Goodwill and Intangibles

3 Months Ended

Mar. 31, 2025

4.	Goodwill and Intangibles

Goodwill

The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments, with the exception of Rhyz Other. The Rhyz Other segment is made up of two reporting units, which had goodwill of $4.7 million and $0.0 as of March 31, 2025 and December 31, 2024.

The following table presents goodwill allocated to the Company’s reportable segments for the periods ended March 31, 2025 and December 31, 2024 (U.S. dollars in thousands):

	March 31, 2025		December 31, 2024
Nu Skin
Americas	$	—	$	—
Southeast Asia/Pacific		—		—
Mainland China		—		—
Japan		—		—
South Korea		—		—
Europe & Africa		—		—
Hong Kong/Taiwan		—		—
Rhyz
Manufacturing		78,875		78,875
Rhyz Other		4,750		4,750
Total	$	83,625	$	83,625

Accumulated impairment charges as of March 31, 2025 and December 31, 2024 were $9.4 million for the Americas segment, $18.5 million for the Southeast Asia/Pacific segment, $32.2 million for the Mainland China segment, $16.0 million for the Japan segment, $29.3 million for the South Korea segment, $2.9 million for the Europe & Africa segment, $6.6 million for the Hong Kong/Taiwan segment, $0 for the Manufacturing segment and $19.6 million for the Rhyz Other segment. There were no impairment charges recorded in the three months ended March 31, 2025 and 2024.

Intangibles

The Company reviews long-lived assets for impairment when performance expectations, events or change in circumstances indicate that the assets’ carrying value may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows by comparing the carrying value of the asset group to the net undiscounted cash flows. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset group.

During the first quarter of 2025, the Company decided to make a strategic shift in how it operates the BeautyBio asset group. These strategy changes included exiting certain sales channels which reduced the forecasted revenues for BeautyBio. The Company concluded these actions were an interim impairment triggering event. As a result, the Company performed an interim impairment test of the asset group and assessed the recoverability of the related asset group by comparing the carrying value of the asset group to the net undiscounted cash flow expected to be generated. The recoverability test indicated that the asset group was impaired. The Company concluded the asset group’s carrying value exceeded its estimated fair value, which was determined utilizing the discounted projected future cash flows, which resulted in an impairment charge. The estimated fair value was based on expected future cash flows using level 3 inputs and utilized management estimates related to revenue growth rates, profitability margins and discount rates. As a result, during the three months ended March 31, 2025 the Company recorded an impairment charge of $25.1 million on the BeautyBio asset group, which is part of its Rhyz Other segment within restructuring and impairment expenses on the consolidated statement of income. The BeautyBio asset group has a remaining carrying value of $2.3 million with a remaining weighted-average amortization period of approximately 7 years.