Segments and Geographic Area

6 Months Ended

Jun. 30, 2012

Segments and Geographic Area [Abstract]

Segments and Geographic Area

Segments and Geographic Area:

The Company's segments are based on the organizational structure that is used by management for making operating and investment decisions and for assessing performance.  Based on this management approach, the Company has two operating segments: Nutritional Products and Medical Products.

The Nutritional Products segment manufactures and distributes a line of over 75 nutritional supplements and personal care products, including herbs, vitamins and minerals, as well as natural skin, hair and body care products.  Nutritional Products are marketed under the "RBC Life" brand name through subsidiaries in the U.S. and Canada and branch operations in Taiwan.  These products are distributed by a network comprised of independent Associates and NFR program participants in certain markets, primarily the U.S., Canada and Southeast Asia, and by licensees in certain other international markets.  For the most part, licensees also market the Nutritional Products in their respective territories through a network of independent Associates.

The Medical Products segment markets a line of approximately 28 wound care products under the MPM Medical brand name through a U.S. subsidiary operating primarily in the U.S.  These wound care products are distributed to hospitals, nursing homes, home health care agencies, clinics and pharmacies through a network of medical/surgical supply dealers and pharmaceutical distributors.  Medical Products are used to prevent and treat wounds, and manage pain associated with wounds, in the acute care, long-term care and oncology markets.

The Company evaluates the performance of its segments primarily based on operating profit.  All intercompany transactions have been eliminated, and intersegment revenues are not significant.  In calculating operating profit for these two segments, administrative expenses incurred that are common to the two segments are allocated on a usage basis.

Segment information is as follows (in thousands):

	Nutritional Products			Medical Products		Consolidated
Quarter Ended June 30, 2012
Net sales	$	4,731		$	1,818	$	6,549
Depreciation and amortization	120			20		140
Operating profit (loss)	(94		)	170		76
Capital expenditures	53			—		53
Total assets	15,849			2,754		18,603
Quarter Ended June 30, 2011
Net sales	$	5,702		$	1,792	$	7,494
Depreciation and amortization	108			18		126
Operating profit	14			43		57
Capital expenditures	32			—		32
Total assets	17,457			2,793		20,250
Six Months Ended June 30, 2012
Net sales	$	9,352		$	3,265	$	12,617
Depreciation and amortization	239			40		279
Operating profit (loss)	(206		)	195		(11		)
Capital expenditures	70			—		70
Total assets	15,849			2,754		18,603
Six Months Ended June 30, 2011
Net sales	$	10,517		$	3,515	$	14,032
Depreciation and amortization	217			36		253
Operating profit	172			147		319
Capital expenditures	65			—		65
Total assets	17,457			2,793		20,250

Financial information summarized geographically is as follows (in thousands):

	Quarter Ended June 30, 2012				Quarter Ended June 30, 2011
	Net sales		Long-Lived assets		Net sales		Long-Lived assets
Domestic	$	2,995	$	6,006	$	3,574	$	6,351
Russia/Eastern Europe	2,649		—		2,980		—
Canada	366		533		486		555
Southeast Asia	434		104		372		26
All others	105		—		82		—
Totals	$	6,549	$	6,643	$	7,494	$	6,932
	Six Months Ended June 30, 2012				Six Months Ended June 30, 2011
	Net sales		Long-Lived assets		Net sales		Long-Lived assets
Domestic	$	5,547	$	6,006	$	6,532	$	6,351
Russia/Eastern Europe	5,385		—		6,037		—
Canada	733		533		804		555
Southeast Asia	739		104		527		26
All others	213		—		132		—
Totals	$	12,617	$	6,643	$	14,032	$	6,932

Significant Customers

The Company recorded sales of Nutritional Products to Coral Club International, Inc. ("CCI"), a licensee of the Company, in the amounts of $2,649,000 and $2,980,000 during the quarters ended June 30, 2012 and 2011, respectively, and $5,385,000 and $6,037,000 for the six months ended June 30, 2012 and 2011, respectively.  The Company also recorded sales of Medical Products to a medical/surgical dealer (see Note L for additional information related to this dealer) in the amounts of $1,110,000 and $1,078,000 during the quarters ended June 30, 2012 and 2011, respectively, and $1,900,000 and $2,148,000 for the six months ended June 30, 2012 and 2011, respectively.  In no other case did a customer of the Company account for more than 10% of net sales during the quarters ended June 30, 2012 and 2011.