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

Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Reconciliation of revenue from segments to consolidated


	Three Months Ended				Six Months Ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	218.1	$	179.4	$	422.6	$	341.6
Mexico		119.5		113.9		236.6		217.8
South Korea		112.5		88.4		205.6		150.5
Others		504.7		446.6		997.3		867.8

Total Primary Reporting Segment		954.8		828.3		1,862.1		1,577.7
China		77.1		51.4		134.0		97.1

Total Net Sales	$	1,031.9	$	879.7	$	1,996.1	$	1,674.8

Reconciliation of operating profit (loss) from segments to consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States	$	93.6	$	77.7	$	189.0	$	146.1
Mexico		49.0		51.0		92.9		91.4
South Korea		55.0		44.3		97.0		71.5
Others		226.1		201.3		443.9		393.0

Total Primary Reporting Segment		423.7		374.3		822.8		702.0
China		69.4		45.1		120.6		85.4

Total Contribution Margin	$	493.1	$	419.4	$	943.4	$	787.4

Selling, general and administrative expenses(2)		306.3		266.2		602.7		510.8
Interest expense, net		3.2		0.9		4.5		3.5

Income before income taxes		183.6		152.3		336.2		273.1
Income taxes		50.2		41.1		94.7		73.9

Net Income	$	133.4	$	111.2	$	241.5	$	199.2

(1)	Contribution margin consists of net sales less cost of sales and royalty overrides. See Part I, Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q for a description of net sales, cost of sales and royalty overrides.

(2)

Compensation to China sales employees and service fees to China independent service providers totaling $33.5 million and $23.7 million for the three months ended June 30, 2012 and 2011, respectively, and totaling $59.3 million and $45.5 million for the six months ended June 30, 2012 and 2011, respectively, are included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.

Schedule of entity-wide information, revenue from external customers by products and services

Net sales by product line:
Weight Management	$	646.8	$	552.3	$	1,248.6	$	1,050.9
Targeted Nutrition		241.0		197.3		465.9		377.5
Energy, Sports and Fitness		52.5		43.4		100.6		78.9
Outer Nutrition		37.7		37.0		74.4		73.6
Literature, promotional and other(3)		53.9		49.7		106.6		93.9

Total Net Sales	$	1,031.9	$	879.7	$	1,996.1	$	1,674.8

(3)	Product buybacks and returns in all product categories are included in the literature, promotional and other category.

Schedule of revenue from external customers attributed to foreign countries by geographic area

Net sales by geographic region:
North America	$	224.7	$	185.2	$	435.4	$	352.2
Mexico		119.5		113.9		236.6		217.8
South and Central America		152.5		130.1		318.0		255.4
EMEA		161.6		162.0		315.6		315.9
Asia Pacific		296.5		237.1		556.5		436.4
China		77.1		51.4		134.0		97.1

Total Net Sales	$	1,031.9	$	879.7	$	1,996.1	$	1,674.8

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

+ References + Details

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details