REVENUE (Tables)

6 Months Ended

Jun. 30, 2018

U.S. and Canada Revenue

The following is a summary of revenue disaggregated by major source in the U.S. and Canada segment:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
U.S. company-owned product sales: ⁽¹⁾	(in thousands)
Protein	$	87,072	$	90,706	$	174,742	$	182,969
Performance supplements	73,100		74,709		148,716		148,017
Weight management	38,686		39,758		78,473		80,275
Vitamins	49,495		52,112		99,866		103,348
Herbs / Greens	16,945		17,018		33,103		32,735
Wellness	49,680		51,175		97,381		99,596
Health / Beauty	47,525		48,887		95,579		97,597
Food / Drink	28,709		25,448		54,069		49,570
General merchandise	5,878		7,345		12,940		15,209
Total U.S. company-owned product sales	$	397,090	$	407,158	$	794,869	$	809,316
Wholesale sales to franchisees	60,675		66,082		117,835		130,363
Royalties and franchise fees	8,532		9,492		17,280		18,823
Sublease income	11,633		12,362		23,398		24,958
Cooperative advertising and other franchise support fees	5,973		6,349		11,506		12,390
Gold Card revenue recognized in U.S.⁽²⁾	—		—		—		24,399
Other ⁽³⁾	33,414		26,371		64,843		44,186
Total U.S. and Canada revenue	$	517,317	$	527,814	$	1,029,731	$	1,064,435


(1)	Includes GNC.com sales.


(2)	The Gold Card Member Pricing program in the U.S. was discontinued in December 2016 in connection with the launch of the One New GNC which resulted in $24.4 million of deferred Gold Card revenue being recognized in the first quarter of 2017, net of $1.4 million in applicable coupon redemptions.


(3)	Includes revenue primarily related to Canada operations and loyalty programs, myGNC Rewards and PRO Access. The increase primarily relates to the Company's loyalty programs.

International Revenues

The following is a summary of the revenue disaggregated by major source in the International reportable segment:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
	(in thousands)
Wholesale sales to franchisees	$	27,185	$	26,250	$	48,945	$	51,806
Royalties and franchise fees	6,576		6,280		13,197		12,851
Other^(*)	14,874		11,283		26,558		18,907
Total International revenue	$	48,635	$	43,813	$	88,700	$	83,564

(*) Includes revenue primarily related to China operations and company-owned stores located in Ireland.

Manufacturing / Wholesale Revenue

The following is a summary of the revenue disaggregated by major source in the Manufacturing / Wholesale reportable segment:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
	(in thousands)
Third-party contract manufacturing	$	30,580	$	34,220	$	63,302	$	67,962
Intersegment sales	65,238		56,000		129,901		117,298
Wholesale partner sales	21,412		21,777		43,744		43,869
Total Manufacturing / Wholesale revenue	$	117,230	$	111,997	$	236,947	$	229,129

Revenue by Geography

The following is a summary of the revenue by geography.



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Total revenues by geographic areas:	(in thousands)
United States	$	579,324	$	613,669	$	1,151,555	$	1,234,692
Foreign	38,620		36,569		73,922		70,494
Total revenues	$	617,944	$	650,238	$	1,225,477	$	1,305,186

The following table presents changes in the Company’s contract liabilities:



	Three months ended June 30, 2018
	Balance at Beginning of Period		Additions	Deductions		Balance at the End of Period
	(in thousands)
Deferred franchise and license fees	$	36,896	1,341	(2,449	)	$	35,788
PRO Access and loyalty program points	26,271		18,480	(17,412	)	27,339
Gift card liability	2,641		726	(1,166	)	2,201



	Six months ended June 30, 2018
	Balance at Beginning of Period		Additions	Deductions		Balance at the End of Period
	(in thousands)
Deferred franchise and license fees	$	38,011	2,783	(5,006	)	$	35,788
PRO Access and loyalty program points	24,464		35,629	(32,754	)	27,339
Gift card liability	4,172		1,694	(3,665	)	2,201