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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 18,057	$ 21,584
Restricted cash	1,263	1,265
Accounts receivable, net of allowance of $22 and $21 in 2011 and 2010, respectively	304	416
Income tax receivable	888	917
Inventories, net	17,786	24,070
Prepaid expenses and other current assets	2,497	4,356
Deferred tax assets	936	2,607
Total current assets	41,731	55,215
Property and equipment, net	9,566	18,449
Construction in progress	0	524
Long-term restricted cash	3,386	3,532
Other assets	2,815	3,054
Long-term deferred tax assets	772	649
Total assets	58,270	81,423
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of capital leases	852	1,328
Accounts payable	4,825	5,534
Accrued expenses	10,514	10,318
Commissions and incentives payable	8,567	9,166
Taxes payable	3,364	3,721
Current deferred tax liability	185	243
Deferred revenue	1,569	1,930
Total current liabilities	29,876	32,240
Capital leases, excluding current portion	1,358	1,204
Long-term deferred tax liabilities	1	1,903
Other long-term liabilities	5,382	4,996
Total liabilities	$ 36,617	$ 40,343
Commitments and contingencies
Shareholders' equity
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding	$ 0	$ 0
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,769,756 shares issued and 2,648,518 shares outstanding as of December 31, 2011 and 2,769,756 shares issued and 2,649,046 shares outstanding as of December 31, 2010	0	0
Additional paid-in capital	42,408	42,052
Retained earnings (deficit)	(5,532)	15,127
Accumulated other comprehensive loss	(427)	(1,308)
Less treasury stock, at cost, 121,237 shares in 2011 and 120,709 shares in 2010	(14,796)	(14,791)
Total shareholders' equity	21,653	41,080
Total liabilities and shareholders' equity	$ 58,270	$ 81,423

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Allowance for Doubtful Accounts Receivable	$ 22	$ 21
Shareholders' equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	99,000,000	99,000,000
Common stock, shares issued	2,769,756	2,769,756
Common stock, shares outstanding	2,648,518	2,649,046
Treasury stock, shares	121,237	120,709

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Statement [Abstract]
Net sales	$ 200,689	$ 228,088	$ 289,705
Cost of sales	30,421	32,754	46,813
Commissions and incentives	87,425	97,319	146,415
Total Cost of Sales	117,846	130,073	193,228
Gross profit	82,843	98,015	96,477
Operating expenses:
Selling and administrative expenses	55,697	62,657	69,997
Depreciation and amortization	10,697	11,517	12,333
Other operating costs	33,338	35,322	39,741
Total operating expenses	99,732	109,496	122,071
Loss from operations	(16,889)	(11,481)	(25,594)
Interest income	117	173	473
Other income (expense), net	(1,106)	268	1,046
Loss before income taxes	(17,878)	(11,040)	(24,075)
(Provision) benefit for income taxes	(2,781)	424	6,707
Net loss	$ (20,659)	$ (10,616)	$ (17,368)
Net loss per share:
Basic	$ (7.80)	$ (4.01)	$ (6.56)
Diluted	$ (7.80)	$ (4.01)	$ (6.56)
Weighted-average common shares outstanding:
Basic	2,649	2,649	2,646
Diluted	2,649	2,649	2,646

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - UNAUDITED - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Comprehensive Loss
Net Income Loss	$ (20,659)	$ (10,616)	$ (17,368)
Foreign currency translations	893	(299)	276
Pension obligations, net of tax $9, $75, and $12 in 2011, 2010 and 2009, respectively	(12)	104	17
Total comprehensive loss	$ (19,778)	$ (10,811)	$ (17,075)

CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME (LOSS) - UNAUDITED - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Additional paid in capital
Statement [Line Items]
Balance - beginning of period	$ 42,052	$ 41,445	$ 40,756
Charge related to stock based compensation	356	630	636
Tax shortfall from expiration of stock options		(51)	(13)
Proceeds from stock options exercised		28	66
Balance - end of period	42,408	42,052	41,445
Retained Earnings
Statement [Line Items]
Balance - beginning of period	15,127	25,743	44,170
Net Loss	(20,659)	(10,616)	(17,368)
Declared dividends of $2.20 per share			(1,059)
Balance - end of period	(5,532)	15,127	25,743
Accumulated other comprehensive loss
Statement [Line Items]
Balance - beginning of period	(1,308)	(1,113)	(1,406)
Foreign currency translations	893	(299)	276
Pension obligations, net of tax $9, $75, and $12 in 2011, 2010 and 2009, respectively	(12)	104	17
Balance - end of period	(427)	(1,308)	(1,113)
Treasury stock
Statement [Line Items]
Balance - beginning of period	(14,791)	(14,791)	(14,791)
Repurchase of Common Stock	(5)
Balance - end of period	(14,796)	(14,791)	(14,791)
Balance - beginning of period	41,080	51,284	68,729
Net Loss	(20,659)	(10,616)	(17,368)
Charge related to stock based compensation	356	630	636
Tax shortfall from expiration of stock options		(51)	(13)
Proceeds from stock options exercised		28	66
Declared dividends of $2.20 per share			(1,059)
Repurchase of Common Stock	(5)
Foreign currency translations	893	(299)	276
Pension obligations, net of tax $9, $75, and $12 in 2011, 2010 and 2009, respectively	(12)	104	17
Balance - end of period	$ 21,653	$ 41,080	$ 51,284

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (20,659)	$ (10,616)	$ (17,368)
Adjustments to reconcile net loss to net cash provided by (used in) operating ativities:
Depreciation and amortization	10,697	11,517	12,333
Provision for inventory losses	3,660	2,266	1,544
Provision for doubtful accounts	61	51	33
Loss on disposal of assets	136	71	102
Accounting charge related to stock-based compensation expense	356	630	636
Deferred income taxes	(380)	(2,044)	761
Changes in operating assets and liabilities:
Accounts receivable	59	197	(405)
Income tax receivable	29	7,158	(4,525)
Inventories	2,539	4,954	(1,198)
Prepaid expenses and other current assets	1,883	(501)	2,821
Other assets	240	(551)	(1,019)
Accounts payable	(730)	(5,785)	6,245
Accrued expenses and other liabilities	565	(2,161)	(10,345)
Taxes payable	(347)	1,144	1,643
Commissions and incentives payable	(622)	(1,458)	(898)
Deferred revenue	(361)	(877)	(670)
Net cash provided by (used in) operating activities	(2,874)	3,995	(10,310)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(777)	(1,766)	(2,797)
Proceeds from sale of assets	74	0	37
Change in restricted cash	80	3,692	1,473
Net cash provided by (used in) investing activities	(623)	1,926	(1,287)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock options exercised	0	28	66
Payment of cash dividends	0	0	1,059
Repayment of capital lease obligations	1,160	1,387	473
Repurchase of common stock	5	0	0
Net cash used in financing activities	(1,165)	(1,359)	(1,466)
Effect of currency exchange rate changes on cash and cash equivalents	1,135	(345)	(515)
Net increase (decrease) in cash and cash equivalents	(3,527)	4,217	(13,578)
Cash and cash equivalents at the beginning of period	21,584	17,367	30,945
Cash and cash equivalents at the end of period	18,057	21,584	17,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes received (paid), net	(480)	7,126	2,441
Interest paid on capital leases	167	117	50
Summary of non-cash investing and financing activities:
Assets Acquired through Capital Leases	$ 787	$ 1,998	$ 2,099

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Organization And Summary Of Significant Accounting Policies

NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Mannatech, Incorporated (together with its subsidiaries, the “Company”), located in Coppell, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the NASDAQ Global Select Market under the symbol “MTEX”. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care products, and weight-management products that are primarily sold to independent associates and members located in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, South Africa, Singapore, Austria, the Netherlands, Norway, Sweden, Mexico, the Czech Republic, Estonia, Finland, and the Republic of Ireland.

