| Reconciliation of Revenue from Segments to Consolidated |
The operating information for the two reportable segments is as follows:
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
976.3
|
|
|
$
|
875.6
|
|
|
$
|
2,939.7
|
|
|
$
|
2,666.4
|
|
|
China
|
|
|
266.5
|
|
|
|
209.8
|
|
|
|
765.5
|
|
|
|
668.0
|
|
|
Total net sales
|
|
$
|
1,242.8
|
|
|
$
|
1,085.4
|
|
|
$
|
3,705.2
|
|
|
$
|
3,334.4
|
|
|
Contribution margin(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
431.2
|
|
|
$
|
375.9
|
|
|
$
|
1,286.2
|
|
|
$
|
1,155.7
|
|
|
China(2)
|
|
|
249.5
|
|
|
|
184.0
|
|
|
|
694.5
|
|
|
|
595.8
|
|
|
Total contribution margin
|
|
$
|
680.7
|
|
|
$
|
559.9
|
|
|
$
|
1,980.7
|
|
|
$
|
1,751.5
|
|
|
Selling, general, and administrative expenses(2)
|
|
|
499.4
|
|
|
|
445.2
|
|
|
|
1,469.7
|
|
|
|
1,327.0
|
|
|
Other operating income
|
|
|
(6.0
|
)
|
|
|
(4.6
|
)
|
|
|
(23.9
|
)
|
|
|
(43.5
|
)
|
|
Interest expense, net
|
|
|
39.9
|
|
|
|
38.4
|
|
|
|
124.1
|
|
|
|
106.5
|
|
|
Other expense, net
|
|
|
30.9
|
|
|
|
—
|
|
|
|
60.0
|
|
|
|
—
|
|
|
Income before income taxes
|
|
|
116.5
|
|
|
|
80.9
|
|
|
|
350.8
|
|
|
|
361.5
|
|
|
Income taxes
|
|
|
45.3
|
|
|
|
26.4
|
|
|
|
103.1
|
|
|
|
84.2
|
|
|
Net income
|
|
$
|
71.2
|
|
|
$
|
54.5
|
|
|
$
|
247.7
|
|
|
$
|
277.3
|
|
|
(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 $135.7 million and $99.5 million for the three months ended September 30, 2018 and 2017, respectively, and $398.3 million and $316.9 million for the nine months ended September 30, 2018 and 2017, 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
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
234.5
|
|
|
$
|
193.5
|
|
|
$
|
716.4
|
|
|
$
|
631.3
|
|
|
China
|
|
|
266.5
|
|
|
|
209.8
|
|
|
|
765.5
|
|
|
|
668.0
|
|
|
Mexico
|
|
|
121.2
|
|
|
|
114.3
|
|
|
|
353.4
|
|
|
|
334.7
|
|
|
Others
|
|
|
620.6
|
|
|
|
567.8
|
|
|
|
1,869.9
|
|
|
|
1,700.4
|
|
|
Total net sales
|
|
$
|
1,242.8
|
|
|
$
|
1,085.4
|
|
|
$
|
3,705.2
|
|
|
$
|
3,334.4
|
|
|