Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.8.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

The operating information for the two reportable segments, and sales by product line are as follows:

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

3,541.8

 

 

$

3,619.6

 

 

$

3,622.8

 

China

 

 

885.9

 

 

 

868.8

 

 

 

846.2

 

Total Net Sales

 

$

4,427.7

 

 

$

4,488.4

 

 

$

4,469.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution Margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

1,534.2

 

 

$

1,571.9

 

 

$

1,598.8

 

China(2)

 

 

790.7

 

 

 

789.3

 

 

 

762.8

 

Total Contribution Margin

 

$

2,324.9

 

 

$

2,361.2

 

 

$

2,361.6

 

Selling, general and administrative expense(2)

 

 

1,758.6

 

 

 

1,966.9

 

 

 

1,784.5

 

Other operating income

 

 

(50.8

)

 

 

(63.8

)

 

 

(6.5

)

Interest expense

 

 

160.8

 

 

 

99.3

 

 

 

100.5

 

Interest income

 

 

14.5

 

 

 

5.9

 

 

 

5.6

 

Other expense, net

 

 

(0.4

)

 

 

 

 

 

2.3

 

Income before income taxes

 

 

471.2

 

 

 

364.7

 

 

 

486.4

 

Income taxes

 

 

257.3

 

 

 

104.7

 

 

 

147.3

 

Net Income

 

$

213.9

 

 

$

260.0

 

 

$

339.1

 

 

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

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Net sales by product line:

 

 

 

 

 

 

 

 

 

 

 

 

Weight Management

 

$

2,842.5

 

 

$

2,864.5

 

 

$

2,862.8

 

Targeted Nutrition

 

 

1,082.8

 

 

 

1,062.8

 

 

 

1,015.4

 

Energy, Sports & Fitness

 

 

263.8

 

 

 

268.4

 

 

 

250.9

 

Outer Nutrition

 

 

93.9

 

 

 

110.4

 

 

 

133.0

 

Literature, Promotional and Other(3)

 

 

144.7

 

 

 

182.3

 

 

 

206.9

 

Total Net Sales

 

$

4,427.7

 

 

$

4,488.4

 

 

$

4,469.0

 

Net sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

818.3

 

 

$

935.0

 

 

$

860.0

 

Mexico

 

 

442.7

 

 

 

446.6

 

 

 

479.9

 

China

 

 

885.9

 

 

 

868.8

 

 

 

846.2

 

Others

 

 

2,280.8

 

 

 

2,238.0

 

 

 

2,282.9

 

Total Net Sales

 

$

4,427.7

 

 

$

4,488.4

 

 

$

4,469.0

 

 

(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 $419.5 million, $407.1 million, and $403.5 million for the years ended December 31, 2017, 2016, and 2015, respectively, are included in selling, general and administrative expenses.

(3)

Product buy backs and returns in all product categories are included in literature, promotional and other category.

Schedule of Property, Plant and Equipment and Deferred Tax Assets by Geographic Area

The following table sets forth property, plant and equipment and deferred tax assets by geographic area:

 

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Property, Plant and Equipment, net:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

289.8

 

 

$

290.7

 

 

$

264.2

 

Foreign

 

 

87.7

 

 

 

87.3

 

 

 

75.0

 

Total Property, Plant and Equipment, net

 

$

377.5

 

 

$

378.0

 

 

$

339.2

 

Deferred Tax Assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

103.6

 

 

$

218.7

 

 

$

188.5

 

Foreign

 

 

70.9

 

 

 

62.5

 

 

 

63.9

 

Total Deferred Tax Assets

 

$

174.5

 

 

$

281.2

 

 

$

252.4