Herbalife Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Lease Obligations

Lease Obligations

12 Months Ended

Dec. 31, 2011

5. Lease obligations

The Company has warehouse, office, furniture, fixtures and equipment leases, which expire at various dates through 2021. Under the lease agreements, the Company is also obligated to pay property taxes, insurance and maintenance costs.

Certain leases contain renewal options. Future minimum rental commitments for non-cancelable operating leases and capital leases at December 31, 2011, were as follows (in millions):


	Operating		Capital
2012	$	42.9	$	1.4
2013		34.5		—
2014		26.9		—
2015		22.3		—
2016		12.7		—
Thereafter		23.8		—

Total	$	163.1	$	1.4

Less: amounts included above representing interest				—

Present value of net minimum lease payments			$	1.4

Rental expense for the years ended December 31, 2011, 2010 and 2009, was $49.2 million, $43.5 million, and $39.7 million, respectively.

Property, plant and equipment under capital leases is included in property, plant and equipment on the accompanying consolidated balance sheets as follows (in millions):


	December 31,
	2011			2010
Equipment	$	10.6		$	10.7
Less: accumulated depreciation		(9.7	)		(8.8	)

Total	$	0.9		$	1.9

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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