v3.22.2.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
Net sales $ 1,295.1 $ 1,430.9 $ 4,023.6 $ 4,484.8
Cost of sales 285.1 305.2 908.0 942.7
Gross profit 1,010.0 1,125.7 3,115.6 3,542.1
Royalty overrides 414.4 450.0 1,301.1 1,409.8
Selling, general, and administrative expenses [1] 448.2 486.3 1,373.1 1,498.9
Other operating income 0.0 0.0 (14.9) (16.4)
Operating income 147.4 189.4 456.3 649.8
Interest expense, net 34.5 37.7 95.9 112.0
Other expense, net 0.0 0.0 0.0 24.6
Income before income taxes 112.9 151.7 360.4 513.2
Income taxes 30.7 34.3 93.5 104.2
Net income $ 82.2 $ 117.4 $ 266.9 $ 409.0
Earnings per share:        
Basic $ 0.84 $ 1.11 $ 2.70 $ 3.81
Diluted $ 0.83 $ 1.09 $ 2.68 $ 3.73
Weighted-average shares outstanding:        
Basic 98.0 105.5 98.7 107.3
Diluted 98.8 107.8 99.7 109.8
[1] Contribution margin consists of net sales less cost of sales and Royalty overrides. For the China segment, contribution margin does not include the portion of service fees to China independent service providers included in selling, general, and administrative expenses, which totaled $55.3 million and $85.9 million for the three months ended September 30, 2022 and 2021, respectively, and $161.7 million and $279.1 million for the nine months ended September 30, 2022 and 2021, respectively.

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