Independent associates (“associates”) purchase the Company’s products at published wholesale prices to either sell to retail customers or for personal use. Members purchase the Company’s products at a discount from published retail prices primarily for personal use. The Company cannot distinguish products sold for personal use from other sales because it is not involved with the products after delivery, other than usual and customary product warranties and returns. Only independent associates are eligible to earn commissions and incentives.

On January 9, 2012, the Board of Directors passed a resolution to effect a 1-for-10 reverse stock split, which became effective on January 13, 2012. Accordingly, common share and per share information have been retroactively restated in these financial statements to reflect the reverse-stock split.

Principles of Consolidation

The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with generally accepted accounting principles requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions.

The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of December 31, 2011 and 2010, credit card receivables were $1.7 million and $0.9 million and cash and cash equivalents held in bank accounts in foreign countries totaled $10.5 million and $12.7 million, respectively. The Company invests cash in liquid instruments, such as money market funds and interest bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk.

Restricted Cash

The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in United States and Canada; and (iii) Australia building lease collateral. As of December 31, 2011 and 2010, our total restricted cash was $4.6 million and $4.8 million, respectively. The decrease in restricted cash was primarily related to the partial refund of direct selling insurance premiums in Korea.

Accounts Receivable

Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of December 31, 2011 and 2010, receivables consisted primarily of amounts due from members and associates. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. At December 31, 2011 and 2010, the Company held an allowance for doubtful accounts of less than $0.1 million.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Expenditures for maintenance and repairs are charged to expense as incurred. The cost of property and equipment sold or otherwise retired and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in other operating costs in the accompanying Consolidated Statements of Operations. The estimated useful lives of fixed assets are as follows:

	Estimated useful life
Office furniture and equipment	5 to 7	years
Computer hardware and software	3 to 5	years
Automobiles	3 to 5	years
Leasehold improvements(1)	2 to 10	years

___________________

(1) The Company amortizes leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term.

Property and equipment are reviewed for impairment whenever an event or change in circumstances indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes a comparison of future projected cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying amount of the asset exceeds its fair value. We determined that no impairment indicators existed during the years ended December 31, 2011 and 2010.

Inventories

Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost or market (using standard costs that approximate average costs). The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off.

Other Assets

As of December 31, 2011 and 2010, other assets of $2.8 million and $3.1 million primarily consisted of deposits for building leases in various locations and certain intangible assets. Also included in the December 31, 2011 and December 31, 2010 balance was a $0.9 million deposit with Mutual Aid Cooperative and Consumer in Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission to protect consumers who participate in network marketing activities.

Commissions and Incentives

Independent associates earn commissions and incentives based on their direct and indirect commissionable net sales over 13 business periods. Each business period equals 28 days. The Company accrues commissions and incentives when earned by independent associates and pays commissions on product sales three weeks following the business period end and pays commissions on its pack sales five weeks following the business period end.

Other Long-Term Liabilities

In August 2003, the Company entered into a Long-Term Post-Employment Royalty Agreement with Dr. Bill McAnalley, the Company’s former Chief Science Officer, pursuant to which the Company is required to pay Dr. McAnalley, or his heirs, royalties for ten years beginning September 2005 through August 2015. Quarterly payments related to this Long-Term Post-Employment Royalty Agreement are based on certain applicable annual global product sales by the Company in excess of $105.4 million. At the time the Company entered into this Long-Term Post-Employment Royalty Agreement, it was considered a post-employment benefit and the Company was required to measure and accrue the present value of the estimated future royalty payments related to the post-employment royalty benefit and recognize it over the life of Dr. McAnalley’s employment agreement, which was two years. As of December 31, 2011 and 2010, the Company’s liability related to this royalty agreement was $1.2 million and $1.6 million, respectively, of which $0.3 million was currently due and included in accrued expenses.

Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. As of December 31, 2011 and 2010, accrued restoration costs related to these leases amounted to $0.4 million. At December 31, 2011 and 2010, the Company also recorded a long-term liability for an estimated deferred benefit obligation related to a deferred benefit plan for its Japan operations of $1.3 million and $1.0 million, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the more likely than not criterion for recognition. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions as part of the income tax provision.

Revenue Recognition

The Company’s revenue is derived from sales of individual products, sales of its starter and renewal packs, and shipping fees. Substantially all of the Company’s product and pack sales are made to independent associates at published wholesale prices and to members at discounted published retail prices. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience.

The Company recognizes revenue from shipped packs and products upon receipt by the customer. Corporate-sponsored event revenue is recognized when the event is held. The Company defers certain components of its revenue. At December 31, 2011 and December 31, 2010, the Company’s deferred revenue was $1.6 million and $1.9 million, respectively, and consisted primarily of revenue received from: (i) sales of packs and products shipped but not received by the customers by period end; and (ii) prepaid registration fees from customers planning to attend a future corporate-sponsored event.

We estimate a sales return reserve for expected sales refunds based on our historical experience over a rolling six- month period. If actual results differ from our estimated sales return reserve due to various factors, the amount of revenue recorded each period could be materially affected. Historically, our sales returns have not materially changed through the years, as the majority of our customers who return their merchandise do so within the first 90 days after the original sale. Sales returns have averaged 1.5% or less of our gross sales. For the year ended December 31, 2011 our sales return reserve was composed of the following (in thousands):

Sales reserve as of January 1, 2011	$	389
Provision related to sales made in 2011		1,648
Provision related to sales made prior to 2011		(67	)
Actual returns or credits in 2011 related to 2011		(1,112	)
Actual returns or credits in 2011 related to prior periods		(330	)
Sales reserve as of December 31, 2011	$	528

Shipping and Handling Costs

The Company records freight and shipping fees collected from its customers as revenue. The Company records inbound freight as a component of inventory and cost of sales and records shipping and handling costs associated with shipping products to its customers as selling and administrative expenses. Total shipping and handling costs included in selling and administrative expenses were approximately $10.5 million, $11.7 million, and $14.0 million for the years ended December 31, 2011, 2010, and 2009, respectively.

Advertising Costs

The Company expenses advertising and promotions in selling and administrative expenses when incurred. Advertising and promotional expenses were approximately $4.7 million, $5.6 million, and $8.0 million for the years ended December 31, 2011, 2010, and 2009, respectively. Educational and promotional items, called sales aids, are sold to independent associates to assist in their sales efforts and are included in inventories and charged to cost of sales when sold.

Accounting for Stock-Based Compensation

The Company currently has one active stock-based compensation plan, which was approved by its shareholders at its 2008 Annual Shareholder’s meeting held on June 18, 2008. The Company grants stock options to its employees, consultants, and board members with an exercise price equal to the closing price of its common stock on the date of grant with a term no greater than 10 years. The majority of stock options vest over two or three years. Incentive stock options granted to shareholders who own 10% or more of the Company’s outstanding stock are granted at an exercise price that may not be less than 110% of the closing price of the Company’s common stock on the date of grant and have a term no greater than five years. At the date of grant, the Company determines the fair value of the stock option award and recognizes compensation expense over the requisite service period, or the vesting period of the award. The fair value of the stock option award is calculated using the Black-Scholes option-pricing model.

Research and Development Costs

The Company expenses research and development costs when incurred. Research and development costs related to new product development, enhancement of existing products, clinical studies and trials, Food and Drug Administration compliance studies, general supplies, internal salaries, third-party contractors, and consulting fees were approximately $3.0 million, $3.6 million, and $4.1 million for the years ended December 31, 2011, 2010, and 2009, respectively. Salaries and contract labor are included in selling and administrative expenses and all other research and development costs are included in other operating costs.

Software Development Costs

The Company capitalizes qualifying internal payroll and external contracting and consulting costs related to the development of internal use software that are incurred during the application development stage, which includes design of the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary project along with post-implementation stages of internal use software are expensed as incurred. The Company amortizes such costs over the estimated useful life of the software, which is three to five years once the software is placed in service.

