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

Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Deficit (Tables)

Shareholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Changes in Shareholders' Deficit

Changes in shareholders’ deficit for the three months ended March 31, 2022 and 2021 were as follows:


	Three Months Ended March 31, 2022
	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, 2021	$	0.1	$	(328.9	)	$	318.1		$	(211.8	)	$	(1,169.0	)	$	(1,391.5	)
Issuance of 1.0 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other		—					1.1									1.1
Additional capital from share-based compensation							12.4									12.4
Repurchases of 3.0 common shares		—					(21.9	)					(94.3	)		(116.2	)
Net income													98.2			98.2
Foreign currency translation adjustment, net of income taxes of $—										4.4						4.4
Unrealized loss on derivatives, net of income taxes of $—										(2.6	)					(2.6	)
Cumulative effect of accounting change relating to adoption of ASU 2020-06							(136.7	)					77.6			(59.1	)
Balance as of March 31, 2022	$	0.1	$	(328.9	)	$	173.0		$	(210.0	)	$	(1,087.5	)	$	(1,453.3	)


	Three Months Ended March 31, 2021
	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, 2020	$	0.1	$	(328.9	)	$	342.3		$	(182.2	)	$	(687.4	)	$	(856.1	)
Issuance of 1.3 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other		—					0.9									0.9
Additional capital from share-based compensation							13.3									13.3
Repurchases of 13.4 common shares		—					(57.8	)					(587.2	)		(645.0	)
Net income													147.4			147.4
Foreign currency translation adjustment, net of income taxes of $1.5										(23.7	)					(23.7	)
Unrealized gain on derivatives, net of income taxes of $—										0.9						0.9
Balance as of March 31, 2021	$	0.1	$	(328.9	)	$	298.7		$	(205.0	)	$	(1,127.2	)	$	(1,362.3	)

Summary of Changes in Accumulated Other Comprehensive Loss

The following table summarizes changes in accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021:


	Changes in Accumulated Other Comprehensive Loss by Component
	Three Months Ended
	March 31, 2022									March 31, 2021
	Foreign Currency Translation Adjustments			Unrealized Loss on Derivatives			Total			Foreign Currency Translation Adjustments			Unrealized (Loss) Gain on Derivatives			Total
	(in millions)
Beginning balance	$	(211.6	)	$	(0.2	)	$	(211.8	)	$	(178.4	)	$	(3.8	)	$	(182.2	)
Other comprehensive income (loss) before reclassifications, net of tax		4.4			(2.6	)		1.8			(23.7	)		0.6			(23.1	)
Amounts reclassified from accumulated other comprehensive loss to income, net of tax(1)		—			—			—			—			0.3			0.3
Total other comprehensive income (loss), net of reclassifications		4.4			(2.6	)		1.8			(23.7	)		0.9			(22.8	)
Ending balance	$	(207.2	)	$	(2.8	)	$	(210.0	)	$	(202.1	)	$	(2.9	)	$	(205.0	)

(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, 2022 and 2021.