REVENUE (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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,
	2019		2018		2019		2018
U.S. company-owned product sales: (1)	(in thousands)
Protein	$	73,103	$	76,738	$	230,520	$	251,480
Performance supplements	70,704		68,809		218,565		217,525
Weight management	22,279		29,575		82,665		108,048
Vitamins	43,107		48,322		135,099		148,188
Herbs / Greens	13,939		15,872		45,348		48,975
Wellness	41,995		46,245		135,565		143,626
Health / Beauty	44,356		43,332		137,279		138,911
Food / Drink	23,806		28,325		78,308		82,394
General merchandise	5,051		5,637		17,370		18,577
Total U.S. company-owned product sales	$	338,340	$	362,855	$	1,080,719	$	1,157,724
Wholesale sales to franchisees	55,729		58,199		173,855		176,034
Royalties and franchise fees	7,592		7,939		24,239		25,219
Sublease income	10,508		11,087		31,982		34,485
Cooperative advertising and other franchise support fees	4,558		4,739		14,379		16,245
Other (2)	28,007		31,700		84,777		96,543
Total U.S. and Canada revenue	$	444,734	$	476,519	$	1,409,951	$	1,506,250

(1) Includes e-commerce sales.

(2) Includes revenue primarily related to operations in Canada and the loyalty programs, myGNC Rewards and PRO Access, as further discussed below.

International Revenues

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

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
	(in thousands)
Wholesale sales to franchisees	$	22,965	$	32,321	$	75,421	$	81,266
Royalties and franchise fees	6,792		7,150		19,111		20,347
Other (1)	7,183		11,936		22,779		38,494
Total International revenue	$	36,940	$	51,407	$	117,311	$	140,107

(1) Includes revenue related to China operations prior to the transfer of the China business to the HK JV and China JV, which was effective February 13, 2019, wholesale sales to the HK JV and China JV, and revenue from company-owned locations in Ireland.

Manufacturing / Wholesale Revenue

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

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
	(in thousands)
Third-party contract manufacturing(1)	$	—	$	31,212	$	15,783	$	94,514
Intersegment sales(1)	—		63,695		35,505		193,596
Wholesale partner sales	17,402		21,047		54,792		64,791
Total Manufacturing / Wholesale revenue	$	17,402	$	115,954	$	106,080	$	352,901

(1) The decrease in third-party contract manufacturing and intersegment sales for the three and nine months ended September 30, 2019 compared to the prior year period is due to the transfer of the Nutra manufacturing business to the newly formed Manufacturing JV effective March 1, 2019.

Revenue by Geography

The following is a summary of revenue by geography:

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Total revenues by geographic areas(1):	(in thousands)
United States	$	477,306	$	545,332	$	1,526,111	$	1,696,887
Foreign	21,770		34,853		71,726		108,775
Total revenues	$	499,076	$	580,185	$	1,597,837	$	1,805,662

(1)

Geographic areas are defined based on legal entity jurisdiction.

Contract with Customer

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

	Nine months ended September 30, 2019
	Balance at Beginning of Period		Recognition of revenue included in beginning balance		Contract liability, net of revenue, recognized during the period	Balance at the End of Period
	(in thousands)
Deferred franchise and license fees	$	33,464	(7,931	)	3,476	$	29,009
PRO Access and loyalty program points	24,836		(21,266	)	22,562	26,132
Gift card liability	3,416		(1,945	)	324	1,795