Long-lived assets (u.s. dollars in thousands) 18 . RESTRUCTURING AND OTHER CHARGES 19 . COMMITMENTS AND CONTINGENCIES Long-lived assets in Japan were $ 8 , 451  and $ 10 , 556  as of December  31 ,  2003  and  2004 , respectively. Long-lived assets in  the United States were $ 36 , 865  and $ 50 , 137  as of December  31 ,  2003  and  2004 , respectively. During the third quarter of  2003 , the Company recorded restructuring and other charges of $ 5 . 6  million, including $ 5 . 1 million of expenses relating to an early retirement program and other employee separation charges. As a result, the Compa- ny’s overall headcount was reduced by approximately  130  employees, the majority of which were related to the elimination  of positions at the Company’s U.S. headquarters. These expenses consisted primarily of severance and other compensation  charges. The Company also completed the divestiture of its professional employer organization resulting in a charge of ap- proximately $ 0 . 5  million. Revenue from the professional employer organization totaled $ 22 . 0  million and $ 9 . 1  million for  the years ended December  31 ,  2002  and  2003 , respectively. As of December  31 ,  2004 , all restructuring and other charges  had been paid. The Company is subject to governmental regulations pertaining to product formulation, labeling and packaging, product  claims and advertising and to the Company’s direct selling system. The Company is also subject to the jurisdiction of nu- merous foreign tax and customs authorities. Any assertions or determination that either the Company or the Company’s  distributors is not in compliance with existing statutes, laws, rules or regulations could potentially have a material adverse  effect on the Company’s operations. In addition, in any country of 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 mate- rial 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 challenges will not have a material adverse effect on the Company’s financial position or results of  operations or cash flows. The Company and its Subsidiaries are defendants in litigation and proceedings involving various  matters. In the opinion of the Company’s management, based upon advice of its counsel handling such litigation and pro- ceedings, adverse outcomes, if any, will not likely result in a material effect on the Company’s consolidated financial condi- tion, results of operations or cash flows.  In October  2004 , the Company was assessed by the Yokohama customs authorities in Japan a total of approximately  $ 9 . 0  million, net of any recovery of consumption taxes, for duties on products imported into Japan from October  2002 through October  2003 . The value and methodology the Company used for determining the amount of duties payable for  these periods is consistent with prior years and has been previously reviewed on several occasions by the audit division of  the Japan customs authorities, and reviewed and approved by the Valuation Department of the Yokohama customs author- ity. As such, the Company believes the assessment is improper and has filed letters of protest with Yokohama customs. The  Company expects to receive a reply within the next couple of months. If necessary, the Company will appeal this issue to  the Ministry of Finance in Japan. In order to file the letter of protest with Yokohama customs, the Company was required  to pay the amount that was assessed. In addition, the Audit Division of Yokohama customs has recently completed an audit  of the period from November  2003  through October  2004 . The Company has not yet been informed of the findings of this  recent audit. The Company may be assessed for additional duties related to this period, which the Company anticipates  would be a similar amount to the prior assessment. The Company would file letters of protest with Yokohama customs in a  similar manner in case of any such assessment. In March  2002 , the Company acquired the exclusive rights to a new laser technology related to measuring the level of  certain antioxidants. The acquisition consisted of cash payments of $ 4 . 8  million (including acquisition costs) and the issu- ance of  106 , 667  shares of the Company’s Class A common stock valued at $ 936 , 000 . In addition, the acquisition includes  contingent payments up to $ 8 . 5  million of cash and up to  1 . 2  million shares of the Company’s Class A common stock if  certain development and revenue targets are met. During the year ended December  31 ,  2004 , some of these specific devel- opment and revenue targets were met resulting in contingent payments of approximately $ 5 . 1  million of cash of which $ 2 . 1 million was paid subsequent to year end, and  525 , 000  shares of the Company’s Class A common stock valued at $ 13 . 0  mil- lion, of which  262 , 500  shares were issued subsequent to year end. These amounts have been added to the carrying value of  other finite life intangible assets.  20 . PURCHASE OF LONG–TERM ASSETS 70