REVENUE (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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

	Year ended December 31,
	2019		2018		2017
U.S. company-owned product sales: (1)	(in thousands)
Protein	$	295,135	$	320,751	$	338,773
Performance supplements	283,473		280,835		281,532
Weight management	100,356		128,723		140,148
Vitamins	180,742		195,853		203,569
Herbs / Greens	59,578		66,025		66,324
Wellness	179,059		191,995		196,942
Health / Beauty	179,015		181,185		190,977
Food / Drink	98,134		109,094		94,390
General merchandise	22,290		24,019		28,931
Total U.S. company-owned product sales	$	1,397,782	$	1,498,480	$	1,541,586
Wholesale sales to franchisees	219,644		225,106		242,521
Royalties and franchise fees	31,527		32,733		35,212
Sublease income	42,282		45,506		48,972
Cooperative advertising and other franchise support fees	18,530		20,815		23,424
Gold Card revenue recognized in U.S.(2)	—		—		24,399
Other (3)	112,562		128,580		102,817
Total U.S. and Canada revenue	$	1,822,327	$	1,951,220	$	2,018,931

(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 program 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.

International Revenue

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

	Year ended December 31,
	2019		2018		2017
	(in thousands)
Wholesale sales to franchisees	$	101,609	$	107,627	$	104,384
Royalties and franchise fees	25,902		26,503		26,609
Other (1)	30,656		57,279		46,785
Total International revenue	$	158,167	$	191,409	$	177,778

(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 the revenue disaggregated by major source in the Manufacturing / Wholesale reportable segment:

	Year ended December 31,
	2019		2018		2017
	(in thousands)
Third-party contract manufacturing (1)	$	15,783	$	123,322	$	128,914
Intersegment sales (1)	35,505		264,211		231,495
Wholesale partner sales	71,911		87,572		89,157
Total Manufacturing / Wholesale revenue	$	123,199	$	475,105	$	449,566

(1) The decrease in third-party contract manufacturing and intersegment sales for the year ended December 31, 2019 compared to the prior year period is due to the transfer of the Nutra manufacturing business to the Manufacturing JV effective March 1, 2019.

Revenue by Geography

The following is a summary of the revenue by geography:

	Year ended December 31,
	2019		2018		2017
Total revenues by geographic areas(1):	(in thousands)
United States	$	1,962,650	$	2,205,669	$	2,332,880
Foreign	105,538		147,854		148,082
Total revenues	$	2,068,188	$	2,353,523	$	2,480,962

(1) Geographic areas are defined based on legal entity jurisdiction.

Contract with Customer

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

	Year ended December 31, 2019
	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	$	33,464	$	(10,423	)	$	5,252	$	28,293
PRO Access and loyalty program points (*)	24,836		(24,836		)	22,896		22,896
Gift card liability (*)	3,416		(2,049		)	1,743		3,110

	Year ended December 31, 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	$	(7,745	)	$	3,198	$	33,464
PRO Access and loyalty program points (*)	24,464		(24,464		)	24,836		24,836
Gift card liability (*)	4,172		(2,562		)	1,806		3,416

(*) Net of estimated breakage