taxes		23,213			26,726			31,993
Net earnings	$	45,651		$	50,752		$	66,433
Earnings per common share
Basic	$	2.94		$	3.30		$	4.57
Diluted	$	2.86		$	3.26		$	4.45
Weighted average common shares outstanding
Basic		15,528			15,361			14,547
Diluted		15,942			15,574			14,923
Comprehensive income:
Net earnings	$	45,651		$	50,752		$	66,433
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		4,740			1,958			1,642
Tax benefit (expense) related to foreign currency translation adjustment		(906	)		(1,476	)		(545	)
Other comprehensive income (loss), net of tax		3,834			482			1,097
Comprehensive income	$	49,485		$	51,234		$	67,530

The accompanying notes are an integral part of these statements.

F-3

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Years ended January 1, 2011; December 31, 2011; and December 29, 2012

(in thousands)

	Common Stock												Accumulated Other Comprehensive Income
							Additional Paid-in Capital			Retained Earnings
	Shares			Value											Total
Balance at January 2, 2010		15,309		$	15		$	16,425		$	56,410		$	1,523	$	74,373
Net earnings											45,651					45,651
Other comprehensive income, net of tax														3,834		3,834
Equity-based compensation expense								10,406								10,406
Common stock repurchased and retired		(387	)		(1	)		(5,176	)		(11,854	)				(17,031	)
Common stock issued in connection with acquisition		400			1			17,715								17,716
Common stock issued under equity award plans, including tax expense of $152		663			1			11,852								11,853
Balance at January 1, 2011		15,985			16			51,222			90,207			5,357		146,802
Net earnings											50,752					50,752
Other comprehensive income, net of tax														482		482
Equity-based compensation expense								10,549								10,549
Common stock repurchased and retired		(1,120	)		(1	)		(11,298	)		(22,160	)				(33,459	)
Common stock issued under equity award plans, including tax expense of $317		75						(278	)							(278	)
Tax impact of canceled vested equity awards								(938	)							(938	)
Balance at December 31, 2011		14,940			15			49,257			118,799			5,839		173,910
Net earnings											66,433					66,433
Other comprehensive income, net of tax														1,097		1,097
Equity-based compensation expense								10,210								10,210
Common stock repurchased and retired		(1,644	)		(2	)		(17,860	)		(50,432	)				(68,294	)
Common stock awarded to Associates		2						80								80
Common stock issued under equity award plans, including tax benefit of $2,201		523			1			2,509								2,510
Tax impact of canceled vested equity awards								(374	)							(374	)
Balance at December 29, 2012		13,821		$	14		$	43,822		$	134,800		$	6,936	$	185,572

The accompanying notes are an integral part of these statements.

F-4

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended
	2010			2011			2012
Cash flows from operating activities
Net earnings	$	45,651		$	50,752		$	66,433
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization		7,916			8,474			8,826
(Gain) loss on sale of property and equipment		94			45			(36	)
Equity-based compensation expense		10,406			10,549			10,210
Excess tax benefits from equity-based payment arrangements		(2,449	)		(48	)		(3,443	)
Common stock awarded to Associates		—			—			80
Deferred income taxes		3,194			(1,599	)		4,111
Changes in operating assets and liabilities:
Inventories, net		(4,982	)		(3,209	)		1,370
Prepaid expenses and other assets		(5,218	)		4,024			(6,341	)
Accounts payable		(1,981	)		1,502			(985	)
Other liabilities		13,477			(382	)		12,580
Total adjustments		20,457			19,356			26,372
Net cash provided by operating activities		66,108			70,108			92,805
Cash flows from investing activities
Acquisitions, net of cash acquired		(42,694	)		—			—
Proceeds from sale of property and equipment		33			34			154
Purchases of property and equipment		(4,192	)		(10,643	)		(8,432	)
Net cash used in investing activities		(46,853	)		(10,609	)		(8,278	)
Cash flows from financing activities
Proceeds from equity awards exercised		12,005			39			309
Excess tax benefits from equity-based payment arrangements		2,449			48			3,443
Repurchase of common stock		(17,031	)		(33,459	)		(68,294	)
Borrowings on line of credit		31,150			—			1,846
Payments on line of credit		(38,150	)		—			(1,846	)
Net cash used in financing activities		(9,577	)		(33,372	)		(64,542	)
Effect of exchange rate changes on cash and cash equivalents		886			4			501
Net increase in cash and cash equivalents		10,564			26,131			20,486
Cash and cash equivalents, beginning of period		13,658			24,222			50,353
Cash and cash equivalents, end of period	$	24,222		$	50,353		$	70,839
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	99		$	10		$	20
Income taxes		21,628			24,539			27,131
Non-cash financing activities
Common stock issued in connection with acquisitions		17,716			—			—

The accompanying notes are an integral part of these statements.

F-5

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

        USANA Health Sciences, Inc. ("the Company") develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Company operates in a single business segment as a direct selling company and reports operations in two geographic regions: North America/Europe and Asia Pacific, which is further divided into three sub-regions; Southeast Asia/Pacific, Greater China, and North Asia. North America/Europe includes the United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France, and Belgium. Southeast Asia/Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea.

Principles of consolidation and basis of presentation

        The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "USANA"). All significant inter-company accounts and transactions have been eliminated in this consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (US GAAP).

Use of estimates

        The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes. Significant estimates for the Company relate to revenue recognition, inventory obsolescence, goodwill and other intangible assets, equity-based compensation, and income taxes. Actual results could differ from those estimates. These estimates may be adjusted as more current information becomes available, and any adjustment could be significant.

Fiscal year

        The Company operates on a 52-53 week year, ending on the Saturday closest to December 31. Fiscal years 2010, 2011, and 2012 were 52-week years. Fiscal year 2010 covered the period January 3, 2010 to January 1, 2011 (hereinafter 2010). Fiscal year 2011 covered the period January 2, 2011 to December 31, 2011 (hereinafter 2011). Fiscal year 2012 covered the period January 1, 2012 to December 29, 2012 (hereinafter 2012).

Fair value of financial instruments

        The Company's financial instruments include: cash and cash equivalents, accounts receivable, restricted cash, and accounts payable. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values, based on their short-term nature. The recorded value of restricted cash is determined based on the principal amount and interest accrual.

        The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

F-6

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        The three levels are defined as follows:

•

Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

•

Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

•

Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

        The fair values of term deposits placed with banks are determined based on the pervasive interest rates in the market, which are also the interest rates as stated in the contracts with the banks. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 2. The carrying values of these term deposits approximate their fair values due to their short-term maturities. As of December 31, 2011, and December 29, 2012 the fair value of term deposits in the consolidated balance sheet totaled $0, and $1,610, respectively. These term deposits have been classified within cash and cash equivalents.

Translation of foreign currencies

        The functional currency of the Company's foreign subsidiaries is the local currency of their country of domicile. Assets and liabilities of the foreign subsidiaries are translated into U.S. dollar amounts at month-end exchange rates. Revenue and expense accounts are translated at the weighted-average rates for the monthly accounting period to which they relate. Equity accounts are translated at historical rates. Foreign currency translation adjustments are accumulated as a component of other comprehensive income. Foreign currency gains and losses resulting from intercompany transactions are included in the "Other, net" component of Other income (expense) in the Company's consolidated statements of comprehensive income.

Cash and cash equivalents

        The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents.

Restricted Cash

        The Company is required to maintain cash deposits with banks in certain subsidiary locations for various operating purposes.

        The most significant of these cash deposits relates to a deposit held at a bank in China, the balance of which was $3,166 as of December 31, 2011, and $3,208 as of December 29, 2012. This deposit is required for the application of direct sales licenses by the Ministry of Commerce and the State Administration for Industry & Commerce of the People's Republic of China, and will continue to be restricted during the periods while the Company holds these licenses. Restricted cash is included in other assets.

F-7

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventories

        Inventories are stated at the lower of cost or market, using the first-in, first-out method. The components of inventory cost include raw materials, labor, and overhead. Market value is determined using various assumptions with regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning, and market conditions. A change in any of these variables could result in an adjustment to inventory.

Income taxes

        The Company accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between the financial statement assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the "more-likely-than-not" criteria for recognition. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits in income taxes. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. A repatriation of these earnings would not create a material tax liability.

Property and equipment

        Property and equipment are recorded at cost. Maintenance, repairs, and renewals, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over the estimated useful lives of the related assets. The straight-line method of depreciation and amortization is followed for financial statement purposes. Leasehold improvements are amortized over the shorter of the life of the respective lease or the useful life of the improvements. Property and equipment are reviewed for impairment to determine whether events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

F-8

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Goodwill

        Goodwill represents the excess of the purchase price over the fair market value of identifiable net assets of acquired companies. Goodwill is not amortized, but rather is tested at least annually for impairment or more frequently if triggering events or changes in circumstances indicate impairment. The determination of impairment is made at the reporting unit level and an impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit's fair value. Initially, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, entity-specific events, a sustained decrease in share price, and consideration of the difference between the fair value and carrying amount of a reporting unit as determined in the most recent quantitative assessment. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit's fair value is less than its carrying amount, a two-step impairment analysis is performed to estimate the fair value of goodwill. The first step involves estimating the fair values of reporting units using widely-accepted valuation methodologies including the income, market, and transaction approach, which requires the use of estimates and assumptions. These estimates and assumptions include revenue growth rates, discounts rates, and determination of appropriate market comparables. If the carrying amount of goodwill exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit as determined in step one, less fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. Fair value of each reporting unit at December 31, 2011, and December 29, 2012 was greater than the carrying amount; therefore, no impairment was recorded.

Intangible assets

        Intangible assets represent definite-lived and indefinite-lived intangible assets acquired in connection with the purchase of the Company's China subsidiary in 2010. These intangible assets have been measured at the acquisition-date fair value using various methodologies applied within the income approach. Definite-lived intangible assets are amortized over their related useful lives. Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. There have been no events or changes in circumstances that have occurred subsequent to the acquisition of the indefinite-lived assets that would indicate impairment.

Self insurance

        The Company is self-insured, up to certain limits, for employee group health claims. The Company has purchased stop-loss insurance on both an individual and an aggregate basis, which will reimburse the Company for individual claims in excess of $125 and aggregate claims that are greater than 100% of projected claims. A liability is accrued and reflected in the Balance Sheet for all unpaid claims. Total

F-9

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

expense under this self insurance program was $3,391, $4,274 and $4,518 in 2010, 2011 and 2012, respectively.

Common stock and additional paid-in capital

        The Company records cash that it receives upon the exercise of equity awards by crediting common stock and additional paid-in capital. The Company received $12,005, $39, and $309 in cash proceeds from the exercise of equity awards in 2010, 2011, and 2012, respectively. The Company also realizes an income tax benefit from the exercise of certain equity awards. For equity awards earned prior to January 1, 2006, this tax benefit resulted in a decrease in current income taxes payable and an increase in additional paid-in capital. For equity awards earned after January 1, 2006, deferred tax assets are established in accordance with applicable equity-based compensation authoritative guidance.

        Upon exercise, the deferred tax assets are reversed and the difference between the deferred tax assets and the realized tax benefit creates a tax windfall or shortfall that increases or decreases the additional paid-in capital pool ("APIC Pool"). If the APIC Pool is reduced to zero, additional shortfalls are treated as a current tax expense. The total tax expense recorded in additional paid-in capital was $152 and $317, in 2010 and 2011, respectively. The total tax benefit recorded in additional paid-in capital was $2,201 in 2012.

        The Company has a stock repurchase plan in place that has been authorized by the Board of Directors. As of December 29, 2012, $31,707 was available to repurchase shares under this plan. The Company expended $17,031, $33,459, and $68,294 to repurchase and retire shares during 2010, 2011, and 2012, respectively. The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings.

Revenue recognition and deferred revenue

        The Company receives payment, primarily via credit card, for the sale of products at the time customers place orders. Sales and related fees such as shipping and handling, net of applicable sales discounts, are recorded as revenue when the product is delivered and when title and the risk of ownership passes to the customer. Payments received for undelivered products are recorded as deferred revenue and are included in other current liabilities. Certain incentives offered on the sale of our products, including sales discounts, are classified as a reduction of revenue. A provision for product returns and allowances is recorded and is founded on historical experience. Additionally, the Company collects an annual account renewal fee from Associates that is deferred on receipt and is recognized as income on a straight-line basis over the subsequent twelve-month period.

        Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales).

Product return policy

        All products that are returned within the first 30 days following purchase are refunded at 100% of the sales price to retail customers and Preferred Customers. This 30-day return policy is offered to Associates only on their first order. All other returned product that is unused and resalable is refunded

F-10

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

up to one year from the date of purchase at 100% of the sales price less a 10% restocking fee. According to the terms of the Associate agreement, return of product where the purchase amount exceeds one hundred dollars and was not damaged at the time of receipt by the Associate may result in cancellation of the Associate's distributorship. Depending upon the conditions under which product was returned customers may either receive a refund based on their original form of payment, or credit on account for a product exchange.

        This standard policy differs slightly in a few of our international markets due to the regulatory environment in those markets. Product returns totaled approximately 1.1% of net sales during fiscal years 2010, and 2011, and 0.8% of net sales in 2012.

Shipping and handling costs

        The Company's shipping and handling costs are included in cost of sales for all periods presented.

Associate incentives

        Associate incentives expenses include all forms of commissions, and other incentives paid to our Associates.

Selling, general and administrative

        Selling, general and administrative expenses include wages and benefits, depreciation and amortization, rents and utilities, Associate event costs, advertising and professional fees, marketing, and research and development expenses.

Equity-based compensation

        The Company records compensation expense in the financial statements for equity-based awards based on the grant date fair value and an estimate of forfeitures derived from historical experience. Equity-based compensation expense is recognized under the straight-line method over the period that service is provided, which is generally the vesting term. Further information regarding equity awards can be found in Note K—Equity-Based Compensation.

Advertising

        Advertising costs are charged to expense as incurred. Advertising expense totaled $1,202 in 2010, $3,893 in 2011 and $3,942 in 2012.

Research and development

        Research and development costs are charged to expense as incurred and are presented as part of selling, general and administrative expense. Research and development expense totaled $3,842 in 2010, $4,071 in 2011 and $4,664 in 2012.

F-11

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings per share

        Basic earnings per common share (EPS) are based on the weighted-average number of common shares that were outstanding during each period. Diluted earnings per common share include the effect of potentially dilutive common shares, which include in-the-money, equity-based awards that have been granted but have not been exercised.

Recently adopted accounting pronouncements

        In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 updates existing guidance in Topic 820 to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). ASU 2011-04 is effective prospectively for fiscal years, and interim periods, beginning after December 15, 2011. The Company adopted ASU 2011-04 during the first quarter ended March 31, 2012, and its application had no impact on the Company's consolidated financial statements.

        In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (ASU 2011-05). The objective of ASU 2011-05 is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate the convergence of U.S. GAAP and IFRS, ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. Under the amendments in this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. These amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. Also, the amendments do not change the option for an entity to present components of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. The Company adopted ASU 2011-05 during the first quarter ended March 31, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements, as it only affected financial statement presentation.

        In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (ASU 2012-02). ASU 2012-02 was issued with the intent of reducing the cost and complexity of performing impairment tests for indefinite-lived intangible assets by providing an entity with the option to first make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it is necessary to perform a quantitative impairment test. The amendments in this update also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting the qualitative assessment, which is similar to the previously updated guidance for goodwill impairment testing provided in ASU 2011-08. ASU 2012-02 is

F-12

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been issued. The Company adopted ASU 2012-02 during the third quarter ended September 29, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements

NOTE B—ACQUISITION

        On August 16, 2010, the Company indirectly acquired 100% of BabyCare Ltd., a limited liability company incorporated under the laws of the PRC, for the purchase price of $62,716, which consisted of $45,000 cash and $17,716 common stock issued (400 shares of USANA common stock at $44.29).

        BabyCare is a direct selling company in China that is principally engaged in developing, manufacturing and selling nutritional products for the entire family, with an emphasis on infant nutrition, through both a distributor sales force and a chain of retail centers. This acquisition was accomplished in the following simultaneous transactions. The Company acquired Pet Lane, Inc., a Delaware corporation ("Pet Lane"), which is the record owner of BabyCare in China, for a purchase price of $700. Simultaneously, the Company entered into and closed a share purchase agreement (the "Purchase Agreement") by and among the Company and the following parties: Pet Lane; Yaolan Ltd., an exempted company organized under the laws of the Cayman Islands ("Yaolan"); and BabyCare Holdings, Ltd., an exempted company organized under the laws of the Cayman Islands ("BabyCare Holdings"). Pursuant to the Purchase Agreement, the Company, through its acquisition entity Pet Lane, acquired all of the issued and outstanding shares of BabyCare Holdings (the "Shares") from Yaolan. Goodwill of $700 was recognized in connection with the acquisition of Pet Lane. BabyCare Holdings is the beneficial owner of BabyCare. As a result of its acquisition of Pet Lane and BabyCare Holdings, the Company, indirectly, has acquired both record and beneficial ownership of BabyCare.

