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)

3 Months Ended

Mar. 31, 2023

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended
	March 31, 2023			March 31, 2022
	(in millions)
Net sales:
Primary Reporting Segment	$	1,184.4		$	1,230.2
China		67.7			105.6
Total net sales	$	1,252.1		$	1,335.8
Contribution margin(1):
Primary Reporting Segment	$	482.5		$	504.4
China		55.0			90.5
Total contribution margin	$	537.5		$	594.9
Selling, general, and administrative expenses(1)		475.9			454.9
Other operating income		(8.9	)		(13.1	)
Interest expense, net		39.4			29.7
Income before income taxes		31.1			123.4
Income taxes		1.8			25.2
Net income	$	29.3		$	98.2

(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 $33.7 million and $54.2 million for the three months ended March 31, 2023 and 2022, 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
	March 31, 2023		March 31, 2022
	(in millions)
Net sales:
United States	$	289.2	$	317.1
India		178.6		152.0
Mexico		127.8		118.4
China		67.7		105.6
Others		588.8		642.7
Total net sales	$	1,252.1	$	1,335.8