| 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:
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Year Ended December 31,
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2019
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2018
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2017
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(in millions)
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Net sales:
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Primary Reporting Segment
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$
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4,125.1
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$
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3,884.2
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$
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3,541.8
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China
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752.0
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1,007.6
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885.9
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Total net sales
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$
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4,877.1
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$
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4,891.8
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$
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4,427.7
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Contribution margin(1):
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Primary Reporting Segment
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$
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1,793.6
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$
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1,693.5
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$
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1,534.2
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China(2)
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677.3
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915.0
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790.7
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Total contribution margin
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$
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2,470.9
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$
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2,608.5
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$
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2,324.9
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Selling, general, and administrative expenses(2)
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1,940.3
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1,955.2
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1,758.6
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Other operating income
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(37.5
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)
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(29.8
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)
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(50.8
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)
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Interest expense
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153.0
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181.0
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160.8
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Interest income
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20.6
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19.4
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14.5
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Other (income) expense, net
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(15.7
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)
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57.3
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(0.4
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)
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Income before income taxes
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451.4
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464.2
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471.2
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Income taxes
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140.4
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167.6
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257.3
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Net income
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$
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311.0
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$
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296.6
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$
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213.9
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Net sales by product line:
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Weight Management
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$
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3,012.5
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$
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3,105.8
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$
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2,842.5
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Targeted Nutrition
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1,278.5
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1,243.5
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1,082.8
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Energy, Sports, and Fitness
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352.0
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308.4
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263.8
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Outer Nutrition
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97.3
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91.9
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93.9
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Literature, Promotional, and Other(3)
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136.8
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142.2
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144.7
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Total net sales
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$
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4,877.1
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$
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4,891.8
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$
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4,427.7
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Net sales by geographic area:
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United States
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$
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1,002.6
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$
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925.9
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$
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818.3
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China
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752.0
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1,007.6
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885.9
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Mexico
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473.6
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467.9
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442.7
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Others
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2,648.9
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2,490.4
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2,280.8
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Total net sales
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$
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4,877.1
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$
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4,891.8
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$
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4,427.7
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(1)
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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.
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(2)
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Service fees to China independent service providers totaling $418.9 million, $523.2 million, and $419.5 million for the years ended December 31, 2019, 2018, and 2017, respectively, are included in selling, general, and administrative expenses.
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(3)
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Product buybacks and returns in all product categories are included in the Literature, Promotional, and Other category.
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| Schedule of Property, Plant and Equipment and Deferred Tax Assets by Geographic Area |
The following table sets forth property, plant, and equipment and deferred tax assets by geographic area:
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December 31,
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2019
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2018
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2017
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(in millions)
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Property, plant, and equipment, net:
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United States
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$
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292.4
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$
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285.2
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$
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289.8
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Foreign
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79.1
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74.8
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87.7
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Total property, plant, and equipment, net
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$
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371.5
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$
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360.0
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$
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377.5
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Deferred tax assets:
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United States
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$
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114.5
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$
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90.7
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$
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103.6
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Foreign
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68.3
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74.9
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70.9
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Total deferred tax assets
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$
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182.8
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$
|
165.6
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$
|
174.5
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