        The acquisition was accounted for as a business combination and, as such, the results of operations for BabyCare have been included in the consolidated financial statements since the effective date of acquisition. This acquisition contributed $7,384 in net sales and a net loss of $1,154 for the year ended January 1, 2011. Had the acquisition occurred at the beginning of the year ended January 1, 2011, net sales for that year would have been $527,266, and net earnings would have been $43,173.

F-13

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE B—ACQUISITION (Continued)

        The assets acquired and liabilities assumed were recorded at estimated fair values as of the date of the acquisition. The purchase price allocation for BabyCare is as follows:

	August 16, 2010
Assets Acquired and Liabilities Assumed
Cash and cash equivalents	$	3,006
Inventories		1,702
Prepaid expenses and other current assets		4,663
Property and equipment		1,517
Goodwill		10,540
Intangible assets		41,000
Other assets		3,375
Accounts payable		(2,552	)
Other current liabilities		(535	)
	$	62,716

        Goodwill of $10,540 was recognized for the excess of consideration transferred over the acquisition-date fair value of net assets acquired. In accordance with accounting standards governing the subsequent measurement of goodwill, goodwill will not be amortized, but will be tested at least annually for impairment. The fair value of intangible assets acquired in the amount of $41,000 was derived using various methodologies applied within the income approach. For further information on intangible assets, see Note G to these consolidated financial statements. For tax purposes, $52,323 of goodwill and other intangible assets will be deducted over a period of 15 years in computing the Company's United States tax obligation. The anticipated benefits associated with the acquired goodwill and other intangibles include facilitating our expansion and growth in China. The most significant intangible asset is a direct selling license held by BabyCare from the Chinese government to engage in direct selling activities in the Municipality of Beijing. This direct selling license allows BabyCare to engage non-employee distributors to sell their products away from fixed retail locations.

        The costs related to the acquisition of BabyCare totaled $1,992, which included; advisory, legal, accounting, valuation, and other professional fees. These costs were expensed as incurred in the periods in which services were received and recognized in the consolidated statements of earnings in Selling, General and Administrative expenses.

F-14

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE C—INVENTORIES

        Inventories consist of the following:

	December 31, 2011		December 29, 2012
Raw materials	$	9,670	$	9,228
Work in progress		6,917		7,703
Finished goods		20,381		19,550
	$	36,968	$	36,481

NOTE D—PREPAID EXPENSES AND OTHER CURRENT ASSETS

        Prepaid expenses and other current assets consist of the following:

	December 31, 2011		December 29, 2012
Prepaid insurance	$	1,350	$	1,266
Other prepaid expenses		3,177		3,340
Federal income taxes receivable		2,680		4,865
Miscellaneous receivables, net		2,978		3,374
Deferred commissions		3,942		5,808
Deferred tax assets		3,320		4,255
Other current assets		1,291		2,317
	$	18,738	$	25,225

NOTE E—INCOME TAXES

        Income tax expense (benefit) included in income from net earnings consists of the following:

	Year ended
	2010			2011			2012
Current
Federal	$	18,026		$	22,383		$	27,779
State		1,502			1,913			1,141
Foreign		2,956			4,442			4,051
		22,484			28,738			32,971
Deferred
Federal		1,243			1,044			(145	)
State		113			(71	)		94
Foreign		(627	)		(2,985	)		(927	)
	$	23,213		$	26,726		$	31,993

F-15

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE E—INCOME TAXES (Continued)

        The income tax provision, as reconciled to the tax computed at the federal statutory rate of 35% for 2010, 2011, and 2012, is as follows:

	Year ended
	2010			2011			2012
Federal income taxes at statutory rate	$	24,102		$	27,117		$	34,449
State income taxes, net of federal tax benefit		1,192			1,373			1,201
Qualified production activities deduction		(1,320	)		(1,576	)		(2,651	)
All other, net		(761	)		(188	)		(1,006	)
	$	23,213		$	26,726		$	31,993

        The significant categories of deferred taxes are as follows:

	December 31, 2011			December 29, 2012
Deferred tax assets
Inventory differences	$	2,695		$	2,415
Accruals not currently deductible		2,124			2,533
Equity-based compensation		7,558			4,375
Intangible assets		9,535			9,532
Net operating losses		2,654			2,240
Other		1,361			2,675
Gross deferred tax assets		25,927			23,770
Valuation allowance		(1,784	)		(1,598	)
Net deferred tax assets		24,143			22,172
Deferred tax liabilities
Depreciation/amortization		(3,506	)		(5,260	)
Accumulated other comprehensive income		(3,378	)		(3,833	)
Prepaid expenses		(1,967	)		(1,240	)
Intangible assets		(10,659	)		(10,521	)
Other		(1,202	)		(2,490	)
Gross deferred tax liabilities		(20,712	)		(23,344	)
Net deferred taxes	$	3,431		$	(1,172	)

        At December 29, 2012, the Company had foreign operating loss carry forwards of approximately $8,960. If these operating losses are not used, they will expire between 2013 and 2017. A valuation allowance of approximately $6,400 has been placed on these foreign operating loss carry forwards. The valuation allowance is determined using a more likely than not realization criteria and is based upon all available positive and negative evidence, including future reversals of temporary differences. A future increase or decrease in the current valuation allowance is not expected to impact the income tax provision due to the Company's ability to fully utilize foreign tax credits associated with taxable income in these jurisdictions.

F-16

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE E—INCOME TAXES (Continued)

        The Components of deferred taxes, net on a jurisdiction basis are as follows:

	December 31, 2011		December 29, 2012
Net current deferred tax assets	$	3,320	$	4,255
Net noncurrent deferred tax assets		11,033		5,956
Total net deferred tax assets		14,353		10,211
Net current deferred tax liabilities		974		1,382
Net noncurrent deferred tax liabilities		9,948		10,001
Total net deferred tax liabilities		10,922		11,383
Net deferred taxes	$	3,431	$	(1,172	)

NOTE F—PROPERTY AND EQUIPMENT

        Cost of property and equipment and their estimated useful lives is as follows:

	Years	December 31, 2011		December 29, 2012
Buildings	40	$	40,173	$	40,766
Laboratory and production equipment	5 - 7		21,083		22,366
Sound and video library	5		600		600
Computer equipment and software	3 - 5		30,621		32,639
Furniture and fixtures	3 - 5		5,117		5,350
Automobiles	3 - 5		294		285
Leasehold improvements	3 - 5		5,723		6,817
Land improvements	15		2,051		2,196
			105,662		111,019
Less accumulated depreciation and amortization			54,437		59,049
			51,225		51,970
Land			8,109		8,211
Deposits and projects in process			1,420		1,570
		$	60,754	$	61,751

        Depreciation of property and equipment for the years ended 2010, 2011, and 2012 was $7,510, $7,431, and $7,717, respectively

F-17

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE G—INTANGIBLE ASSETS

        Goodwill and intangible assets are tested annually for impairment, or more frequently if impairment indicators are present. Such indicators of impairment include, but are not limited to, changes in business climate, and operating or cash flow losses related to such assets. Goodwill and indefinite lived intangible assets are not amortized. Definite lived intangibles are amortized over their related useful lives.

        No events have occurred subsequent to any of our acquisitions that have resulted in an impairment of the original goodwill or intangible asset amounts that were initially recorded from the transactions. Goodwill is as follows:

	December 31, 2011		Currency translation adjustments		December 29, 2012
North America	$	6,390	$	—	$	6,390
Asia Pacific		11,350		150		11,500
	$	17,740	$	150	$	17,890

	As of December 31, 2011
	Gross carrying amount		Accumulated amortization			Net carrying amount		Weighted-average amortization period (years)
Amortized intangible assets
Trade name and trademarks	$	4,200	$	(577	)	$	3,623		10
Customer relationships		2,046		(938	)		1,108		3
		6,246		(1,515	)		4,731
Unamortized intangible assets
Product formulas		9,261					9,261
Direct sales license		28,645					28,645
		37,906					37,906
	$	44,152				$	42,637

F-18

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE G—INTANGIBLE ASSETS (Continued)

	As of December 29, 2012
	Gross carrying amount		Accumulated amortization			Net carrying amount		Weighted-average amortization period (years)
Amortized intangible assets
Trade name and trademarks	$	4,256	$	(1,011	)	$	3,245		10
Customer relationships		2,073		(1,641	)		432		3
		6,329		(2,652	)		3,677
Unamortized intangible assets
Product formulas		9,384					9,384
Direct sales license		29,024					29,024
		38,408					38,408
	$	44,737				$	42,085
Aggregate amortization expense:
Year ended December 29, 2012	$	1,090
Estimated Amortization Expense:
2013		858
2014		426
2015		426
2016		426
2017		426
Thereafter		1,115
	$	3,677

NOTE H—OTHER CURRENT LIABILITIES

        Other current liabilities consist of the following:

	December 31, 2011		December 29, 2012
Associate incentives	$	12,423	$	15,252
Accrued employee compensation		12,210		16,402
Income taxes		4,112		1,414
Sales taxes		4,291		4,569
Deferred tax liabilities		974		1,382
Associate promotions		1,035		1,775
Deferred revenue		10,065		15,601
Provision for returns and allowances		1,014		717
All other		5,620		6,692
	$	51,744	$	63,804

F-19

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE I—LONG-TERM DEBT AND LINE OF CREDIT

        The Company has a $60,000 line of credit with Bank of America. Interest is computed at the bank's Prime Rate or LIBOR, adjusted by features specified in the Credit Agreement. The collateral for this line of credit is the pledge of the capital stock of certain subsidiaries of the Company, set forth in a separate pledge agreement with the bank. The Credit Agreement contains restrictive covenants based on adjusted EBITDA and a debt coverage ratio.

        There was no outstanding debt on this line of credit at December 31, 2011 or at December 29, 2012. The Company will be required to pay any balance on this line of credit in full at the time of maturity in April 2016 unless the line of credit is replaced or terms are renegotiated.

NOTE J—COMMITMENTS AND CONTINGENCIES

1.

Operating leases

        With the exception of the Company's Salt Lake City headquarters, Australian facility, and Tianjin, China facility, facilities are generally leased. Each of the facility lease agreements is a non-cancelable operating lease generally structured with renewal options and expires prior to or during 2019. The Company utilizes equipment under non-cancelable operating leases, expiring through 2016. The minimum commitments under operating leases at December 29, 2012 are as follows:

Year ending
2013	$	10,005
2014		4,349
2015		1,873
2016		1,114
2017		443
Thereafter		456
	$	18,240

        These leases generally provide that property taxes, insurance, and maintenance expenses are the responsibility of the Company. Such expenses are not included in the operating lease amounts outlined in the table above or in the rent expense amounts that follow. The total rent expense for the years ended 2010, 2011, and 2012 was approximately $4,442, $6,410, and $6,452 respectively.

2.

Contingencies

        The Company is occasionally involved in lawsuits and disputes arising in the normal course of business. In the opinion of management, based upon advice of counsel, the likelihood of an adverse outcome against the Company is remote. As such, management believes that the ultimate outcome of these lawsuits will not have a material impact on the Company's financial position or results of operations.

F-20

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE J—COMMITMENTS AND CONTINGENCIES (Continued)

3.

Employee Benefit Plan

        The Company sponsors an employee benefit plan under Section 401(k) of the Internal Revenue Code. This plan covers employees who are at least 18 years of age and have met a one-month service requirement. The Company makes a matching contribution equal to 100 percent of the first one percent of a participant's compensation that is contributed by the participant, and 50 percent of that deferral that exceeds one percent of the participant's compensation, not to exceed six percent of the participant's compensation, subject to the limits of ERISA. In addition, the Company may make a discretionary contribution based on earnings. The Company's matching contributions cliff vest at two years of service. Contributions made by the Company to the plan in the United States for the years ended 2010, 2011, and 2012 were $900, $979, and $1,024, respectively.

NOTE K—EQUITY-BASED COMPENSATION

        Equity-based compensation expense for fiscal years 2010, 2011, and 2012 was $10,406, $10,549, and $10,210, respectively. The related tax benefit for these periods was $3,992, $3,852, and $3,554, respectively.

        The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of December 29, 2012. This table does not include an estimate for future grants that may be issued.

2013	$	7,637
2014		5,682
2015		3,775
2016		1,735
2017		802
	$	19,631

        The cost above is expected to be recognized over a weighted-average period of 2.0 years.

        The Company's 2006 Equity Incentive Award Plan (the "2006 Plan") is currently the only plan under which equity awards are issued. This plan allows for the grant of various equity awards, including stock-settled stock appreciation rights, stock options, deferred stock units, and other types of equity-based awards, to the Company's officers, key employees, and non-employee directors.

        Since its inception 10,000 shares have been authorized under the 2006 Plan. As of December 29, 2012, a total of 5,829 awards had been granted under the 2006 Plan, of which 5,707 were stock-settled stock appreciation rights, 8 were stock options, and 114 were deferred stock units. Also, as of December 29, 2012, a total of 945 awards had been canceled and added back to the number of units available for issuance under the 2006 Plan.

        The Company's Compensation Committee utilizes two types of vesting methods when granting awards to officers and key employees under the 2006 Plan based upon the nature of the grant. Awards granted to officers and key employees upon hire or promotion to such a position will generally vest 20% each year on the anniversary of the grant date and expire five to five and one-half years from the

F-21

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE K—EQUITY-BASED COMPENSATION (Continued)

date of grant. Awards granted as a supplement to existing equity awards held by officers and key employees will generally vest 50% on each of the fourth and fifth anniversary of the grant date and expire five and one-half years from the date of grant. Awards of stock options and stock-settled stock appreciation rights to be granted to non-employee directors will generally vest 25% each quarter, commencing on the last day of the fiscal quarter in which the awards are granted, and will expire five years to five and one-half years from the date of grant. Awards of deferred stock units are full-value shares at the date of grant, vesting over the periods of service, and do not have expiration dates.

        The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards. The weighted-average fair value of stock-settled stock appreciation rights that were granted in 2010, 2011, and 2012, was $17.09, $12.40, and $15.35, respectively. Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated. Deferred stock units are full-value shares at the date of grant and have been excluded from the table below.

	Year Ended
	2010			2011			2012
Expected volatility(1)		54.9	%		56.0	%		50.7	%
Risk-free interest rate(2)		1.7	%		1.1	%		0.6	%
Expected life(3)		4.2 yrs.			3.9 yrs.			3.9 yrs.
Expected dividend yield(4)		0.0	%		0.0	%		0.0	%
Weighted-average grant price(5)	$	38.28		$	28.89		$	39.41

(1)

Through June, 2012 expected volatility was a weighted-average of historical volatility and implied volatility. In July 2012, the Company eliminated the implied volatility aspect of this calculation and began utilizing historical volatility alone due to the lack of sufficient compliant option trading volume.

(2)

Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.

(3)

For awards that follow the 20% per year vesting schedule, expected life is a weighted-average that includes historical settlement data of the Company's equity awards and a hypothetical holding period for outstanding awards. Due to lack of historical settlement data on awards that follow the 50% vesting at each of years four and five, expected life of these awards is calculated under the simplified method.

(4)

The Company historically has not paid dividends.

(5)

Grant price is the closing price of the Company's common stock on the date of grant.

F-22

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE K—EQUITY-BASED COMPENSATION (Continued)

        A summary of the Company's stock option and stock-settled stock appreciation right activity is as follows:

	Shares			Weighted- average grant price		Weighted-average remaining contractual term		Aggregate intrinsic value*
Outstanding at December 31, 2011		3,808		$	32.12		2.9	$	8,603
Granted		387			39.41
Exercised		(1,397	)		29.16
Canceled		(65	)		29.95
Expired		(44	)		51.39
Outstanding at December 29, 2012		2,689		$	34.43		2.9	$	5,136
Exercisable at December 29, 2012		774		$	36.10		2.4	$	1,275

*

Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the-money. The closing price of the Company's common stock at December 31, 2011 and December 29, 2012, was $30.37 and $31.60, respectively.

        The total intrinsic value of stock options and stock-settled stock appreciation rights exercised was $16,977 in 2010, $925 in 2011, and $20,590 in 2012.

        A summary of the Company's deferred stock unit activity for 2012 is as follows:

	Shares			Weighted- average fair value
Nonvested at December 31, 2011		49		$	44.29
Granted		—			—
Vested		(49	)		44.29
Canceled
Expired		—			—
Nonvested at December 29, 2012		—		$	—

        The total fair value of equity awards that vested during fiscal years 2010, 2011, and 2012 was $7,835, $10,993, and $10,211 respectively. This total fair value includes equity-based awards issued in the form of stock options, stock-settled stock appreciation rights, and deferred stock units.

NOTE L—SEGMENT INFORMATION

        USANA operates in a single operating segment as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors ("Associates"). As such, management has determined that the Company operates in one reportable business segment. Performance for a

F-23

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE L—SEGMENT INFORMATION (Continued)

region or market is primarily evaluated based on sales. The Company does not use profitability reports on a regional or market basis for making business decisions. 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 and personal care products for the periods indicated.