Concentration Risk

A significant portion of the Company’s revenue is derived from core Ambrotose® complex products, which include the Ambrotose® products and Advanced Ambrotose® products. For the years ended December 31, 2011, 2010, and 2009, revenue from the core Ambrotose® products accounted for 41.0%, 35.3%, and 31.4% of the Company’s consolidated net sales, respectively.

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, investments, receivables, and restricted cash. The Company utilizes financial institutions that the Company considers to be of high credit quality and periodically evaluates the credit rating of such institutions and the allocation of their investments to minimize exposure to credit concentration risk.

Fair Value of Financial Instruments

The fair value of the Company’s financial instruments, including cash and cash equivalents, restricted cash, time deposits, investments, receivables, payables, and accrued expenses, approximate their carrying values due to their relatively short maturities. See Note 3 (“Fair Value”) for more information.

Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income (loss) consists of the Company’s net income (loss), foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Norway, and Sweden operations, and changes in the pension obligation for its Japanese employees.

Foreign Currency Translation

The United States dollar is the functional currency for the majority of the Company’s foreign subsidiaries. As a result, nonmonetary assets and liabilities are translated at their approximate historical rates, monetary assets and liabilities are translated at exchange rates in effect at the end of the year, and revenues and expenses are translated at weighted-average exchange rates for the year. Transaction gains (losses) totaled approximately ($1.5) million, $0.3 million, and $1.1 million, for the years ended December 31, 2011, 2010, and 2009, respectively, and are included in other income (expense), net in the Company’s Consolidated Statements of Operations.

The local currency is the functional currency of our subsidiaries in Japan, Republic of Korea, Taiwan, Norway, Sweden, and Mexico. These subsidiaries’ assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet dates, revenues and expenses are translated at weighted-average exchange rates, and shareholders’ equity and intercompany balances are translated at historical exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss).

Organization

NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of Significant Accounting Policies

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Restricted Cash

Accounts Receivable

Property and Equipment

	Estimated useful life
Office furniture and equipment	5 to 7	years
Computer hardware and software	3 to 5	years
Automobiles	3 to 5	years
Leasehold improvements(1)	2 to 10	years

___________________

(1) The Company amortizes leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term.

Inventories

Other Assets

Commissions and Incentives

Other Long-Term Liabilities

Income Taxes

Revenue Recognition

Sales reserve as of January 1, 2011	$	389
Provision related to sales made in 2011		1,648
Provision related to sales made prior to 2011		(67	)
Actual returns or credits in 2011 related to 2011		(1,112	)
Actual returns or credits in 2011 related to prior periods		(330	)
Sales reserve as of December 31, 2011	$	528

Shipping and Handling Costs

Advertising Costs

Accounting for Stock-Based Compensation

Research and Development Costs

Software Development Costs

Concentration Risk

Fair Value of Financial Instruments

Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)

Foreign Currency Translation

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Dec. 31, 2011
Notes To Financial Statements [Abstract]
Recent Accounting Pronouncements	NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS In June 2011, the FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220)—Presentation of Comprehensive Income (“ASU 2011-05”), which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. ASU 2011-05 is effective for interim and annual financial periods beginning after December 15, 2011. Since early adoption is permitted, the Company revised its presentation of comprehensive loss starting with its quarterly report on Form 10-Q for the period ended June 30, 2011 to comply with the updated disclosure requirements. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

FAIR VALUE

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Fair Value

NOTE 3: FAIR VALUE

The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures.

Fair Value Measurements and Disclosure Topic of the FASB ASC establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

· Level 1—Quoted unadjusted prices for identical instruments in active markets.

· Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

· Level 3—Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The tables below present the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of December 31, 2011 and 2010. The Company did not have any material financial liabilities that were required to be measured at fair value on a recurring basis at December 31, 2011 and 2010.

2011	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	4,038	$	—	$ $	—	$	4,038
Interest bearing deposits – various banks, Korea	2,476		—			—		2,476
Total assets	$	6,514	$	—	$	—	$	6,514
Amounts included in:
Cash and cash equivalents	$	4,124	$	—	$ $	—	$	4,124
Long-term restricted cash		2,390		—		—		2,390
Total	$	6,514	$	—	$	—	$	6,514

2010	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	6,032	$	—	$	—	$	6,032
Interest bearing deposits – various banks, Korea	2,721		—		—		2,721
Total assets	$	8,753	$	—	$	—	$	8,753
Amounts included in:
Cash and cash equivalents	$	6,220	$	—	$	—	$	6,220
Long-term restricted cash		2,533		—		—		2,533
Total	$	8,753	$	—	$	—	$	8,753

INVENTORIES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Inventories

NOTE 4: INVENTORIES

Inventories consist of raw materials, finished goods, and promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories as of December 31, 2011 and 2010, consisted of the following (in thousands):

	2011			2010
Raw materials	$	6,850		$	8,846
Finished goods		13,247			16,785
Inventory reserves for obsolescence		(2,311	)		(1,561	)
Total	$	17,786		$	24,070

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

PROPERTY AND EQUIPMENT

NOTE 5: PROPERTY AND EQUIPMENT

As of December 31, 2011 and 2010, property and equipment consisted of the following (in thousands):

	2011				2010
Office furniture and equipment	$	11,560		$	10,955
Computer hardware		13,029			15,070
Computer software		46,738			46,860
Automobiles		165			141
Leasehold improvements		12,317			11,958
		83,809			84,984
Less accumulated depreciation and amortization		(74,243	)		(66,535	)
Property and equipment, net		9,566			18,449
Construction in process		—			524
Total	$	9,566		$	18,973

At December 31, 2010, construction in progress consisted of capitalized software costs of $0.2 million and leasehold improvements related to our new offices in Mexico of $0.3 million and our office in South Africa of less than $0.1 million.

CAPITAL LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Capital Lease Obligations

NOTE 6: CAPITAL LEASE OBLIGATIONS

As of December 31, 2011 and 2010, the net book value of leased assets was $1.7 million and $2.3 million, respectively for leased equipment, purchased licenses, and corporate insurance. The future minimum lease payments (in thousands) are as follows:

2012	$	998
2013		593
2014		533
2015		334
2016		129
Total future minimum lease payments		2,587
Less: Amounts representing interest (effective interest rate 9.52%)		(377	)
Present value of minimum lease payments		2,210
Current portion of capital lease obligations		(852	)
Long-term portion of capital lease obligations	$	1,358

ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Accrued Expenses

NOTE 7: ACCRUED EXPENSES

As of December 31, 2011 and 2010, accrued expenses consisted of the following (in thousands):

	2011		2010
Accrued inventory purchases	$	364	$	1,786
Accrued compensation		1,987		2,887
Accrued royalties		391		415
Accrued sales and other taxes		330		314
Other accrued operating expenses		1,494		1,645
Customer deposits and sales returns		537		398
Accrued travel expenses related to corporate events		585		1,034
Accrued shipping and handling costs		561		545
Fixed asset purchases		40		29
Rent expense		253		70
Accrued legal and accounting fees		3,972		1,195
	$	10,514	$	10,318

INCOME TAXES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Income Taxes

NOTE 8: INCOME TAXES

The components of the Company’s loss before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands):

	2011			2010			2009
United States	$	(11,551	)	$	(7,920	)	$	(23,945	)
Foreign		(6,327	)		(3,120	)		(130	)
	$	(17,878	)	$	(11,040	)	$	(24,075	)

The components of the Company’s income tax provision (benefit) for the years ended December 31 are as follows (in thousands):

Current provision (benefit):	2011			2010			2009
Federal	$	2,002		$	799		$	(8,521	)
State		127			235			(1	)
Foreign		1,197			490			886
		3,326			1,524			(7,636	)
Deferred provision (benefit):
Federal		(347	)		(1,607	)		269
State		18			(191	)		140
Foreign		(216	)		(150	)		520
		(545	)		(1,948	)		929
	$	2,781		$	(424	)	$	(6,707	)

A reconciliation of the Company’s effective income tax rate and the United States federal statutory income tax rate is summarized as follows, for the years ended December 31:

