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, 2017

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

The operating information for the two reportable segments are as follows:

		Three Months Ended
		March 31, 2017				March 31, 2016
		(In millions)
Net Sales:
Primary Reporting Segment		$	886.5			$	902.2
China			215.6				217.4
Total Net Sales		$	1,102.1			$	1,119.6

Contribution Margin(1):
Primary Reporting Segment		$	386.6			$	397.0
China(2)			195.8				197.6
Total Contribution Margin		$	582.4			$	594.6
Selling, general and administrative expenses(2)			438.6				427.1
Other operating income		—					(0.8	)
Interest expense, net			30.2				24.9
Income before income taxes			113.6				143.4
Income taxes			28.4				47.6
Net Income		$	85.2			$	95.8

(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 $111.6 million and $102.5 million for the three months ended March 31, 2017 and 2016, 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
		March 31, 2017				March 31, 2016
		(In millions)
Net Sales:
United States		$	224.7			$	240.9
Mexico			104.8				109.7
China			215.6				217.4
Others			557.0				551.6
Total Net Sales		$	1,102.1			$	1,119.6