	Year Ended
	2010			2011			2012
USANA® Nutritionals		77	%		79	%		80	%
USANA Foods		12	%		11	%		11	%
Sensé—beautiful science®		8	%		7	%		7	%

        Selected financial information for the Company is presented for two geographic regions: North America/Europe and Asia Pacific, with three sub-regions under Asia Pacific. Individual markets are categorized into these regions as follows:

•

North America/Europe—United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France(1), and Belgium(1)

•

Asia Pacific—

•

Southeast Asia/Pacific—Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand(1)

•

Greater China—Hong Kong, Taiwan and China(2)

•

North Asia—Japan and South Korea

(1)

The Company commenced operations in Thailand, France, and Belgium at the end of the first quarter of 2012.

(2)

The Company's business in China is that of BabyCare, its wholly-owned subsidiary.

F-24

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE L—SEGMENT INFORMATION (Continued)

Selected Financial Information

        Financial information, presented by geographic region for the years ended January 1, 2011, December 31, 2011, and December 29, 2012 is listed below:

	2010		2011		2012
Net Sales to External Customers
North America/Europe	$	242,147	$	236,386	$	244,333
Asia Pacific
Southeast Asia Pacific		99,311		111,447		139,651
Greater China		152,280		204,822		235,626
North Asia		23,906		29,284		29,116
Asia Pacific Total		275,497		345,553		404,393
Consolidated Total	$	517,644	$	581,939	$	648,726

	December 31, 2011		December 29, 2012
Long-lived Assets
North America/Europe	$	47,393	$	48,101
Asia Pacific
Southeast Asia Pacific		16,401		17,866
Greater China		61,629		61,104
North Asia		1,981		1,783
Asia Pacific Total		80,011		80,753
Consolidated Total	$	127,404	$	128,854
Total Assets
North America/Europe	$	116,844	$	106,170
Asia Pacific
Southeast Asia Pacific		26,800		43,234
Greater China		93,989		109,510
North Asia		6,863		8,441
Asia Pacific Total		127,652		161,185
Consolidated Total	$	244,496	$	267,355

F-25

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE L—SEGMENT INFORMATION (Continued)

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

	2010		2011		2012
Net sales:
United States	$	150,893	$	148,061	$	152,460
Hong Kong		121,435		156,672		180,837
Canada		69,411		67,024		63,318
Long-lived Assets:
China			$	59,806	$	59,130
United States				46,991		46,559
Australia				15,280		15,121

NOTE M—QUARTERLY FINANCIAL RESULTS (Unaudited)

        The following table summarizes quarterly financial information for fiscal years 2011 and 2012.

2011	First		Second		Third		Fourth
Net sales	$	143,566	$	148,925	$	143,501	$	145,947
Gross profit	$	117,904	$	122,717	$	118,299	$	121,327
Net earnings	$	11,350	$	13,856	$	12,385	$	13,161
Earnings per share:
Basic	$	0.71	$	0.89	$	0.82	$	0.88
Diluted	$	0.70	$	0.88	$	0.81	$	0.87

2012	First		Second		Third		Fourth
Net sales	$	154,120	$	160,901	$	165,175	$	168,530
Gross profit	$	126,903	$	132,828	$	134,832	$	138,359
Net earnings	$	13,751	$	16,745	$	17,490	$	18,447
Earnings per share:
Basic	$	0.92	$	1.14	$	1.22	$	1.30
Diluted	$	0.90	$	1.11	$	1.18	$	1.27

F-26

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE N—EARNINGS PER SHARE

        Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised.

	Year ended
	2010			2011			2012
Net earnings available to common shareholders	$	45,651		$	50,752		$	66,433
Basic EPS
Shares
Common shares outstanding entire period		15,309			15,985			14,940
Weighted average common shares:
Issued during period		311			32			199
Canceled during period		(92	)		(656	)		(592	)
Weighted average common shares outstanding during period		15,528			15,361			14,547
Earnings per common share from net earnings—basic	$	2.94		$	3.30		$	4.57
Diluted EPS
Shares
Weighted average common shares outstanding during period—basic		15,528			15,361			14,547
Dilutive effect of in-the-money equity awards		414			213			376
Weighted average common shares outstanding during period—diluted		15,942			15,574			14,923
Earnings per common share from net earnings—diluted	$	2.86		$	3.26		$	4.45

        Equity awards for 1,806 shares, 2,773 shares, and 1,039 shares of stock were not included in the computation of EPS for the years ended 2010, 2011, and 2012, respectively, due to the fact that their effect would be anti-dilutive.

        During the years ended January 1, 2011, December 31, 2011, and December 29, 2012, the Company expended $17,031, $33,459, and $68,294 to purchase 387 shares, 1,120 shares, and 1,644 shares, respectively, under the Company's share repurchase plan. The purchase of shares under this plan reduces the number of shares outstanding in the above calculations.

NOTE O—RELATED-PARTY TRANSACTIONS

        The Company's Founder and Chairman of the Board, Myron W. Wentz, PhD is the sole beneficial owner of the largest shareholder of the Company, Gull Holdings, Ltd. As of December 29, 2012, Gull Holdings, Ltd. owned 48.1% of the Company's issued and outstanding shares. Dr. Wentz devotes much of his personal time, expertise, and resources to a number of business and professional activities outside of USANA. The most significant of these is the Sanoviv Medical Institute, which is a unique,

F-27

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

NOTE O—RELATED-PARTY TRANSACTIONS (Continued)

fully integrated health and wellness center located near Rosarito, Mexico that Dr. Wentz founded in 1998. Dr. Wentz's private entity, Sanoviv S.A. de C.V. ("Sanoviv"), contracts with Medicis, S.C. ("Medicis"), an entity that is owned and operated independently of Dr. Wentz, to conduct the operations of the Sanoviv Medical Institute. Sanoviv leases the medical building to Medicis and Medicis carries out all of the operations of the medical institute, which include employing all of the medical and healthcare professionals who provide services at the medical institute. The Medicis medical and healthcare professionals possess expertise in the fields of human health, digestive health, nutritional medicine, lifestyle medicine and other medical fields that are important to USANA.

        Medicis performs research and development of novel product formulations for future development and production by USANA, and they also perform research and development of improvements in existing USANA product formulations. In addition to providing contract research services, Medicis provides physicians and other medical staff to speak at USANA Associate events. Finally, Medicis performs heath assessments and physical examinations for the Company's Executives. In consideration for these services, USANA paid Medicis approximately $500 in 2010, $360 in 2011, and $359 in 2012. The Company's agreements with Medicis were approved by the Audit Committee in advance of the Company's entry into the agreements. USANA's collaboration with Medicis is terminable at will by USANA at any time, without any continuing commitment by USANA.

NOTE P—SUBSEQUENT EVENTS

        Subsequent to the year ended December 29, 2012 and through March 7, 2013, the Company repurchased and retired 414 shares under the Company's share repurchase plan for a total of $18,085. As of March 7, 2013, the remaining approved repurchase amount under the plan was $13,662.

F-28

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

Description	Balance at beginning of period		Charged to costs and expenses			Charged to other accounts		Deductions		Balance at end of period
January 1, 2011
Deducted from related asset account:
Allowance for sales returns		1,115		94			—		280		929
Allowance for doubtful accounts		1,930		121			—		278		1,773
Valuation allowance—deferred tax assets		—		1,595			—		—		1,595
December 31, 2011
Deducted from related asset account:
Allowance for sales returns		929		149			—		64		1,014
Allowance for doubtful accounts		1,773		48			—		241		1,580
Valuation allowance—deferred tax assets		1,595		189			—		—		1,784
December 29, 2012
Deducted from related asset account:
Allowance for sales returns		1,014		46			—		343		717
Allowance for doubtful accounts		1,580		230			—		2		1,808
Valuation allowance—deferred tax assets		1,784		(186	)		—				1,598

EX-21

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EXHIBIT 21

SUBSIDIARIES

        Set forth below is a list of all active subsidiaries of the Registrant, the state or other jurisdiction of incorporation or organization of each, and the names under which subsidiaries do business as of March 1, 2013.

Name	Jurisdiction of Incorporation
USANA Canada Holding, Inc.	Delaware
USANA Health Sciences, China, Inc.	Delaware
USANA Health Sciences New Zealand, Inc.	Delaware
International Holdings, Inc.	Delaware
FMG Productions, Inc. (dba USANA Studios)	Utah
UHS Essential Health Philippines, Inc.	Utah
USANA Sense Company, Inc.	Utah
Pet Lane Inc.	Delaware
USANA Acquisition Corporation	Utah
USANA Canada Co.	Canada
USANA Australia Pty, Ltd.	Australia
USANA Health Sciences (NZ) Corporation	New Zealand
USANA Hong Kong Limited	Hong Kong
USANA Japan, Inc.	Japan
USANA Health Sciences Korea Ltd.	South Korea
USANA Health Sciences Singapore Pte, Ltd.	Singapore
USANA Mexico S.A. de C.V.	Mexico
Mercadotecnia Nutricional S de R.L. de C.V.	Mexico
UHS Essential Health Malaysia SND BHD	Malaysia
UHS Products (Malaysia) SDN BHD	Malaysia
BabyCare Holding Ltd.	Cayman Islands
BabyCare Ltd.	People's Republic of China
Tianjin BabyCare Biological Science and Technology Ltd	People's Republic of China
Tianjin Health Resources Sales Co., Ltd	People's Republic of China
USANA Health Sciences (Thailand) Ltd	Thailand
USANA Health Sciences (France)	France
USANA Asia Holding Ltd.	Singapore

        Except as noted above, each subsidiary listed above is doing business under its corporate name.

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EXHIBIT 21

SUBSIDIARIES

EX-23.1

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Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (File Nos. 333-02934, 333-02860, 333-96645, 333-128103, and 333-133385) and on Form S-3 (File No. 333-169946) of USANA Health Sciences, Inc. of our report dated March 11, 2013 relating to the financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP
Salt Lake City, Utah
March 11, 2013

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Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

EX-31.1

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EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, David A. Wentz, certify that:

1.

I have reviewed this Annual Report on Form 10-K of USANA Health Sciences, Inc. (the "Registrant");

2.

Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

3.

Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Annual Report;

4.

The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Annual Report based on such evaluation; and

d)

disclosed in this Annual Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5.

The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant's internal control over financial reporting.

Date: March 11, 2013 /s/ DAVID A. WENTZ
David A. Wentz
Chief Executive Officer
(Principal Executive Officer)

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EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

EX-31.2

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EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Paul A. Jones, certify that:

1.

I have reviewed this Annual Report on Form 10-K of USANA Health Sciences, Inc. (the "Registrant");

2.

Based on my knowledge, this Annual Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Annual Report;

3.

Based on my knowledge, the financial statements, and other financial information included in this Annual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Annual Report;

4.

The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Annual Report is being prepared;

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Annual Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Annual Report based on such evaluation; and

d)

disclosed in this Annual Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting;

5.

The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant's internal control over financial reporting.

Date: March 11, 2012 /s/ PAUL A. JONES
Paul A. Jones
Chief Financial Officer
(Principal Accounting and Financial Officer)

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EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

EX-32.1

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

        The undersigned hereby certifies that the Annual Report on Form 10-K of USANA Health Sciences, Inc. for the year ended December 29, 2012 as filed March 11, 2013 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

Date: March 11, 2013 /s/ DAVID A. WENTZ
David A. Wentz
Chief Executive Officer
(Principal Executive Officer)

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.2

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

        The undersigned hereby certifies that the Annual Report on Form 10-K of USANA Health Sciences, Inc. for the year ended December 29, 2012 as filed March 11, 2013 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

Date: March 11, 2012 /s/ PAUL A. JONES
Paul A. Jones
Chief Financial Officer
(Principal Accounting and Financial Officer)

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

XML

Acquisition (Schedule Of Purchase Price Allocation) (Details) (USD $) In Thousands, unless otherwise specified	Aug. 16, 2010
Acquisition [Abstract]
Cash and cash equivalents	$ 3,006
Inventories	1,702
Prepaid expenses and other current assets	4,663
Property and equipment	1,517
Goodwill	10,540
Goodwill recognized in acquisition	10,540
Intangible assets	41,000
Other assets	3,375
Accounts payable	(2,552)
Other current liabilities	(535)
Purchase price	$ 62,716

XML

Commitments And Contingencies (Schedule Of Minimum Rental Payments For Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012
Commitments And Contingencies [Abstract]
2013	$ 10,005
2014	4,349
2015	1,873
2016	1,114
2017	443
Thereafter	456
Total	$ 18,240

XML

Intangible Assets (Schedule Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			12 Months Ended
	Dec. 29, 2012	Dec. 29, 2012 North America [Member]	Dec. 31, 2011 North America [Member]	Dec. 29, 2012 Asia Pacific [Member]
Goodwill [Line Items]
Goodwill, beginning balance	$ 17,740	$ 6,390	$ 6,390	$ 11,350
Currency translation adjustments	150			150
Goodwill, ending balance	$ 17,890	$ 6,390	$ 6,390	$ 11,500

XML

Valuation And Qualifying Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Allowance For Sales Returns [Member]
Balance at end of period	$ 1,014	$ 929	$ 1,115
Charged to costs and expenses	46	149	94
Deductions	343	64	280
Balance at beginning of period	717	1,014	929
Allowance For Doubtful Accounts [Member]
Balance at end of period	1,580	1,773	1,930
Charged to costs and expenses	230	48	121
Deductions	2	241	278
Balance at beginning of period	1,808	1,580	1,773
Valuation Allowance - Deferred Tax Assets [Member]
Balance at end of period	1,784	1,595
Charged to costs and expenses	(186)	189	1,595
Balance at beginning of period	$ 1,598	$ 1,784	$ 1,595

XML

Equity-Based Compensation (Narrative) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 10,210	$ 10,549	$ 10,406
Equity-based compensation related tax benefit	3,554	3,852	3,992
Unrecognized compensation expense weighted average period of recognition	2 years
Total shares authorized under the plan	10,000
Total awards granted	5,829
Weighted-average grant date fair value	$ 15.35	$ 12.40	$ 17.09
Total intrinsic value of stock options and stock-settled stock appreciation rights exercised	20,590	925	16,977
Total fair value of equity awards vested	$ 10,211	$ 10,993	$ 7,835
Number of shares cancelled and added back to available for issuance	945
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total awards granted	5,707
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total awards granted	8
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total awards granted	114
Officers Upon Hire Or Promotion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	20.00%
Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	50.00%
Expiration from grant date	5 years 6 months
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Minimum [Member] | Officers Upon Hire Or Promotion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration from grant date	5 years
Minimum [Member] | Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration from grant date	5 years
Maximum [Member] | Officers Upon Hire Or Promotion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration from grant date	5 years 6 months
Maximum [Member] | Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration from grant date	5 years 6 months

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Income Taxes (Schedule Of Deferred Tax Assets And Liabilities By Jurisdiction) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Income Taxes [Abstract]
Net current deferred tax assets	$ 4,255	$ 3,320
Net noncurrent deferred tax assets	5,956	11,033
Total net deferred tax assets	10,211	14,353
Net current deferred tax liabilities	1,382	974
Long-term deferred tax liabilities	10,001	9,948
Total net deferred tax liabilities	11,383	10,922
Net deferred taxes	$ (1,172)	$ 3,431

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Equity-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2012

Equity-Based Compensation [Abstract]

Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards

2013	$	7,637
2014		5,682
2015		3,775
2016		1,735
2017		802
	$	19,631

Schedule Of Fair Value Assumptions

					Year Ended
		2010			2011			2012
Expected volatility (1)		54.9	%		56.0	%		50.7	%
Risk-free interest rate (2)		1.7	%		1.1	%		0.6	%
Expected life (3)		4.2	yrs.		3.9	yrs.		3.9	yrs.
Expected dividend yield (4)		0.0	%		0.0	%		0.0	%
Weighted-average grant price (5)	$	38.28		$	28.89		$	39.41

(1) Through June, 2012 expected volatility was a weighted-average of historical volatility and implied volatility. In July 2012, the Company eliminated the implied volatility aspect of this calculation and began utilizing historical volatility alone due to the lack of sufficient compliant option trading volume.

(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.

(3) For awards that follow the 20% per year vesting schedule, expected life is a weighted-average that includes historical settlement data of the Company's equity awards and a hypothetical holding period for outstanding awards. Due to lack of historical settlement data on awards that follow the 50% vesting at each of years four and five, expected life of these awards is calculated under the simplified method.

(4) The Company historically has not paid dividends.

(5) Grant price is the closing price of the Company's common stock on the date of grant.

Schedule Of Stock Option Activity

				Weighted-	Weighted-average		Aggregate
				average grant	remaining		intrinsic
	Shares			price	contractual term		value*
Outstanding at December 31, 2011	3,808		$	32.12	2.9	$	8,603
Granted	387			39.41
Exercised	(1,397	)		29.16
Canceled	(65	)		29.95
Expired	(44	)		51.39
Outstanding at December 29, 2012	2,689		$	34.43	2.9	$	5,136
Exercisable at December 29, 2012	774		$	36.10	2.4	$	1,275

* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the-money. The closing price of the Company's common stock at December 31, 2011 and December 29, 2012, was $30.37 and $31.60, respectively.