	2011		2010		2009
Federal statutory income taxes	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.1		1.3		1.6
Difference in foreign and United States tax on foreign operations	(6.7	)	(5.7	)	(3.0	)
Effect of changes in valuation allowance for net operating loss carryforwards	(32.1	)	(10.3	)	(7.2	)
Effect of change in uncertain tax positions (net)	(10.5	)	(17.5	)	0.9
Federal Sub-Part F Income from foreign operations	(2.9	)	(6.3	)	0.0
Research and experimentation income tax credits	0.0		8.0		0.0
Other	0.5		(0.7	)	0.6
	(15.6	)%	3.8	%	27.9	%

For the years ended December 31, 2011, 2010 and 2009, the Company’s effective tax rate was (15.6)%, 3.8% and 27.9%, respectively. For 2011, the Company had a provision for income tax despite the pre-tax losses primarily because of increases in the valuation allowance for deferred tax assets, increases in uncertain income tax positions, and differences from foreign operations. For 2010 and 2009, the Company’s effective income tax rate was lower than what would be expected if the federal statutory income tax rate were applied to income before taxes primarily because of increases in the valuation allowance for deferred tax assets, increases in uncertain income tax positions, and favorable differences from foreign operations.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities consisted of the following at December 31 (in thousands):

	2011			2010
Deferred tax assets:
Current:
Deferred revenue	$	23		$	25
Inventory capitalization		837			917
Inventory reserves		451			430
Accrued expenses		2,643			1,158
Net operating loss		—			—
Other		147			1,400
Total current deferred tax assets		4,101			3,930
Noncurrent:
Depreciation and amortization		1,539			—
Net operating loss(1)		5,731			3,251
Deferred royalty		482			625
Non-cash accounting charges related to stock options and warrants		684			604
Accrued expenses		79			178
Other		1,176			1,333
Total noncurrent deferred tax assets		9,691			5,991
Total deferred tax assets		13,792			9,921
Valuation allowance		(9,503	)		(4,059	)
Total deferred tax assets, net of valuation allowance	$	4,289		$	5,862
Deferred tax liabilities:
Current:
Prepaid expenses	$	528		$	608
Other		18			1,066
Total current deferred tax liabilities		546			1,674
Noncurrent:
Internally-developed software		740			1,160
Depreciation and amortization		—			963
Sub-Part F Income Deferred		1,320			801
Other		161			154
Total noncurrent deferred tax liabilities		2,221			3,078
Total deferred tax liabilities	$	2,767		$	4,752

__________________________________________

(1) The Company’s net operating loss will expire as follows (dollar amounts in thousands):

Jurisdiction		Gross NOL		Tax Effected NOL	Expiration Years
Denmark	$	8	$	2	Indefinite
Mexico		6,297		1,889	2020-2021
Norway		704		197	Indefinite
Singapore		59		10	Indefinite
Sweden		464		122	Indefinite
Switzerland		9,652		887	2016-2018
Taiwan		6,318		1,074	2016-2021
United States (federal)		2,703		946	2030-2031
United States (states)		24,160		604	2015-2031

At December 31, 2011 and 2010, the Company’s valuation allowance was $9.5 million and $4.1 million, respectively. The provisions of Topic 740 require a company to record a valuation allowance when the “more likely than not” criterion for realizing a deferred tax asset cannot be met. A company is to use judgment in reviewing both positive and negative evidence of realizing a deferred tax asset. Furthermore, the weight given to the potential effect of such evidence is commensurate with the extent the evidence can be objectively verified.

The valuation allowances presented below (in millions) at December 31, 2011 and 2010, represented a reserve against the Company’s net deferred tax asset the Company believed the “more likely than not” criterion for recognition purposes could not be met.

Country	2011		2010
Mexico	$	1,889	$	834
Norway		198		170
Sweden		122		98
Switzerland		784		505
Taiwan		1,074		995
United States		5,436		1,457
Total	$	9,503	$	4,059

At December 31, 2011 and 2010, the Company did not record a provision for any United States or foreign withholding taxes on its undistributed earnings related to its foreign subsidiaries because it is the intention of the Company to reinvest its undistributed earnings indefinitely in its foreign operations. Generally, such earnings become subject to United States income tax upon the remittance of dividends and under certain other circumstances. At December 31, 2011, it is not practicable to estimate the amount of deferred tax liability on such undistributed earnings.

Deferred tax assets (liabilities) are classified in the accompanying Consolidated Balance Sheets of December 31 as follows (in millions):

	2011			2010
Current deferred tax assets	$	936		$	2,607
Noncurrent deferred tax assets		772			649
Current deferred tax liabilities		(185	)		(243	)
Noncurrent deferred tax liabilities		(1	)		(1,903	)
Net deferred tax assets (liabilities)	$	1,522		$	1,110

On January 1, 2007, the Company adopted FIN 48, which was codified into Topic 740, which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements, uncertain tax positions that it has taken or expects to take on a tax return. Topic 740 requires that a company recognize in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2011, the Company recorded $1.5 million in current liabilities and $2.5 million in other long-term liabilities related to uncertain income tax positions and income tax reserves associated with various audits. At December 31, 2011, the Company had gross tax-affected unrecognized tax benefits of $4.0 million that, if recognized, would impact the effective tax rate. The Company recognizes penalties and interest charges related to unrecognized tax benefits in current tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, for the years ended December 31, 2011 and 2010 (in millions):

	2011		2010
Balance as of January 1	$	2,114	$	178
Additions for tax positions related to the current year		570		—
Additions for tax positions of prior years		1,300		1,936
Reductions of tax positions of prior years		—		—
Balance as of December 31	$	3,984	$	2,114

Our 2005-2009 tax years remain subject to examination by the IRS for U.S. federal tax purposes. On May 26, 2011 the IRS issued a Revenue Agent’s report (“RAR”) detailing proposed adjustments for the tax years under examination. The net tax deficiency associated with the RAR is $8.5 million plus penalties of $1.5 million. On July 8, 2011, we filed a protest letter challenging the proposed adjustments contained in the RAR and are pursuing resolution of these items with the Appeals Division of the IRS. There are other ongoing audits in various international jurisdictions that are not material to our financial statements.

The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2011, the tax years that remained subject to examination by a major tax jurisdiction for the Company’s most significant subsidiaries were as follows:

Jurisdiction		Open Years
Australia		2007-2011
Canada		2005-2011
Denmark		2008-2011
Japan		2006-2011
Mexico		2009-2011
Norway		2009-2011
Republic of Korea		2006-2011
Singapore		2008-2011
South Africa		2008-2011
Sweden		2009-2011
Switzerland		2008-2011
Taiwan		2006-2011
United Kingdom		2005-2011
United States		2005-2011

TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

NOTE 9: TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES

During 2011, we paid employment compensation of approximately $154,000 in salary, bonus, auto allowance, and other compensation to Landen Fredrick, son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder. In addition, Landen Fredrick participated in the employee health care benefit plans available to all employees of the Company. Landen Fredrick has served as Vice President, North American Sales since February of 2010. Prior to his promotion, Mr. Fredrick served as Senior Director of Tools and Training.

Mr. Caster, the Company’s founder, major stockholder, and former Chairman of the Board, founded MannaRelief in 1999 and served as its Chairman from 1999 through August 2007. MannaRelief employs William A. Mullens, Mr. Caster’s brother-in-law, as its Executive Director. Mr. Caster’s wife, Linda Caster, serves as MannaRelief’s Chairman of the Board. MannaRelief is a 501(c)(3) charitable organization that provides charitable services for children. MannaRelief is not owned or operated by the Company.

