| 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,
2019
|
|
|
September 30,
2018
|
|
|
September 30,
2019
|
|
|
September 30,
2018
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
1,035.8
|
|
|
$
|
976.3
|
|
|
$
|
3,110.7
|
|
|
$
|
2,939.7
|
|
|
China
|
|
|
208.7
|
|
|
|
266.5
|
|
|
|
546.1
|
|
|
|
765.5
|
|
|
Total net sales
|
|
$
|
1,244.5
|
|
|
$
|
1,242.8
|
|
|
$
|
3,656.8
|
|
|
$
|
3,705.2
|
|
|
Contribution margin(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
446.7
|
|
|
$
|
431.2
|
|
|
$
|
1,346.2
|
|
|
$
|
1,286.2
|
|
|
China(2)
|
|
|
190.6
|
|
|
|
249.5
|
|
|
|
492.3
|
|
|
|
694.5
|
|
|
Total contribution margin
|
|
$
|
637.3
|
|
|
$
|
680.7
|
|
|
$
|
1,838.5
|
|
|
$
|
1,980.7
|
|
|
Selling, general, and administrative expenses(2)
|
|
|
500.1
|
|
|
|
499.4
|
|
|
|
1,412.5
|
|
|
|
1,469.7
|
|
|
Other operating income
|
|
|
(6.4
|
)
|
|
|
(6.0
|
)
|
|
|
(33.7
|
)
|
|
|
(23.9
|
)
|
|
Interest expense, net
|
|
|
31.6
|
|
|
|
39.9
|
|
|
|
104.0
|
|
|
|
124.1
|
|
|
Other (income) expense, net
|
|
|
(1.3
|
)
|
|
|
30.9
|
|
|
|
(15.7
|
)
|
|
|
60.0
|
|
|
Income before income taxes
|
|
|
113.3
|
|
|
|
116.5
|
|
|
|
371.4
|
|
|
|
350.8
|
|
|
Income taxes
|
|
|
31.8
|
|
|
|
45.3
|
|
|
|
117.1
|
|
|
|
103.1
|
|
|
Net income
|
|
$
|
81.5
|
|
|
$
|
71.2
|
|
|
$
|
254.3
|
|
|
$
|
247.7
|
|
|
(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 $119.8 million and $135.7 million for the three months ended September 30, 2019 and 2018, respectively, and $304.5 million and $398.3 million for the nine months ended September 30, 2019 and 2018, 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,
2019
|
|
|
September 30,
2018
|
|
|
September 30,
2019
|
|
|
September 30,
2018
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
251.5
|
|
|
$
|
234.5
|
|
|
$
|
774.2
|
|
|
$
|
716.4
|
|
|
China
|
|
|
208.7
|
|
|
|
266.5
|
|
|
|
546.1
|
|
|
|
765.5
|
|
|
Mexico
|
|
|
116.5
|
|
|
|
121.2
|
|
|
|
357.0
|
|
|
|
353.4
|
|
|
Others
|
|
|
667.8
|
|
|
|
620.6
|
|
|
|
1,979.5
|
|
|
|
1,869.9
|
|
|
Total net sales
|
|
$
|
1,244.5
|
|
|
$
|
1,242.8
|
|
|
$
|
3,656.8
|
|
|
$
|
3,705.2
|
|
|