v3.22.2
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Net sales $ 1,392.7 $ 1,552.3 $ 2,728.5 $ 3,053.9
Cost of sales 315.8 323.2 622.9 637.5
Gross profit 1,076.9 1,229.1 2,105.6 2,416.4
Royalty overrides 452.9 485.8 886.7 959.8
Selling, general, and administrative expenses [1] 470.0 505.9 924.9 1,012.6
Other operating income (1.8) (0.5) (14.9) (16.4)
Operating income 155.8 237.9 308.9 460.4
Interest expense, net 31.7 36.8 61.4 74.3
Other expense, net 0.0 24.6 0.0 24.6
Income before income taxes 124.1 176.5 247.5 361.5
Income taxes 37.6 32.3 62.8 69.9
Net income $ 86.5 $ 144.2 $ 184.7 $ 291.6
Earnings per share:        
Basic $ 0.88 $ 1.33 $ 1.86 $ 2.70
Diluted $ 0.88 $ 1.31 $ 1.84 $ 2.63
Weighted-average shares outstanding:        
Basic 98.2 108.0 99.1 108.2
Diluted 98.7 110.2 100.2 110.7
[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 $52.2 million and $98.2 million for the three months ended June 30, 2022 and 2021, respectively, and $106.4 million and $193.2 million for the six months ended June 30, 2022 and 2021, respectively.

Source