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, 2023

Summary of Changes in Shareholders' Deficit

Changes in shareholders’ deficit for the three months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31, 2023
	Common Shares		Paid-in Capital in Excess of Par Value			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Shareholders’ Deficit
	(in millions)
Balance as of December 31, 2022	$	0.1	$	188.7		$	(250.2	)	$	(1,204.5	)	$	(1,265.9	)
Issuance of 1.3 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other		—		0.5									0.5
Additional capital from share-based compensation				10.8									10.8
Repurchases of 0.5 common shares		—		(8.7	)					—			(8.7	)
Net income										29.3			29.3
Foreign currency translation adjustment, net of income taxes of $—							13.2						13.2
Unrealized loss on derivatives, net of income taxes of $—							(2.0	)					(2.0	)
Balance as of March 31, 2023	$	0.1	$	191.3		$	(239.0	)	$	(1,175.2	)	$	(1,222.8	)


	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	)

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, 2023 and 2022:


	Changes in Accumulated Other Comprehensive Loss by Component
	Three Months Ended
	March 31, 2023									March 31, 2022
	Foreign Currency Translation Adjustments			Unrealized Loss on Derivatives			Total			Foreign Currency Translation Adjustments			Unrealized Loss on Derivatives			Total
	(in millions)
Beginning balance	$	(248.2	)	$	(2.0	)	$	(250.2	)	$	(211.6	)	$	(0.2	)	$	(211.8	)
Other comprehensive income (loss) before reclassifications, net of tax		13.2			(4.7	)		8.5			4.4			(2.6	)		1.8
Amounts reclassified from accumulated other comprehensive loss to income, net of tax(1)		—			2.7			2.7			—			—			—
Total other comprehensive income (loss), net of reclassifications		13.2			(2.0	)		11.2			4.4			(2.6	)		1.8
Ending balance	$	(235.0	)	$	(4.0	)	$	(239.0	)	$	(207.2	)	$	(2.8	)	$	(210.0	)

(1)

See Note 9, Derivative Instruments and Hedging Activities, for information regarding the location within the condensed consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive loss to income during the three months ended March 31, 2023 and 2022.