Historically, the Company has made cash donations to MannaRelief, sold products to MannaRelief at cost plus shipping and handling charges, and shipped products purchased by MannaRelief to its chosen recipients. In addition, certain Company employees and consultants periodically volunteer to work or host various fund raising projects and events for MannaRelief at no cost to MannaRelief. The Company has made cash donations and sold products to MannaRelief as follows:

	2011			2010			2009
Sold Products	$	0.4	million	$	0.5	million	$	0.7	million
Contributed Cash Donations	$	0.7	million	$	0.5	million	$	0.3	million

On December 1, 2011, the Company entered into a new Consulting Agreement with Wonder Enterprises, LLC (f/k/a Salinda Enterprises, LLC; hereinafter “Wonder”) for an initial term of six months or until May 31, 2012 for the consulting services of Mr. Caster who is an employee of Wonder. Pursuant to the terms of the Consulting Agreement, the Company will pay Wonder $300,000 for consulting services performed by Mr. Caster. The Consulting Agreement may be renewed by the Company for an additional six month period upon 30 days’ written notice to Wonder before the expiration of the current term.

Mr. Ray Robbins is a member of the Company’s Board of Directors and a major shareholder. Mr. Robbins holds positions in the Company’s associate global downline network marketing system. The Company pays commissions and incentives to its independent associates and during 2011, 2010, and 2009, the Company paid commissions and incentives to Mr. Robbins totaling $2.7 million, $3.0 million, and $3.4 million, respectively. In addition, several of Mr. Robbins’ family members are independent associates and were paid associate commissions and earned aggregate incentives of approximately $0.4 million, $0.4 million, and $0.5 million for 2011, 2010, and 2009, respectively. The $0.4 million for the year ended December 31, 2011 includes his son, Kevin Robbins, who earned approximately $217,000, as well as his daughter, Marla Finley, and daughter-in-law, Demra Robbins, who both share an account that totaled approximately $183,000 in earnings. All commissions and incentives were paid to Mr. Robbins and his family members in accordance with the Company’s global associate career and compensation plan.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 10: EMPLOYEE BENEFIT PLANS

Employee Retirement Plan

Effective May 9, 1997, the Company adopted a Defined Contribution 401(k) and Profit Sharing Plan (the “401(k) Plan”) for its United States employees. The 401(k) Plan covers all full-time employees who have completed three months of service and attained the age of twenty-one. United States employees can contribute up to 100 percent of their annual compensation but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) plan permits matching and discretionary employer contributions, although in response to adverse market conditions the Company suspended the matching contributions under the 401(k) Plan in the first quarter of 2009 through June 30, 2010. The Company’s matching contributions for its United States employees vest ratably over a five-year period. During the years ended December 31, 2011 and 2010, the Company contributed approximately $0.1 million and $0.4 million, respectively, to the 401(k) Plan for matching contributions.

The Company also sponsors a non-U.S. defined benefit plan covering its employees in its Japan subsidiary (the “Benefit Plan”). Pension benefits under the Benefit Plan are based on years of service and annual salary. The Company utilizes actuarial methods. Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related Benefit Plan costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants, and changes in the level of benefits provided. The Company uses a measurement date of December 31 to evaluate and record any post-retirement benefits related to the Benefit Plan.

Projected Benefit Obligation and Fair Value of Plan Assets

The Benefit Plan’s projected benefit obligation and valuation of plan assets are as follows for the years ended December 31 (in thousands):

Projected benefit obligation:	2011			2010
Balance, beginning of year	$	1,008		$	846
Service cost		186			217
Interest cost		17			20
Liability (gains) and losses		11			(162	)
Benefits paid to participants		(39	)		(28	)
Special termination benefit		21			—
Pension adjustment		6			—
Foreign currency		60			115
Balance, end of year	$	1,270		$	1,008

Plan assets:
Fair value, beginning of year	$	—		$	—
Company contributions		28			28
Benefits paid to participants		(28	)		(28	)
Fair value, end of year	$	—		$	—

Funded status of the Benefit Plan as of December 31 (in thousands):	2011			2010
Benefit obligation	$	(1,270	)	$	(1,008	)
Fair value of plan assets		—			—
Excess of benefit obligation over fair value of plan assets	$	(1,270	)	$	(1,008	)

Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands):	2011			2010
Accrued benefit liability	$	(1,270	)	$	(1,008	)
Transition obligation and unrealized gain		(190	)		(201	)
Net amount recognized in the consolidated balance sheets	$	(1,460	)	$	(1,209	)

	Years Ended December 31,
Other changes recognized in comprehensive income/loss (in thousands):	2011			2010			2009
Net periodic cost	$	221		$	242		$	219
Current year actuarial (gain) loss		11			(162	)		(23	)
Amortization of transition obligation		(5	)		(5	)		(5	)
Amortization of actuarial gain		15			—			—
Total recognized in other comprehensive income		21			(167	)		(28	)
Total recognized in comprehensive income/loss	$	242		$	75		$	191

	As of December 31,
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain/loss (in thousands):	2011			2010
Net actuarial gain	$	202		$	175
Transition obligation		(12	)		27
Total recognized in accumulated other comprehensive loss	$	190		$	201

2012 estimated amounts of amortized transition obligation (in thousands):		2012
Transition obligation		$	(5	)

	As of December 31,
	2011		2010
Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands):
Projected benefit obligation	$	1,270	$	1,008
Accumulated benefit obligation		887		705
Fair value of plan assets		—		—

The weighted-average assumptions to determine the benefit obligation and net cost are as follows:

	2011		2010
Discount rate	1.75	%	1.75	%
Rate of increase in compensation levels	3.0	%	3.0	%

Components of Expense

Pension expense for the Benefit Plan is included in selling, general and administrative expenses in the Consolidated Statements of Operations and is comprised of the following for the years ended December 31 (in thousands):

	2011			2010		2009
Service cost	$	186		$	217	$	196
Interest cost		18			20		18
Amortization of transition obligation		5			5		5
Gain (Loss)		(15	)		—		—
Special Termination		21			—		—
Benefit Adjustment		6			—		—
Total pension expense	$	221		$	242	$	219

Estimated Benefits and Contributions

The Company expects to contribute approximately $64,000 to the plan in 2012. As of December 31, 2011, benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands):

2012	$	64
2013		61
2014		104
2015		207
2016		50
Next five years		184
Total expected benefits to be paid	$	670

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Stock-Based Compensation

NOTE 11: STOCK OPTION PLAN

Summary of Stock Plan

The Company currently has one active stock-based compensation plan, which was approved by shareholders. The Company grants stock options to employees, consultants, and board members at the fair value of its common stock on the date of grant, with a term no greater than ten years. The majority of stock options vest over two or three years. Shareholders who own 10% or more of the Company’s outstanding stock are granted incentive stock options at an exercise price that may not be less than 110% of the fair market value of the Company’s common stock on the date of grant and have a term no greater than five years.

In February 2008, the Company’s Board of Directors approved the Mannatech, Incorporated 2008 Stock Incentive Plan (the “2008 Plan”), which reserves up to 1,000,000 shares of common stock for issuance of stock options and restricted stock to our employees, board members, and consultants, plus any shares reserved under the Company’s then-existing, unexpired stock plans for which options had not yet been issued, and any shares underlying outstanding options under the then-existing stock option plans that terminate without having been exercised in full. The 2008 Plan was approved by the Company’s shareholders at the 2008 Annual Shareholders’ Meeting. As of December 31, 2011, the 2008 Plan had 32,222 stock options available for grant, as adjusted for the 1-for-10 reverse stock split that was effective January 13, 2012, before the plan expires on February 20, 2018.

A summary of changes in stock options outstanding during the year ended December 31, 2011, as adjusted for the 1-for-10 reverse stock split, is as follows:

	2011
	Number of Options (in thousands)		Weighted average exercise price		Weighted average remaining contractual life (in years)	Aggregate intrinsic value (in thousands)
Outstanding at beginning of year	141		$	28.87
Granted	37		$	11.37
Exercised	—		$	—
Forfeited or expired	(39	)	$	32.12
Outstanding at end of year	139		$	23.24	8.0	—
Options exercisable at year end	71		$	26.77	7.4	—

The Company issues new shares upon the exercise of options. No options were exercised during the year ended December 31, 2011.

