10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2014

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to                       

Commission file number: 001-35024

USANA HEALTH SCIENCES, INC.

(Exact name of registrant as specified in its charter)

Utah	87-0500306
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

3838 West Parkway Blvd., Salt Lake City, Utah 84120

(Address of principal executive offices, Zip Code)

(801) 954-7100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer x
Non-accelerated filer o	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

The number of shares outstanding of the registrant’s common stock as of August 1, 2014 was 12,984,073.

USANA HEALTH SCIENCES, INC.

FORM 10-Q

For the Quarterly Period Ended June 28, 2014

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7–14
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15–23
Item 3	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4	Controls and Procedures	24
PART II. OTHER INFORMATION
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 5	Other Information	25
Item 6	Exhibits	26–27
Signatures		28

2

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

(unaudited)

	As of		As of
	December 28,		June 28,
	2013		2014
ASSETS
Current assets
Cash and cash equivalents	$	137,343	$	118,267
Securities held-to-maturity, net	8,642		3,374
Inventories	47,242		44,528
Prepaid expenses and other current assets	35,818		35,756
Total current assets	229,045		201,925
Property and equipment, net	59,180		65,859
Goodwill	18,243		17,919
Intangible assets, net	42,329		41,015
Deferred tax assets	5,519		5,515
Other assets	14,154		22,688
	$	368,470	$	354,921
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	9,502	$	6,408
Other current liabilities	86,369		82,297
Total current liabilities	95,871		88,705
Deferred tax liabilities	10,866		10,672
Other long-term liabilities	1,211		1,290
Stockholders’ equity
Common stock, $0.001 par value; Authorized — 50,000 shares, issued and outstanding 13,886 as of December 28, 2013 and 13,404 as of June 28, 2014	14		13
Additional paid-in capital	54,691		51,925
Retained earnings	200,023		196,992
Accumulated other comprehensive income	5,794		5,324
Total stockholders’ equity	260,522		254,254
	$	368,470	$	354,921

The accompanying notes are an integral part of these statements.

3

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)

	Quarter Ended						Six Months Ended
	June 29,			June 28,			June 29,			June 28,
	2013			2014			2013			2014
Net sales	$	189,136		$	188,256		$	358,218		$	370,657
Cost of sales	31,905			34,865			62,166			68,693
Gross profit	157,231			153,391			296,052			301,964
Operating expenses:
Associate incentives	77,801			81,098			147,656			159,972
Selling, general and administrative	42,978			43,206			85,382			87,783
Total operating expenses	120,779			124,304			233,038			247,755
Earnings from operations	36,452			29,087			63,014			54,209
Other income (expense):
Interest income	81			215			159			427
Interest expense	—			—			—			(6		)
Other, net	(164		)	82			(268		)	1
Other income (expense), net	(83		)	297			(109		)	422
Earnings before income taxes	36,369			29,384			62,905			54,631
Income taxes	12,159			10,083			20,916			18,793
Net earnings	$	24,210		$	19,301		$	41,989		$	35,838
Earnings per common share
Basic	$	1.79		$	1.40		$	3.09		$	2.59
Diluted	$	1.72		$	1.36		$	2.99		$	2.50
Weighted average common shares outstanding
Basic	13,513			13,768			13,578			13,843
Diluted	14,099			14,235			14,034			14,315
Comprehensive income:
Net earnings	$	24,210		$	19,301		$	41,989		$	35,838
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(2,472		)	802			(2,441		)	(860		)
Tax benefit (expense) related to foreign currency translation adjustment	798			(262		)	732			390
Other comprehensive income (loss), net of tax	(1,674		)	540			(1,709		)	(470		)
Comprehensive income	$	22,536		$	19,841		$	40,280		$	35,368

The accompanying notes are an integral part of these statements.

4

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

Six Months Ended June 28, 2014

(in thousands)

(unaudited)

												Accumulated
						Additional						Other
	Common Stock					Paid-in			Retained			Comprehensive
	Shares		Value			Capital			Earnings			Income (Loss)			Total
Balance at December 28, 2013	13,886		$	14		$	54,691		$	200,023		$	5,794		$	260,522
Net earnings									35,838						35,838
Other comprehensive income (loss), net of tax												(470		)	(470		)
Equity-based compensation expense						4,071									4,071
Common stock repurchased and retired	(682	)	(1		)	(10,224		)	(38,869		)				(49,094		)
Common stock issued under equity award plans, including tax benefit of $3,387	200					3,387									3,387
Balance at June 28, 2014	13,404		$	13		$	51,925		$	196,992		$	5,324		$	254,254

The accompanying notes are an integral part of these statements.

5

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Six Months Ended
	June 29,			June 28,
	2013			2014
Cash flows from operating activities
Net earnings	$	41,989		$	35,838
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities
Depreciation and amortization	4,631			4,408
(Gain) loss on sale of property and equipment	(6		)	16
Equity-based compensation expense	4,427			4,071
Excess tax benefits from equity-based payment arrangements	(1,734		)	(3,387		)
Deferred income taxes	843			(605		)
Changes in operating assets and liabilities:
Inventories	(6,123		)	3,034
Prepaid expenses and other assets	(3,295		)	(5,144		)
Accounts payable	155			(3,085		)
Other liabilities	6,409			(3,896		)
Net cash provided by (used in) operating activities	47,296			31,250
Cash flows from investing activities
Additions to notes receivable	(2,232		)	(2,520		)
Purchases of investment securities held-to-maturity	—			(3,871		)
Maturities of investment securities	—			9,137
Proceeds from sale of property and equipment	15			8
Purchases of property and equipment	(2,961		)	(10,103		)
Net cash provided by (used in) investing activities	(5,178		)	(7,349		)
Cash flows from financing activities
Proceeds from equity awards exercised	454			—
Excess tax benefits from equity-based payment arrangements	1,734			3,387
Repurchase of common stock	(18,085		)	(46,109		)
Net cash provided by (used in) financing activities	(15,897		)	(42,722		)
Effect of exchange rate changes on cash and cash equivalents	(1,004		)	(255		)
Net increase (decrease) in cash and cash equivalents	25,217			(19,076		)
Cash and cash equivalents, beginning of period	70,839			137,343
Cash and cash equivalents, end of period	$	96,056		$	118,267
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	—		$	6
Income taxes	21,040			9,963
Non-cash financing activities:
Unsettled trades for repurchase of common stock	—			(2,985		)

The accompanying notes are an integral part of these statements.

6

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

(unaudited)

NOTE A — ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION

USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “USANA”) in two geographic regions: Americas and Europe and Asia Pacific, which is further divided into three sub-regions; Southeast Asia Pacific, Greater China, and North Asia.  Americas and Europe includes the United States, Canada, Mexico, Colombia, the United Kingdom, France, Belgium, and the Netherlands.  Southeast Asia Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea. All significant intercompany accounts and transactions have been eliminated in this consolidation.

The condensed consolidated balance sheet as of December 28, 2013, derived from audited financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission. Certain information and footnote disclosures that are normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting of normal recurring adjustments that are necessary to state fairly the Company’s financial position as of June 28, 2014 and results of operations for the quarters and six months ended June 29, 2013 and June 28, 2014.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013.  The results of operations for the quarter and six months ended June 28, 2014, may not be indicative of the results that may be expected for the fiscal year 2014 ending January 3, 2015.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled to in exchange for those goods or services.  The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. Accordingly, the Company will adopt this ASU on January 1, 2017.  ASU 2014-09 permits companies the use of either a full retrospective or a modified retrospective approach to adopt this ASU, and the Company is currently evaluating which transition approach to use.  The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements

7

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE B — FAIR VALUE MEASURES

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

·Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

·Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

·Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

As of December 28, 2013 and June 28, 2014, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown:

			Fair Value Measurements Using:
	December 28, 2013		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Money market funds included in cash equivalents	$	9,249	$	9,249	$	—	$	—
Term deposits included in cash equivalents	348		—		348		—

			Fair Value Measurements Using:
	June 28, 2014		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Money market funds included in cash equivalents	$	14,412	$	14,412	$	—	$	—

There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the periods indicated.

The majority of the Company’s non-financial assets, which include goodwill, intangible assets, and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill and indefinite-lived intangibles) such that a non-financial asset is required to be evaluated for impairment, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At December 28, 2013 and June 28, 2014, there were no non-financial assets measured at fair value on a non-recurring basis.

At December 28, 2013 and June 28, 2014, the Company’s financial instruments include cash equivalents, restricted cash, securities held-to-maturity (“HTM”), and notes receivable. The recorded values of cash equivalents and restricted cash approximate their fair values, based on their short-term nature. The carrying value of the notes receivable approximate fair value because the variable interest rates in the notes reflect current market rates.  HTM securities consist of certificates of deposits. The fair value of a certificate of deposit is determined based on the pervasive interest rates in the market, which is considered to be a Level 2 input. The carrying values of these certificates of deposit approximate their fair values due to their short-term maturities.

8

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE C — INVESTMENTS

The carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of HTM securities by major security type and class of security were as follows:

	As of December 28, 2013
	Amortized Cost		Unrecognized Holding Gains		Unrecognized Holding Losses		Estimated Fair Value
Certificates of Deposit	$	8,642	$	—	$	—	$	8,642
Total HTM Securities	$	8,642	$	—	$	—	$	8,642

	As of June 28, 2014
	Amortized Cost		Unrecognized Holding Gains		Unrecognized Holding Losses		Estimated Fair Value
Certificates of Deposit	$	3,374	$	—	$	—	$	3,374
Total HTM Securities	$	3,374	$	—	$	—	$	3,374

NOTE D — INVENTORIES

Inventories consist of the following:

	December 28,		June 28,
	2013		2014
Raw materials	$	13,824	$	12,301
Work in progress	8,147		8,361
Finished goods	25,271		23,866
	$	47,242	$	44,528

NOTE E — OTHER ASSETS

The Company has extended non-revolving credit to its supplier of nutrition bars to allow this supplier to acquire the necessary equipment to manufacture the USANA nutrition bars.  Notes receivable are valued at their unpaid principal balance plus any accrued but unpaid interest, which approximates fair value.  Interest accrues at an annual interest rate of LIBOR plus 400 basis points. The note has a maturity date of February 1, 2024 and will be repaid by a combination of cash payments and credits for the manufacture of USANA’s nutrition bars.  There is no prepayment penalty.  Notes receivable from this supplier as of December 28, 2013, and June 28, 2014, were $4,942 and $7,447, respectively.

The Company is building a state-of-the-art manufacturing and production facility in China, which is expected to become operational during the latter half of 2015.  As part of this project, land use rights totaling $1,483, and $7,364 as of December 28, 2013 and June 28, 2014, respectively, have been purchased and will be amortized over 50 years.  Land-use rights are classified within the “Other assets” line item in the Company’s consolidated balance sheets.

9

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE F — CONTINGENCIES

The Company is involved in various lawsuits, claims, and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.

NOTE G — EQUITY BASED COMPENSATION

The Company utilizes a share-based compensation plan, which is more fully described in Note K to the Consolidated Financial Statements in Form 10-K for the year ended December 28, 2013.

Equity-based compensation expense for the quarters ended June 29, 2013, and June 28, 2014, was $2,058 and $2,235, respectively.  The related tax benefit for these periods was $697 and $743, respectively.  Expense for the six months ended June 29, 2013, and June 28, 2014, was $4,427 and $4,071, respectively.  The related tax benefit for these periods was $1,509 and $1,359, respectively.

The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of June 28, 2014.  This table does not include an estimate for future grants that may be issued.

2014	$	4,643
2015	7,382
2016	5,504
2017	3,399
2018+	541
	$	21,469

The cost above is expected to be recognized over a weighted-average period of 2.1 years.

The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards.  The weighted-average fair value of stock-settled stock appreciation rights that were granted during the six months ended June 29, 2013, and June 28, 2014, was $13.86 and $17.73, respectively.  Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated.

10

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE G — EQUITY BASED COMPENSATION — CONTINUED

	Six Months Ended
	June 29,			June 28,
	2013			2014
Expected volatility (1)	43.1		%	39.9		%
Risk-free interest rate (2)	0.6		%	1.2		%
Expected life (3)	3.97 yrs			3.54 yrs
Expected dividend yield (4)	0.0		%	0.0		%
Weighted-average exercise price (5)	$	40.84		$	57.62

(1)	The Company utilizes historical volatility of the trading price of its common stock.
(2)	Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.
(3)	Depending upon the terms of the award, expected life may be a weighted-average that includes historical settlement data of the Company’s equity awards and a hypothetical holding period for outstanding awards, or it may be calculated under the simplified method.
(4)	The Company historically has not paid dividends.
(5)	Exercise price is the closing price of the Company’s common stock on the date of grant.

A summary of the Company’s stock option and stock-settled stock appreciation right activity is as follows:

	Shares		Weighted- average exercise price		Weighted-average remaining contractual term	Aggregate intrinsic value*
Outstanding at December 28, 2013	1,827		$	37.37	2.6	$	74,160
Granted	686		57.62
Exercised	(362	)	32.26
Forfeited	(20	)	27.33
Expired	—		—
Outstanding at June 28, 2014	2,131		$	44.85	2.8	$	70,555
Exercisable at June 28, 2014	412		$	38.40	1.6	$	16,207

* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company’s common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.  The closing price of the Company’s common stock at December 28, 2013, and June 28, 2014, was $77.72 and $77.76, respectively.

The total intrinsic value of stock options and stock-settled stock appreciation rights exercised during the six months ended June 29, 2013, and June 28, 2014, was $10,429 and $14,404, respectively.

The total fair value of equity awards that vested during the six months ended June 29, 2013, and June 28, 2014, was $1,553 and $3,506, respectively.  This total fair value includes equity-based awards issued in the form of stock options and stock-settled stock appreciation rights.

11

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE H — COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share based on the time they were outstanding in any period. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised.

The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the periods indicated:

	Quarter Ended						Six Months Ended
	June 29,			June 28,			June 29,			June 28,
	2013			2014			2013			2014
Net earnings available to common shareholders	$	24,210		$	19,301		$	41,989		$	35,838
Basic EPS
Shares
Common shares outstanding entire period	13,821			13,886			13,821			13,886
Weighted average common shares:
Issued during period	106			131			58			81
Canceled during period	(414		)	(249		)	(301		)	(124		)
Weighted average common shares outstanding during period	13,513			13,768			13,578			13,843
Earnings per common share from net earnings - basic	$	1.79		$	1.40		$	3.09		$	2.59
Diluted EPS
Shares
Weighted average common shares outstanding during period - basic	13,513			13,768			13,578			13,843
Dilutive effect of in-the-money equity awards	586			467			456			472
Weighted average common shares outstanding during period - diluted	14,099			14,235			14,034			14,315
Earnings per common share from net earnings - diluted	$	1.72		$	1.36		$	2.99		$	2.50

Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that their effect would be anti-dilutive:

Quarter Ended		Six Months Ended
June 29,	June 28,	June 29,	June 28,
2013	2014	2013	2014
234	383	560	328

12

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE H — COMMON STOCK AND EARNINGS PER SHARE- CONTINUED

During the six months ended June 29, 2013 and the quarter and six months ended June 28, 2014, the Company repurchased and retired 414 shares and 682 shares, for $18,085 and $49,094 respectively, under the Company’s share repurchase plan.  The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings on a pro-rata basis.  The purchase of shares under this plan reduces the number of shares outstanding in the above calculations.

Subsequent to the period ended June 28, 2014 and through August 1, 2014, the Company repurchased and retired 430 shares under the Company’s share repurchase plan for a total of $30,932.  As of August 1, 2014, the remaining approved repurchase amount under the plan was $119,953.

NOTE I — SEGMENT INFORMATION

USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors (“Associates”).  As such, management aggregates its operating segments into one reportable segment as management believes that the Company’s segments exhibit similar long-term financial performance and have similar economic characteristics. Performance for a region or market is evaluated based on sales. No single Associate accounted for 10% or more of net sales for the periods presented.  The table below summarizes the approximate percentage of total product revenue that has been contributed by the Company’s nutritional and personal care products for the periods indicated.

	Quarter Ended				Six Months Ended
	June 29,		June 28,		June 29,		June 28,
	2013		2014		2013		2014
USANA® Nutritionals	81	%	78	%	80	%	79	%
USANA Foods	12	%	14	%	12	%	13	%
Sensé – beautiful science®	6	%	7	%	6	%	7	%

Selected financial information for the Company is presented for two geographic regions: Americas and Europe and Asia Pacific, with three sub-regions under Asia Pacific.  Individual markets are categorized into these regions as follows:

·Americas and Europe — United States, Canada, Mexico, Colombia (1), the United Kingdom, France, Belgium, and the Netherlands.

·Asia Pacific —

·Southeast Asia Pacific — Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand

·Greater China — Hong Kong, Taiwan and China(2)

·North Asia — Japan and South Korea

(1) The Company commenced operations in Colombia in the third quarter of 2013.

(2) The Company’s business in China is that of BabyCare, its wholly-owned subsidiary.

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USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except per share data)

(unaudited)

NOTE I — SEGMENT INFORMATION - CONTINUED

Selected Financial Information

Financial information by geographic region is presented for the periods indicated below:

	Quarter Ended				Six Months Ended
	June 29,		June 28,		June 29,		June 28,
	2013		2014		2013		2014
Net Sales to External Customers
Americas and Europe	$	66,769	$	63,661	$	130,921	$	127,476
Asia Pacific
Southeast Asia Pacific	37,475		42,689		72,784		83,137
Greater China	77,388		74,091		140,373		144,938
North Asia	7,504		7,815		14,140		15,106
Asia Pacific Total	122,367		124,595		227,297		243,181
Consolidated Total	$	189,136	$	188,256	$	358,218	$	370,657

The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively:

	Quarter Ended				Six Months Ended
	June 29,		June 28,		June 29,		June 28,
	2013		2014		2013		2014
Net sales:
China	$	23,559	$	51,223	$	36,984	$	89,983
United States	40,087		35,570		80,325		73,183
Hong Kong	45,938		N/A		87,535		38,926

	As of
	December 28,		June 28,
	2013		2014
Long-lived Assets:
China	$	61,716	$	73,026
United States	51,260		53,004

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Item 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of USANA’s financial condition and results of operations is presented in six sections:

·Overview

·Customers

·Current Focus and Recent Developments

·Results of Operations

·Liquidity and Capital Resources

·Forward-Looking Statements and Certain Risks

This discussion and analysis should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and Notes thereto that are contained in this quarterly report, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations that are included in our Annual Report on Form 10-K for the year ended December 28, 2013, and our other filings, including Current Reports on Form 8-K, that have been filed with the Securities and Exchange Commission (“SEC”) through the date of this report.

Overview

We develop and manufacture high-quality, science-based nutritional and personal care products that are distributed internationally through a network marketing system, which is a form of direct selling.  Our customer base comprises two types of customers: “Associates” and “Preferred Customers.”  Associates are independent distributors of our products who also purchase our products for their personal use.  Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products.  As of June 28, 2014, we had approximately 283,000 active Associates and approximately 79,000 active Preferred Customers worldwide.  For purposes of this report, we only count as active customers those Associates and Preferred Customers who have purchased from us at any time during the most recent three-month period, either for personal use or for resale.

We have ongoing operations in the following markets, which are grouped and presented as follows:

·Americas and Europe — United States, Canada, Mexico, Colombia(1), the United Kingdom, France, Belgium, and the Netherlands

·Asia Pacific

·Southeast Asia Pacific — Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand

·Greater China — Hong Kong, Taiwan, and China (2)

·North Asia — Japan and South Korea

(1)We commenced operations in Colombia in the third quarter of 2013.

(2)Our business in China is that of BabyCare, our wholly-owned subsidiary.

Our primary product lines consist of USANA® Nutritionals, USANA Foods, and Sensé — beautiful science® (Sensé), which is our line of personal care products.  The USANA Nutritionals product line is further categorized into two separate classifications: Essentials and Optimizers.  The following tables summarize the approximate percentage of total product revenue that has been contributed by our major product lines and our top-selling products for the current and prior-year periods as indicated:

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	Six Months Ended
	June 29,		June 28,
	2013		2014
Product Line
USANA® Nutritionals
Essentials	27	%	25	%
Optimizers	53	%	54	%
USANA Foods	12	%	13	%
Sensé — beautiful science®	6	%	7	%
All Other	2	%	1	%
Key Product
USANA® Essentials	18	%	16	%
Proflavanol®	12	%	13	%

We believe that our ability to attract and retain Associates and Preferred Customers to sell and consume our products is positively influenced by a number of factors, some of which include: the general public’s heightened awareness and understanding of the connection between diet and long-term health, and the growing desire for a secondary source of income and small business ownership.

We believe that our high-quality products and our financially rewarding Associate Compensation Plan are the key components to attracting and retaining Associates.  We strive to ensure that our products are formulated with the latest science in nutrition research and to keep our product lines relatively compact, which we believe simplifies the selling and buying process for our Associates and Preferred Customers.  We also periodically make changes to our Compensation Plan in an effort to ensure that our plan is among the most rewarding in the industry, to encourage behavior that we believe leads to a successful business for our Associates, and to ensure that our plan provides us with leverage to grow sales and earnings.

To further support our Associates in building their businesses, we sponsor meetings and events throughout the year, which offer information about our products and our network marketing system.  These meetings are designed to assist Associates in their business development and to provide a forum for interaction with our Associate leaders and members of our management team.  We also provide low cost sales tools, including online sales, business management, and training tools, which we believe are an integral part of building and maintaining a successful home-based business for our Associates.  Although we provide training and sales tools, we ultimately rely on our Associates to sell our products, attract new customers to purchase our products, and educate and train new Associates.

Because we have operations in multiple markets, with sales and expenses being generated and incurred in multiple currencies, our reported U.S. dollar sales and earnings can be significantly affected by fluctuations in currency exchange rates.  In general, net sales and gross profit are affected positively by a weakening of the U.S. dollar and negatively by a strengthening of the U.S. dollar.  Associate incentives and selling, general and administrative expenses, however, are affected negatively by a weakening of the U.S. dollar and positively by a strengthening of the U.S. dollar.  During the six months ended June 28, 2014, net sales outside of the United States represented 80.3% of consolidated net sales.  In our net sales discussions that follow, we approximate the impact of currency fluctuations on net sales by translating current year sales at the average exchange rates in effect during the comparable periods of the prior year.

Customers

Because we utilize a direct selling model for the distribution of our products, the success and growth of our business is primarily based on our ability to attract new Associates and retain existing Associates to sell and consume our products.  Notably, sales to Associates account for the majority of our product sales, representing approximately 90% of product sales during the six months ended June 28, 2014.  Additionally, it is important to attract and retain Preferred Customers as consumers of our products.  Increases or decreases in product sales are typically the result of variations in product sales volumes relating to fluctuations in the number of active Associates and Preferred Customers purchasing our products.  The number of active Associates and Preferred Customers is, therefore, used by management as a key non-financial measure.

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The tables below summarize the changes in our active customer base by geographic region.  These numbers have been rounded to the nearest thousand as of the dates indicated.

	Active Associates By Region
	As of			As of			Change from
	June 29, 2013			June 28, 2014			Prior Year
Americas and Europe	82,000	32.3	%	82,000	29.0	%	—
Asia Pacific:
Southeast Asia Pacific	60,000	23.6	%	67,000	23.7	%	7,000
Greater China	103,000	40.6	%	125,000	44.1	%	22,000
North Asia	9,000	3.5	%	9,000	3.2	%	—
Asia Pacific Total	172,000	67.7	%	201,000	71.0	%	29,000
	254,000	100.0	%	283,000	100.0	%	29,000

	Preferred Customers By Region
	As of			As of			Change from
	June 29, 2013			June 28, 2014			Prior Year
Americas and Europe	57,000	81.4	%	60,000	75.9	%	3,000
Asia Pacific:
Southeast Asia Pacific	7,000	10.0	%	11,000	13.9	%	4,000
Greater China	4,000	5.7	%	3,000	3.8	%	(1,000	)
North Asia	2,000	2.9	%	5,000	6.4	%	3,000
Asia Pacific Total	13,000	18.6	%	19,000	24.1	%	6,000
	70,000	100.0	%	79,000	100.0	%	9,000

Current Focus and Recent Developments

Our primary objective, both on a short- and long-term basis, is to strengthen and grow our active customer counts throughout the world.  To this end, in August 2013 we announced and implemented several strategic changes to our business, which we refer to as the “2013 strategic changes” throughout this report.  These changes are aimed at simplifying our business model for our Associates and promoting customer loyalty, enjoyment and success with USANA.  The 2013 Strategic Changes included: (i) simplification of our pricing structure, which included an overall 10% price reduction, while maintaining a price discount on products ordered through our monthly Auto Order program (collectively “price discounts”), (ii) a new reward based on the amount of a customer’s initial product order to then be credited on their subsequent two Auto Orders, and (iii) increased payout under and simplification of our Compensation Plan.

We increased the payout under our Compensation Plan in several ways, including: (i) paying higher compensation to newer Associates, (ii) increasing compensation for Associates who grow their business through our Auto Order program, and (iii) simplifying the commission qualification requirements under the plan, resulting in a greater number of Associates earning compensation.  Additionally, we simplified our rank advancement system to make it easier for Associates to advance in our business, and we added new recognition benefits for Associate leaders.

During the second quarter, we continued training our Associates on the benefits of the 2013 Strategic Changes and emphasized Associate recognition.  We also continued to achieve progress on several business indicators that we monitor to measure the success of the 2013 Strategic Changes.  These indicators include: active customer counts; world-wide unit volume; percent of sales processed through our Auto Order program; and the number of Associates earning a commission check.  On a year-over-year basis, we achieved double-digit growth for most of these indicators.

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The positive impact to net sales, however, from improvements in these indicators will, in the short-term, be partially offset by the aforementioned price discounts.  For instance, overall customers grew by nearly 12% during the second quarter of 2014, compared to the prior year quarter, while net sales were essentially flat.  This difference can, in most part, be attributed to the price discounts and is manifest more greatly in markets with higher Auto Order penetration.  Our annual pricing update, which takes effect during the first quarter of the year, softened the impact of the price discounts as we increased prices in several markets.

Results of Operations

Summary of Financial Results

Although the number of active Associates and Preferred Customers increased 11.4% and 12.9%, respectively, in the second quarter of 2014 when compared with the second quarter of 2013, net sales were essentially flat at $188.3 million.  Net sales, on a comparative basis, were negatively impacted by: (i) $7.0 million of incremental sales that occurred ahead of a worldwide policy change that we implemented during the second quarter of 2013 (restricing Associate purchases to in-market purchases only), which did not recur in 2014; (ii) $3.3 million from unfavorable changes in currency exchange rates, and (iii) the price discounts noted above.

Net earnings for the second quarter of 2014 decreased 20.3%, to $19.3 million, compared with the second quarter of 2013.  This decrease was primarily the result of higher relative Associate incentives expense and lower gross margins, which are discussed further below.

Quarters Ended June 29, 2013 and June 28, 2014

Net Sales

The following table summarizes the changes in our net sales by geographic region for the quarters ended as of the dates indicated:

	Net Sales by Region
	(in thousands)
	Quarter Ended								Change from			Percent
	June 29, 2013				June 28, 2014				Prior Year			Change
Americas and Europe	$	66,769	35.3	%	$	63,661	33.8	%	$	(3,108	)	(4.7	)%
Asia Pacific:
Southeast Asia Pacific	37,475		19.8	%	42,689		22.7	%	5,214			13.9	%
Greater China	77,388		40.9	%	74,091		39.4	%	(3,297		)	(4.3	)%
North Asia	7,504		4.0	%	7,815		4.1	%	311			4.1	%
Asia Pacific Total	122,367		64.7	%	124,595		66.2	%	2,228			1.8	%
	$	189,136	100.0	%	$	188,256	100.0	%	$	(880	)	(0.5	)%

Americas and Europe:  The decline in net sales in this region was due to a decrease in net sales in the United States and to changes in currency exchange rates, which reduced net sales by $1.4 million.  Net sales in the United States decreased $4.5 million, or 11.3%, due to pressure from price discounts, combined with a decrease in the number of active Associates and Preferred Customers of 7.0% and 2.7%, respectively.  The decreases in the United States, however, were partially offset by net sales growth in other markets within the region.  Most notably, local currency sales increased 4.8% in Canada and 12.2% in Mexico due to continued growth in the number of active Associates and Preferred Customers in these markets.  Our newest market, Colombia, also contributed $0.9 million to net sales during the quarter.

Asia Pacific:  The increase in net sales in this region was driven primarily by growth in Southeast Asia Pacific, partially offset by a decrease in sales in Greater China.

The increase in Southeast Asia Pacific was driven by growth in every market within this region, despite a $1.7 million reduction from changes in currency exchange rates.  The strongest growth in this region came from the Philippines and Singapore, where net sales

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increased 20.2% and 24.2%, respectively.  On a local currency basis, sales in these two markets increased 27.1% and 24.4%, respectively.  The number of active Associates in the Philippines and Singapore increased 11.1% and 40.0%, respectively.  Sales in Singapore benefited from another year-over-year increase in sales of our MyHealthPak product to our Associates in other Asia Pacific markets, as sales of this item started gaining traction late in the second quarter of 2013.

The decline in net sales in Greater China was the result of a 66.5% decrease in net sales in Hong Kong, which was partially offset by triple-digit sales growth in mainland China.  Notably, the decrease in Hong Kong includes an estimated $7.0 million in incremental sales generated ahead of a worldwide policy that we implemented during the second quarter of 2013 (restricting Associate purchases to in-market purchases only), which makes for a difficult year-over-year comparable.

Gross Profit

Gross profit decreased to 81.5% of net sales for the second quarter of 2014, from 83.1% for the second quarter of 2013.  This decline can be attributed to price discounts, unfavorable currency fluctuations, production inefficiencies, and an increase in relative freight costs.  This decrease was partially offset by favorable changes in product and market mix and from our annual pricing update.

Associate Incentives

Associate incentives increased to 43.1% of net sales for the second quarter of 2014, from 41.1% for the second quarter of 2013.  This increase was the result of the 2013 Strategic Changes, and was partially offset by changes from our annual pricing update.

Selling, General and Administrative Expenses

In absolute terms, our selling, general and administrative expense was essentially flat when compared with the second quarter of 2013.  Selling, general and administrative expense as a percentage of net sales increased 23 basis points in the second quarter of 2014 compared with the second quarter of 2013, which can primarily be attributed to the impact from the price discounts introduced in 2013.

Income Taxes

Our effective income tax rate during the second quarter of 2014 was 34.3%, compared with 33.4% in the second quarter of 2013.  This increase was due to a reduction in our United States manufacturing deduction benefit as a result of increased sales in China where products are manufactured in-market, and a reduction in tax benefits from lower tax rate jurisdictions, where sales have decreased.

Diluted Earnings Per Share

Diluted earnings per share decreased 20.9% in the second quarter of 2014 when compared with the prior year quarter.  This decrease was the result of reduced net earnings as discussed above.

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Six Months Ended June 29, 2013 and June 28, 2014

Net Sales

The following table summarizes the changes in our net sales by geographic region for the periods ended as of the dates indicated:

	Net Sales by Region
	(in thousands)
	Six Months Ended								Change from			Percent
	June 29, 2013				June 28, 2014				Prior Year			Change
Americas and Europe	$	130,921	36.5	%	$	127,476	34.4	%	$	(3,445	)	(2.6	)%
Asia Pacific:
Southeast Asia Pacific	72,784		20.3	%	83,137		22.4	%	10,353			14.2	%
Greater China	140,373		39.2	%	144,938		39.1	%	4,565			3.3	%
North Asia	14,140		4.0	%	15,106		4.1	%	966			6.8	%
Asia Pacific Total	227,297		63.5	%	243,181		65.6	%	15,884			7.0	%
	$	358,218	100.0	%	$	370,657	100.0	%	$	12,439		3.5	%

Americas and Europe:  The decrease in net sales in this region was due to a decrease in net sales in the United States and to changes in currency exchange rates, which reduced net sales by $3.3 million.  Net sales in the United States decreased $7.1 million, or 8.9%, due to pressure from price discounts, combined with a decrease in the average number of active Associates and Preferred Customers.  The decreases in the United States, however, were partially offset by net sales growth in other markets within the region.  Most notably, local currency sales increased 9.7% in Canada and 13.4% in Mexico due to continued growth in the number of active Associates and Preferred Customers in these markets.  Our newest market, Colombia, also contributed $1.5 million to net sales for the six month period.

Asia Pacific:  The increase in net sales in this region was driven mostly by growth in Southeast Asia Pacific and Greater China, which was primarily the result of an increase in the average number of active Associates.

The increase in Southeast Asia Pacific was driven by growth in every market within this region despite a $5.3 million reduction from changes in currency exchange rates.  The strongest growth in this region came from the Philippines and Singapore, where net sales increased 18.5% and 43.0%, respectively.  On a local currency basis, sales in these two markets increased 27.9% and 44.9%, respectively.  Sales in Singapore benefited from a year-over-year increase in sales of our MyHealthPak product to our Associates in other Asia Pacific markets, as sales of this item started gaining traction late in the second quarter of 2013.

Sales in Australia and New Zealand during the first six months of 2014 increased 3.0% even with a $2.0 million reduction from changes in currency exchange rates.  On a local currency basis, net sales in this market increased 10.5%.

The increase in net sales in Greater China included a 143.3% increase in net sales in mainland China, offset in great part by a 55.5% decrease in Hong Kong.  Notably, the decrease in Hong Kong includes an estimated $7.0 million in incremental sales generated ahead of a worldwide policy that we implemented during the second quarter of 2013 (restricting Associate purchases to in-market purchases only), which makes for a difficult year-over-year comparable.  We have also experienced a change in the trend of our unearned revenue as a result of these policy changes and anticipate being able to begin recognizing breakage in the near future.

Gross Profit

Gross profit declined to 81.5% of net sales for the first six months of 2014, compared with 82.6% in the prior year period.  This decline can be attributed to price discounts and unfavorable currency fluctuations.  This decrease was partially offset by favorable changes in product and market mix.

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Associate Incentives

Associate incentives increased to 43.2% of net sales for the first six months of 2014, from 41.2% in the prior year period.  This increase was the result of the 2013 Strategic Changes, and was partially offset by changes from our annual pricing update.

Selling, General and Administrative Expenses

In absolute terms, our selling, general and administrative expense increased $2.4 million during the first six months of 2014 when compared with the same period of the prior year.  This increase is the result of costs associated with supporting a higher sales base, spending on new markets, and spending to support our personalization initiative.  Relative to net sales, selling, general and administrative expense remained relatively flat in the first six months of 2014 compared with the same period of the prior year, due to leverage gained on a higher sales base.

Income Taxes

Our effective income tax rate during the first six months of 2014 was 34.4%, compared with 33.3% in same period of 2013.  This increase was primarily the result of a reduction in our United States manufacturing deduction benefit due to increased sales in China where products are manufactured in-market, and a reduction in tax benefits from lower tax rate jurisdictions, where sales decreased.

Diluted Earnings Per Share

Diluted earnings per share decreased 16.4% in the first six months of 2014 when compared with the prior year period.  This decrease was the result of reduced net earnings as discussed above.

Liquidity and Capital Resources

We have historically met our working capital and capital expenditure requirements by using both net cash flow from operations and by drawing on our line of credit.  Our principal source of liquidity is our operating cash flow.  Although we are required to maintain cash deposits with banks in some of our markets, there are currently no material restrictions on our ability to transfer and remit funds among our international markets.  The hypothetical repatriation of $10.2 million that relates to earnings considered indefinitely reinvested in certain of our markets at June 28, 2014, would result in a tax liability to the Company.

We have historically generated positive cash flow due to our strong operating margins.  Net cash flow from operating activities totaled $31.3 million in the first six months of 2014, compared with $47.3 million in the first six months of 2013.  Items affecting year-over-year changes in cash flow from operating activities include the impact of our 2013 Strategic Changes on operating income, and the overall change in operating assets and liabilities.  Included in the change in operating assets and liabilities were: (i) an increase in other assets, related mostly to the purchase of land use rights for our new facility in China, (ii) an overall decrease in other liabilities resulting primarily from changes in accrued compensation, accrued commissions, and deferred convention revenue, and (iii) a decrease in accounts payable in the current year quarter due to the timing of invoices and payments.  These items were partially offset by lower spending on inventory in the current year compared with the prior year.

Net cash flow from operating activities in the first six months of 2014 was offset by share repurchases as discussed below.  As a result, cash and cash equivalents decreased to $118.3 million at June 28, 2014, from $137.3 million at December 29, 2013.  Of the $118.3 million cash and cash equivalents held at June 28, 2014, $47.5 million was held in the United States and $70.8 million was held by international subsidiaries.  Of the $137.3 million held at December 28, 2013, $65.8 million was held in the United States and $71.5 million was held by international subsidiaries.  Net working capital decreased to $113.2 million at June 28, 2014, from $133.2 million at December 28, 2013.

We have extended non-revolving credit to the supplier of our nutrition bars to allow this supplier to acquire the necessary equipment to manufacture our bars.  Notes receivable from this supplier as of June 28, 2014, were $7.4 million.

We are building a state-of-the-art manufacturing and production facility in China, which we anticipate will become operational during the latter half of 2015.  We anticipate that this project will require a total investment of approximately $40 million, of which

21

approximately $24 million will be incurred in 2014.  During the first six months of 2014, we incurred $11.8 million on this project of which $5.9 million was for land use rights.

Line of credit

We have a long-standing relationship with Bank of America.  We currently maintain a $75.0 million credit facility pursuant to a credit agreement with Bank of America, which expires in April 2016.  Bank guarantees are considered a reduction of the overall availability of credit.  As of June 28, 2014, such normal course of business bank guarantees reduced our available borrowing limit by $3.9 million.  We did not otherwise draw on this line of credit at any time during the quarter and, as of June 28, 2014, there was no actual outstanding balance on our line of credit.

The agreement for this credit facility contains restrictive covenants, which require us to maintain a consolidated rolling four-quarter adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) equal to or greater than $60.0 million, and a ratio of consolidated funded debt to adjusted EBITDA of 2.0 to 1.0 at the end of each quarter.  The adjusted EBITDA under this agreement is modified for certain non-cash expenses.  As of June 28, 2014, we were in compliance with these covenants.  Management is not aware of any issues currently impacting Bank of America’s ability to honor their commitment to extend credit under this facility.

Share repurchase

We have a share repurchase plan that has been ongoing since the fourth quarter of 2000.  The objective of this plan is to return value to our shareholders.  Our Board of Directors has periodically approved additional dollar amounts for share repurchases under that plan.  Share repurchases are made from time-to-time, in the open market, through block trades or otherwise, and are based on market conditions, the level of our cash balances, general business opportunities, and other factors.  During the quarter ended June 28, 2014, our Board of Directors authorized an increase in the amount available for repurchase under this plan to a total of $200 million.  During the quarter and six months ended June 28, 2014, we repurchased and retired 681,719 shares of common stock for a total investment of $49.1 million, at an average market price of $72.02 per share.  Additionally, subsequent to the quarter ended June 28, 2014, and through August 1, 2014, we repurchased and retired 429,774 shares of common stock for a total investment of $30.9 million, at an average market price of $71.97 per share pursuant to a preset trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 as amended.  As of August 1, 2014, there was $120.0 million remaining under the current share repurchase authorization and there is currently no expiration date on the remaining approved repurchase amount and no requirement for future share repurchases.

Summary

We believe that current cash balances, future cash provided by operations, and amounts available under our line of credit will be sufficient to cover our operating and capital needs in the ordinary course of business for the foreseeable future.  If we experience an adverse operating environment or unanticipated and unusual capital expenditure requirements, additional financing may be required.  No assurance can be given, however, that additional financing, if required, would be available or on favorable terms.  We might also require or seek additional financing for the purpose of expanding into new markets, growing our existing markets, or for other reasons.  Such financing may include the use of additional debt or the sale of additional equity securities.  Any financing which involves the sale of equity securities or instruments that are convertible into equity securities could result in immediate and possibly significant dilution to our existing shareholders.

Forward-Looking Statements and Certain Risks

The statements contained in this report that are not purely historical are considered to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934.  These statements represent our expectations, hopes, beliefs, anticipations, commitments, intentions, and strategies regarding the future.  They may be identified by the use of words or phrases such as “believes,” “expects,” “anticipates,” “should,” “plans,” “estimates,” and “potential,” among others.  Forward-looking statements include, but are not limited to, statements contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations regarding our financial performance, revenue, and expense levels in the future and the sufficiency of our existing assets to fund our future operations and capital spending needs.  Readers are

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cautioned that actual results could differ materially from the anticipated results or other expectations that are expressed in these forward-looking statements for the reasons that are detailed in our most recent Annual Report on Form 10-K.  The fact that some of these risk factors may be the same or similar to those in our past SEC reports means only that the risks are present in multiple periods.  We believe that many of the risks detailed here and in our other SEC filings are part of doing business in the industry in which we operate and will likely be present in all periods reported.  The fact that certain risks are common in the industry does not lessen their significance.  The forward-looking statements contained in this report are made as of the date of this report, and we assume no obligation to update them or to update the reasons why our actual results could differ from those that we have projected.  Among others, risks and uncertainties that may affect our business, financial condition, performance, development, and results of operations include:

·Our ability to attract and maintain a sufficient number of Associates;

·Our dependence upon a network marketing system to distribute our products and the activities of our independent Associates;

·The integration of BabyCare’s operations and expansion of our business in China through BabyCare;

·Unanticipated effects of changes to our Compensation Plan;

·Our planned expansion into international markets, including delays in commencement of sales or product offerings in any new market, delays in compliance with local marketing or other regulatory requirements, or changes in target markets;

·General economic conditions, both domestically and internationally;

·Potential political events, natural disasters, or other events that may negatively affect economic conditions;

·Potential effects of adverse publicity regarding the Company, nutritional supplements, or the network marketing industry;

·Reliance on key management personnel;

·Extensive government regulation of the Company’s products, manufacturing, and network marketing system;

·Potential inability to sustain or manage growth, including the failure to continue to develop new products;

·An increase in the amount of Associate incentives;

·Our reliance on the use of information technology;

·The effects of competition from new and established network and direct selling organizations in our key markets;

·The adverse effect of the loss of a high-level sponsoring Associate, together with a group of leading Associates, in that person’s downline;

·The loss of product market share or Associates to competitors;

·Potential adverse effects of customs, duties, taxation, and transfer pricing regulations, including regulations governing distinctions between and Company responsibilities to employees and independent contractors;

·The fluctuation in the value of foreign currencies against the U.S. dollar;

·Our reliance on outside suppliers for raw materials and certain manufactured items;

·Shortages of raw materials that we use in certain of our products;

·Significant price increases of our key raw materials;

·Product liability claims and other risks that may arise with our manufacturing activity;

·Intellectual property risks;

·Liability claims that may arise with our “Athlete Guarantee” program;

·Continued compliance with debt covenants;

·Disruptions to shipping channels that are used to distribute our products to international warehouses;

23

·The introduction of new laws or changes to existing laws, both domestically and internationally; or

·The outcome of regulatory and litigation matters.

Item 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to information presented from that presented for the year ended December 28, 2013.

Item 4.   CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information that is required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods that are specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding any required disclosure.  In designing and evaluating these disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a- 15(e) under the Exchange Act).  Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 28, 2014.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 28, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

24

PART II.   OTHER INFORMATION

Item 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c) Repurchases

The following table presents information with respect to purchases of USANA common stock made by the Company during the three months ended June 28, 2014:

Issuer Purchases of Equity Securities

(amounts in thousands, except per share data)

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs *
Fiscal April (Mar. 30, 2014 through May 3, 2014)	44	$	69.31	44	$	196,948
Fiscal May (May 4, 2014 through May 31, 2014)	378	$	69.92	378	$	170,542
Fiscal June (Jun. 1, 2014 through Jun. 28, 2014)	260	$	75.52	260	$	150,905
	682	$	72.02	682

* The Company’s share repurchase plan has been ongoing since the fourth quarter of 2000, with the Company’s Board of Directors periodically approving additional dollar amounts for share repurchases under the plan.  The Company began the second quarter of 2014 with $13,622 remaining under the plan.  As announced in a publicly issued press release on April 29, 2014, the Board of Directors authorized an increase in the amount available for repurchase under the plan to a total of $200,000.  Subsequent to the quarter ended June 28, 2014, and through August 1, 2014, the Company repurchased 430 shares for a total of $30,932, at an average market price of $71.97 per share pursuant to a Rule 10b5-1 trading plan.  As of August 1, 2014, the Company had $119,953 available under the share repurchase plan.  There currently is no expiration date on the approved repurchase amount.

Item 5.       OTHER INFORMATION

On July 23, 2013, the Company disclosed that the Securities and Exchange Commission (“SEC”) was conducting a formal investigation, which appeared to involve possible issues regarding trading in the Company’s stock during late 2012 by certain of the Company’s directors, including the Chairman.  On May 28, 2014, the Company received a letter from the SEC which indicated that the SEC had concluded its investigation as to the Company and, as of the date of the letter, did not intend to recommend any enforcement action against the Company.

25

Item 6.       EXHIBITS

Exhibit
Number	Description
3.1	Amended and Restated Articles of Incorporation (Incorporated by reference to Report on Form 8-K, filed April 25, 2006)
3.2	Bylaws (Incorporated by reference to Report on Form 8-K, filed April 25, 2006)
4.1	Specimen Stock Certificate for Common Stock, no par value (Incorporated by reference to Registration Statement on Form 10, File No. 0-21116, effective April 16, 1993)
10.1	2002 USANA Health Sciences, Inc. Stock Option Plan (Incorporated by reference to Registration Statement on Form S-8, filed July 18, 2002)*
10.2	Form of employee or director non-statutory stock option agreement under the 2002 Stock Option Plan (Incorporated by reference to Report on Form 10-K, filed March 6, 2006)*
10.3	Form of employee incentive stock option agreement under the 2002 Stock Option Plan (Incorporated by reference to Report on Form 10-K, filed March 6, 2006)*
10.4	Credit Agreement, dated June 16, 2004, by and between Bank of America, N.A. and USANA Health Sciences, Inc. (Incorporated by reference to Report on Form 10-Q for the period ended July 3, 2004)
10.5	Amendment dated May 17, 2006 to Credit Agreement dated June 16, 2004 (Incorporated by reference to Report on Form 10-Q for the period ended September 30, 2006)
10.6	Amendment dated April 24, 2007 to Credit Agreement dated June 16, 2004 (Incorporated by reference to Report on Form 10-Q for the period ended March 31, 2007)
10.7	USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 25, 2006)*
10.8	Form of Stock Option Agreement for award of non-statutory stock options to employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.9	Form of Stock Option Agreement for award of non-statutory stock options to directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.10	Form of Incentive Stock Option Agreement for employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.11	Form of Stock-Settled Stock Appreciation Rights Award Agreement for employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.12	Form of Stock-Settled Stock Appreciation Rights Award Agreement for directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.13	Form of Deferred Stock Unit Award Agreement for grants of deferred stock units to directors who are not employees under the USANA Health Sciences, Inc. 2006 Equity Incentive Award Plan (Incorporated by reference to Report on Form 8-K, filed April 26, 2006)*
10.14	Form of Indemnification Agreement between the Company and its directors (Incorporated by reference to Report on Form 8-K, filed May 24, 2006)*
10.15	Form of Indemnification Agreement between the Company and certain of its officers (Incorporated by reference to Report on Form 8-K, filed May 24, 2006)*

26

10.16	Share Purchase Agreement, dated as of August 16, 2010, among USANA Health Sciences, Inc., Petlane, Inc., Yaolan Ltd., and BabyCare Holdings Ltd. (Incorporated by Reference to Report on Form 8-K, filed August 16, 2010)
10.17	Amended and Restated Credit Agreement, dated as of April 27, 2011 (Incorporated by reference to Report on Form 8-K, filed April 28, 2011)
10.18	Form of Executive Confidentiality, Non-Disclosure and Non-Solicitation Agreement (Incorporated by reference to Quarterly Report on Form 10-Q for the period ended October 1, 2011, filed November 9, 2011)*
10.19	Separation and Release of Claims Agreement dated as of December 21, 2012 by and between USANA Health Sciences, Inc. and Roy Truett (incorporated by reference to Report on Form 8-K/A, filed December 26, 2012)*
10.20	Amendment to Confidentiality, Non-Disclosure and Non-Solicitation Agreement dated as of December 21, 2012 by and between USANA Health Sciences, Inc. and Roy Truett (incorporated by reference to Report on Form 8-K/A, filed December 26, 2012)*
10.21	Amendment to Amended and Restated Credit Agreement, dated as of July 18, 2013 (Incorporated by reference to Report on Form 8-K, filed July 23, 2013)
31.1	Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
32.2	Certification of Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Denotes a management contract or compensatory plan or arrangement.

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

USANA HEALTH SCIENCES, INC.
Date: August 5, 2014	/s/ Paul A. Jones
	Paul A. Jones
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

28

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, David A. Wentz, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. (the “Registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant’s internal control over financial reporting.

Date: August 5, 2014	/s/ David A. Wentz
	David A. Wentz
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Paul A. Jones, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. (the “Registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant’s internal control over financial reporting.

Date: August 5, 2014	/s/ Paul A. Jones
	Paul A. Jones
	Chief Financial Officer
	(Principal Accounting and Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies that the Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. for the period ended June 28, 2014 as filed August 5, 2014 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

Date: August 5, 2014	/s/ David A. Wentz
	David A. Wentz
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies that the Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. for the period ended June 28, 2014 as filed August 5, 2014 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

Date: August 5, 2014	/s/ Paul A. Jones
	Paul A. Jones
	Chief Financial Officer
	(Principal Accounting and Financial Officer)

XML

Segment Information (Consolidated Net Sales And Long Lived Assets By Percent) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013	Dec. 28, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 188,256	$ 189,136	$ 370,657	$ 358,218
China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	51,223	23,559	89,983	36,984
Long-lived Assets	73,026		73,026		61,716
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	35,570	40,087	73,183	80,325
Long-lived Assets	53,004		53,004		51,260
Hong Kong [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales		$ 45,938	$ 38,926	$ 87,535

XML

Equity-Based Compensation (Schedule Of Stock Option Activity) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended		12 Months Ended
	Jun. 28, 2014		Dec. 28, 2013
Equity-Based Compensation [Abstract]
Shares, Outstanding	1,827
Shares, Granted	686
Shares, Exercised	(362)
Shares, Forfeited	(20)
Shares, Outstanding	2,131		1,827
Shares, Exercisable	412
Weighted-average grant price, Outstanding	$ 37.37
Weighted-average grant price, Granted	$ 57.62
Weighted-average grant price, Exercised	$ 32.26
Weighted-average grant price, Forfeited	$ 27.33
Weighted-average grant price, Outstanding	$ 44.85		$ 37.37
Weighted-average grant price, Exercisable	$ 38.40
Weighted-average remaining contractual term, Outstanding	2 years 9 months 18 days		2 years 7 months 6 days
Weighted-average remaining contractual term, Exercisable	1 year 7 months 6 days
Aggregate intrinsic value, Outstanding	$ 74,160	[1]
Aggregate intrinsic value, Outstanding	70,555	[1]	74,160	[1]
Aggregate intrinsic value, Exercisable	$ 16,207	[1]
Closing price of common stock	$ 77.76		$ 77.72

[1] Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.  The closing price of the Company's common stock at December 28, 2013, and June 28, 2014, was $77.72 and $77.76, respectively.

XML

Fair Value Measures (Narrative) (Details) (USD $)	Mar. 29, 2014	Dec. 28, 2013
Fair Value Measures [Abstract]
Transfers of financial assets or liabilities	$ 0	$ 0
Non-financial assets	$ 0	$ 0

XML

Segment Information (Percentage Of Total Product Revenue Contributed By Company's Nutritional And Care Products) (Details)	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
USANA Nutritionals [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	78.00%	81.00%	80.00%	79.00%
USANA Foods [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	14.00%	12.00%	12.00%	12.00%
Sense - Beautiful Science [Member]
Revenue from External Customer [Line Items]
Percentage of product revenue	7.00%	6.00%	6.00%	7.00%

XML

Fair Value Measures

6 Months Ended

Jun. 28, 2014

Fair Value Measures [Abstract]

Fair Value Measures

NOTE B – FAIR VALUE MEASURES

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:

· Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.

· Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

· Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.

NOTE B – FAIR VALUE MEASURES - CONTINUED

As of December 28, 2013 and June 28, 2014, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown:

		Fair Value Measurements Using:
	December 28, 2013	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Money market funds included in cash equivalents	$                    9,249	$                9,249	$                       -	$                       -
Term deposits included in cash equivalents	348	-	348	-
		Fair Value Measurements Using:
	June 28, 2014	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Money market funds included in cash equivalents	$                  14,412	$              14,412	$                       -	$                       -

There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the periods indicated.

The majority of the Company's non-financial assets, which include goodwill, intangible assets, and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill and indefinite-lived intangibles) such that a non-financial asset is required to be evaluated for impairment, an impairment is recorded to reduce the carrying value to the fair value, if the carrying value exceeds the fair value. At December 28, 2013 and March 29, 2014, there were no non-financial assets measured at fair value on a non-recurring basis.

At December 28, 2013 and June 28, 2014, the Company's financial instruments include cash equivalents, restricted cash, securities held-to-maturity (“HTM”), and notes receivable. The recorded values of cash equivalents and restricted cash approximate their fair values, based on their short-term nature. The carrying value of the notes receivable approximate fair value because the variable interest rates in the notes reflect current market rates.  HTM securities consist of certificates of deposits. The fair value of a certificate of deposit is determined based on the pervasive interest rates in the market, which is considered to be a Level 2 input. The carrying values of these certificates of deposit approximate their fair values due to their short-term maturities.

XML

Other Assets (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 28, 2014	Dec. 28, 2013
Other Assets [Line Items]
Credit facility issued	$ 7,000
Receivable	7,447	4,942
Land-use rights	$ 7,364	$ 1,483
Amortization period	50 years
London Interbank Offered Rate (LIBOR) [Member]
Other Assets [Line Items]
Variable rate	4.00%

XML

Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2014	Dec. 28, 2013
Inventories [Abstract]
Raw materials	$ 12,301	$ 13,824
Work in progress	8,361	8,147
Finished goods	23,866	25,271
Inventories	$ 44,528	$ 47,242

XML

Equity-Based Compensation (Narrative) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 28, 2014	Mar. 29, 2014	Jun. 29, 2013	Mar. 30, 2013	Jun. 28, 2014	Jun. 29, 2013
Equity-Based Compensation [Abstract]
Equity-based compensation expense	$ 2,235		$ 2,058		$ 4,071	$ 4,427
Equity-based compensation related tax benefit	743		697		1,359	1,509
Unrecognized compensation expense weighted average period of recognition					2 years 1 month 6 days
Weighted-average grant date fair value		$ 17.73		$ 13.34
Total intrinsic value of stock options and stock-settled stock appreciation rights exercised					14,404	10,429
Total fair value of equity awards vested					$ 3,506	$ 1,553

XML

Equity-Based Compensation (Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 28, 2014
Equity-Based Compensation [Abstract]
2014	$ 4,643
2015	7,382
2016	5,504
2017	3,399
2018+	541
Total	$ 21,469
Unrecognized compensation expense weighted average period of recognition	2 years 1 month 6 days

XML

Organization, Consolidation, And Basis Of Presentation

6 Months Ended

Jun. 28, 2014

Organization, Consolidation, And Basis Of Presentation [Abstract]

Organization, Consolidation, And Basis Of Presentation

NOTE A – ORGANIZATION, CONSOLIDATION, AND BASIS OF PRESENTATION

USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products that are sold internationally through a global network marketing system, which is a form of direct selling. The Consolidated Financial Statements include the accounts and operations of USANA Health Sciences, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “USANA”) in two geographic regions: Americas and Europe and Asia Pacific, which is further divided into three sub-regions; Southeast Asia Pacific, Greater China, and North Asia. Americas and Europe includes the United States, Canada, Mexico, Colombia, the United Kingdom, France, Belgium, and the Netherlands.  Southeast Asia Pacific includes Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand; Greater China includes Hong Kong, Taiwan and China; and North Asia includes Japan and South Korea. All significant intercompany accounts and transactions have been eliminated in this consolidation.

The condensed balance sheet as of December 28, 2013, derived from audited financial statements, and the unaudited interim consolidated financial information of the Company have been prepared in accordance with Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission. Certain information and footnote disclosures that are normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting of normal recurring adjustments that are necessary to state fairly the Company’s financial position as of June 28, 2014 and results of operations for the quarters and six months ended June 29, 2013 and June 28, 2014.  These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2013.  The results of operations for the quarter and six months ended June 28, 2014, may not be indicative of the results that may be expected for the fiscal year 2014 ending January 3, 2015.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled to in exchange for those goods or services.  The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. Accordingly, the Company will adopt this ASU on January 1, 2017.  ASU 2014-09 permits companies the use of either a full retrospective or a modified retrospective approach to adopt this ASU, and the Company is currently evaluating which transition approach to use.  The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements.

XML

Equity-Based Compensation (Schedule Of Fair Value Assumptions) (Details) (USD $)	6 Months Ended
	Jun. 28, 2014		Jun. 29, 2013
Equity-Based Compensation [Abstract]
Expected volatility	39.90%	[1]	43.10%	[1]
Risk-free interest rate	1.20%	[2]	0.60%	[2]
Expected life	3 years 6 months 15 days	[3]	3 years 11 months 19 days	[3]
Expected dividend yield	0.00%	[4]	0.00%	[4]
Weighted-average grant price	$ 57.62	[5]	$ 40.84	[5]

[1] The Company utilizes historical volatility of the trading price of its common stock.

[2] Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of the award.

[3] Depending upon the terms of the award, expected life may be a weighted-average that includes historical settlement data of the Company's equity awards and a hypothetical holding period for outstanding awards, or it may be calculated under the simplified method.

[4] The Company historically has not paid dividends.

[5] Exercise price is the closing price of the Company's common stock on the date of grant.

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 28, 2014	Dec. 28, 2013
ASSETS
Cash and cash equivalents	$ 118,267	$ 137,343
Securities held-to-maturity, net	3,374	8,642
Inventories	44,528	47,242
Prepaid expenses and other current assets	35,756	35,818
Total current assets	201,925	229,045
Property and equipment, net	65,859	59,180
Goodwill	17,919	18,243
Intangible assets, net	41,015	42,329
Deferred tax assets	5,515	5,519
Other assets	22,688	14,154
Total assets	354,921	368,470
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	6,408	9,502
Other current liabilities	82,297	86,369
Total current liabilities	88,705	95,871
Deferred tax liabilities	10,672	10,866
Other long-term liabilities	1,290	1,211
Stockholders' equity
Common stock, $0.001 par value; Authorized -- 50,000 shares, issued and outstanding 13,886 as of December 28, 2013 and 13,404 as of June 28, 2014	13	14
Additional paid-in capital	51,925	54,691
Retained earnings	196,992	200,023
Accumulated other comprehensive income	5,324	5,794
Total stockholders' equity	254,254	260,522
Total liabilities and stockholder's equity	$ 354,921	$ 368,470

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Condensed Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 28, 2014
Condensed Consolidated Statement Of Stockholders' Equity [Abstract]
Common stock issued under equity award plans, including tax benefit (expense)	$ 3,387

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Common Stock And Earnings Per Share (Schedule Of Common Stock And Earnings Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013	Mar. 29, 2014	Dec. 28, 2013	Mar. 30, 2013	Dec. 29, 2012
Common Stock And Earnings Per Share [Abstract]
Net earnings available to common shareholders	$ 19,301	$ 24,210	$ 35,838	$ 41,989
Common shares outstanding entire period	13,404		13,404		13,886	13,886	13,821	13,821
Weighted average common shares issued during period	131	106	81	58
Weighted average common shares cancelled during period	(249)	(414)	(124)	(301)
Weighted average common shares outstanding during period	13,768	13,513	13,843	13,578
Earnings per common share from net earnings - basic	$ 1.40	$ 1.79	$ 2.59	$ 3.09
Weighted average common shares outstanding during period - basic	13,768	13,513	13,843	13,578
Dilutive effect of in-the-money equity awards	467	586	472	456
Weighted average common shares outstanding during period - diluted	14,235	14,099	14,315	14,034
Earnings per common share from net earnings - diluted	$ 1.36	$ 1.72	$ 2.50	$ 2.99
Equity awards for the following shares were not included in the their effect would be anti-dilutive:	383	234	328	560

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Common Stock And Earnings Per Share (Tables)

6 Months Ended

Jun. 28, 2014

Common Stock And Earnings Per Share [Abstract]

Schedule Of Common Stock And Earnings Per Share

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net earnings available to common shareholders	$         24,210	$         19,301	$         41,989	$         35,838
Basic EPS
Shares
Common shares outstanding entire period	13,821	13,886	13,821	13,886
Weighted average common shares:
Issued during period	106	131	58	81
Canceled during period	(414)	(249)	(301)	(124)
Weighted average common shares outstanding during
period	13,513	13,768	13,578	13,843
Earnings per common share from net earnings - basic	$             1.79	$             1.40	$             3.09	$             2.59
Diluted EPS
Shares
Weighted average common shares outstanding during
period - basic	13,513	13,768	13,578	13,843
Dilutive effect of in-the-money equity awards	586	467	456	472
Weighted average common shares outstanding during
period - diluted	14,099	14,235	14,034	14,315
Earnings per common share from net earnings - diluted	$             1.72	$             1.36	$             2.99	$             2.50
Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that
their effect would be anti-dilutive:
	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
	234	383	560	328

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Segment Information (Narrative) (Details)	6 Months Ended
	Jun. 28, 2014
Segment Information [Abstract]
Percentage of revenue from major customers, maximum	10.00%

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Organization, Consolidation, And Basis Of Presentation (Details)	6 Months Ended
	Jun. 28, 2014 item
Organization, Consolidation, And Basis Of Presentation [Abstract]
Geographic regions	2
Sub-geographical regions	3

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013
Cash flows from operating activities
Net earnings	$ 35,838	$ 41,989
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities
Depreciation and amortization	4,408	4,631
(Gain) loss on sale of property and equipment	16	(6)
Equity-based compensation expense	4,071	4,427
Excess tax benefits from equity-based payment arrangements	(3,387)	(1,734)
Deferred income taxes	(605)	843
Changes in operating assets and liabilities:
Inventories	3,034	(6,123)
Prepaid expenses and other assets	(5,144)	(3,295)
Accounts payable	(3,085)	155
Other liabilities	(3,896)	6,409
Net cash provided by (used in) operating activities	31,250	47,296
Cash flows from investing activities
Additions to notes receivable	(2,520)	(2,232)
Purchases of investment securities held-to-maturity	(3,871)
Maturities of investment securities	9,137
Proceeds from sale of property and equipment	8	15
Purchases of property and equipment	(10,103)	(2,961)
Net cash provided by (used in) investing activities	(7,349)	(5,178)
Cash flows from financing activities
Proceeds from equity awards exercised		454
Excess tax benefits from equity-based payment arrangements	3,387	1,734
Repurchase of common stock	(46,109)	(18,085)
Net cash provided by (used in) financing activities	(42,722)	(15,897)
Effect of exchange rate changes on cash and cash equivalents	(255)	(1,004)
Net increase (decrease) in cash and cash equivalents	(19,076)	25,217
Cash and cash equivalents, beginning of period	137,343	70,839
Cash and cash equivalents, end of period	118,267	96,056
Supplemental disclosures of cash flow information
Interest	6
Income taxes	9,963	21,040
Non-cash financing activities:
Unsettled trades for repurchase of common stock	$ (2,985)

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 28, 2014	Dec. 28, 2013
Condensed Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	13,404	13,886
Common stock, shares outstanding	13,404	13,886

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Organization, Consolidation, And Basis Of Presentation (Policy)

6 Months Ended

Jun. 28, 2014

Organization, Consolidation, And Basis Of Presentation [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled to in exchange for those goods or services.  The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. Accordingly, the Company will adopt this ASU on January 1, 2017.  ASU 2014-09 permits companies the use of either a full retrospective or a modified retrospective approach to adopt this ASU, and the Company is currently evaluating which transition approach to use.  The Company is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements.

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Document And Entity Information	6 Months Ended
	Jun. 28, 2014	Aug. 01, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2014
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000896264
Entity Registrant Name	USANA HEALTH SCIENCES INC
Current Fiscal Year End Date	--01-03
Document Fiscal Year Focus	2014
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,984,073

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Fair Value Measures (Tables)

6 Months Ended

Jun. 28, 2014

Fair Value Measures [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value

		Fair Value Measurements Using:
	December 28, 2013	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Money market funds included in cash equivalents	$                    9,249	$                9,249	$                       -	$                       -
Term deposits included in cash equivalents	348	-	348	-
		Fair Value Measurements Using:
	June 28, 2014	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs
Money market funds included in cash equivalents	$                  14,412	$              14,412	$                       -	$                       -

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Condensed Consolidated Statements Of Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Condensed Consolidated Statements Of Comprehensive Income [Abstract]
Net sales	$ 188,256	$ 189,136	$ 370,657	$ 358,218
Cost of sales	34,865	31,905	68,693	62,166
Gross profit	153,391	157,231	301,964	296,052
Operating expenses:
Associate incentives	81,098	77,801	159,972	147,656
Selling, general and administrative	43,206	42,978	87,783	85,382
Total operating expenses	124,304	120,779	247,755	233,038
Earnings from operations	29,087	36,452	54,209	63,014
Other income (expense):
Interest income	215	81	427	159
Interest expense			(6)
Other, net	82	(164)	1	(268)
Other income (expense), net	297	(83)	422	(109)
Earnings before income taxes	29,384	36,369	54,631	62,905
Income taxes	10,083	12,159	18,793	20,916
Net earnings	19,301	24,210	35,838	41,989
Earnings per common share
Basic	$ 1.40	$ 1.79	$ 2.59	$ 3.09
Diluted	$ 1.36	$ 1.72	$ 2.50	$ 2.99
Weighted average common shares outstanding
Basic	13,768	13,513	13,843	13,578
Diluted	14,235	14,099	14,315	14,034
Comprehensive income:
Net earnings	19,301	24,210	35,838	41,989
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	802	(2,472)	(860)	(2,441)
Tax benefit (expense) related to foreign currency translation adjustment	(262)	798	390	732
Other comprehensive income (loss), net of tax	540	(1,674)	(470)	(1,709)
Comprehensive income	$ 19,841	$ 22,536	$ 35,368	$ 40,280

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Other Assets

6 Months Ended

Jun. 28, 2014

Other Assets [Abstract]

Other Assets

NOTE E – OTHER ASSETS

The Company has extended non-revolving credit to its supplier of nutrition bars of up to $7,000to allow this supplier to acquire the necessary equipment to manufacture the USANA nutrition bars.  Notes receivable are valued at their unpaid principal balance plus any accrued but unpaid interest, which approximates fair value.  Interest accrues at an annual interest rate of LIBOR plus 400 basis points. The note has a maturity date of February 1, 2024 and will be repaid by a combination of cash payments and credits for the manufacture of USANA’s nutrition bars.  There is no prepayment penalty.  Notes receivable from this supplier as December 28, 2013, and June 28, 2014 were$4,942 and $7,447, respectively.

The Company is building a state-of-the-art manufacturing and production facility in China, which is expected to become operational during the latterhalf of 2015.  As part of this project, landuse rights totaling $1,483, and $7,364as of December 28, 2013 and June 28, 2014, respectively, have been purchased and will be amortized over 50 years.  Land-use rights are classified within the“Other assets” line item in the Company’s consolidated balance sheets.

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Inventories

6 Months Ended

Jun. 28, 2014

Inventories [Abstract]

Inventories

NOTE D – INVENTORIES

Inventories consist of the following:
	December 28,	June 28,
	2013	2014
Raw materials	$             13,824	$             12,301
Work in progress	8,147	8,361
Finished goods	25,271	23,866
	$             47,242	$             44,528

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Segment Information (Tables)

6 Months Ended

Jun. 28, 2014

Segment Information [Abstract]

Schedule Of Revenue Percentage By Product

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
USANA® Nutritionals	81%	78%	79%	80%
USANA Foods	12%	14%	12%	12%
Sensé – beautiful science®	6%	7%	7%	6%

Schedule Of Revenues From External Customers By Geographical Areas

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net Sales to External Customers
Americas and Europe	$             66,769	$             63,661	$           130,921	$           127,476
Asia Pacific
Southeast Asia Pacific	37,475	42,689	72,784	83,137
Greater China	77,388	74,091	140,373	144,938
North Asia	7,504	7,815	14,140	15,106
Asia Pacific Total	122,367	124,595	227,297	243,181
Consolidated Total	$           189,136	$           188,256	$           358,218	$           370,657

Consolidated Net Sales And Long Lived Assets

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net sales:
China	$             23,559	$             51,223	$             36,984	$             89,983
United States	40,087	35,570	80,325	73,183
Hong Kong	45,938	N/A	87,535	38,926
			As of
			December 28,	June 28,
			2013	2014
Long-lived Assets:
China			$             61,716	$             73,026
United States			51,260	53,004

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Investments (Tables)

6 Months Ended

Jun. 28, 2014

Investments [Abstract]

Schedule Of Held-To-Maturity Securities

	As of December 28, 2013
	Amortized Cost	Unrecognized Holding Gains	Unrecognized Holding Losses	Estimated Fair Value
Certificates of Deposit	$                    8,642	$                           -	$                           -	$                    8,642
Total HTM Securities	$                    8,642	$                           -	$                           -	$                    8,642
	As of  June 28, 2014
	Amortized Cost	Unrecognized Holding Gains	Unrecognized Holding Losses	Estimated Fair Value
Certificates of Deposit	$                    3,374	$                           -	$                           -	$                    3,374
Total HTM Securities	$                    3,374	$                           -	$                           -	$                    3,374

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Common Stock And Earnings Per Share

6 Months Ended

Jun. 28, 2014

Common Stock And Earnings Per Share [Abstract]

Common Stock And Earnings Per Share

NOTE H— COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per share are based on the weighted-average number of shares outstanding for each period. Shares that have been repurchased and retired during the periods specified below have been included in the calculation of the number of weighted-average shares that are outstanding for the calculation of basic earnings per share based on the time they were outstanding in any period. Diluted earnings per common share are based on shares that are outstanding (computed under basic EPS) and on potentially dilutive shares. Shares that are included in the diluted earnings per share calculations under the treasury stock method include equity awards that are in-the-money but have not yet been exercised.

The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the periods indicated:

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net earnings available to common shareholders	$         24,210	$         19,301	$         41,989	$         35,838
Basic EPS
Shares
Common shares outstanding entire period	13,821	13,886	13,821	13,886
Weighted average common shares:
Issued during period	106	131	58	81
Canceled during period	(414)	(249)	(301)	(124)
Weighted average common shares outstanding during
period	13,513	13,768	13,578	13,843
Earnings per common share from net earnings - basic	$             1.79	$             1.40	$             3.09	$             2.59
Diluted EPS
Shares
Weighted average common shares outstanding during
period - basic	13,513	13,768	13,578	13,843
Dilutive effect of in-the-money equity awards	586	467	456	472
Weighted average common shares outstanding during
period - diluted	14,099	14,235	14,034	14,315
Earnings per common share from net earnings - diluted	$             1.72	$             1.36	$             2.99	$             2.50
Equity awards for the following shares were not included in the computation of diluted EPS due to the fact that
their effect would be anti-dilutive:
	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
	234	383	560	328

NOTE H— COMMON STOCK AND EARNINGS PER SHARE - CONTINUED

During the six months ended June 29, 2013 and the quarter and six months ended June 28, 2014, the Company repurchased and retired 414 shares and 682 shares, for $18,085 and $49,094, respectively, under the Company's share repurchase plan.  The excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings on a pro-rata basis.  The purchase of shares under this plan reduces the number of shares outstanding in the above calculations. 

Subsequent to the period ended June 28, 2014 and through August 1, 2014, the Company repurchased and retired 430shares under the Company's share repurchase plan for a total of $30,932. As of August 1, 2014, the remaining approved repurchase amount under the plan was $119,953.

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Contingencies

6 Months Ended

Jun. 28, 2014

Contingencies [Abstract]

Contingencies

NOTE F – CONTINGENCIES

The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business, including matters involving our products, intellectual property, supplier relationships, distributors, competitor relationships, employees and other matters. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations.

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Equity-Based Compensation

6 Months Ended

Jun. 28, 2014

Equity-Based Compensation [Abstract]

Equity-Based Compensation

NOTE  G— EQUITY BASED COMPENSATION

The Company utilizes a share-based compensation plan, which is more fully described in Note K to the Consolidated Financial Statements in Form 10-K for the year ended December 28, 2013. 

Equity-based compensation expense for the quarters ended June 29, 2013 and June 28, 2014, was $2,058, and $2,235 respectively.  The related tax benefit for these periods was $697, and $743, respectively. Expense for the six months ended June 29, 2013, and June 28, 2014, was $4,427 and $4,071, respectively.  The related tax benefit for these periods was $1,509 and $1,359, respectively.

The following table shows the remaining unrecognized compensation expense on a pre-tax basis for all types of unvested equity awards outstanding as of March 29, 2014.  This table does not include an estimate for future grants that may be issued.

2014	$          4,643
2015	7,382
2016	5,504
2017	3,399
2018+	541
	$        21,469
The cost above is expected to be recognized over a weighted-average
period of 2.1 years.

The Company uses the Black-Scholes option pricing model to estimate the fair value of its equity awards.  The weighted-average fair value of stock-settled stock appreciation rights that were granted during the three months ended March 30, 2013, and March 29, 2014, was $13.34 and $17.73, respectively.  Following is a table that includes the weighted-average assumptions that the Company used to calculate fair value of equity awards that were granted during the periods indicated.

	Six Months Ended
	June 29,	June 28,
	2013	2014
Expected volatility (1) .	43.1%	39.9%
Risk-free interest rate (2) .	0.6%	1.2%
Expected life (3) .	3.97 yrs	3.54 yrs
Expected dividend yield (4) .	0.0%	0.0%
Weighted-average exercise price (5) .	$ 40.84	$ 57.62
(1) The Company utilizes historical volatility of the trading price of its common stock.
(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of
the award.
(3) Depending upon the terms of the award, expected life may be a weighted-average that includes
historical settlement data of the Company's equity awards and a hypothetical holding
period for outstanding awards, or it may be calculated under the simplified method.
(4) The Company historically has not paid dividends.
(5) Exercise price is the closing price of the Company's common stock on the date of grant.

NOTE G – EQUITY-BASED COMPENSATION – CONTINUED

A summary of the Company’s stock option and stock-settled stock appreciation right activity is as follows:

	Shares	Weighted-average exercise price	Weighted-average remaining contractual term	Aggregate intrinsic value*
Outstanding at December 28, 2013	1,827	$          37.37	2.6	$        74,160
Granted	686	57.62
Exercised	(362)	32.26
Forfeited	(20)	27.33
Expired	-	-
Outstanding at June 28, 2014	2,131	$          44.85	2.8	$        70,555
Exercisable at June 28, 2014	412	$          38.40	1.6	$        16,207
* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the
Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.  The
closing price of the Company's common stock at December 28, 2013, and June 28, 2014, was $77.72 and $77.76, respectively.

The total intrinsic value of stock options and stock-settled stock appreciation rights exercised during the six months ended June 29, 2013, and June 28, 2014, was $10,429 and $14,404, respectively.       

The total fair value of equity awards that vested during the six months ended June 29, 2013, and June 28, 2014, was $1,553 and $3,506, respectively.  This total fair value includes equity-based awards issued in the form of stock options and stock-settled stock appreciation rights.

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Segment Information

6 Months Ended

Jun. 28, 2014

Segment Information [Abstract]

Segment Information

NOTE I – SEGMENT INFORMATION

USANA operates as a direct selling company that develops, manufactures, and distributes high-quality nutritional and personal care products that are sold through a global network marketing system of independent distributors (“Associates”).  As such, management aggregates its operating segments into one reportable segment as management believes that the Company’s segments exhibit similar long-term financial performance and have similar economic characteristics.  Performance for a region or market is evaluated based on sales.  No single Associate accounted for 10% or more of net sales for the periods presented.  The table below summarizes the approximate percentage of total product revenue that has been contributed by the Company’s nutritional and personal care products for the periods indicated.

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
USANA® Nutritionals	81%	78%	79%	80%
USANA Foods	12%	14%	12%	12%
Sensé – beautiful science®	6%	7%	7%	6%

Selected financial information for the Company is presented for two geographic regions: Americas and Europe and Asia Pacific, with three sub-regions under Asia Pacific.  Individual markets are categorized into these regions as follows: 

· Americas and Europe – United States, Canada, Mexico, Colombia (1), the United Kingdom, France, Belgium, and the Netherlands.  

· Asia Pacific –

· Southeast Asia Pacific – Australia, New Zealand, Singapore, Malaysia, the Philippines, and Thailand

· Greater China – Hong Kong, Taiwan and China(2)

· North Asia – Japan and South Korea

(1)The Company commenced operations in Colombia in the third quarter of 2013.

(2)The Company’s business in China is that of BabyCare, its wholly-owned subsidiary.

NOTE I – SEGMENT INFORMATION - CONTINUED

Selected Financial Information

Financial information by geographic region is presented for the periods indicated below:

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net Sales to External Customers
Americas and Europe	$             66,769	$             63,661	$           130,921	$           127,476
Asia Pacific
Southeast Asia Pacific	37,475	42,689	72,784	83,137
Greater China	77,388	74,091	140,373	144,938
North Asia	7,504	7,815	14,140	15,106
Asia Pacific Total	122,367	124,595	227,297	243,181
Consolidated Total	$           189,136	$           188,256	$           358,218	$           370,657

The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets, respectively:

	Quarter Ended		Six Months Ended
	June 29,	June 28,	June 29,	June 28,
	2013	2014	2013	2014
Net sales:
China	$             23,559	$             51,223	$             36,984	$             89,983
United States	40,087	35,570	80,325	73,183
Hong Kong	45,938	N/A	87,535	38,926
			As of
			December 28,	June 28,
			2013	2014
Long-lived Assets:
China			$             61,716	$             73,026
United States			51,260	53,004

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Common Stock And Earnings Per Share (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended	1 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013	Aug. 01, 2014 Subsequent Event [Member]	Aug. 01, 2014 Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Equity awards of stock excluded in computation of diluted EPS	383,000	234,000	328,000	560,000
Shares repurchased and retired			682	414		430
Value of shares repurchased and retired			$ 49,094	$ 18,085	$ 30,932
Remaining approved repurchase amount					$ 119,953

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Equity-Based Compensation (Tables)

6 Months Ended

Jun. 28, 2014

Equity-Based Compensation [Abstract]

Schedule Of Remaining Unrecognized Compensation Expense For Unvested Awards

2014	$          4,643
2015	7,382
2016	5,504
2017	3,399
2018+	541
	$        21,469
The cost above is expected to be recognized over a weighted-average
period of 2.1 years.

Schedule Of Fair Value Assumptions

	Six Months Ended
	June 29,	June 28,
	2013	2014
Expected volatility (1) .	43.1%	39.9%
Risk-free interest rate (2) .	0.6%	1.2%
Expected life (3) .	3.97 yrs	3.54 yrs
Expected dividend yield (4) .	0.0%	0.0%
Weighted-average exercise price (5) .	$ 40.84	$ 57.62
(1) The Company utilizes historical volatility of the trading price of its common stock.
(2) Risk-free interest rate is based on the U.S. Treasury yield curve with respect to the expected life of
the award.
(3) Depending upon the terms of the award, expected life may be a weighted-average that includes
historical settlement data of the Company's equity awards and a hypothetical holding
period for outstanding awards, or it may be calculated under the simplified method.
(4) The Company historically has not paid dividends.
(5) Exercise price is the closing price of the Company's common stock on the date of grant.

Schedule Of Stock Option Activity

	Shares	Weighted-average exercise price	Weighted-average remaining contractual term	Aggregate intrinsic value*
Outstanding at December 28, 2013	1,827	$          37.37	2.6	$        74,160
Granted	686	57.62
Exercised	(362)	32.26
Forfeited	(20)	27.33
Expired	-	-
Outstanding at June 28, 2014	2,131	$          44.85	2.8	$        70,555
Exercisable at June 28, 2014	412	$          38.40	1.6	$        16,207
* Aggregate intrinsic value is defined as the difference between the current market value at the reporting date (the closing price of the
Company's common stock on the last trading day of the period) and the exercise price of awards that were in-the- money.  The
closing price of the Company's common stock at December 28, 2013, and June 28, 2014, was $77.72 and $77.76, respectively.

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Fair Value Measures (Schedule Of Assets And Liabilities Measured At Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2014	Dec. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds included in cash equivalents	$ 14,412	$ 9,249
Term deposits included in cash		348
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds included in cash equivalents	14,412	9,249
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Term deposits included in cash		$ 348

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Condensed Consolidated Statement Of Stockholders' Equity (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance, value at Dec. 28, 2013	$ 14	$ 54,691	$ 200,023	$ 5,794	$ 260,522
Balance, shares at Dec. 28, 2013	13,886,000				13,886,000
Net earnings			35,838		35,838
Other comprehensive income (loss), net of tax				(470)	(470)
Equity-based compensation expense		4,071			4,071
Common stock repurchased and retired, shares	(682,000)				(682)
Common stock repurchased and retired, value	(1)	(10,224)	(38,869)		(49,094)
Common stock issued under equity award plans, including tax benefit, shares	200,000
Common stock issued under equity award plans, including tax benefit, value		3,387			3,387
Balance, value at Jun. 28, 2014	$ 13	$ 51,925	$ 196,992	$ 5,324	$ 254,254
Balance, shares at Jun. 28, 2014	13,404,000				13,404,000

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Investments

6 Months Ended

Jun. 28, 2014

Investments [Abstract]

Investments

NOTE C – INVESTMENTS

The carrying amount, gross unrealized holding gains, gross unrealized holding losses, and fair value of held-to-maturity securities by major security type and class of security were as follows:

	As of December 28, 2013
	Amortized Cost	Unrecognized Holding Gains	Unrecognized Holding Losses	Estimated Fair Value
Certificates of Deposit	$                    8,642	$                           -	$                           -	$                    8,642
Total HTM Securities	$                    8,642	$                           -	$                           -	$                    8,642
	As of  June 28, 2014
	Amortized Cost	Unrecognized Holding Gains	Unrecognized Holding Losses	Estimated Fair Value
Certificates of Deposit	$                    3,374	$                           -	$                           -	$                    3,374
Total HTM Securities	$                    3,374	$                           -	$                           -	$                    3,374

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Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 28, 2014	Dec. 28, 2013
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 3,374	$ 8,642
Estimated Fair Value	3,374	8,642
Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,374	8,642
Estimated Fair Value	$ 3,374	$ 8,642

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Segment Information (Schedule Of Revenues From External Customers And Assets By Geographic Region) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	$ 188,256	$ 189,136	$ 370,657	$ 358,218
Americas And Europe [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	63,661	66,769	127,476	130,921
Southeast Asia/Pacific [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	42,689	37,475	83,137	72,784
Greater China [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	74,091	77,388	144,938	140,373
North Asia [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	7,815	7,504	15,106	14,140
Asia Pacific [Member]
Revenues From External Customers By Geographic Area [Line Items]
Net Sales to External Customers	$ 124,595	$ 122,367	$ 243,181	$ 227,297

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Inventories (Tables)

6 Months Ended

Jun. 28, 2014

Inventories [Abstract]

Schedule Of Inventories

Inventories consist of the following:
	December 28,	June 28,
	2013	2014
Raw materials	$             13,824	$             12,301
Work in progress	8,147	8,361
Finished goods	25,271	23,866
	$             47,242	$             44,528