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, 2015

Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended
	March 31, 2015		March 31, 2014
	(In millions)
Net Sales:
Primary Reporting Segment
United States(4)	$	221.9	$	242.3
Mexico		123.6		142.7
South Korea		71.8		99.0
Others		523.9		642.8

Total Primary Reporting Segment		941.2		1,126.8
China		164.2		135.8

Total Net Sales	$	1,105.4	$	1,262.6

(4)

Net sales and contribution margin for 2014 within the Primary Reporting Segment information have been revised to correct a misclassification. As a result, United States net sales and contribution margin have been increased by $8.3 million and $3.3 million, respectively, while Others net sales and contribution margin have been decreased by the same amounts.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States(4)	$	92.2	$	103.9
Mexico		58.7		61.4
South Korea		41.6		55.4
Others		226.5		284.5

Total Primary Reporting Segment		419.0		505.2
China		148.0		124.4

Total Contribution Margin	$	567.0	$	629.6

Selling, general and administrative expenses(2)		431.4		502.1
Interest expense, net		21.5		14.9
Other expense, net		2.3		3.2

Income before income taxes		111.8		109.4
Income taxes		33.6		34.8

Net Income	$	78.2	$	74.6

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

(2)

Service fees to China independent service providers totaling $78.7 million and $61.6 million for the three months ended March 31, 2015 and 2014, respectively, are included in selling, general and administrative expenses while Member compensation for all other countries is included in contribution margin.

(4)

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

Net sales by product line:
Weight Management	$	703.9	$	807.6
Targeted Nutrition		251.9		284.0
Energy, Sports and Fitness		60.1		66.7
Outer Nutrition		35.4		39.7
Literature, promotional and other(3)		54.1		64.6

Total Net Sales	$	1,105.4	$	1,262.6

(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	$	226.7	$	247.8
Mexico		123.6		142.7
South and Central America		161.7		244.7
EMEA		186.4		211.2
Asia Pacific		242.8		280.4
China		164.2		135.8

Total Net Sales	$	1,105.4	$	1,262.6