Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.22.4
Segment Information (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment, Sales by Product Line, and Sales by Geographic Area

Operating information for the two reportable segments, sales by product line, and sales by geographic area are as follows:

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

4,813.4

 

 

$

5,173.3

 

 

$

4,732.2

 

China

 

 

391.0

 

 

 

629.5

 

 

 

809.6

 

Total net sales

 

$

5,204.4

 

 

$

5,802.8

 

 

$

5,541.8

 

Contribution margin(1):

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

2,005.3

 

 

$

2,175.6

 

 

$

1,983.6

 

China

 

 

335.4

 

 

 

554.2

 

 

 

717.5

 

Total contribution margin

 

$

2,340.7

 

 

$

2,729.8

 

 

$

2,701.1

 

Selling, general, and administrative expenses(1)

 

 

1,810.4

 

 

 

2,012.1

 

 

 

2,075.0

 

Other operating income

 

 

(14.9

)

 

 

(16.4

)

 

 

(14.5

)

Interest expense

 

 

139.3

 

 

 

153.1

 

 

 

133.0

 

Interest income

 

 

6.1

 

 

 

4.4

 

 

 

8.8

 

Other (income) expense, net

 

 

(12.8

)

 

 

24.6

 

 

 

 

Income before income taxes

 

 

424.8

 

 

 

560.8

 

 

 

516.4

 

Income taxes

 

 

103.5

 

 

 

113.6

 

 

 

143.8

 

Net income

 

$

321.3

 

 

$

447.2

 

 

$

372.6

 

Net sales by product line:

 

 

 

 

 

 

 

 

 

Weight Management

 

$

2,954.2

 

 

$

3,370.4

 

 

$

3,312.8

 

Targeted Nutrition

 

 

1,512.7

 

 

 

1,636.6

 

 

 

1,527.4

 

Energy, Sports, and Fitness

 

 

550.6

 

 

 

551.8

 

 

 

437.4

 

Outer Nutrition

 

 

85.8

 

 

 

107.8

 

 

 

111.3

 

Literature, Promotional, and Other(2)

 

 

101.1

 

 

 

136.2

 

 

 

152.9

 

Total net sales

 

$

5,204.4

 

 

$

5,802.8

 

 

$

5,541.8

 

Net sales by geographic area:

 

 

 

 

 

 

 

 

 

United States

 

$

1,225.5

 

 

$

1,386.7

 

 

$

1,334.5

 

China

 

 

391.0

 

 

 

629.5

 

 

 

809.6

 

India

 

 

677.1

 

 

 

519.1

 

 

 

349.1

 

Mexico

 

 

474.6

 

 

 

463.7

 

 

 

436.9

 

Others

 

 

2,436.2

 

 

 

2,803.8

 

 

 

2,611.7

 

Total net sales

 

$

5,204.4

 

 

$

5,802.8

 

 

$

5,541.8

 

 

(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 $196.2 million, $350.1 million, and $454.0 million for the years ended December 31, 2022, 2021, and 2020, respectively.

(2) Product buybacks and returns in all product categories are included in the Literature, Promotional, and Other category.

Schedule of Property, Plant and Equipment and Deferred Tax Assets by Geographic Area

The following table sets forth property, plant, and equipment and deferred tax assets by geographic area:

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(in millions)

 

Property, plant, and equipment, net:

 

 

 

 

 

 

 

 

 

United States

 

$

399.9

 

 

$

348.3

 

 

$

303.2

 

Foreign

 

 

86.4

 

 

 

93.8

 

 

 

87.0

 

Total property, plant, and equipment, net

 

$

486.3

 

 

$

442.1

 

 

$

390.2

 

Deferred tax assets:

 

 

 

 

 

 

 

 

 

United States

 

$

170.0

 

 

$

142.6

 

 

$

123.8

 

Foreign

 

 

73.2

 

 

 

78.0

 

 

 

76.6

 

Total deferred tax assets

 

$

243.2

 

 

$

220.6

 

 

$

200.4