Schedule Of Deferred Stock Unit Activity

				Weighted-
				average fair
	Shares			value
Nonvested at December 31, 2011	49		$	44.29
Granted	-			-
Vested	(49	)		44.29
Canceled
Expired	-			-
Nonvested at December 29, 2012	-		$	-

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Equity-Based Compensation (Schedule Of Fair Value Assumptions) (Details) (USD $)	12 Months Ended
	Dec. 29, 2012		Dec. 31, 2011		Jan. 01, 2011
Equity-Based Compensation [Abstract]
Expected volatility	50.70%	[1]	56.00%	[1]	54.90%	[1]
Risk-free interest rate	0.60%	[2]	1.10%	[2]	1.70%	[2]
Expected life	3 years 10 months 24 days		3 years 10 months 24 days		4 years 2 months 12 days
Expected dividend yield	0.00%	[3]	0.00%	[3]	0.00%	[3]
Weighted-average grant price	$ 39.41	[4]	$ 28.89	[4]	$ 38.28	[4]

[1] Through June, 2012 expected volatility was a weighted-average of historical volatility and implied volatility. In July 2012, the Company eliminated the implied volatility aspect of this calculation and began utilizing historical volatility alone due to the lack of sufficient compliant option trading volume.

[2] Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.

[3] The Company historically has not paid dividends.

[4] Grant price is the closing price of the Company's common stock on the date of grant.

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Acquisition (Tables)

12 Months Ended

Dec. 29, 2012

Acquisition [Abstract]

Schedule Of Purchase Price Allocation

		August 16,
		2010
Assets Acquired and Liabilities Assumed
Cash and cash equivalents	$	3,006
Inventories		1,702
Prepaid expenses and other current assets		4,663
Property and equipment		1,517
Goodwill		10,540
Intangible assets		41,000
Other assets		3,375
Accounts payable		(2,552	)
Other current liabilities		(535	)
	$	62,716

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Intangible Assets (Schedule Of Estimated Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Intangible Assets [Abstract]
Year ended December 29, 2012	$ 1,090
2013	858
2014	426
2015	426
2016	426
2017	426
Thereafter	1,115
Total estimated amortization expense	$ 3,677	$ 4,731

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Income Taxes (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Federal statutory rate	35.00%	35.00%	35.00%
Foreign operating loss carryforward	$ 8,960
Operating loss carryforward valuation allowance	$ 6,400
Minimum [Member]
Operating loss expiration date	2013
Maximum [Member]
Operating loss expiration date	2017

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Summary Of Significant Accounting Policies [Line Items]
Fair value of term deposits	$ 1,610,000	$ 0
Restricted cash	3,208,000	3,166,000
Amount of individual claims before reimbursement	125,000
Minimum percentage of projected aggregate claims before insurance reimbursement	100.00%
Self insurance program expense	4,518,000	4,274,000	3,391,000
Proceeds from equity awards exercised	309,000	39,000	12,005,000
Tax impact of cancelled vested equity awards	2,201,000	(317,000)	(152,000)
Amount available to repurchase under the stock repurchase plan	31,707,000
Repurchase of common stock	68,294,000	33,459,000	17,031,000
Product return percentage of net sales	0.80%	1.10%	1.10%
Advertising expense	3,942,000	3,893,000	1,202,000
Research and development expense	4,664,000	4,071,000	3,842,000
Retail And Preferred Customers [Member]
Summary Of Significant Accounting Policies [Line Items]
Duration of product return	30 days
Percentage of sale refunded	100.00%
Associates [Member]
Summary Of Significant Accounting Policies [Line Items]
Duration of product return	30 days
Amount of returned product which could result in cancellation of distributorship	$ 100
Other Unused And Resalable [Member]
Summary Of Significant Accounting Policies [Line Items]
Duration of product return	1 year
Percentage of sale refunded	100.00%
Restocking fee	10.00%

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Long-Term Debt And Line Of Credit (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012
Long-Term Debt And Line Of Credit [Abstract]
Line of credit	$ 60,000
Line of credit facility, maturity date	Apr. 01, 2016

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Earnings Per Share (Schedule Of Earnings Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011	Jan. 02, 2010
Earnings Per Share [Abstract]
Net earnings available to common shareholders									$ 66,433	$ 50,752	$ 45,651
Common shares outstanding entire period	13,821				14,940				13,821	14,940	15,985	15,309
Weighted average common shares issued during period									199	32	311
Weighted average common shares canceled during period									(592)	(656)	(92)
Weighted average common shares outstanding during period									14,547	15,361	15,528
Earnings per common share from net earnings - basic	$ 1.30	$ 1.22	$ 1.14	$ 0.92	$ 0.88	$ 0.82	$ 0.89	$ 0.71	$ 4.57	$ 3.30	$ 2.94
Weighted average common shares outstanding during period - basic									14,547	15,361	15,528
Dilutive effect of in-the-money equity awards									376	213	414
Weighted average common shares outstanding during period - diluted									14,923	15,574	15,942
Earnings per common share from net earnings - diluted	$ 1.27	$ 1.18	$ 1.11	$ 0.90	$ 0.87	$ 0.81	$ 0.88	$ 0.70	$ 4.45	$ 3.26	$ 2.86

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Segment Information (Schedule Of Revenue Percentage By Product) (Details)	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
USANA Nutritionals [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	80.00%	79.00%	77.00%
USANA Foods [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	11.00%	11.00%	12.00%
Sense - Beautiful Science [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	7.00%	7.00%	8.00%

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Property And Equipment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 111,019	$ 105,662
Less accumulated depreciation and amortization	59,049	54,437
Property and equipment, net	51,970	51,225
Property and equipment, net	61,751	60,754
Depreciation	7,717	7,431	7,510
Buildings [Member]
Property, Plant and Equipment [Line Items]
Useful life	40 years
Property and equipment, gross	40,766	40,173
Laboratory and Production Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,366	21,083
Sound and Video Library [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Property and equipment, gross	600	600
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	32,639	30,621
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,350	5,117
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	285	294
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,817	5,723
Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life	15 years
Property and equipment, gross	2,196	2,051
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net	8,211	8,109
Deposits And Projects In Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 1,570	$ 1,420
Minimum [Member] | Laboratory and Production Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Minimum [Member] | Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Minimum [Member] | Automobiles [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Minimum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Maximum [Member] | Laboratory and Production Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful life	7 years
Maximum [Member] | Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Maximum [Member] | Automobiles [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Maximum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years

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Acquisition

12 Months Ended

Dec. 29, 2012

Acquisition [Abstract]

Acquistion

NOTE B – ACQUISITION

     On August 16, 2010, the Company indirectly acquired 100% of BabyCare Ltd., a limited liability company incorporated under the laws of the PRC, for the purchase price of $62,716, which consisted of $45,000 cash and $17,716 common stock issued (400 shares of USANA common stock at $44.29).

     BabyCare is a direct selling company in China that is principally engaged in developing, manufacturing and selling nutritional products for the entire family, with an emphasis on infant nutrition, through both a distributor sales force and a chain of retail centers. This acquisition was accomplished in the following simultaneous transactions. The Company acquired Pet Lane, Inc., a Delaware corporation ("Pet Lane"), which is the record owner of BabyCare in China, for a purchase price of $700. Simultaneously, the Company entered into and closed a share purchase agreement (the "Purchase Agreement") by and among the Company and the following parties: Pet Lane; Yaolan Ltd., an exempted company organized under the laws of the Cayman Islands ("Yaolan"); and BabyCare Holdings, Ltd., an exempted company organized under the laws of the Cayman Islands ("BabyCare Holdings"). Pursuant to the Purchase Agreement, the Company, through its acquisition entity Pet Lane, acquired all of the issued and outstanding shares of BabyCare Holdings (the "Shares") from Yaolan. Goodwill of $700 was recognized in connection with the acquisition of Pet Lane. BabyCare Holdings is the beneficial owner of BabyCare. As a result of its acquisition of Pet Lane and BabyCare Holdings, the Company, indirectly, has acquired both record and beneficial ownership of BabyCare.

     The acquisition was accounted for as a business combination and, as such, the results of operations for BabyCare have been included in the consolidated financial statements since the effective date of acquisition. This acquisition contributed $7,384 in net sales and a net loss of $1,154 for the year ended January 1, 2011. Had the acquisition occurred at the beginning of the year ended January 1, 2011, net sales for that year would have been $527,266, and net earnings would have been $43,173.

The assets acquired and liabilities assumed were recorded at estimated fair values as of the date of the acquisition.

The purchase price allocation for BabyCare is as follows:

		August 16,
		2010
Assets Acquired and Liabilities Assumed
Cash and cash equivalents	$	3,006
Inventories		1,702
Prepaid expenses and other current assets		4,663
Property and equipment		1,517
Goodwill		10,540
Intangible assets		41,000
Other assets		3,375
Accounts payable		(2,552	)
Other current liabilities		(535	)
	$	62,716

     Goodwill of $10,540 was recognized for the excess of consideration transferred over the acquisition-date fair value of net assets acquired. In accordance with accounting standards governing the subsequent measurement of goodwill, goodwill will not be amortized, but will be tested at least annually for impairment. The fair value of intangible assets acquired in the amount of $41,000 was derived using various methodologies applied within the income approach. For further information on intangible assets, see Note G to these consolidated financial statements. For tax purposes, $52,323 of goodwill and other intangible assets will be deducted over a period of 15 years in computing the Company's United States tax obligation. The anticipated benefits associated with the acquired goodwill and other intangibles include facilitating our expansion and growth in China. The most significant intangible asset is a direct selling license held by BabyCare from the Chinese government to engage in direct selling activities in the Municipality of Beijing. This direct selling license allows BabyCare to engage non-employee distributors to sell their products away from fixed retail locations.

     The costs related to the acquisition of BabyCare totaled $1,992, which included; advisory, legal, accounting, valuation, and other professional fees. These costs were expensed as incurred in the periods in which services were received and recognized in the consolidated statements of earnings in Selling, General and Administrative expenses.

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Segment Information (Schedule Of Revenues From External Customers By Geographic Region) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	$ 168,530	$ 165,175	$ 160,901	$ 154,120	$ 145,947	$ 143,501	$ 148,925	$ 143,566	$ 648,726	$ 581,939	$ 517,644
North America/Europe [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers									244,333	236,386	242,147
Southeast Asia Pacific [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers									139,651	111,447	99,311
Greater China [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers									235,626	204,822	152,280
North Asia [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers									29,116	29,284	23,906
Asia Pacific [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers									$ 404,393	$ 345,553	$ 275,497

XML

Income Taxes (Schedule Of Income Tax Expense (Benefit)) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Income Taxes [Abstract]
Current, Federal	$ 27,779	$ 22,383	$ 18,026
Current, State	1,141	1,913	1,502
Current, Foreign	4,051	4,442	2,956
Current, Total	32,971	28,738	22,484
Deferred, Federal	(145)	1,044	1,243
Deferred, State	94	(71)	113
Deferred, Foreign	(927)	(2,985)	(627)
Income tax expense (benefit)	$ 31,993	$ 26,726	$ 23,213

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Property And Equipment (Tables)

12 Months Ended

Dec. 29, 2012

Property And Equipment [Abstract]

Schedule Of Property And Equipment

			December 31,		December 29,
	Years		2011		2012
Buildings	40	$	40,173	$	40,766
Laboratory and production equipment	5-7		21,083		22,366
Sound and video library	5		600		600
Computer equipment and software	3-5		30,621		32,639
Furniture and fixtures	3-5		5,117		5,350
Automobiles	3-5		294		285
Leasehold improvements	3-5		5,723		6,817
Land improvements	15		2,051		2,196
			105,662		111,019
Less accumulated depreciation and amortization			54,437		59,049
			51,225		51,970
Land			8,109		8,211
Deposits and projects in process			1,420		1,570
		$	60,754	$	61,751

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Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Income Taxes [Abstract]

Schedule Of Income Tax Expense (Benefit)

					Year ended
		2010			2011			2012
Current
Federal	$	18,026		$	22,383		$	27,779
State		1,502			1,913			1,141
Foreign		2,956			4,442			4,051
		22,484			28,738			32,971
Deferred
Federal		1,243			1,044			(145	)
State		113			(71	)		94
Foreign		(627	)		(2,985	)		(927	)
	$	23,213		$	26,726		$	31,993

Reconciliation Of Income Tax Provision

					Year ended
		2010			2011			2012
Federal income taxes at statutory rate	$	24,102		$	27,117		$	34,449
State income taxes, net of federal tax benefit		1,192			1,373			1,201
Qualified production activities deduction		(1,320	)		(1,576	)		(2,651	)
All other, net		(761	)		(188	)		(1,006	)
	$	23,213		$	26,726		$	31,993

Schedule Of Deferred Taxes By Significant Categories

		December 31,			December 29,
		2011			2012
Deferred tax assets
Inventory differences	$	2,695		$	2,415
Accruals not currently deductible		2,124			2,533
Equity-based compensation		7,558			4,375
Intangible assets		9,535			9,532
Net operating losses		2,654			2,240
Other		1,361			2,675
Gross deferred tax assets		25,927			23,770
Valuation allowance		(1,784	)		(1,598	)
Net deferred tax assets		24,143			22,172
Deferred tax liabilities
Depreciation/amortization		(3,506	)		(5,260	)
Accumulated other comprehensive income		(3,378	)		(3,833	)
Prepaid expenses		(1,967	)		(1,240	)
Intangible assets		(10,659	)		(10,521	)
Other		(1,202	)		(2,490	)
Gross deferred tax liabilities		(20,712	)		(23,344	)
Net deferred taxes	$	3,431		$	(1,172	)

Schedule Of Deferred Tax Assets And Liabilities By Jurisdiction

		December 31,		December 29,
		2011		2012
Net current deferred tax assets	$	3,320	$	4,255
Net noncurrent deferred tax assets		11,033		5,956
Total net deferred tax assets		14,353		10,211
Net current deferred tax liabilities		974		1,382
Net noncurrent deferred tax liabilities		9,948		10,001
Total net deferred tax liabilities		10,922		11,383
Net deferred taxes	$	3,431	$	(1,172	)

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Equity-Based Compensation (Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012
Equity-Based Compensation [Abstract]
2013	$ 7,637
2014	5,682
2015	3,775
2016	1,735
2017	802
Total	$ 19,631

XML

Income Taxes (Reconciliation Of Income Tax Provision) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Income Taxes [Abstract]
Federal income taxes at statutory rate	$ 34,449	$ 27,117	$ 24,102
State income taxes, net of federal tax benefit	1,201	1,373	1,192
Qualified production activities deduction	(2,651)	(1,576)	(1,320)
All other, net	(1,006)	(188)	(761)
Income tax expense (benefit)	$ 31,993	$ 26,726	$ 23,213

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Intangible Assets (Tables)

12 Months Ended

Dec. 29, 2012

Intangible Assets [Abstract]

Schedule Of Goodwill

				Currency
		December 31,		translation		December 29,
		2011		adjustments		2012
North America	$	6,390	$	-	$	6,390
Asia Pacific		11,350		150		11,500
	$	17,740	$	150	$	17,890

Schedule Of Finite And Indefinite Lived Intangible Assets

		As of December 31, 2011
								Weighted-average
		Gross carrying		Accumulated			Net carrying	amortization
		amount		amortization			amount	period (years)
Amortized intangible assets
Trade name and trademarks	$	4,200	$	(577	)	$	3,623	10
Customer relationships		2,046		(938	)		1,108	3
		6,246		(1,515	)		4,731
Unamortized intangible assets
Product formulas		9,261					9,261
Direct sales license		28,645					28,645
		37,906					37,906
	$	44,152				$	42,637

	As of December 29, 2012
								Weighted-average
		Gross carrying		Accumulated			Net carrying	amortization
		amount		amortization			amount	period (years)
Amortized intangible assets
Trade name and trademarks	$	4,256	$	(1,011	)	$	3,245	10
Customer relationships		2,073		(1,641	)		432	3
		6,329		(2,652	)		3,677
Unamortized intangible assets
Product formulas		9,384					9,384
Direct sales license		29,024					29,024
		38,408					38,408
	$	44,737				$	42,085

Schedule Of Estimated Amortization Expense

Aggregate amortization expense:
Year ended December 29, 2012	$	1,090
Estimated Amortization Expense:
2013		858
2014		426
2015		426
2016		426
2017		426
Thereafter		1,115
	$	3,677

XML

Other Current Liabilities (Tables)

12 Months Ended

Dec. 29, 2012

Other Current Liabilities [Abstract]

Schedule Of Other Current Liabilities

		December 31,		December 29,
		2011		2012
Associate incentives	$	12,423	$	15,252
Accrued employee compensation		12,210		16,402
Income taxes		4,112		1,414
Sales taxes		4,291		4,569
Deferred tax liabilities		974		1,382
Associate promotions		1,035		1,775
Deferred revenue		10,065		15,601
Provision for returns and allowances		1,014		717
All other		5,620		6,692
	$	51,744	$	63,804

XML

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 29, 2012

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

     USANA Health Sciences, Inc. ("the Company") develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Company operates in a single business segment as a direct selling company and reports operations in two geographic regions: North America/Europe and Asia Pacific, which is further divided into three sub-regions; Southeast Asia/Pacific, Greater China, and North Asia. North America/Europe includes the United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France, and Belgium. Southeast Asia/Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea.

