Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.19.3.a.u2
Segment Information (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment, Sales by Product Line, and Sales by Geographic Area

Operating information for the two reportable segments, sales by product line, and sales by geographic area are as follows:

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

4,125.1

 

 

$

3,884.2

 

 

$

3,541.8

 

China

 

 

752.0

 

 

 

1,007.6

 

 

 

885.9

 

Total net sales

 

$

4,877.1

 

 

$

4,891.8

 

 

$

4,427.7

 

Contribution margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

1,793.6

 

 

$

1,693.5

 

 

$

1,534.2

 

China(2)

 

 

677.3

 

 

 

915.0

 

 

 

790.7

 

Total contribution margin

 

$

2,470.9

 

 

$

2,608.5

 

 

$

2,324.9

 

Selling, general, and administrative expenses(2)

 

 

1,940.3

 

 

 

1,955.2

 

 

 

1,758.6

 

Other operating income

 

 

(37.5

)

 

 

(29.8

)

 

 

(50.8

)

Interest expense

 

 

153.0

 

 

 

181.0

 

 

 

160.8

 

Interest income

 

 

20.6

 

 

 

19.4

 

 

 

14.5

 

Other (income) expense, net

 

 

(15.7

)

 

 

57.3

 

 

 

(0.4

)

Income before income taxes

 

 

451.4

 

 

 

464.2

 

 

 

471.2

 

Income taxes

 

 

140.4

 

 

 

167.6

 

 

 

257.3

 

Net income

 

$

311.0

 

 

$

296.6

 

 

$

213.9

 

Net sales by product line:

 

 

 

 

 

 

 

 

 

 

 

 

Weight Management

 

$

3,012.5

 

 

$

3,105.8

 

 

$

2,842.5

 

Targeted Nutrition

 

 

1,278.5

 

 

 

1,243.5

 

 

 

1,082.8

 

Energy, Sports, and Fitness

 

 

352.0

 

 

 

308.4

 

 

 

263.8

 

Outer Nutrition

 

 

97.3

 

 

 

91.9

 

 

 

93.9

 

Literature, Promotional, and Other(3)

 

 

136.8

 

 

 

142.2

 

 

 

144.7

 

Total net sales

 

$

4,877.1

 

 

$

4,891.8

 

 

$

4,427.7

 

Net sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,002.6

 

 

$

925.9

 

 

$

818.3

 

China

 

 

752.0

 

 

 

1,007.6

 

 

 

885.9

 

Mexico

 

 

473.6

 

 

 

467.9

 

 

 

442.7

 

Others

 

 

2,648.9

 

 

 

2,490.4

 

 

 

2,280.8

 

Total net sales

 

$

4,877.1

 

 

$

4,891.8

 

 

$

4,427.7

 

 

(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 $418.9 million, $523.2 million, and $419.5 million for the years ended December 31, 2019, 2018, and 2017, respectively, are included in selling, general, and administrative expenses.

(3)

Product buybacks and returns in all product categories are included in the 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,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(in millions)

 

Property, plant, and equipment, net:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

292.4

 

 

$

285.2

 

 

$

289.8

 

Foreign

 

 

79.1

 

 

 

74.8

 

 

 

87.7

 

Total property, plant, and equipment, net

 

$

371.5

 

 

$

360.0

 

 

$

377.5

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

114.5

 

 

$

90.7

 

 

$

103.6

 

Foreign

 

 

68.3

 

 

 

74.9

 

 

 

70.9

 

Total deferred tax assets

 

$

182.8

 

 

$

165.6

 

 

$

174.5