Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.20.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

1,137.4

 

 

$

1,053.1

 

 

$

2,209.9

 

 

$

2,074.9

 

China

 

 

209.5

 

 

 

187.0

 

 

 

399.4

 

 

 

337.4

 

Total net sales

 

$

1,346.9

 

 

$

1,240.1

 

 

$

2,609.3

 

 

$

2,412.3

 

Contribution margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

480.1

 

 

$

461.5

 

 

$

947.2

 

 

$

899.5

 

China(2)

 

 

187.1

 

 

 

168.6

 

 

 

355.5

 

 

 

301.7

 

Total contribution margin

 

$

667.2

 

 

$

630.1

 

 

$

1,302.7

 

 

$

1,201.2

 

Selling, general, and administrative expenses(2)

 

 

480.8

 

 

 

477.0

 

 

 

1,029.8

 

 

 

912.4

 

Other operating income

 

 

(3.3

)

 

 

 

 

 

(12.4

)

 

 

(27.3

)

Interest expense, net

 

 

28.8

 

 

 

36.3

 

 

 

53.8

 

 

 

72.4

 

Other income, net

 

 

 

 

 

(5.9

)

 

 

 

 

 

(14.4

)

Income before income taxes

 

 

160.9

 

 

 

122.7

 

 

 

231.5

 

 

 

258.1

 

Income taxes

 

 

45.8

 

 

 

46.2

 

 

 

70.8

 

 

 

85.3

 

Net income

 

$

115.1

 

 

$

76.5

 

 

$

160.7

 

 

$

172.8

 

 

(1)

Contribution margin consists of net sales less cost of sales and Royalty overrides. For the China segment, contribution margin does not include service fees to China independent service providers.

(2)

Service fees to China independent service providers totaling $122.2 million and $108.2 million for the three months ended June 30, 2020 and 2019, respectively, and $227.9 million and $184.7 million for the six months ended June 30, 2020 and 2019, respectively, are included in selling, general, and administrative expenses.

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

The following table sets forth net sales by geographic area:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

2020

 

 

June 30,

2019

 

 

June 30,

2020

 

 

June 30,

2019

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

375.3

 

 

$

272.0

 

 

$

647.2

 

 

$

522.7

 

China

 

 

209.5

 

 

 

187.0

 

 

 

399.4

 

 

 

337.4

 

Mexico

 

 

96.4

 

 

 

121.2

 

 

 

211.3

 

 

 

240.5

 

Others

 

 

665.7

 

 

 

659.9

 

 

 

1,351.4

 

 

 

1,311.7

 

Total net sales

 

$

1,346.9

 

 

$

1,240.1

 

 

$

2,609.3

 

 

$

2,412.3