Herbalife Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Assets and Liabilities Measured at Fair Value

The Company’s derivative assets and liabilities are measured at fair value and consisted of Level 2 inputs and their amounts are shown below at their gross values as of December 31, 2019 and 2018:

	Significant Other Observable Inputs (Level 2) Fair Value as of December 31, 2019		Significant Other Observable Inputs (Level 2) Fair Value as of December 31, 2018		Balance Sheet Location
	(in millions)
ASSETS:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges	$	0.1	$	0.5	Prepaid expenses and other current assets
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts		3.1		2.8	Prepaid expenses and other current assets
	$	3.2	$	3.3
LIABILITIES:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges	$	1.9	$	0.7	Other current liabilities
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts		1.1		1.0	Other current liabilities
	$	3.0	$	1.7

Schedule of Reconciliation of CVR Liability

The following is a reconciliation of the CVR liability reported in Other current liabilities within the Company’s consolidated balance sheet as of December 31, 2019:

	Contingent Value Right
	(in millions)
Fair value as of December 31, 2018	$	15.7
Net unrealized gain(1)		(15.7	)
Fair value as of December 31, 2019	$	—

(1)	Unrealized gains and losses related to the revaluation of the CVR were recorded in other (income) expense, net within the Company’s consolidated statements of income.

Offsetting of Derivative Assets

The following tables summarize the offsetting of the fair values of the Company’s derivative assets and derivative liabilities for presentation in the Company’s consolidated balance sheets as of December 31, 2019 and 2018:

	Offsetting of Derivative Assets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
	(in millions)
December 31, 2019
Foreign exchange currency contracts	$	3.2	$	(1.4	)	$	1.8
Total	$	3.2	$	(1.4	)	$	1.8
December 31, 2018
Foreign exchange currency contracts	$	3.3	$	(1.2	)	$	2.1
Total	$	3.3	$	(1.2	)	$	2.1

Offsetting of Derivative Liabilities

	Offsetting of Derivative Liabilities
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet			Net Amounts of Liabilities Presented in the Balance Sheet
	(in millions)
December 31, 2019
Foreign exchange currency contracts	$	3.0	$	(1.4	)	$	1.6
Total	$	3.0	$	(1.4	)	$	1.6
December 31, 2018
Foreign exchange currency contracts	$	1.7	$	(1.2	)	$	0.5
Total	$	1.7	$	(1.2	)	$	0.5