Valuation and Expense Information Under FASB ASC Topic 718 Compensation – Stock Compensation

Under the provisions of FASB ASC Topic 718, the Company is required to measure and recognize compensation expense related to any outstanding and unvested stock options previously granted, and thereafter recognize, in its consolidated financial statements, compensation expense related to any new stock options granted after implementation using a calculated fair-value based option-pricing model.

The Company uses the Black-Scholes option-pricing model to calculate the fair value of all of its stock options and its assumptions are based on historical information. The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year:

	2011		2010		2009
Dividend yield:	—(1)		—(1)		1.05 — 2.87				%
Risk-free interest rate:	0.78 — 1.82	%	1.9 — 2.16	%		1.53 — 2.7			%
Expected market price volatility:	71.1 — 72.8	%	70.8 — 72.4	%				65.9 — 70.8	%
Average expected life of stock options:	4.5 years		4.5 years				4.5 years

_________________________

(1) The Company declared no dividends in 2010 or 2011.

The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on historical volatilities of the Company’s stock. The expected life assumptions are based on the Company’s historical employee exercise and forfeiture behavior.

The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2011, 2010, and 2009 was $6.39, $10.47, and $15.62 per share, respectively, as adjusted for the 1-for-10 reverse stock split that was effective January 13, 2012. The total fair value of shares vested during the years ended December 31, 2011, 2010, and 2009 was $0.4 million, $0.5 million, and $0.6 million, respectively.

The Company recorded the following amounts related to the expense of the fair values of options during the years ended December 31, 2011, 2010, and 2009 (in thousands):

	2011		2010		2009
Selling, general and administrative expenses and income (loss) from operations before income taxes	$	356	$	630	$	636
Benefit for income taxes		80		85		134
Effect on net loss	$	276	$	545	$	502

As of December 31, 2011, the Company had approximately $0.4 million of total unrecognized compensation expense related to stock options currently outstanding, to be recognized in future years, ending December 31,

as follows (in thousands):

	Total gross unrecognized compensation expense		Total tax benefit associated with unrecognized compensation expense		Total net unrecognized compensation expense
2012	$	243	$	39	$	204
2013		113		16		97
2014		10		—		10
	$	366	$	55	$	311

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 12: COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases certain office space, automobiles, computer hardware, and warehouse equipment under various non-cancelable operating leases. Some of these leases have renewal options. All of the Company’s leases expire at various times through August 2023. The Company also leases equipment under various month-to-month cancelable operating leases. For the years ended December 31, 2011, 2010, and 2009, total rent expense was approximately $4.3 million, $4.2 million, and $4.0 million, respectively.

Approximate future minimum rental commitments for non-cancelable operating leases (in thousands) are as follows:

Years ending December 31,
2012	$	3,434
2013		1,841
2014		1,087
2015		1,002
2016		806
Thereafter		955
	$	9,125

Purchase Commitments

The Company maintains supply agreements with its suppliers and manufacturers. Some of the supply agreements contain exclusivity clauses and/or minimum annual purchase requirements. Purchase agreements with suppliers that contain minimum purchase clauses are as follows:

In January 2006, the Company entered into a five-year supply agreement with Larex, Inc. to exclusively purchase Arabinogalactan, an important component used in the formulation of its Ambrotose® complex. In order to retain exclusive rights to purchase Arabinogalactan, the Company is required to purchase a minimum monthly quantity over the five year agreement. Effective December 31, 2010 the supply agreement with Larex, Inc. was terminated. The Company is negotiating a new agreement with Larex, Inc., and continues to purchase Arabinogalactan from Larex, Inc.

·	In March 2006, the Company entered into a ten-year supply agreement to purchase plant-derived mineral nutrition products from InB:Biotechnologies, Inc. As of December 31, 2011, the Company is required to purchase an aggregate of $6.7 million through 2016.

In June of 2008, the Company entered into a three-year supply agreement with Improve U.S.A. to purchase an aloe vera powder. In August 2011, the Company entered into an amendment to its supply agreement to extend the term of the agreement for a period of three years commencing June 1, 2011 and expiring on May 14, 2014. As of December 31, 2011, the Company is required to purchase an aggregate of $3.6 million through 2014 under the terms of the agreement.

Royalty and Consulting Agreements

In 2001, the Company entered into a royalty agreement with a high level associate and shareholder, whereby the Company agreed to pay royalties totaling $1.6 million related to the sale of certain sales aids developed by the associate and sold by the Company. Pursuant to this royalty agreement, the Company has paid an aggregate of $1.4 million through December 31, 2011, of which less than $0.1 million was paid in 2011 and approximately $0.1 million was paid in each of the years 2010 and 2009.

The Company also utilizes royalty agreements with individuals and entities to provide compensation for items such as reprints of articles or speeches relating to the Company, sales of promotional videos featuring sports personalities, and promotional efforts used by the Company for product sales or attracting new associates. The Company paid royalties for such royalty agreements of approximately $0.2 million in 2011, and approximately $0.3 in 2010 and 2009.

Employment Agreements

The Company has non-cancellable employment agreements with certain executives. If the employment relationships with these executives were terminated, as of December 31, 2011, the Company would continue to be indebted to the executives for $1.3 million, payable through 2012.