Principles of consolidation and basis of presentation

     The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "USANA"). All significant inter-company accounts and transactions have been eliminated in this consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (US GAAP).

Use of estimates

     The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes. Significant estimates for the Company relate to revenue recognition, inventory obsolescence,goodwill and other intangible assets,equity-based compensation, and income taxes. Actual results could differ from those estimates. These estimates may be adjusted as more current information becomes available, and any adjustment could be significant.

Fiscal year

     The Company operates on a 52-53 week year, ending on the Saturday closest to December 31. Fiscal years 2010, 2011, and 2012 were 52-week years. Fiscal year 2010 covered the period January 3, 2010 to January 1, 2011 (hereinafter 2010). Fiscal year 2011 covered the period January 2, 2011 to December 31, 2011 (hereinafter 2011). Fiscal year 2012 covered the period January 1, 2012 to December 29, 2012 (hereinafter 2012).

Fair value of financial instruments

     The Company's financial instruments include: cash and cash equivalents, accounts receivable, restricted cash, and accounts payable. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values, based on their short-term nature. The recorded value of restricted cash is determined based on the principal amount and interest accrual.

     The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

The three levels are defined as follows:

• Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.
• Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

     The fair values of term deposits placed with banks are determined based on the pervasive interest rates in the market, which are also the interest rates as stated in the contracts with the banks. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 2. The carrying values of these term deposits approximate

their fair values due to their short-term maturities. As of December 31, 2011, and December 29, 2012 the fair value of term deposits in the consolidated balance sheet totaled $0, and $1,610, respectively. These term deposits have been classified within cash and cash equivalents.

Translation of foreign currencies

     The functional currency of the Company's foreign subsidiaries is the local currency of their country of domicile. Assets and liabilities of the foreign subsidiaries are translated into U.S. dollar amounts at month-end exchange rates. Revenue and expense accounts are translated at the weighted-average rates for the monthly accounting period to which they relate. Equity accounts are translated at historical rates. Foreign currency translation adjustments are accumulated as a component of other comprehensive income. Foreign currency gains and losses resulting from intercompany transactions are included in the "Other, net" component of Other income (expense) in the Company's consolidated statements of comprehensive income.

Cash and cash equivalents

     The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents.

Restricted Cash

     The Company is required to maintain cash deposits with banks in certain subsidiary locations for various operating purposes.

     The most significant of these cash deposits relates to a deposit held at a bank in China, the balance of which was $3,166 as of December 31, 2011, and $3,208 as of December 29, 2012. This deposit is required for the application of direct sales licenses by the Ministry of Commerce and the State Administration for Industry & Commerce of the People's Republic of China, and will continue to be restricted during the periods while the Company holds these licenses. Restricted cash is included in other assets.

Inventories

     Inventories are stated at the lower of cost or market, using the first-in, first-out method. The components of inventory cost include raw materials, labor, and overhead. Market value is determined using various assumptions with regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning, and market conditions. A change in any of these variables could result in an adjustment to inventory.

Income taxes

     The Company accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between the financial statement assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the "more-likely-than-not" criteria for recognition. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits in income taxes. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. A repatriation of these earnings would not create a material tax liability.

Property and equipment

     Property and equipment are recorded at cost. Maintenance, repairs, and renewals, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over the estimated useful lives of the related assets. The straight-line method of depreciation and amortization is followed for financial statement purposes. Leasehold improvements are amortized over the shorter of the life of the respective lease or the useful life of the improvements. Property and equipment are reviewed for impairment to determine whether events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Goodwill

     Goodwill represents the excess of the purchase price over the fair market value of identifiable net assets of acquired companies. Goodwill is not amortized, but rather is tested at least annually for impairment or more frequently if triggering events or changes in circumstances indicate impairment. The determination of impairment is made at the reporting unit level and an impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit's fair value. Initially, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, entity-specific events, a sustained decrease in share price, and consideration of the difference between the fair value and carrying amount of a reporting unit as determined in the most recent quantitative assessment. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit's fair value is less than its carrying amount, a two-step impairment analysis is performed to estimate the fair value of goodwill. The first step involves estimating the fair values of reporting units using widely-accepted valuation methodologies including the income, market, and transaction approach, which requires the use of estimates and assumptions. These estimates and assumptions include revenue growth rates, discounts rates, and determination of appropriate market comparables. If the carrying amount of goodwill exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit as determined in step one, less fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. Fair value of each reporting unit at December 31, 2011, and December 29, 2012 was greater than the carrying amount; therefore, no impairment was recorded.

Intangible assets

     Intangible assets represent definite-lived and indefinite-lived intangible assets acquired in connection with the purchase of the Company's China subsidiary in 2010. These intangible assets have been measured at the acquisition-date fair value using various methodologies applied within the income approach. Definite-lived intangible assets are amortized over their related useful lives. Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. There have been no events or changes in circumstances that have occurred subsequent to the acquisition of the indefinite-lived assets that would indicate impairment.

Self insurance

     The Company is self-insured, up to certain limits, for employee group health claims. The Company has purchased stop-loss insurance on both an individual and an aggregate basis, which will reimburse the Company for individual claims in excess of $125 and aggregate claims that are greater than 100% of projected claims. A liability is accrued and reflected in the Balance Sheet for all unpaid claims. Total expense under this self insurance program was $3,391, $4,274 and $4,518 in 2010, 2011 and 2012, respectively.

Common stock and additional paid-in capital

     The Company records cash that it receives upon the exercise of equity awards by crediting common stock and additional paid-in capital. The Company received $12,005, $39, and $309 in cash proceeds from the exercise of equity awards in 2010, 2011, and 2012, respectively. The Company also realizes an income tax benefit from the exercise of certain equity awards. For equity awards earned prior to January 1, 2006, this tax benefit resulted in a decrease in current income taxes payable and an increase in additional paid-in capital. For equity awards earned after January 1, 2006, deferred tax assets are established in accordance with applicable equity-based compensation authoritative guidance.

     Upon exercise, the deferred tax assets are reversed and the difference between the deferred tax assets and the realized tax benefit creates a tax windfall or shortfall that increases or decreases the additional paid-in capital pool ("APIC Pool"). If the APIC Pool is reduced to zero, additional shortfalls are treated as a current tax expense. The total tax expense recorded in additional paid-in capital was $152 and $317, in 2010 and 2011, respectively. The total tax benefit recorded in additional paid-in capital was $2,201 in 2012.

     The Company has a stock repurchase plan in place that has been authorized by the Board of Directors. As of December 29, 2012, $31,707 was available to repurchase shares under this plan. The Company expended $17,031, $33,459, and $68,294 to repurchase and retire shares during 2010, 2011, and 2012, respectively. The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings.

Revenue recognition and deferred revenue

     The Company receives payment, primarily via credit card, for the sale of products at the time customers place orders. Sales and related fees such as shipping and handling, net of applicable sales discounts, are recorded as revenue when the product is delivered and when title and the risk of ownership passes to the customer. Payments received for undelivered products are recorded as deferred revenue and are included in other current liabilities. Certain incentives offered on the sale of our products, including sales discounts, are classified as a reduction of revenue. A provision for product returns and allowances is recorded and is founded on historical experience. Additionally, the Company collects an annual account renewal fee from Associates that is deferred on receipt and is recognized as income on a straight-line basis over the subsequent twelve-month period.

     Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales).

Product return policy

     All products that are returned within the first 30 days following purchase are refunded at 100% of the sales price to retail customers and Preferred Customers. This 30-day return policy is offered to Associates only on their first order. All other returned product that is unused and resalable is refunded up to one year from the date of purchase at 100% of the sales price less a 10% restocking fee. According to the terms of the Associate agreement, return of product where the purchase amount exceeds one hundred dollars and was not damaged at the time of receipt by the Associate may result in cancellation of the Associate's distributorship. Depending upon the conditions under which product was returned customers may either receive a refund based on their original form of payment, or credit on account for a product exchange.

     This standard policy differs slightly in a few of our international markets due to the regulatory environment in those markets. Product returns totaled approximately 1.1% of net sales during fiscal years 2010, and 2011, and 0.8% of net sales in 2012.

Shipping and handling costs

The Company's shipping and handling costs are included in cost of sales for all periods presented.

Associate incentives

Associate incentives expenses include all forms of commissions, and other incentives paid to our Associates.

Selling, general and administrative

     Selling, general and administrative expenses include wages and benefits, depreciation and amortization, rents and utilities, Associate event costs, advertising and professional fees, marketing, and research and development expenses.

Equity-based compensation

     The Company records compensation expense in the financial statements for equity-based awards based on the grant date fair value and an estimate of forfeitures derived from historical experience. Equity-based compensation expense is recognized under the straight-line method over the period that service is provided, which is generally the vesting term. Further information regarding equity awards can be found in Note K – Equity-Based Compensation.

 Advertising

     Advertising costs are charged to expense as incurred. Advertising expense totaled $1,202 in 2010, $3,893 in 2011 and $3,942 in 2012.

Research and development

     Research and development costs are charged to expense as incurred and are presented as part of selling, general and administrative expense. Research and development expense totaled $3,842 in 2010, $4,071 in 2011 and $4,664 in 2012.

Earnings per share

     Basic earnings per common share (EPS) are based on the weighted-average number of common shares that were outstanding during each period. Diluted earnings per common share include the effect of potentially dilutive common shares, which include in-the-money, equity-based awards that have been granted but have not been exercised.

Recently adopted accounting pronouncements

     In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 updates existing guidance in Topic 820 to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). ASU 2011-04 is effective prospectively for fiscal years, and interim periods, beginning after December 15, 2011. The Company adopted ASU 2011-04 during the first quarter ended March 31, 2012, and its application had no impact on the Company's consolidated financial statements.

     In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (ASU 2011-05). The objective of ASU 2011-05 is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate the convergence of U.S. GAAP and IFRS, ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. Under the amendments in this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. These amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. Also, the amendments do not change the option for an entity to present components of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. The Company adopted ASU 2011-05 during the first quarter ended March 31, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements, as it only affected financial statement presentation.

     In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (ASU 2012-02). ASU 2012-02 was issued with the intent of reducing the cost and complexity of performing impairment tests for indefinite-lived intangible assets by providing an entity with the option to first make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it is necessary to perform a quantitative impairment test. The amendments in this update also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting the qualitative assessment, which is similar to the previously updated guidance for goodwill impairment testing provided in ASU 2011-08. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been issued. The Company adopted ASU 2012-02 during the third quarter ended September 29, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements.

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Commitments And Contingencies (Tables)

12 Months Ended

Dec. 29, 2012

Commitments And Contingencies [Abstract]

Schedule Of Minimum Rental Payments For Operating Leases

Year ending
2013	$	10,005
2014		4,349
2015		1,873
2016		1,114
2017		443
Thereafter		456
	$	18,240

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Inventories (Schedule Of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Inventories [Abstract]
Raw materials	$ 9,228	$ 9,670
Work in progress	7,703	6,917
Finished goods	19,550	20,381
Inventories	$ 36,481	$ 36,968

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Commitments And Contingencies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Commitments And Contingencies [Line Items]
Total rent expense	$ 6,452	$ 6,410	$ 4,442
Minimum employee age to partake in 401(k)	18 years
Requisite service period to partake in 401(k)	1 month
Employers' maximum contribution of employee's compensation	6.00%
Requisite service in order to cliff vest	2 years
Contributions made by the Company	$ 1,024	$ 979	$ 900
First Portion Match [Member]
Commitments And Contingencies [Line Items]
Employers' percentage match of employee's contribution percentage	100.00%
Percentage of employee's gross pay that is matched by the employer	1.00%
Second Portion Match [Member]
Commitments And Contingencies [Line Items]
Employers' percentage match of employee's contribution percentage	50.00%
Percentage of employee's gross pay that is matched by the employer	1.00%
Buildings [Member]
Commitments And Contingencies [Line Items]
Lease expiration date	2019
Equipment [Member]
Commitments And Contingencies [Line Items]
Lease expiration date	2016

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 70,839	$ 50,353
Inventories	36,481	36,968
Prepaid expenses and other current assets	25,225	18,738
Total current assets	132,545	106,059
Property and equipment, net	61,751	60,754
Goodwill	17,890	17,740
Intangible assets, net	42,085	42,637
Deferred tax assets	5,956	11,033
Other assets	7,128	6,273
Total assets	267,355	244,496
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	7,040	7,952
Other current liabilities	63,804	51,744
Total current liabilities	70,844	59,696
Deferred tax liabilities	10,001	9,948
Other long-term liabilities	938	942
Stockholders' equity
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 14,940 as of December 31, 2011 and 13,821 as of December 29, 2012	14	15
Additional paid-in capital	43,822	49,257
Retained earnings	134,800	118,799
Accumulated other comprehensive income	6,936	5,839
Total stockholders' equity	185,572	173,910
Total liabilities and stockholder's equity	$ 267,355	$ 244,496

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Income Taxes (Schedule Of Deferred Taxes By Significant Categories) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Income Taxes [Abstract]
Inventory differences	$ 2,415	$ 2,695
Accruals not currently deductible	2,533	2,124
Equity-based compensation	4,375	7,558
Intangible assets	9,532	9,535
Net operating losses	2,240	2,654
Other	2,675	1,361
Gross deferred tax assets	23,770	25,927
Valuation allowance	(1,598)	(1,784)
Net deferred tax assets	22,172	24,143
Depreciation/amortization	(5,260)	(3,506)
Accumulated other comprehensive income	(3,833)	(3,378)
Prepaid expenses	(1,240)	(1,967)
Intangible assets	(10,521)	(10,659)
Other	(2,490)	(1,202)
Gross deferred tax liabilities	(23,344)	(20,712)
Net deferred taxes	$ (1,172)	$ 3,431

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Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Consolidated Statements Of Stockholders' Equity and Comprehensive Income [Abstract]
Common stock issued under equity award plans, including tax benefit (expense)	$ 2,201	$ (317)	$ (152)

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Equity-Based Compensation (Schedule Of Deferred Stock Unit Activity) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 29, 2012
Equity-Based Compensation [Abstract]
Shares, Nonvested	49
Shares, Vested	(49)
Weighted-average fair value, Nonvested	$ 44.29
Weighted-average fair value, Vested	$ 44.29

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Quarterly Financial Results (Tables)

12 Months Ended

Dec. 29, 2012

Quarterly Financial Results [Abstract]

Summary Of Quarterly Financial Information

2011		First		Second		Third		Fourth
Net sales	$	143,566	$	148,925	$	143,501	$	145,947
Gross profit	$	117,904	$	122,717	$	118,299	$	121,327
Net earnings	$	11,350	$	13,856	$	12,385	$	13,161
Earnings per share:
Basic	$	0.71	$	0.89	$	0.82	$	0.88
Diluted	$	0.70	$	0.88	$	0.81	$	0.87

2012		First		Second		Third		Fourth
Net sales	$	154,120	$	160,901	$	165,175	$	168,530
Gross profit	$	126,903	$	132,828	$	134,832	$	138,359
Net earnings	$	13,751	$	16,745	$	17,490	$	18,447
Earnings per share:
Basic	$	0.92	$	1.14	$	1.22	$	1.30
Diluted	$	0.90	$	1.11	$	1.18	$	1.27

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Quarterly Financial Results (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Quarterly Financial Results [Abstract]
Net sales	$ 168,530	$ 165,175	$ 160,901	$ 154,120	$ 145,947	$ 143,501	$ 148,925	$ 143,566	$ 648,726	$ 581,939	$ 517,644
Gross profit	138,359	134,832	132,828	126,903	121,327	118,299	122,717	117,904	532,922	480,247	422,162
Net earnings	$ 18,447	$ 17,490	$ 16,745	$ 13,751	$ 13,161	$ 12,385	$ 13,856	$ 11,350	$ 66,433	$ 50,752	$ 45,651
Basic	$ 1.30	$ 1.22	$ 1.14	$ 0.92	$ 0.88	$ 0.82	$ 0.89	$ 0.71	$ 4.57	$ 3.30	$ 2.94
Diluted	$ 1.27	$ 1.18	$ 1.11	$ 0.90	$ 0.87	$ 0.81	$ 0.88	$ 0.70	$ 4.45	$ 3.26	$ 2.86

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Subsequent Events

12 Months Ended

Dec. 29, 2012

Subsequent Events [Abstract]

Subsequent Events

 NOTE P – SUBSEQUENT EVENTS

     Subsequent to the year ended December 29, 2012 and through March 7, 2013, the Company repurchased and retired 414 shares under the Company's share repurchase plan for a total of $18,085. As of March 7, 2013, the remaining approved repurchase amount under the plan was $13,662.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 29, 2012

Earnings Per Share [Abstract]

Schedule Earnings Per Share

					Year ended
		2010			2011			2012
Net earnings available to common shareholders	$	45,651		$	50,752		$	66,433
Basic EPS
Shares
Common shares outstanding entire period		15,309			15,985			14,940
Weighted average common shares:
Issued during period		311			32			199
Canceled during period		(92	)		(656	)		(592	)
Weighted average common shares outstanding during
period		15,528			15,361			14,547
Earnings per common share from net earnings - basic	$	2.94		$	3.30		$	4.57
Diluted EPS
Shares
Weighted average common shares outstanding during
period - basic		15,528			15,361			14,547
Dilutive effect of in-the-money equity awards		414			213			376
Weighted average common shares outstanding during
period - diluted		15,942			15,574			14,923
Earnings per common share from net earnings - diluted	$	2.86		$	3.26		$	4.45

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Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 29, 2012

Summary Of Significant Accounting Policies [Abstract]

Principles Of Consolidation And Basis Of Presentation

Principles of consolidation and basis of presentation

     The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the "Company" or "USANA"). All significant inter-company accounts and transactions have been eliminated in this consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (US GAAP).

