Segments and Geographic Area

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segments and Geographic Area

SEGMENTS AND GEOGRAPHIC AREA

The Company's segments are based on the organization 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 100 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, effective October 1, 2011, branch operations in Taiwan.  These products are distributed by a network of independent Associates in certain markets, primarily in the U.S., Canada and Taiwan, and by licensees operating 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 over 40 wound care products under the MPM Medical brand name through a U.S. subsidiary operating primarily in the U.S.  The 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 accounting policies of the segments are the same as those described in Note B. 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 (loss) 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
Year ended December 31, 2012
Net sales	$	18,837		$	6,324	$	25,160
Depreciation and amortization	511			74		585
Operating profit (loss)	(716		)	252		(464		)
Capital expenditures	805			—		805
Total assets	15,011			3,003		18,014
Year ended December 31, 2011
Net sales	$	21,588		$	6,860	$	28,448
Depreciation and amortization	436			70		507
Operating profit (loss)	(248		)	177		(71		)
Capital expenditures	350			—		350
Total assets	16,048			2,777		18,826
Year ended December 31, 2010
Net sales	$	21,613		$	6,544	$	28,157
Depreciation and amortization	458			81		539
Operating profit	675			369		1,044
Capital expenditures	163			—		163
Total assets	15,529			2,815		18,344

Financial information summarized geographically based on the customer’s ordering location for the years ended December 31, 2012, 2011 and 2010 is listed below (in thousands):

	Net Sales		Long-lived Assets
Year ended December 31, 2012
Domestic	$	10,548	$	6,229
Russia/Eastern Europe	11,010		—
Canada	1,421		545
Southeast Asia	1,898		86
All others	283		—
Totals	$	25,160	$	6,860
Year ended December 31, 2011
Domestic	$	12,765	$	6,259
Russia/Eastern Europe	12,785		—
Canada	1,621		533
Southeast Asia	1,051		57
All others	226		—
Totals	$	28,448	$	6,849
Year ended December 31, 2010
Domestic	$	10,792	$	6,543
Russia/Eastern Europe	15,375		—
Canada	1,066		542
Southeast Asia	574		—
All others	349		—
Totals	$	28,157	$	7,085

Significant Customers - The Company recorded sales to CCI, a licensee of the Company, in the amount of $11,010,000, $12,785,000 and $15,375,000 for the years ended December 31, 2012, 2011 and 2010, respectively.  The Company also recorded sales to a medical/surgical dealer (see Note M) in the amount of $3,383,000, $4,043,000 and $3,979,000 for the years ended December 31, 2012, 2011 and 2010, respectively.  These sales accounted for more than 10% of net sales in these years.  In no other case did a customer of the Company account for more than 10% of net sales for the years ended December 31, 2012, 2011 or 2010.