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, 2022

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, 2022			June 30, 2021			June 30, 2022			June 30, 2021
	(in millions)
Net sales:
Primary Reporting Segment	$	1,289.0		$	1,376.5		$	2,519.2		$	2,708.8
China		103.7			175.8			209.3			345.1
Total net sales	$	1,392.7		$	1,552.3		$	2,728.5		$	3,053.9
Contribution margin(1):
Primary Reporting Segment	$	534.1		$	585.8		$	1,038.5		$	1,151.5
China		89.9			157.5			180.4			305.1
Total contribution margin	$	624.0		$	743.3		$	1,218.9		$	1,456.6
Selling, general, and administrative expenses(1)		470.0			505.9			924.9			1,012.6
Other operating income		(1.8	)		(0.5	)		(14.9	)		(16.4	)
Interest expense, net		31.7			36.8			61.4			74.3
Other expense, net		—			24.6			—			24.6
Income before income taxes		124.1			176.5			247.5			361.5
Income taxes		37.6			32.3			62.8			69.9
Net income	$	86.5		$	144.2		$	184.7		$	291.6

(1)

Contribution margin consists of net sales less cost of sales and Royalty overrides. For the China segment, contribution margin does not include the portion of service fees to China independent service providers included in selling, general, and administrative expenses, which totaled $52.2 million and $98.2 million for the three months ended June 30, 2022 and 2021, respectively, and $106.4 million and $193.2 million for the six months ended June 30, 2022 and 2021, respectively.

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, 2022		June 30, 2021		June 30, 2022		June 30, 2021
	(in millions)
Net sales:
United States	$	333.5	$	399.1	$	650.6	$	747.7
India		163.6		125.5		315.6		240.2
Mexico		123.9		118.8		242.3		237.0
China		103.7		175.8		209.3		345.1
Others		668.0		733.1		1,310.7		1,483.9
Total net sales	$	1,392.7	$	1,552.3	$	2,728.5	$	3,053.9