Use Of Estimates

Use of estimates

     The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes. Significant estimates for the Company relate to revenue recognition, inventory obsolescence,goodwill and other intangible assets,equity-based compensation, and income taxes. Actual results could differ from those estimates. These estimates may be adjusted as more current information becomes available, and any adjustment could be significant.

Fiscal Year

Fiscal year

     The Company operates on a 52-53 week year, ending on the Saturday closest to December 31. Fiscal years 2010, 2011, and 2012 were 52-week years. Fiscal year 2010 covered the period January 3, 2010 to January 1, 2011 (hereinafter 2010). Fiscal year 2011 covered the period January 2, 2011 to December 31, 2011 (hereinafter 2011). Fiscal year 2012 covered the period January 1, 2012 to December 29, 2012 (hereinafter 2012).

Fair Value Of Financial Instruments

Fair value of financial instruments

     The Company's financial instruments include: cash and cash equivalents, accounts receivable, restricted cash, and accounts payable. The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values, based on their short-term nature. The recorded value of restricted cash is determined based on the principal amount and interest accrual.

     The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

The three levels are defined as follows:

• Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.
• Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

     The fair values of term deposits placed with banks are determined based on the pervasive interest rates in the market, which are also the interest rates as stated in the contracts with the banks. The Company classifies the valuation techniques that use the pervasive interest rates input as Level 2. The carrying values of these term deposits approximate

their fair values due to their short-term maturities. As of December 31, 2011, and December 29, 2012 the fair value of term deposits in the consolidated balance sheet totaled $0, and $1,610, respectively. These term deposits have been classified within cash and cash equivalents.

Translation Of Foreign Currencies

Translation of foreign currencies

     The functional currency of the Company's foreign subsidiaries is the local currency of their country of domicile. Assets and liabilities of the foreign subsidiaries are translated into U.S. dollar amounts at month-end exchange rates. Revenue and expense accounts are translated at the weighted-average rates for the monthly accounting period to which they relate. Equity accounts are translated at historical rates. Foreign currency translation adjustments are accumulated as a component of other comprehensive income. Foreign currency gains and losses resulting from intercompany transactions are included in the "Other, net" component of Other income (expense) in the Company's consolidated statements of comprehensive income.

Cash And Cash Equivalents

Cash and cash equivalents

     The Company considers all highly liquid investments with an original maturity of three months or less from the date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash

     The Company is required to maintain cash deposits with banks in certain subsidiary locations for various operating purposes.

     The most significant of these cash deposits relates to a deposit held at a bank in China, the balance of which was $3,166 as of December 31, 2011, and $3,208 as of December 29, 2012. This deposit is required for the application of direct sales licenses by the Ministry of Commerce and the State Administration for Industry & Commerce of the People's Republic of China, and will continue to be restricted during the periods while the Company holds these licenses. Restricted cash is included in other assets.

Inventories

Inventories

     Inventories are stated at the lower of cost or market, using the first-in, first-out method. The components of inventory cost include raw materials, labor, and overhead. Market value is determined using various assumptions with regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning, and market conditions. A change in any of these variables could result in an adjustment to inventory.

Income taxes

     The Company accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between the financial statement assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the "more-likely-than-not" criteria for recognition. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits in income taxes. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. A repatriation of these earnings would not create a material tax liability.

Income Taxes

Income taxes

     The Company accounts for income taxes using the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between the financial statement assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the "more-likely-than-not" criteria for recognition. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits in income taxes. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. A repatriation of these earnings would not create a material tax liability.

Property And Equipment

Property and equipment

     Property and equipment are recorded at cost. Maintenance, repairs, and renewals, which neither materially add to the value of the property nor appreciably prolong its life, are charged to expense as incurred. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over the estimated useful lives of the related assets. The straight-line method of depreciation and amortization is followed for financial statement purposes. Leasehold improvements are amortized over the shorter of the life of the respective lease or the useful life of the improvements. Property and equipment are reviewed for impairment to determine whether events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Goodwill

Goodwill

     Goodwill represents the excess of the purchase price over the fair market value of identifiable net assets of acquired companies. Goodwill is not amortized, but rather is tested at least annually for impairment or more frequently if triggering events or changes in circumstances indicate impairment. The determination of impairment is made at the reporting unit level and an impairment loss is recognized to the extent that the carrying amount exceeds the reporting unit's fair value. Initially, qualitative factors are considered to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of these qualitative factors may include macroeconomic conditions, industry and market considerations, a change in financial performance, entity-specific events, a sustained decrease in share price, and consideration of the difference between the fair value and carrying amount of a reporting unit as determined in the most recent quantitative assessment. If, through this qualitative assessment, the conclusion is made that it is more likely than not that a reporting unit's fair value is less than its carrying amount, a two-step impairment analysis is performed to estimate the fair value of goodwill. The first step involves estimating the fair values of reporting units using widely-accepted valuation methodologies including the income, market, and transaction approach, which requires the use of estimates and assumptions. These estimates and assumptions include revenue growth rates, discounts rates, and determination of appropriate market comparables. If the carrying amount of goodwill exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss. In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit as determined in step one, less fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. Fair value of each reporting unit at December 31, 2011, and December 29, 2012 was greater than the carrying amount; therefore, no impairment was recorded.

Intangible Assets

Intangible assets

     Intangible assets represent definite-lived and indefinite-lived intangible assets acquired in connection with the purchase of the Company's China subsidiary in 2010. These intangible assets have been measured at the acquisition-date fair value using various methodologies applied within the income approach. Definite-lived intangible assets are amortized over their related useful lives. Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. The amount of any impairment is measured as the difference between the carrying amount and the fair value of the impaired asset. There have been no events or changes in circumstances that have occurred subsequent to the acquisition of the indefinite-lived assets that would indicate impairment.

Self Insurance

Self insurance

     The Company is self-insured, up to certain limits, for employee group health claims. The Company has purchased stop-loss insurance on both an individual and an aggregate basis, which will reimburse the Company for individual claims in excess of $125 and aggregate claims that are greater than 100% of projected claims. A liability is accrued and reflected in the Balance Sheet for all unpaid claims. Total expense under this self insurance program was $3,391, $4,274 and $4,518 in 2010, 2011 and 2012, respectively.

Common Stock And Additional Paid-In Capital

Common stock and additional paid-in capital

     The Company records cash that it receives upon the exercise of equity awards by crediting common stock and additional paid-in capital. The Company received $12,005, $39, and $309 in cash proceeds from the exercise of equity awards in 2010, 2011, and 2012, respectively. The Company also realizes an income tax benefit from the exercise of certain equity awards. For equity awards earned prior to January 1, 2006, this tax benefit resulted in a decrease in current income taxes payable and an increase in additional paid-in capital. For equity awards earned after January 1, 2006, deferred tax assets are established in accordance with applicable equity-based compensation authoritative guidance.

     Upon exercise, the deferred tax assets are reversed and the difference between the deferred tax assets and the realized tax benefit creates a tax windfall or shortfall that increases or decreases the additional paid-in capital pool ("APIC Pool"). If the APIC Pool is reduced to zero, additional shortfalls are treated as a current tax expense. The total tax expense recorded in additional paid-in capital was $152 and $317, in 2010 and 2011, respectively. The total tax benefit recorded in additional paid-in capital was $2,201 in 2012.

     The Company has a stock repurchase plan in place that has been authorized by the Board of Directors. As of December 29, 2012, $31,707 was available to repurchase shares under this plan. The Company expended $17,031, $33,459, and $68,294 to repurchase and retire shares during 2010, 2011, and 2012, respectively. The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings.

Revenue Recognition And Deferred Revenue

Revenue recognition and deferred revenue

     The Company receives payment, primarily via credit card, for the sale of products at the time customers place orders. Sales and related fees such as shipping and handling, net of applicable sales discounts, are recorded as revenue when the product is delivered and when title and the risk of ownership passes to the customer. Payments received for undelivered products are recorded as deferred revenue and are included in other current liabilities. Certain incentives offered on the sale of our products, including sales discounts, are classified as a reduction of revenue. A provision for product returns and allowances is recorded and is founded on historical experience. Additionally, the Company collects an annual account renewal fee from Associates that is deferred on receipt and is recognized as income on a straight-line basis over the subsequent twelve-month period.

     Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales).

Product Return Policy

Product return policy

     All products that are returned within the first 30 days following purchase are refunded at 100% of the sales price to retail customers and Preferred Customers. This 30-day return policy is offered to Associates only on their first order. All other returned product that is unused and resalable is refunded up to one year from the date of purchase at 100% of the sales price less a 10% restocking fee. According to the terms of the Associate agreement, return of product where the purchase amount exceeds one hundred dollars and was not damaged at the time of receipt by the Associate may result in cancellation of the Associate's distributorship. Depending upon the conditions under which product was returned customers may either receive a refund based on their original form of payment, or credit on account for a product exchange.

     This standard policy differs slightly in a few of our international markets due to the regulatory environment in those markets. Product returns totaled approximately 1.1% of net sales during fiscal years 2010, and 2011, and 0.8% of net sales in 2012.

Shipping And Handling Costs

Shipping and handling costs

The Company's shipping and handling costs are included in cost of sales for all periods presented.

Associate Incentives

Associate incentives

Associate incentives expenses include all forms of commissions, and other incentives paid to our Associates.

Selling, General And Administrative

Selling, general and administrative

     Selling, general and administrative expenses include wages and benefits, depreciation and amortization, rents and utilities, Associate event costs, advertising and professional fees, marketing, and research and development expenses.

Equity-based compensation

Equity-based compensation

     The Company records compensation expense in the financial statements for equity-based awards based on the grant date fair value and an estimate of forfeitures derived from historical experience. Equity-based compensation expense is recognized under the straight-line method over the period that service is provided, which is generally the vesting term. Further information regarding equity awards can be found in Note K – Equity-Based Compensation.

Advertising

     Advertising costs are charged to expense as incurred. Advertising expense totaled $1,202 in 2010, $3,893 in 2011 and $3,942 in 2012.

Research And Development

Research and development

     Research and development costs are charged to expense as incurred and are presented as part of selling, general and administrative expense. Research and development expense totaled $3,842 in 2010, $4,071 in 2011 and $4,664 in 2012.

Earnings Per Share

Earnings per share

     Basic earnings per common share (EPS) are based on the weighted-average number of common shares that were outstanding during each period. Diluted earnings per common share include the effect of potentially dilutive common shares, which include in-the-money, equity-based awards that have been granted but have not been exercised.

Recent Adopted Accounting Pronouncements

Recently adopted accounting pronouncements

     In May 2011, the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 updates existing guidance in Topic 820 to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). ASU 2011-04 is effective prospectively for fiscal years, and interim periods, beginning after December 15, 2011. The Company adopted ASU 2011-04 during the first quarter ended March 31, 2012, and its application had no impact on the Company's consolidated financial statements.

     In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (ASU 2011-05). The objective of ASU 2011-05 is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate the convergence of U.S. GAAP and IFRS, ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. Under the amendments in this update, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. These amendments do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. Also, the amendments do not change the option for an entity to present components of other comprehensive income either net of related tax effects or before related tax effects, with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. The Company adopted ASU 2011-05 during the first quarter ended March 31, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements, as it only affected financial statement presentation.

     In July 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (ASU 2012-02). ASU 2012-02 was issued with the intent of reducing the cost and complexity of performing impairment tests for indefinite-lived intangible assets by providing an entity with the option to first make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it is necessary to perform a quantitative impairment test. The amendments in this update also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting the qualitative assessment, which is similar to the previously updated guidance for goodwill impairment testing provided in ASU 2011-08. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity's financial statements for the most recent annual or interim period have not yet been issued. The Company adopted ASU 2012-02 during the third quarter ended September 29, 2012. Adoption of this standard did not have a material impact on the Company's consolidated financial statements.

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Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Related Party Transactions [Abstract]
Principal owner beneficial ownership percentage	48.10%
Amount paid to Medicis	$ 359	$ 360	$ 500

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Cash flows from operating activities
Net earnings	$ 66,433	$ 50,752	$ 45,651
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization	8,826	8,474	7,916
(Gain) loss on sale of property and equipment	(36)	45	94
Equity-based compensation expense	10,210	10,549	10,406
Excess tax benefits from equity-based payment arrangements	(3,443)	(48)	(2,449)
Common stock awarded to Associates	80
Deferred income taxes	4,111	(1,599)	3,194
Changes in operating assets and liabilities:
Inventories, net	1,370	(3,209)	(4,982)
Prepaid expenses and other assets	(6,341)	4,024	(5,218)
Accounts payable	(985)	1,502	(1,981)
Other liabilities	12,580	(382)	13,477
Total adjustments	26,372	19,356	20,457
Net cash provided by operating activities	92,805	70,108	66,108
Cash flows from investing activities
Acquisitions, net of cash acquired			(42,694)
Proceeds from sale of property and equipment	154	34	33
Purchases of property and equipment	(8,432)	(10,643)	(4,192)
Net cash used in investing activities	(8,278)	(10,609)	(46,853)
Cash flows from financing activities
Proceeds from equity awards exercised	309	39	12,005
Excess tax benefits from equity-based payment arrangements	3,443	48	2,449
Repurchase of common stock	(68,294)	(33,459)	(17,031)
Borrowings on line of credit	1,846		31,150
Payments on line of credit	(1,846)		(38,150)
Net cash used in financing activities	(64,542)	(33,372)	(9,577)
Effect of exchange rate changes on cash and cash equivalents	501	4	886
Net increase in cash and cash equivalents	20,486	26,131	10,564
Cash and cash equivalents, beginning of period	50,353	24,222	13,658
Cash and cash equivalents, end of period	70,839	50,353	24,222
Supplemental disclosures of cash flow information
Interest	20	10	99
Income taxes	27,131	24,539	21,628
Non-cash financing activities
Common stock issued in connection with acquisitions			$ 17,716

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 29, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	13,821,000	14,940,000
Common stock, shares outstanding	13,821,000	14,940,000

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Commitments And Contingencies

12 Months Ended

Dec. 29, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE J – COMMITMENTS AND CONTINGENCIES

1. Operating leases

     With the exception of the Company's Salt Lake City headquarters, Australian facility, and Tianjin, China facility, facilities are generally leased. Each of the facility lease agreements is a non-cancelable operating lease generally structured with renewal options and expires prior to or during 2019. The Company utilizes equipment under non-cancelable operating leases, expiring through 2016. The minimum commitments under operating leases at December 29, 2012 are as follows:

Year ending
2013	$	10,005
2014		4,349
2015		1,873
2016		1,114
2017		443
Thereafter		456
	$	18,240

     These leases generally provide that property taxes, insurance, and maintenance expenses are the responsibility of the Company. Such expenses are not included in the operating lease amounts outlined in the table above or in the rent expense amounts that follow. The total rent expense for the years ended 2010, 2011, and 2012 was approximately $4,442, $6,410, and $6,452 respectively.

2. Contingencies

     The Company is occasionally involved in lawsuits and disputes arising in the normal course of business. In the opinion of management, based upon advice of counsel, the likelihood of an adverse outcome against the Company is remote. As such, management believes that the ultimate outcome of these lawsuits will not have a material impact on the Company's financial position or results of operations.

3. Employee Benefit Plan

     The Company sponsors an employee benefit plan under Section 401(k) of the Internal Revenue Code. This plan covers employees who are at least 18 years of age and have met a one-month service requirement. The Company makes a matching contribution equal to 100 percent of the first one percent of a participant's compensation that is contributed by the participant, and 50 percent of that deferral that exceeds one percent of the participant's compensation, not to exceed six percent of the participant's compensation, subject to the limits of ERISA. In addition, the Company may make a discretionary contribution based on earnings. The Company's matching contributions cliff vest at two years of service. Contributions made by the Company to the plan in the United States for the years ended 2010, 2011, and 2012 were $900, $979, and $1,024, respectively.

