SUBSEQUENT EVENTS

On April 26, 2016, the Board authorized and declared a cash dividend for the second quarter of 2016 of $0.20 per share of common stock, payable on or about June 24, 2016 to stockholders of record as of the close of business on June 10, 2016.

As described in Note 4, "Refranchising", the Company expects to sell 94 corporate stores to two franchisees and record pre-tax gains of approximately $20 million, the majority of which will be recognized in the second quarter of 2016.

The Company’s previously disclosed refranchising strategy, which will increase the proportion of domestic stores that are franchise locations in 2016 and beyond, will result in a change in the Company’s organizational structure and the financial reporting utilized by the Company’s chief operating decision maker (its chief executive officer) to assess performance and allocate resources; as a result, the Company's reportable segments will change effective in the second quarter of 2016. The Company believes that the new segments will better present management’s new view of the business. The new reportable segments will be disclosed beginning in the Company's second quarter of 2016. The following table shows the new reportable segments compared with the previous reporting structure.



Old		New
Segment: Retail Includes: Company-owned stores in the U.S., Puerto Rico and Canada, The Health Store and e-commerce, including Discount Supplements, which was sold in the fourth quarter of 2015		Segment: U.S. and Canada Includes: Company-owned stores in the U.S., Puerto Rico and Canada, franchise stores in the U.S. and e-commerce

Segment: Franchise Includes: Domestic and international franchise locations and China operations		Segment: International Includes: Franchise locations in approximately 50 countries, The Health Store and China operations

Segment: Manufacturing / Wholesale Includes: Manufactured product sold to the Company's other segments, third-party contract manufacturing and sales to wholesale partners		Segment: Manufacturing / Wholesale Includes: Manufactured product sold to the Company's other segments, third-party contract manufacturing and sales to wholesale partners (no change from old)

		Other Includes: Discount Supplements, an e-commerce business which was sold in the fourth quarter of 2015