REVENUE (Tables)

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2018		2017		2018		2017
U.S. company-owned product sales: ⁽¹⁾	(in thousands)
Protein	$	76,738	$	83,652	$	251,480	$	266,621
Performance supplements	68,809		69,770		217,525		217,787
Weight management	29,575		32,622		108,048		112,897
Vitamins	48,322		51,015		148,188		154,363
Herbs / Greens	15,872		16,817		48,975		49,552
Wellness	46,245		47,888		143,626		147,484
Health / Beauty	43,332		48,027		138,911		145,624
Food / Drink	28,325		23,248		82,394		72,818
General merchandise	5,637		6,732		18,577		21,941
Total U.S. company-owned product sales	$	362,855	$	379,771	$	1,157,724	$	1,189,087
Wholesale sales to franchisees	58,199		59,413		176,034		189,776
Royalties and franchise fees	7,939		8,649		25,219		27,472
Sublease income	11,087		12,170		34,485		37,128
Cooperative advertising and other franchise support fees	4,739		5,769		16,245		18,159
Gold Card revenue recognized in U.S.⁽²⁾	—		—		—		24,399
Other ⁽³⁾	31,700		26,611		96,543		70,797
Total U.S. and Canada revenue	$	476,519	$	492,383	$	1,506,250	$	1,556,818


(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 compared to the prior year period primarily relates to the Company's loyalty programs.

International Revenue

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



	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
	(in thousands)
Wholesale sales to franchisees	$	32,321	$	28,941	$	81,266	$	80,747
Royalties and franchise fees	7,150		6,509		20,347		19,360
Other^(*)	11,936		13,008		38,494		31,915
Total International revenue	$	51,407	$	48,458	$	140,107	$	132,022

(*) 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 September 30,				Nine months ended September 30,
	2018		2017		2018		2017
	(in thousands)
Third-party contract manufacturing	$	31,212	$	29,260	$	94,514	$	97,222
Intersegment sales	63,695		58,037		193,596		175,335
Wholesale partner sales	21,047		22,026		64,791		65,895
Total Manufacturing / Wholesale revenue	$	115,954	$	109,323	$	352,901	$	338,452

Revenue by Geography

The following is a summary of the revenue by geography.



	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Total revenues by geographic areas:	(in thousands)
United States	$	545,332	$	574,053	$	1,696,887	$	1,808,745
Foreign	34,853		38,900		108,775		109,394
Total revenues (*)	$	580,185	$	612,953	$	1,805,662	$	1,918,139

(*) Prior year revenue includes revenue from Lucky Vitamin, which was sold on September 30, 2017.

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



	Nine months ended September 30, 2018
	Balance at beginning of period		Recognition of revenue included in beginning balance			Contract liability, net of revenue recognized during the period		Balance at end of period
	(in thousands)
Deferred franchise and license fees	$	38,011	$	(7,739	)	$	4,128	$	34,400
PRO Access and loyalty program points	24,464		(22,942		)	24,512		26,034
Gift card liability ^(*)	4,172		(2,430		)	159		1,901