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 29, 2012	Mar. 01, 2013	Jun. 29, 2012
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 29, 2012
Document Fiscal Period Focus	FY
Entity Central Index Key	0000896264
Entity Registrant Name	USANA HEALTH SCIENCES INC
Current Fiscal Year End Date	--12-29
Document Fiscal Year Focus	2012
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,499,699
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 262,342,000

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Equity-Based Compensation

12 Months Ended

Dec. 29, 2012

Equity-Based Compensation [Abstract]

Equity-Based Compensation

NOTE K – EQUITY-BASED COMPENSATION

     Equity-based compensation expense for fiscal years 2010, 2011, and 2012 was $10,406, $10,549, and $10,210, respectively. The related tax benefit for these periods was $3,992, $3,852, and $3,554, respectively.

     The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of December 29, 2012. This table does not include an estimate for future grants that may be issued.

2013	$	7,637
2014		5,682
2015		3,775
2016		1,735
2017		802
	$	19,631

The cost above is expected to be recognized over a weighted-average period of 2.0 years.

     The Company's 2006 Equity Incentive Award Plan (the "2006 Plan") is currently the only plan under which equity awards are issued. This plan allows for the grant of various equity awards, including stock-settled stock appreciation rights, stock options, deferred stock units, and other types of equity-based awards, to the Company's officers, key employees, and non-employee directors.

     Since its inception 10,000 shares have been authorized under the 2006 Plan. As of December 29, 2012, a total of 5,829 awards had been granted under the 2006 Plan, of which 5,707 were stock-settled stock appreciation rights, 8 were stock options, and 114 were deferred stock units. Also, as of December 29, 2012, a total of 945 awards had been canceled and added back to the number of units available for issuance under the 2006 Plan.

     The Company's Compensation Committee utilizes two types of vesting methods when granting awards to officers and key employees under the 2006 Plan based upon the nature of the grant. Awards granted to officers and key employees upon hire or promotion to such a position will generally vest 20% each year on the anniversary of the grant date and expire five to five and one-half years from the date of grant. Awards granted as a supplement to existing equity awards held by officers and key employees will generally vest 50% on each of the fourth and fifth anniversary of the grant date and expire five and one-half years from the date of grant. Awards of stock options and stock-settled stock appreciation rights to be granted to non-employee directors will generally vest 25% each quarter, commencing on the last day of the fiscal quarter in which the awards are granted, and will expire five years to five and one-half years from the date of grant. Awards of deferred stock units are full-value shares at the date of grant, vesting over the periods of service, and do not have expiration dates.

     The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards. The weighted-average fair value of stock-settled stock appreciation rights that were granted in 2010, 2011, and 2012, was $17.09, $12.40, and $15.35, respectively. Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated. Deferred stock units are full-value shares at the date of grant and have been excluded from the table below.

					Year Ended
		2010			2011			2012
Expected volatility (1)		54.9	%		56.0	%		50.7	%
Risk-free interest rate (2)		1.7	%		1.1	%		0.6	%
Expected life (3)		4.2	yrs.		3.9	yrs.		3.9	yrs.
Expected dividend yield (4)		0.0	%		0.0	%		0.0	%
Weighted-average grant price (5)	$	38.28		$	28.89		$	39.41

(1) Through June, 2012 expected volatility was a weighted-average of historical volatility and implied volatility. In July 2012, the Company eliminated the implied volatility aspect of this calculation and began utilizing historical volatility alone due to the lack of sufficient compliant option trading volume.

(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.

(3) For awards that follow the 20% per year vesting schedule, expected life is a weighted-average that includes historical settlement data of the Company's equity awards and a hypothetical holding period for outstanding awards. Due to lack of historical settlement data on awards that follow the 50% vesting at each of years four and five, expected life of these awards is calculated under the simplified method.

(4) The Company historically has not paid dividends.

(5) Grant price is the closing price of the Company's common stock on the date of grant.

A summary of the Company's stock option and stock-settled stock appreciation right activity is as follows:

				Weighted-	Weighted-average		Aggregate
				average grant	remaining		intrinsic
	Shares			price	contractual term		value*
Outstanding at December 31, 2011	3,808		$	32.12	2.9	$	8,603
Granted	387			39.41
Exercised	(1,397	)		29.16
Canceled	(65	)		29.95
Expired	(44	)		51.39
Outstanding at December 29, 2012	2,689		$	34.43	2.9	$	5,136
Exercisable at December 29, 2012	774		$	36.10	2.4	$	1,275

* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the-money. The closing price of the Company's common stock at December 31, 2011 and December 29, 2012, was $30.37 and $31.60, respectively.

     The total intrinsic value of stock options and stock-settled stock appreciation rights exercised was $16,977 in 2010, $925 in 2011, and $20,590 in 2012.

A summary of the Company's deferred stock unit activity for 2012 is as follows:

				Weighted-
				average fair
	Shares			value
Nonvested at December 31, 2011	49		$	44.29
Granted	-			-
Vested	(49	)		44.29
Canceled
Expired	-			-
Nonvested at December 29, 2012	-		$	-

     The total fair value of equity awards that vested during fiscal years 2010, 2011, and 2012 was $7,835, $10,993, and $10,211 respectively. This total fair value includes equity-based awards issued in the form of stock options, stock-settled stock appreciation rights, and deferred stock units.

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Consolidated Statements Of Earnings [Abstract]
Net sales	$ 648,726	$ 581,939	$ 517,644
Cost of sales	115,804	101,692	95,482
Gross profit	532,922	480,247	422,162
Operating expenses:
Associate incentives	280,506	265,928	233,187
Selling, general and administrative	154,237	137,063	120,759
Total operating expenses	434,743	402,991	353,946
Earnings from operations	98,179	77,256	68,216
Other income (expense):
Interest income	247	191	167
Interest expense	(20)	(9)	(94)
Other, net	20	40	575
Other income (expense), net	247	222	648
Earnings before income taxes	98,426	77,478	68,864
Income taxes	31,993	26,726	23,213
Net earnings	66,433	50,752	45,651
Earnings per common share
Basic	$ 4.57	$ 3.30	$ 2.94
Diluted	$ 4.45	$ 3.26	$ 2.86
Weighted average common shares outstanding
Basic	14,547	15,361	15,528
Diluted	14,923	15,574	15,942
Comprehensive income:
Net earnings	66,433	50,752	45,651
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	1,642	1,958	4,740
Tax benefit (expense) related to foreign currency translation adjustment	(545)	(1,476)	(906)
Other comprehensive income (loss), net of tax	1,097	482	3,834
Comprehensive income	$ 67,530	$ 51,234	$ 49,485

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Income Taxes

12 Months Ended

Dec. 29, 2012

Income Taxes [Abstract]

Income Taxes

NOTE E – INCOME TAXES

Income tax expense (benefit) included in income from net earnings consists of the following:

					Year ended
		2010			2011			2012
Current
Federal	$	18,026		$	22,383		$	27,779
State		1,502			1,913			1,141
Foreign		2,956			4,442			4,051
		22,484			28,738			32,971
Deferred
Federal		1,243			1,044			(145	)
State		113			(71	)		94
Foreign		(627	)		(2,985	)		(927	)
	$	23,213		$	26,726		$	31,993

The income tax provision, as reconciled to the tax computed at the federal statutory rate of 35% for 2010, 2011, and 2012, is as follows:

					Year ended
		2010			2011			2012
Federal income taxes at statutory rate	$	24,102		$	27,117		$	34,449
State income taxes, net of federal tax benefit		1,192			1,373			1,201
Qualified production activities deduction		(1,320	)		(1,576	)		(2,651	)
All other, net		(761	)		(188	)		(1,006	)
	$	23,213		$	26,726		$	31,993

F-14

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (in thousands, except per share data)

NOTE E – INCOME TAXES – CONTINUED

The significant categories of deferred taxes are as follows:

		December 31,			December 29,
		2011			2012
Deferred tax assets
Inventory differences	$	2,695		$	2,415
Accruals not currently deductible		2,124			2,533
Equity-based compensation		7,558			4,375
Intangible assets		9,535			9,532
Net operating losses		2,654			2,240
Other		1,361			2,675
Gross deferred tax assets		25,927			23,770
Valuation allowance		(1,784	)		(1,598	)
Net deferred tax assets		24,143			22,172
Deferred tax liabilities
Depreciation/amortization		(3,506	)		(5,260	)
Accumulated other comprehensive income		(3,378	)		(3,833	)
Prepaid expenses		(1,967	)		(1,240	)
Intangible assets		(10,659	)		(10,521	)
Other		(1,202	)		(2,490	)
Gross deferred tax liabilities		(20,712	)		(23,344	)
Net deferred taxes	$	3,431		$	(1,172	)

     At December 29, 2012, the Company had foreign operating loss carry forwards of approximately $8,960. If these operating losses are not used, they will expire between 2013 and 2017. A valuation allowance of approximately $6,400 has been placed on these foreign operating loss carry forwards. The valuation allowance is determined using a more likely than not realization criteria and is based upon all available positive and negative evidence, including future reversals of temporary differences. A future increase or decrease in the current valuation allowance is not expected to impact the income tax provision due to the Company's ability to fully utilize foreign tax credits associated with taxable income in these jurisdictions.

The Components of deferred taxes, net on a jurisdiction basis are as follows:

		December 31,		December 29,
		2011		2012
Net current deferred tax assets	$	3,320	$	4,255
Net noncurrent deferred tax assets		11,033		5,956
Total net deferred tax assets		14,353		10,211
Net current deferred tax liabilities		974		1,382
Net noncurrent deferred tax liabilities		9,948		10,001
Total net deferred tax liabilities		10,922		11,383
Net deferred taxes	$	3,431	$	(1,172	)

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Prepaid Expenses And Other Current Assets

12 Months Ended

Dec. 29, 2012

Prepaid Expenses And Other Current Assets [Abstract]

Prepaid Expenses And Other Current Assets

NOTE D – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consist of the following:

		December 31,		December 29,
		2011		2012
Prepaid insurance	$	1,350	$	1,266
Other prepaid expenses		3,177		3,340
Federal income taxes receivable		2,680		4,865
Miscellaneous receivables, net		2,978		3,374
Deferred commissions		3,942		5,808
Deferred tax assets		3,320		4,255
Other current assets		1,291		2,317
	$	18,738	$	25,225

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Valuation And Qualifying Accounts

12 Months Ended

Dec. 29, 2012

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation And Qualifying Accounts

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

	Balance at
	beginning of	Charged to costs		Charged to		Balance at
Description	period	and expenses		other accounts	Deductions	end of period
January 1, 2011
Deducted from related asset account:
Allowance for sales returns	1,115	94		-	280	929
Allowance for doubtful accounts	1,930	121		-	278	1,773
Valuation allowance - deferred tax assets	-	1,595		-	-	1,595
December 31, 2011
Deducted from related asset account:
Allowance for sales returns	929	149		-	64	1,014
Allowance for doubtful accounts	1,773	48		-	241	1,580
Valuation allowance - deferred tax assets	1,595	189		-	-	1,784
December 29, 2012
Deducted from related asset account:
Allowance for sales returns	1,014	46		-	343	717
Allowance for doubtful accounts	1,580	230		-	2	1,808
Valuation allowance - deferred tax assets	1,784	(186	)	-		1,598

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Segment Information

12 Months Ended

Dec. 29, 2012

Segment Information [Abstract]

Segment Information

NOTE L – SEGMENT INFORMATION

     USANA operates in a single operating segment as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors ("Associates"). As such, management has determined that the Company operates in one reportable business segment. Performance for a region or market is primarily evaluated based on sales. The Company does not use profitability reports on a regional or market basis for making business decisions. 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 and personal care products for the periods indicated.

	Year Ended
	2010		2011		2012
USANA® Nutritionals	77	%	79	%	80	%
USANA Foods	12	%	11	%	11	%
Sensé – beautiful science®	8	%	7	%	7	%

  Selected financial information for the Company is presented for two geographic regions: North America/Europe and Asia Pacific, with three sub-regions under Asia Pacific. Individual markets are categorized into these regions as follows:

· North America/Europe – United States (including direct sales from the United States to the United Kingdom and the Netherlands), Canada, Mexico, France ⁽¹⁾, and Belgium ⁽¹⁾

· Asia Pacific –

     · Southeast Asia/Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand ⁽¹⁾

     · Greater China – Hong Kong, Taiwan and China⁽²⁾

     · North Asia – Japan and South Korea

⁽¹⁾ The Company commenced operations in Thailand, France, and Belgium at the end of the first quarter of 2012.

⁽²⁾ The Company's business in China is that of BabyCare, its wholly-owned subsidiary.

Selected Financial Information

     Financial information, presented by geographic region for the years ended January 1, 2011, December 31, 2011, and December 29, 2012 is listed below:

		2010		2011		2012
Net Sales to External Customers
North America/Europe	$	242,147	$	236,386	$	244,333
Asia Pacific
Southeast Asia Pacific		99,311		111,447		139,651
Greater China		152,280		204,822		235,626
North Asia		23,906		29,284		29,116
Asia Pacific Total		275,497		345,553		404,393
Consolidated Total	$	517,644	$	581,939	$	648,726

		December 31,		December 29,
		2011		2012
Long-lived Assets
North America/Europe	$	47,393	$	48,101
Asia Pacific
Southeast Asia Pacific		16,401		17,866
Greater China		61,629		61,104
North Asia		1,981		1,783
Asia Pacific Total		80,011		80,753
Consolidated Total	$	127,404	$	128,854
Total Assets
North America/Europe	$	116,844	$	106,170
Asia Pacific
Southeast Asia Pacific		26,800		43,234
Greater China		93,989		109,510
North Asia		6,863		8,441
Asia Pacific Total		127,652		161,185
Consolidated Total	$	244,496	$	267,355

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

		2010		2011		2012
Net sales:
United States	$	150,893	$	148,061	$	152,460
Hong Kong		121,435		156,672		180,837
Canada		69,411		67,024		63,318
Long-lived Assets:
China			$	59,806	$	59,130
United States				46,991		46,559
Australia				15,280		15,121

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Other Current Liabilities

12 Months Ended

Dec. 29, 2012

Other Current Liabilities [Abstract]

Other Current Liabilities

NOTE H – OTHER CURRENT LIABILITIES

Other current liabilities consist of the following:

		December 31,		December 29,
		2011		2012
Associate incentives	$	12,423	$	15,252
Accrued employee compensation		12,210		16,402
Income taxes		4,112		1,414
Sales taxes		4,291		4,569
Deferred tax liabilities		974		1,382
Associate promotions		1,035		1,775
Deferred revenue		10,065		15,601
Provision for returns and allowances		1,014		717
All other		5,620		6,692
	$	51,744	$	63,804

XML

Segment Information (Narrative) (Details)	12 Months Ended
	Dec. 29, 2012
Segment Information [Abstract]
Percentage of revenue from major customers, maximum	10.00%

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Property And Equipment

12 Months Ended

Dec. 29, 2012

Property And Equipment [Abstract]

Property And Equipment

NOTE F – PROPERTY AND EQUIPMENT

Cost of property and equipment and their estimated useful lives is as follows:

			December 31,		December 29,
	Years		2011		2012
Buildings	40	$	40,173	$	40,766
Laboratory and production equipment	5-7		21,083		22,366
Sound and video library	5		600		600
Computer equipment and software	3-5		30,621		32,639
Furniture and fixtures	3-5		5,117		5,350
Automobiles	3-5		294		285
Leasehold improvements	3-5		5,723		6,817
Land improvements	15		2,051		2,196
			105,662		111,019
Less accumulated depreciation and amortization			54,437		59,049
			51,225		51,970
Land			8,109		8,211
Deposits and projects in process			1,420		1,570
		$	60,754	$	61,751

Depreciation of property and equipment for the years ended 2010, 2011, and 2012 was $7,510, $7,431, and $7,717, respectively

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Intangible Assets

12 Months Ended

Dec. 29, 2012

Intangible Assets [Abstract]

Intangible Assets

NOTE G – INTANGIBLE ASSETS

     Goodwill and intangible assets are tested annually for impairment, or more frequently if impairment indicators are present. Such indicators of impairment include, but are not limited to, changes in business climate, and operating or cash flow losses related to such assets. Goodwill and indefinite lived intangible assets are not amortized. Definite lived intangibles are amortized over their related useful lives.

