Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended
	March 31, 2014		March 31, 2013
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	234.0	$	216.2
Mexico		142.7		132.9
South Korea		99.0		110.0
Others		651.1		596.0

Total Primary Reporting Segment		1,126.8		1,055.1
China		135.8		68.5

Total Net Sales	$	1,262.6	$	1,123.6

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States	$	100.6	$	94.7
Mexico		61.4		58.6
South Korea		55.4		55.2
Others		287.9		264.7

Total Primary Reporting Segment		505.3		473.2
China		124.4		60.5

Total Contribution Margin	$	629.7	$	533.7

Selling, general and administrative expenses(2)		502.0		364.7
Interest expense, net		15.0		5.4
Other expense, net		3.2		—

Income before income taxes		109.5		163.6
Income taxes		34.9		44.7

Net Income	$	74.6	$	118.9

(1)	Contribution margin consists of net sales less cost of sales and royalty overrides.

(2)

Service fees to China independent service providers totaling $61.6 million and $31.4 million for the three months ended March 31, 2014 and 2013, respectively, are included in selling, general and administrative expenses while Member compensation for all other countries is included in contribution margin.

Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services

Net sales by product line:
Weight Management	$	807.6	$	711.6
Targeted Nutrition		284.0		256.9
Energy, Sports and Fitness		66.7		58.3
Outer Nutrition		39.7		38.2
Literature, promotional and other(3)		64.6		58.6

Total Net Sales	$	1,262.6	$	1,123.6

(3)	Product buybacks and returns in all product categories are included in the literature, promotional and other category.

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

Net sales by geographic region:
North America	$	247.8	$	221.5
Mexico		142.7		132.9
South and Central America		244.7		219.4
EMEA		211.2		169.5
Asia Pacific		280.4		311.8
China		135.8		68.5

Total Net Sales	$	1,262.6	$	1,123.6