LITIGATION	12 Months Ended
LITIGATION	Dec. 31, 2011
Notes To Financial Statements [Abstract]
Litigation	NOTE 13: LITIGATION Business Arbitration and Litigation Marinova Pty. Limited v. Mannatech, Incorporated & Mannatech (International) Limited, Case No. 50-122-T-00635-09, International Centre for Dispute Resolution, a division of the American Arbitration Association On December 10, 2009, Marinova Pty. Limited (“Marinova”) filed a Notice of Arbitration and Statement of Claim with the International Centre for Dispute Resolution, which is a division of the American Arbitration Association, against the Company and its subsidiary, Mannatech (International) Limited. Marinova’s claims stem from the parties’ April 27, 2007 purchase agreement, which was entered into between the parties. Through the purchase agreement, Marinova agreed to sell and the Company agreed to buy set quantities of glyconutrient powder that the Company uses to manufacture some of its products. Marinova claims that the Company breached the purchase agreement by not buying the specified quantities of Marinova’s product and by prematurely terminating the agreement. Marinova further claims, based on the Company’s alleged breach of contract, that Marinova suffered lost profits damages in the amount of $6,500,000, as well as attorneys’ fees and costs. On January 15, 2010, the Company filed its Answering Statement and Counterclaims, through which the Company asserted affirmative defenses in response to Marinova’s claims. The Company also filed a counterclaim for breach of contract, through which the Company alleged that Marinova sold the Company non-conforming powder and then refused to reimburse the Company the amount it paid for the non-conforming powder, thereby breaching the purchase agreement and entitling the Company to properly terminate the purchase agreement. The Company further alleged that Marinova separately breached the purchase agreement by marketing its powder to one or more of the Company’s competitors in violation of the purchase agreement’s exclusivity clause. Based on its counterclaim, the Company sought damages in the amount of $618,750 representing the price paid for the non-conforming product, as well as attorneys’ fees, and costs. Following extensive discovery and motion practice, the case proceeded to a Final Hearing before a three-person arbitration panel. That hearing occurred on February 1-3, 2012. Following the Final Hearing, the parties submitted post-hearing briefs. On March 16, 2012, Mannatech and Marinova entered into a binding settlement agreement that fully disposes of the claims and controversies between them. Pursuant to that settlement agreement, Mannatech forgave the $618,750 payment owing and made a one-time payment of $2,600,000 to Marinova, which has been recorded in the December 31, 2011 financial statements. The settlement also includes a full release of both parties and a covenant not to sue. Product Liability Litigation Susan Chon vs. Mannatech, Inc. dba Mannatech Dietary Supplements; Eun-Sook Cho; Gina Park; Good News Acupunture/Couples Acupuncture, Case No. BC460029, Los Angeles County Superior Court On April 21, 2011, Susan Chon, an individual, filed suit against the Company in Los Angeles County Superior Court. The plaintiff is one of the Company’s former independent associates and has alleged sustaining injuries and enduring complications from breast cancer as the result of taking Ambrotose®, one of the Company’s products. The plaintiff also alleges that co-defendants En-Sook Cho, Gina Park and Good News Acupuncture represented to her that the Ambrotose® product cured serious medical problems. Unspecified damages are sought against all defendants. The Company tendered this matter to its insurance carrier and retained outside counsel. The Company filed an answer on June 16, 2011. Co-defendant Gina Park separately filed an answer on June 8, 2011. The parties are engaged in the initial stages of written discovery. The plaintiff has partially responded to the Defendants’ original discovery requests, and on October 7, 2011 promulgated her initial discovery requests. On March 1, 2012, the parties engaged in a private mediation session, and a settlement was reached resolving all outstanding issues between the parties. The Court has been notified of the outcome of the mediation, and it is anticipated that all settlement documents will be executed and a motion to dismiss the litigation with prejudice will be filed with the Court within the next thirty (30) days. Administrative Proceedings Our 2005-2009 tax years remain subject to examination by the IRS for U.S. federal tax purposes. On May 26, 2011 the IRS issued a Revenue Agent’s report (“RAR”) detailing proposed adjustments for the tax years under examination. The net tax deficiency associated with the RAR is $8.5 million plus penalties of $1.5 million. On July 8, 2011, the Company filed a protest letter challenging the proposed adjustments contained in the RAR and are pursuing resolution of these items with the Appeals Division of the IRS. There are other ongoing audits in various international jurisdictions that are not material to the Company’s financial statements. Litigation in General The Company has incurred several claims in the normal course of business. The Company believes such claims can be resolved without any material adverse effect on its consolidated financial position, results of operations, or cash flows. The Company maintains certain liability insurance; however, certain costs of defending lawsuits are not covered by or only partially covered by its insurance policies, including claims that are below insurance deductibles. Additionally, insurance carriers could refuse to cover certain claims in whole or in part. The Company accrues costs to defend itself from litigation as they are incurred or as they become determinable. The outcome of litigation is uncertain, and despite management’s views of the merits of any litigation, or the reasonableness of the Company’s estimates and reserves, the Company’s financial statements could nonetheless be materially affected by an adverse judgment. The Company believes it has adequately reserved for the contingencies arising from the above legal matters where an outcome was deemed to be probable, and the loss amount could be reasonably estimated. While it is not possible to predict what liability or damages the Company might incur in connection with any of the above-described lawsuits, based on the advice of counsel and management review of the existing facts and circumstances related to these lawsuits, and related legal fees, the Company has accrued $3.1 million as of December 31, 2011 for these matters, which is included in accrued expenses in its Consolidated Balance Sheet.

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

SHAREHOLDERS' EQUITY

NOTE 14: SHAREHOLDERS’ EQUITY

Equity Line

On September 16, 2010, the Company entered into an Investment Agreement (as amended, the “Investment Agreement”) with Dutchess Opportunity Fund, II, LP, a Delaware limited partnership (the “Investor”), whereby the Company may sell up to $10 million of the Company’s common stock to the Investor over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares pursuant to the Investment Agreement (the “Equity Line”).

The Company may draw on the Equity Line from time to time, as and when it determines appropriate in accordance with the terms and conditions of the Investment Agreement. The Company is not permitted to draw on the Equity Line unless there is an effective registration statement to cover the resale of the shares. The Company filed a registration statement with the SEC, and on October 28, 2010, the SEC declared effective the Company’s Registration Statement on Form S-3 (File No. 333-169774), which registered up to 5,000,000 shares of common stock that may be resold by the Investor pursuant to the Investment Agreement. The number of shares registered on Form S-3 are subject to adjustment for the reverse stock split pursuant to Rule 416 of the Securities Act.

Investors should read the Investment Agreement together with the other information concerning the Company that the Company publicly files in reports and statements with the SEC.

As of March 29, 2012, no shares of common stock have been issued pursuant to the Investment Agreement.

Preferred Stock

On May 19, 1998, the Company amended its Amended and Restated Articles of Incorporation to reduce the number of authorized shares of common stock from 100.0 million to 99.0 million and the Company authorized 1.0 million shares of preferred stock with a par value of $0.01 per share. No shares of preferred stock have ever been issued or outstanding.

Treasury Stock

On June 30, 2004, the Company’s Board of Directors authorized the Company to repurchase, in the open market, the lesser of (i) 131,756 shares of its common stock, as adjusted for the 1-for-10 reverse stock split, and (ii) $1.3 million of its shares, (the “June 2004 Plan”). On August 28, 2006, a second program permitting the Company to purchase, in the open market, up to $20 million of its outstanding shares was approved by our Board of Directors (the “August 2006 Plan”).

On July 14, 2011, the Company’s Board of Directors authorized the Company to reactivate the June 2004 Plan. During July 2011, the Company repurchased 528 shares of its common stock in the open market under the June 2004 Plan. The total cost and average price per share were approximately $5,000 and $9.43, respectively. As of March 26, 2012, the maximum number of shares available for repurchase under the June 2004 Plan was 19,084, and the total number of shares purchased in the open market under the June 2004 Plan was 112,672. No shares have ever been purchased under the August 2006 Plan. The Company does not have any stock repurchase plans or programs other than the June 2004 Plan and the August 2006 Plan.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss), net, which is displayed in the Consolidated Statement of Shareholders’ Equity and Comprehensive Income (loss), represents net income (loss) plus the results of certain shareholders’ equity changes not reflected in the consolidated statements of operations. Such items include foreign currency translation and certain pension and postretirement benefit obligations.

The after-tax components of accumulated other comprehensive income (loss), are as follows (in thousands):

	Foreign Currency Translation				Pension Postretirement Benefit Obligation				Accumulated Other Comprehensive Income (Loss), Net
Balance as of December 31, 2008		$	(1,409	)		$	3			$	(1,406	)
Current-period change			276				17				293
Balance as of December 31, 2009			(1,133	)			20				(1,113	)
Current-period change			(299	)			104				(195	)
Balance as of December 31, 2010			(1,432	)			124				(1,308	)
Current-period change			893				(12	)			881
Balance as of December 31, 2011		$	(539	)		$	112			$	(427	)

LOSS PER SHARE	12 Months Ended
LOSS PER SHARE	Dec. 31, 2011
Notes To Financial Statements [Abstract]
Loss Per Share	NOTE 15: EARNINGS (LOSS) PER SHARE The Company calculates basic Earnings Per Share (EPS) by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. The diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards under the 2008 Stock Incentive Plan. The Company reported net losses for the years ended December 31, 2011, 2010 and 2009 and approximately 0.1 million, 0.2 million, and 0.1 million of the Company’s stock options were excluded from the diluted EPS calculation, respectively, as the effect would have been antidilutive. In determining potential dilution effect of outstanding stock options during 2011, 2010 and 2009, the Company used average common stock close price of $10.89, $26.69 and $33.86 per share, respectively, as adjusted for the 1-for-10 reverse stock split that became effective January 13, 2012.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Segment Information

NOTE 16: SEGMENT INFORMATION

The Company conducts its business as a single operating segment, consolidating all of its business units into a single reportable entity, as a seller of proprietary nutritional supplements, topical and skin care products, and weight-management products through its network marketing distribution channels operating in seventeen countries. Each of the Company’s business units sells similar packs and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Company’s management reviews its financial information by country and focuses its internal reporting and analysis of revenues by packs and product sales. The Company sells its products through its independent associates and distributes its products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Company’s consolidated net sales.

The Company operates facilities in ten countries and sells product in twenty-one countries around the world. These facilities are located in the United States, Canada, Switzerland, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), Taiwan, South Africa and Mexico. Each facility services different geographic areas. The Switzerland office was created to manage certain day-to-day business needs of non-North American markets.