     No events have occurred subsequent to any of our acquisitions that have resulted in an impairment of the original goodwill or intangible asset amounts that were initially recorded from the transactions. Goodwill is as follows:

				Currency
		December 31,		translation		December 29,
		2011		adjustments		2012
North America	$	6,390	$	-	$	6,390
Asia Pacific		11,350		150		11,500
	$	17,740	$	150	$	17,890

		As of December 31, 2011
								Weighted-average
		Gross carrying		Accumulated			Net carrying	amortization
		amount		amortization			amount	period (years)
Amortized intangible assets
Trade name and trademarks	$	4,200	$	(577	)	$	3,623	10
Customer relationships		2,046		(938	)		1,108	3
		6,246		(1,515	)		4,731
Unamortized intangible assets
Product formulas		9,261					9,261
Direct sales license		28,645					28,645
		37,906					37,906
	$	44,152				$	42,637

	As of December 29, 2012
								Weighted-average
		Gross carrying		Accumulated			Net carrying	amortization
		amount		amortization			amount	period (years)
Amortized intangible assets
Trade name and trademarks	$	4,256	$	(1,011	)	$	3,245	10
Customer relationships		2,073		(1,641	)		432	3
		6,329		(2,652	)		3,677
Unamortized intangible assets
Product formulas		9,384					9,384
Direct sales license		29,024					29,024
		38,408					38,408
	$	44,737				$	42,085

Aggregate amortization expense:
Year ended December 29, 2012	$	1,090
Estimated Amortization Expense:
2013		858
2014		426
2015		426
2016		426
2017		426
Thereafter		1,115
	$	3,677

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Long-Term Debt And Line Of Credit

12 Months Ended

Dec. 29, 2012

Long-Term Debt And Line Of Credit [Abstract]

Long-Term Debt And Line Of Credit

NOTE I – LONG-TERM DEBT AND LINE OF CREDIT

     The Company has a $60,000 line of credit with Bank of America. Interest is computed at the bank's Prime Rate or LIBOR, adjusted by features specified in the Credit Agreement. The collateral for this line of credit is the pledge of the capital stock of certain subsidiaries of the Company, set forth in a separate pledge agreement with the bank. The Credit Agreement contains restrictive covenants based on adjusted EBITDA and a debt coverage ratio.

     There was no outstanding debt on this line of credit at December 31, 2011 or at December 29, 2012. The Company will be required to pay any balance on this line of credit in full at the time of maturity in April 2016 unless the line of credit is replaced or terms are renegotiated.

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Segment Information (Schedule Of Revenue And Long-Lived Assets By Major Geographic Region) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 168,530	$ 165,175	$ 160,901	$ 154,120	$ 145,947	$ 143,501	$ 148,925	$ 143,566	$ 648,726	$ 581,939	$ 517,644
Long-lived Assets	128,854				127,404				128,854	127,404
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									152,460	148,061	150,893
Long-lived Assets	46,559				46,991				46,559	46,991
Hong Kong [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									180,837	156,672	121,435
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									63,318	67,024	69,411
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	59,130				59,806				59,130	59,806
Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	$ 15,121				$ 15,280				$ 15,121	$ 15,280

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Earnings Per Share (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	2 Months Ended	12 Months Ended
	Mar. 07, 2013	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Earnings Per Share [Abstract]
Equity awards of stock excluded in computation of diluted EPS		1,039	2,773	1,806
Amount expended to repurchase shares	$ 18,085	$ 68,294	$ 33,459	$ 17,031
Shares repurchased	414	1,644	1,120	387

XML

Segment Information (Schedule Of Long-Lived Assets By Geographic Region) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	$ 128,854	$ 127,404
Assets	267,355	244,496
North America/Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	48,101	47,393
Assets	106,170	116,844
Southeast Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	17,866	16,401
Assets	43,234	26,800
Greater China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	61,104	61,629
Assets	109,510	93,989
North Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	1,783	1,981
Assets	8,441	6,863
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	80,753	80,011
Assets	$ 161,185	$ 127,652

XML

Segment Information (Tables)

12 Months Ended

Dec. 29, 2012

Segment Information [Abstract]

Schedule Of Revenue Percentage By Product

	Year Ended
	2010		2011		2012
USANA® Nutritionals	77	%	79	%	80	%
USANA Foods	12	%	11	%	11	%
Sensé – beautiful science®	8	%	7	%	7	%

Schedule Of Revenues From External Customers By Geographic Region

		2010		2011		2012
Net Sales to External Customers
North America/Europe	$	242,147	$	236,386	$	244,333
Asia Pacific
Southeast Asia Pacific		99,311		111,447		139,651
Greater China		152,280		204,822		235,626
North Asia		23,906		29,284		29,116
Asia Pacific Total		275,497		345,553		404,393
Consolidated Total	$	517,644	$	581,939	$	648,726

Schedule Of Long-Lived Assets By Geographic Region

		December 31,		December 29,
		2011		2012
Long-lived Assets
North America/Europe	$	47,393	$	48,101
Asia Pacific
Southeast Asia Pacific		16,401		17,866
Greater China		61,629		61,104
North Asia		1,981		1,783
Asia Pacific Total		80,011		80,753
Consolidated Total	$	127,404	$	128,854
Total Assets
North America/Europe	$	116,844	$	106,170
Asia Pacific
Southeast Asia Pacific		26,800		43,234
Greater China		93,989		109,510
North Asia		6,863		8,441
Asia Pacific Total		127,652		161,185
Consolidated Total	$	244,496	$	267,355

Schedule Of Revenue And Long-Lived Assets By Major Geographic Region

		2010		2011		2012
Net sales:
United States	$	150,893	$	148,061	$	152,460
Hong Kong		121,435		156,672		180,837
Canada		69,411		67,024		63,318
Long-lived Assets:
China			$	59,806	$	59,130
United States				46,991		46,559
Australia				15,280		15,121

XML

Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Other Current Liabilities [Abstract]
Associate incentives	$ 15,252	$ 12,423
Accrued employee compensation	16,402	12,210
Income taxes	1,414	4,112
Sales taxes	4,569	4,291
Deferred tax liabilities	1,382	974
Associate promotions	1,775	1,035
Deferred revenue	15,601	10,065
Provision for returns and allowances	717	1,014
All other	6,692	5,620
Other current liabilities	$ 63,804	$ 51,744

XML

Earnings Per Share

12 Months Ended

Dec. 29, 2012

Earnings Per Share [Abstract]

Earnings Per Share

NOTE N – EARNINGS PER SHARE

     Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised.

					Year ended
		2010			2011			2012
Net earnings available to common shareholders	$	45,651		$	50,752		$	66,433
Basic EPS
Shares
Common shares outstanding entire period		15,309			15,985			14,940
Weighted average common shares:
Issued during period		311			32			199
Canceled during period		(92	)		(656	)		(592	)
Weighted average common shares outstanding during
period		15,528			15,361			14,547
Earnings per common share from net earnings - basic	$	2.94		$	3.30		$	4.57
Diluted EPS
Shares
Weighted average common shares outstanding during
period - basic		15,528			15,361			14,547
Dilutive effect of in-the-money equity awards		414			213			376
Weighted average common shares outstanding during
period - diluted		15,942			15,574			14,923
Earnings per common share from net earnings - diluted	$	2.86		$	3.26		$	4.45

Equity awards for 1,806 shares, 2,773 shares, and 1,039 shares of stock were not included in the computation of EPS for the years ended 2010, 2011, and 2012, respectively, due to the fact that their effect would be anti-dilutive.

     During the years ended January 1, 2011, December 31, 2011, and December 29, 2012, the Company expended $17,031, $33,459, and $68,294 to purchase 387 shares, 1,120 shares, and 1,644 shares, respectively, under the Company's share repurchase plan. The purchase of shares under this plan reduces the number of shares outstanding in the above calculations.

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Inventories (Tables)

12 Months Ended

Dec. 29, 2012

Inventories [Abstract]

Schedule Of Inventories

		December 31,		December 29,
		2011		2012
Raw materials	$	9,670	$	9,228
Work in progress		6,917		7,703
Finished goods		20,381		19,550
	$	36,968	$	36,481

XML

Intangible Assets (Schedule Of Finite And Indefinite Lived Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 29, 2012	Dec. 31, 2011
Schedule Of Finite and Indefinite Intangible Assets [Line Items]
Amortized intangible assets, Gross carrying amount	$ 6,329	$ 6,246
Accumulated amortization	(2,652)	(1,515)
Amortized intangible assets, Net carrying amount	3,677	4,731
Unamortized intangible assets	38,408	37,906
Total, Gross carrying amount	44,737	44,152
Total, Net carrying amount	42,085	42,637
Trade Name And Trademarks [Member]
Schedule Of Finite and Indefinite Intangible Assets [Line Items]
Amortized intangible assets, Gross carrying amount	4,256	4,200
Accumulated amortization	(1,011)	(577)
Amortized intangible assets, Net carrying amount	3,245	3,623
Weighted-average amortization period (years)	10 years	10 years
Customer Relationships [Member]
Schedule Of Finite and Indefinite Intangible Assets [Line Items]
Amortized intangible assets, Gross carrying amount	2,073	2,046
Accumulated amortization	(1,641)	(938)
Amortized intangible assets, Net carrying amount	432	1,108
Weighted-average amortization period (years)	3 years	3 years
Product Formulas [Member]
Schedule Of Finite and Indefinite Intangible Assets [Line Items]
Unamortized intangible assets	9,384	9,261
Direct Sales License [Member]
Schedule Of Finite and Indefinite Intangible Assets [Line Items]
Unamortized intangible assets	$ 29,024	$ 28,645

XML

Prepaid Expenses And Other Current Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 29, 2012	Dec. 31, 2011
Prepaid Expenses And Other Current Assets [Abstract]
Prepaid insurance	$ 1,266	$ 1,350
Other prepaid expenses	3,340	3,177
Federal income taxes receivable	4,865	2,680
Miscellaneous receivables, net	3,374	2,978
Deferred commissions	5,808	3,942
Deferred tax assets	4,255	3,320
Other current assets	2,317	1,291
Prepaid expenses and other current assets	$ 25,225	$ 18,738

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Consolidated Statements Of Stockholders' Equity (USD $) In Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance, value at Jan. 02, 2010	$ 15	$ 16,425	$ 56,410	$ 1,523	$ 74,373
Balance, shares at Jan. 02, 2010	15,309				15,309
Net earnings			45,651		45,651
Other comprehensive income, net of tax				3,834	3,834
Equity-based compensation expense		10,406			10,406
Common stock repurchased and retired, shares	(387)				(387)
Common stock repurchased and retired, value	(1)	(5,176)	(11,854)		(17,031)
Common stock issued in connection with acquisition, shares	400
Common stock issued in connection with acquisition, value	1	17,715			17,716
Common stock issued under equity award plans, including tax benefit (expense), shares	663
Common stock issued under equity award plans, including tax benefit (expense), value	1	11,852			11,853
Balance, value at Jan. 01, 2011	16	51,222	90,207	5,357	146,802
Balance, shares at Jan. 01, 2011	15,985				15,985
Net earnings			50,752		50,752
Other comprehensive income, net of tax				482	482
Equity-based compensation expense		10,549			10,549
Common stock repurchased and retired, shares	(1,120)				(1,120)
Common stock repurchased and retired, value	(1)	(11,298)	(22,160)		(33,459)
Common stock issued under equity award plans, including tax benefit (expense), shares	75
Common stock issued under equity award plans, including tax benefit (expense), value		(278)			(278)
Tax impact of cancelled vested equity awards		(938)			(938)
Balance, value at Dec. 31, 2011	15	49,257	118,799	5,839	173,910
Balance, shares at Dec. 31, 2011	14,940				14,940
Net earnings			66,433		66,433
Other comprehensive income, net of tax				1,097	1,097
Equity-based compensation expense		10,210			10,210
Common stock repurchased and retired, shares	(1,644)				(1,644)
Common stock repurchased and retired, value	(2)	(17,860)	(50,432)		(68,294)
Common stock awarded to Associates, shares	2
Common stock awarded to Associates, value		80			80
Common stock issued under equity award plans, including tax benefit (expense), shares	523
Common stock issued under equity award plans, including tax benefit (expense), value	1	2,509			2,510
Tax impact of cancelled vested equity awards		(374)			(374)
Balance, value at Dec. 29, 2012	$ 14	$ 43,822	$ 134,800	$ 6,936	$ 185,572
Balance, shares at Dec. 29, 2012	13,821				13,821

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Inventories

12 Months Ended

Dec. 29, 2012

Inventories [Abstract]

Inventories

NOTE C – INVENTORIES

Inventories consist of the following:

		December 31,		December 29,
		2011		2012
Raw materials	$	9,670	$	9,228
Work in progress		6,917		7,703
Finished goods		20,381		19,550
	$	36,968	$	36,481

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Equity-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 29, 2012		Dec. 31, 2011
Equity-Based Compensation [Abstract]
Shares, Outstanding	3,808
Shares, Granted	387
Shares, Exercised	(1,397)
Shares, Cancelled	(65)
Shares, Expired	(44)
Shares, Outstanding	2,689		3,808
Shares, Exercisable	774
Weighted-average grant price, Outstanding	$ 32.12
Weighted-average grant price, Granted	$ 39.41
Weighted-average grant price, Exercised	$ 29.16
Weighted-average grant price, Cancelled	$ 29.95
Weighted-average grant price, Expired	$ 51.39
Weighted-average grant price, Outstanding	$ 34.43		$ 32.12
Weighted-average grant price, Exercisable	$ 36.10
Weighted-average remaining contractual term, Outstanding	2 years 10 months 24 days		2 years 10 months 24 days
Weighted-average remaining contractual term, Exercisable	2 years 4 months 24 days
Aggregate intrinsic value, Outstanding	$ 8,603	[1]
Aggregate intrinsic value, Outstanding	5,136	[1]	8,603	[1]
Aggregate intrinsic value, Exercisable	$ 1,275	[1]
Closing price of common stock	$ 31.60		$ 30.37

[1] Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the-money. The closing price of the Company's common stock at December 31, 2011 and December 29, 2012, was $30.37 and $31.60, respectively.

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Subsequent Events (Details) (USD $) In Thousands, unless otherwise specified	2 Months Ended	12 Months Ended
	Mar. 07, 2013	Dec. 29, 2012	Dec. 31, 2011	Jan. 01, 2011
Subsequent Events [Abstract]
Common stock repurchased and retired, shares	414	1,644	1,120	387
Common stock repurchased and retired, value	$ 18,085	$ 68,294	$ 33,459	$ 17,031
Remaining approved repurchase amount	$ 13,662

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Prepaid Expenses And Other Current Assets (Tables)

12 Months Ended

Dec. 29, 2012

Prepaid Expenses And Other Current Assets [Abstract]

Schedule Of Prepaid Expenses And Other Current Assets

		December 31,		December 29,
		2011		2012
Prepaid insurance	$	1,350	$	1,266
Other prepaid expenses		3,177		3,340
Federal income taxes receivable		2,680		4,865
Miscellaneous receivables, net		2,978		3,374
Deferred commissions		3,942		5,808
Deferred tax assets		3,320		4,255
Other current assets		1,291		2,317
	$	18,738	$	25,225

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Acquisition (Narrative) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended			12 Months Ended
	Jan. 01, 2011	Dec. 29, 2012	Aug. 16, 2010	Dec. 29, 2012 BabyCare Ltd. [Member]	Jan. 01, 2011 BabyCare Ltd. [Member]	Dec. 29, 2012 Pet Lane Inc. [Member]
Business Acquisition [Line Items]
Date of business acquisition				Aug. 16, 2010
Percentage of company acquired				100.00%
Purchase price			$ 62,716	$ 62,716		$ 700
Purchase price, cash paid				45,000
Purchase price, common stock issued				17,716
Purchase price, common stock issued, shares				400
Purchase price, common stock issued, price per share				$ 44.29
Net sales	527,266
Net earnings	43,173
Goodwill recognized in acquisition			10,540	10,540		700
Intagible assets recognized in acquisition			41,000	41,000
Amount contributed to net sales					7,384
Amount contributed to net loss					1,154
Amount of goodwill expected to be deducted for tax purposes		52,323
Costs related to acquisition				$ 1,992

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Quarterly Financial Results

12 Months Ended

Dec. 29, 2012

Quarterly Financial Results [Abstract]

Quarterly Financial Results

NOTE M – QUARTERLY FINANCIAL RESULTS (Unaudited)

The following table summarizes quarterly financial information for fiscal years 2011 and 2012.

2011		First		Second		Third		Fourth
Net sales	$	143,566	$	148,925	$	143,501	$	145,947
Gross profit	$	117,904	$	122,717	$	118,299	$	121,327
Net earnings	$	11,350	$	13,856	$	12,385	$	13,161
Earnings per share:
Basic	$	0.71	$	0.89	$	0.82	$	0.88
Diluted	$	0.70	$	0.88	$	0.81	$	0.87

2012		First		Second		Third		Fourth
Net sales	$	154,120	$	160,901	$	165,175	$	168,530
Gross profit	$	126,903	$	132,828	$	134,832	$	138,359
Net earnings	$	13,751	$	16,745	$	17,490	$	18,447
Earnings per share:
Basic	$	0.92	$	1.14	$	1.22	$	1.30
Diluted	$	0.90	$	1.11	$	1.18	$	1.27