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

Segment Information (Tables)

Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended						Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
	(in millions)
Net sales:
Primary Reporting Segment	$	1,376.5		$	1,137.4		$	2,708.8		$	2,209.9
China		175.8			209.5			345.1			399.4
Total net sales	$	1,552.3		$	1,346.9		$	3,053.9		$	2,609.3
Contribution margin(1):
Primary Reporting Segment	$	585.8		$	480.1		$	1,151.5		$	947.2
China(2)		157.5			187.1			305.1			355.5
Total contribution margin	$	743.3		$	667.2		$	1,456.6		$	1,302.7
Selling, general, and administrative expenses(2)		505.9			480.8			1,012.6			1,029.8
Other operating income		(0.5	)		(3.3	)		(16.4	)		(12.4	)
Interest expense, net		36.8			28.8			74.3			53.8
Other expense, net		24.6			—			24.6			—
Income before income taxes		176.5			160.9			361.5			231.5
Income taxes		32.3			45.8			69.9			70.8
Net income	$	144.2		$	115.1		$	291.6		$	160.7

(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 $98.2 million and $122.2 million for the three months ended June 30, 2021 and 2020, respectively, and $193.2 million and $227.9 million for the six months ended June 30, 2021 and 2020, 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				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	(in millions)
Net sales:
United States	$	399.1	$	375.3	$	747.7	$	647.2
China		175.8		209.5		345.1		399.4
Mexico		118.8		96.4		237.0		211.3
Others		858.6		665.7		1,724.1		1,351.4
Total net sales	$	1,552.3	$	1,346.9	$	3,053.9	$	2,609.3