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)

6 Months Ended

Jun. 30, 2011

Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2011		2010		2011		2010
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	179.4	$	161.6	$	341.6	$	308.3
Mexico		113.9		80.9		217.8		152.7
Others		535.0		395.1		1,018.3		762.8

Total Primary Reporting Segment		828.3		637.6		1,577.7		1,223.8
China		51.4		51.2		97.1		83.6

Total Net Sales	$	879.7	$	688.8	$	1,674.8	$	1,307.4

Reconciliation of Operating Profit (Loss) from Segments to Consolidated


Contribution Margin(1)(2)(3):
Primary Reporting Segment
United States	$	77.7	$	66.0	$	146.1	$	131.1
Mexico		51.0		32.2		91.4		57.1
Others		245.6		182.4		464.5		333.6

Total Primary Reporting Segment		374.3		280.6		702.0		521.8
China		45.1		46.8		85.4		76.5

Total Contribution Margin	$	419.4	$	327.4	$	787.4	$	598.3

Selling, general and administrative expenses		266.2		211.1		510.8		418.0
Interest expense, net		0.9		2.1		3.5		4.1

Income before income taxes		152.3		114.2		273.1		176.2
Income taxes		41.1		32.0		73.9		42.2

Net Income	$	111.2	$	82.2	$	199.2	$	134.0


(1)		Contribution margin consists of net sales less cost of sales and royalty overrides. See Part I, Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q for a description of net sales, cost of sales and royalty overrides.

(2)		In the third quarter of 2010, the Company changed its method of allocation for certain costs to its business segments. Historical information presented has been reclassified to conform to the current presentation. This change had no effect on the Company’s consolidated statements of income.

(3)		Compensation to China sales employees and service fees to China licensed business providers totaling $23.7 million and $24.3 million for the three months ended June 30, 2011 and 2010, respectively, and $45.5 million and $40.5 million for the six months ended June 30, 2011 and 2010, respectively, is included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.

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


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2011		2010		2011		2010
	(In millions)
Net sales by product line:
Weight Management	$	552.3	$	430.5	$	1,050.9	$	817.7
Targeted Nutrition		197.3		159.8		377.5		298.4
Energy, Sports and Fitness		43.4		30.1		78.9		55.9
Outer Nutrition		37.0		31.0		73.6		62.0
Literature, promotional and other(4)		49.7		37.4		93.9		73.4

Total Net Sales	$	879.7	$	688.8	$	1,674.8	$	1,307.4


(4)		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	$	185.2	$	166.4	$	352.2	$	317.7
Mexico		113.9		80.9		217.8		152.7
South and Central America		130.1		82.8		255.4		174.1
EMEA		162.0		135.6		315.9		266.4
Asia Pacific		237.1		171.9		436.4		312.9
China		51.4		51.2		97.1		83.6

Total Net Sales	$	879.7	$	688.8	$	1,674.8	$	1,307.4

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

+ References + Details

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details