By country of operation, consolidated net sales shipped to customers in these locations, along with pack and product information for the years ended December 31, are as follows (in millions, except percentages):

	2011				2010				2009
United States	$	84.0	41.8	%	$	100.8	44.1	%	$	140.7	48.6	%
Japan		30.4	15.1	%		34.2	15.0	%		42.0	14.5	%
Republic of Korea		23.4	11.8	%		22.0	9.6	%		26.4	9.1	%
Australia		17.3	8.6	%		20.0	8.8	%		22.9	7.9	%
Canada		16.0	8.0	%		18.5	8.1	%		23.0	7.9	%
South Africa		8.8	4.4	%		12.0	5.3	%		13.2	4.6	%
Taiwan		4.3	2.1	%		6.4	2.8	%		6.6	2.3	%
Singapore		3.6	1.8	%		2.1	0.9	%		1.5	0.5	%
New Zealand		2.4	1.2	%		3.1	1.4	%		4.3	1.5	%
Mexico(1)		2.0	1.0	%		—	—			—	—
Germany		1.9	0.9	%		2.3	1.0	%		3.2	1.1	%
United Kingdom(2)		1.8	0.9	%		2.4	1.1	%		3.3	1.0	%
Norway		1.8	0.9	%		1.6	0.7	%		0.3	0.1	%
The Netherlands		1.2	0.6	%		0.6	0.3	%		0.2	0.1	%
Austria		0.8	0.4	%		1.1	0.5	%		0.3	0.1	%
Sweden		0.5	0.2	%		0.5	0.2	%		0.2	0.1	%
Denmark		0.3	0.2	%		0.5	0.2	%		1.6	0.6	%
Finland(3)		0.2	0.1	%		—	—			—	—
Total	$	200.7	100	%	$	228.1	100	%	$	289.7	100	%

__________________________________

(1)	The Company began operations in Mexico in January 2011.

(2)	Includes sales for the Czech Republic, Estonia, and the Republic of Ireland , which began operations in June 2011. Their combined consolidated sales for the year ended December 31, 2011 were approximately $0.1 million and are included in net sales for United Kingdom.

(3)	The Company began operations in Finland in June 2011.

	2011		2010		2009
Consolidated product sales	$	171.5	$	187.2	$	213.9
Consolidated pack sales		21.3		31.3		62.1
Consolidated other, including freight		7.9		9.6		13.7
Total	$	200.7	$	228.1	$	289.7

Long-lived assets by country, which include property and equipment and construction in progress for the Company and its subsidiaries, as of December 31, reside in the following countries, as follows (in millions):

Country	2011		2010
Australia	$	0.3	$	0.3
Canada		0.1		0.1
Japan		0.2		0.2
Mexico		0.5		0.3
Republic of Korea		0.6		0.8
South Africa		0.1		0.1
Switzerland		0.2		0.4
Taiwan		—		0.1
United Kingdom		—		0.1
United States		7.6		16.6
Total	$	9.6	$	19.0

Inventory balances by country, which consist of raw materials, and finished goods, including promotional materials, and offset by obsolete inventories, for the Company and its subsidiaries, reside in the following countries as of December 31, as follows (in millions):

Country	2011		2010
Australia	$	1.5	$	1.5
Canada		1.3		1.5
Japan		1.2		1.6
Mexico		0.3		0.8
Republic of Korea		0.8		0.8
South Africa		0.7		1.3
Switzerland		0.2		0.3
Taiwan		0.3		0.4
United Kingdom		0.9		1.1
United States		10.6		14.8
Total	$	17.8	$	24.1

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2011
Notes To Financial Statements [Abstract]
Subsequent Events	NOTE 17: SUBSEQUENT EVENTS On January 9, 2012, the Company held a Special Meeting of Shareholders where shareholders approved an amendment to the Company’s Amended and Restated Articles of Incorporation to effect a reverse stock split of the Company’s common stock at a specific ratio within a range from 1-for-10 to 1-for-15 and granted authorization to the Board of Directors to determine, in its discretion, the timing and the specific ratio of the reverse stock split. At a subsequent Board of Directors’ meeting held after the shareholders’ meeting, the Board of Directors passed a resolution to set the ratio for the stock split at 1-for-10. The reverse stock split became effective as of 11:59 p.m. on January 13, 2012. The trading of the Company’s common stock on Nasdaq on a split-adjusted basis began at the opening of trading on January 17, 2012. The primary purposes of the reverse stock split were to increase the per-share market price of the Company’s common stock in order to maintain its listing on Nasdaq, encourage investor interest in the Company, and promote greater liquidity for the Company’s existing shareholders. As previously announced, the Company was provided an initial period of 180 calendar days, or until February 7, 2012, to maintain a closing bid price of at least $1.00 per share for 10 consecutive trading days, enabling the Company to retain its listing on Nasdaq. On January 31, 2012, the Company received a letter from The NASDAQ Stock Market confirming that the Company had regained compliance with the minimum bid price requirement for continued listing on Nasdaq. The letter stated that The NASDAQ Stock Market staff had determined that for the last 10 consecutive business days, from January 17, 2012 to January 30, 2012, the closing bid price of the Company's common stock had been at $1.00 per share or greater and accordingly, the Company had regained compliance with Listing Rule 5450(a)(1). On March 1, 2012, the Company reached a settlement in the previously disclosed lawsuit, Susan Shon vs. Mannatech. The amount of the settlement was recorded in other operating costs for the year ended December 31, 2011. For more information, see Note 13, “Litigation”. On March 16, 2012, the Company reached a settlement in the previously disclosed lawsuit, Marinova vs. Mannatech. The amount of the settlement payment was recorded in other operating costs for the year ended December 31, 2011. For more information, see Note 13, “Litigation”. On March 21, 2012, the Board of Directors adopted resolutions amending the June 2004 Plan to clarify that the maximum number of shares of common stock that the Company is authorized to repurchase in the open market under the June 2004 Plan is up to the lesser of (i) 130,000 shares and (ii) $1,300,000 in shares. The Board of Directors also clarified that in the event of any further splits of the Company’s common stock, the number of shares the Company will be authorized to repurchase under such amended June 2004 Plan shall automatically adjust according to the ratio set by the Board of Directors.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2011

Schedule to Financial Statements [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Exhibit 99.1

MANNATECH, INCORPORATED AND SUBSIDIARIES

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(in thousands)

			Additions
	Balance at Beginning of Year		Charged to Costs and Expenses		Charged to other Accounts	Deductions			Balance at End of Year
Year Ended December 31, 2009
Deducted from asset accounts:
Allowance for Doubtful Accounts	$	23		33	—		(40	)	$	16
Allowance for Obsolete Inventories	$	677		1,544	—		(848	)	$	1,373
Valuation allowance for deferred tax assets	$	932		1,358	—		—		$	2,290
Year Ended December 31, 2010
Deducted from asset accounts:
Allowance for Doubtful Accounts	$	16		51	—		(46	)	$	21
Allowance for Obsolete Inventories	$	1,373		2,266	—		(2,078	)	$	1,561
Valuation allowance for deferred tax assets	$	2,290		2,002	—		(233	)	$	4,059
Year Ended December 31, 2011
Deducted from asset accounts:
Allowance for Doubtful Accounts	$	21		61	—		(60	)	$	22
Allowance for Obsolete Inventories	$	1,561		3,660	—		(2,910	)	$	2,311
Valuation allowance for deferred tax assets	$	4,059		5,474	—		(30	)	$	9,503

Document Information	12 Months Ended
Document Information	Dec. 31, 2011
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011

Entity Information - USD ($)	12 Months Ended
Entity Information - USD ($)	Dec. 31, 2011	Mar. 26, 2012	Jun. 30, 2011
Entity Registrant Name	MANNATECH INC
Entity Central Index Key	0001056358
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 15,108,849
Entity Common Stock, Shares Outstanding		2,647,735
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY