61 NU SKIN ENTERPRISES NOTE 19. SEGMENT INFORMATION As described in Note 1, the Company’s operations throughout the world are divided into four reportable segments: North Asia, North America, Southeast Asia and Other Markets. Segment data includes intersegment revenue, intersegment profit and operating expenses and intersegment receivables and payables. The Company evaluates the performance of its segments based on operating income. Information as to the operations of the Company in each of the four segments is set forth below (U.S. dollars in thousands): December 31, December 31, December 31, REVENUE Year ended 1998 1999 2000 North Asia $ 665,523 $ 619,283 $ 585,373 North America 280,115 320,630 386,498 Southeast Asia 320,606 265,604 271,246 Other Markets 15,616 16,960 19,075 Eliminations (368,366) (328,228) (382,434) Totals $ 913,494 $ 894,249 $ 879,758 December 31, December 31, December 31, OPERATING INCOME Year ended 1998 1999 2000 North Asia $ 89,075 $ 84,396 $ 42,331 North America 55,051 12,457 18,708 Southeast Asia 19,385 31,922 27,001 Other Markets (8,057) (6,924) (7,295) Eliminations 785 7,996 9,668 Totals $ 156,239 $ 129,847 $ 90,413 December 31, December 31, TOTAL ASSETS As of 1999 2000 North Asia $ 116,918 $ 83,941 North America 508,825 471,221 Southeast Asia 111,204 76,279 Other Markets 12,007 13,039 Eliminations (105,739) (53,677) Totals $ 643,215 $ 590,803 Information as to the Company’s operations in different geographical areas is set forth below (U.S. dollars in thousands): REVENUE: Revenue from the Company’s operations in Japan totaled $654,168, $602,411 and $554,210 for the years ended December 31, 1998, 1999 and 2000, respec- tively. Revenue from the Company’s operations in Taiwan totaled $119,511, $103,581 and $83,436 for the years ended December 31, 1998, 1999 and 2000, respectively. Revenue from the Company’s operations in the United States (which includes intercompany revenue) totaled $280,115, $316,128 and $380,785 for the years ended December 31, 1998, 1999 and 2000, respectively. LONG-LIVED ASSETS: Long-lived assets in Japan were $29,314 and $23,782 as of December 31, 1999 and 2000, respectively. Long-lived assets in Taiwan were $3,381 and $3,235 as of December 31, 1999 and 2000, respectively. Long-lived assets in the United States were $310,255 and $313,415 as of December 31, 1999 and 2000, respectively. The Company is subject to governmental regulations pertaining to product formu- lation, labeling and packaging, product claims and advertising and to the Company’s direct selling system. The Company is also subject to the jurisdiction of numerous for- eign tax authorities. Any assertions or determination that either the Company or the Company’s distributors is not in compliance with existing statutes, laws, rules or regu- lations could potentially have a material adverse effect on the Company’s operations.  In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on the Company and its operations. Although management believes that the Company is in compliance, in all material respects, with the statutes, laws, rules and regulations of every jurisdiction in which it operates, no assurance can be given that the Company’s compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such chal- lenges will not have a material adverse effect on the Company’s financial position or results of operations or cash flows. NOTE 20. COMMITMENTS AND CONTINGENCIES TO THE BOARD OF DIRECTORS AND  STOCKHOLDERS OF NU SKIN ENTERPRISES, INC. obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall finan- cial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the accompanying consolidated balance sheets and the related con- solidated statements of income, stockholders’ equity and cash flows present fairly, in all material respects, the financial position of Nu Skin Enterprises, Inc. and its subsidiaries at December 31, 1999 and 2000, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management; our responsibility is  to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to PricewaterhouseCoopers LLP Salt Lake City, Utah February 12, 2001 REPORT OF INDEPENDENT ACCOUNTANTS NU SKIN ENTERPRISES  62