Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2020

Changes in shareholders’ deficit for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31, 2020
	Common Shares		Treasury Stock			Paid-in Capital in Excess of Par Value			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Shareholders' Deficit
	(in millions)
Balance as of December 31, 2019	$	0.1	$	(328.9	)	$	366.6		$	(212.5	)	$	(215.3	)	$	(390.0	)
Issuance of 0.4 common shares from exercise of stock options, SARs, restricted stock units, employee stock purchase plan, and other		—					0.8									0.8
Additional capital from share-based compensation							10.3									10.3
Repurchases of 0.1 common shares		—					(4.7	)								(4.7	)
Net income													45.6			45.6
Foreign currency translation adjustment, net of income taxes of $(2.5)										(57.1	)					(57.1	)
Unrealized loss on derivatives, net of income taxes of $(0.3)										6.6						6.6
Balance as of March 31, 2020	$	0.1	$	(328.9	)	$	373.0		$	(263.0	)	$	(169.7	)	$	(388.5	)

	Three Months Ended March 31, 2019
	Common Shares		Treasury Stock			Paid-in Capital in Excess of Par Value			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Shareholders' Deficit
	(in millions)
Balance as of December 31, 2018	$	0.1	$	(328.9	)	$	341.5		$	(209.8	)	$	(526.3	)	$	(723.4	)
Issuance of 0.4 common shares from exercise of stock options, SARs, restricted stock units, employee stock purchase plan, and other		—					0.6									0.6
Additional capital from share-based compensation							10.6									10.6
Repurchases of 0.1 common shares		—					(7.6	)					—			(7.6	)
Forward Counterparties' delivery of 2.0 common shares to the Company		—					—									—
Reclassification to temporary equity							(11.3	)								(11.3	)
Net income													96.3			96.3
Foreign currency translation adjustment, net of income taxes of $0.5										7.1						7.1
Unrealized loss on derivatives, net of income taxes of $—										(1.4	)					(1.4	)
Balance as of March 31, 2019	$	0.1	$	(328.9	)	$	333.8		$	(204.1	)	$	(430.0	)	$	(629.1	)

The following table summarizes changes in accumulated other comprehensive loss by component during the three months ended March 31, 2020 and 2019:

	Changes in Accumulated Other Comprehensive Loss by Component
	Three Months Ended
	March 31, 2020									March 31, 2019
	Foreign Currency Translation Adjustments			Unrealized (Loss) Gain on Derivatives			Total			Foreign Currency Translation Adjustments			Unrealized Gain (Loss) on Derivatives			Total
	(in millions)
Beginning balance	$	(211.6	)	$	(0.9	)	$	(212.5	)	$	(211.6	)	$	1.8		$	(209.8	)
Other comprehensive (loss) income before reclassifications, net of tax		(57.1	)		6.4			(50.7	)		7.1			(1.0	)		6.1
Amounts reclassified from accumulated other comprehensive loss to income, net of tax(1)		—			0.2			0.2			—			(0.4	)		(0.4	)
Total other comprehensive (loss) income, net of reclassifications		(57.1	)		6.6			(50.5	)		7.1			(1.4	)		5.7
Ending balance	$	(268.7	)	$	5.7		$	(263.0	)	$	(204.5	)	$	0.4		$	(204.1	)

(1)	See Note 9, Derivative Instruments and Hedging Activities, for information regarding the location in the condensed consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive loss into income during the three months ended March 31, 2020 and 2019.