Restructuring

9 Months Ended

Sep. 30, 2025

13.	Restructuring

In the fourth quarter of 2023, the Company adopted a strategic plan (“2023 Plan”) to focus resources on the Company’s global priorities and optimize future growth and profitability. The global program includes workforce reductions and fixed asset impairments associated with our consolidation of technology assets. Total charges under the program included approximately $27.9 million in cash charges of severance, approximately $1.1 million in other cash charges and approximately $38.8 million in non-cash charges, including approximately $36.6 million in fixed asset impairments. The Company has incurred all expected charges under the 2023 Plan, and anticipates making the remaining payments in the fourth quarter of 2025.

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During the fourth quarter of 2023, the Company incurred charges to be settled in cash of $10.0 million in severance charges. During the fourth quarter of 2023, the Company made cash payments of $0.3 million, leaving an ending restructuring accrual of $9.7 million.

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During the first quarter of 2024, the Company incurred charges to be settled in cash of $4.1 million in severance charges and $2.0 million in other associated cost, and non-cash charges of $1.0 million in write-down of assets. During the first quarter of 2024, the Company made cash payments of $7.0 million, leaving an ending restructuring accrual of $8.8 million.

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During the second quarter of 2024, the Company incurred charges to be settled in cash of $1.0 million in severance charges and $0.1 million in other cash charges. In the second quarter of 2024, the Company incurred non-cash charges of $7.2 million, consisting of $6.4 million in fixed asset impairments and $0.8 million in other asset write-downs. During the second quarter of 2024, the Company made cash payments of $2.8 million, leaving an ending restructuring accrual of $7.1 million.

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During the third quarter of 2024, the Company incurred no additional charges and made cash payments of $3.9 million, leaving an ending restructuring accrual of $3.2 million.

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During the fourth quarter of 2024, the Company incurred charges to be settled in cash of $16.9 million in severance charges and $0.9 million in other cash charges. In the fourth quarter of 2024, the Company incurred non-cash charges of $30.2 million of fixed asset impairments and $1.4 million of other non-cash charges. During the fourth quarter of 2024, the Company made cash payments of $14.8 million, leaving an ending restructuring accrual of $6.2 million.

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During the first quarter of 2025, the Company incurred no further charges, and it made cash payments of $4.7 million leaving an ending restructuring accrual of $1.5 million.

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During the second quarter of 2025, the Company incurred no further charges, and it made cash payments of $0.5 million leaving an ending restructuring accrual of $1.0 million.

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During the third quarter of 2025, the Company incurred no further charges, and it made cash payments of $0.1 million, leaving an ending restructuring accrual of $0.9 million.

Restructuring expense by segment – 2023 Plan

	Three Months Ended
(U.S. dollars in thousands)	December 31, 2024		June 30, 2024			March 31, 2024		December 31, 2023		Total
Nu Skin
Americas	$	159	$	267		$	3,145	$	598	$	4,169
Southeast Asia/Pacific		1,589		190			307		862		2,948
Mainland China		3,449		(162	)		1,017		2,910		7,214
Japan		1		—			24		—		25
Europe & Africa		1,152		414			677		554		2,797
South Korea		1,646		(134	)		134		—		1,646
Hong Kong/Taiwan		294		(147	)		357		432		936
Total Nu Skin		8,290		428			5,661		5,356		19,735
Rhyz
Manufacturing		—		—			—		—		—
Rhyz Other		1,040		40			—		—		1,080
Total Rhyz		1,040		40			—		—		1,080
Corporate and other		32,887		7,896			1,473		4,647		46,903
Total	$	42,217	$	8,364		$	7,134	$	10,003	$	67,718