| Reconciliation of Revenue from Segments to Consolidated |
Operating information for the two reportable segments is as follows:
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Three Months Ended |
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Nine Months Ended |
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September 30,
2023 |
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September 30,
2022 |
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September 30,
2023 |
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September 30,
2022 |
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(in millions) |
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Net sales: |
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Primary Reporting Segment |
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$ |
1,191.8 |
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$ |
1,184.5 |
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$ |
3,602.2 |
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$ |
3,703.7 |
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China |
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|
89.5 |
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|
110.6 |
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|
245.2 |
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|
|
319.9 |
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Total net sales |
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$ |
1,281.3 |
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|
$ |
1,295.1 |
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|
$ |
3,847.4 |
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|
$ |
4,023.6 |
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Contribution margin(1): |
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Primary Reporting Segment |
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$ |
486.1 |
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|
$ |
500.8 |
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$ |
1,476.2 |
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$ |
1,539.3 |
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China |
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|
75.9 |
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|
|
94.8 |
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|
206.0 |
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|
275.2 |
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Total contribution margin |
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$ |
562.0 |
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$ |
595.6 |
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$ |
1,682.2 |
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$ |
1,814.5 |
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Selling, general, and administrative expenses(1) |
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|
455.3 |
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|
448.2 |
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|
1,391.7 |
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|
1,373.1 |
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Other operating income |
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— |
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— |
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(10.1 |
) |
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(14.9 |
) |
Interest expense, net |
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38.5 |
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|
34.5 |
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|
116.3 |
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|
95.9 |
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Other income, net |
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(1.0 |
) |
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— |
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(1.0 |
) |
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|
— |
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Income before income taxes |
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|
69.2 |
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|
112.9 |
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|
185.3 |
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|
360.4 |
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Income taxes |
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26.4 |
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|
30.7 |
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|
53.3 |
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|
93.5 |
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Net income |
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$ |
42.8 |
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$ |
82.2 |
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$ |
132.0 |
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$ |
266.9 |
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(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 $45.6 million and $55.3 million for the three months ended September 30, 2023 and 2022, respectively, and $123.8 million and $161.7 million for the nine months ended September 30, 2023 and 2022, respectively.
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| Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area |
The following table sets forth net sales by geographic area:
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Three Months Ended |
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Nine Months Ended |
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September 30,
2023 |
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September 30,
2022 |
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September 30,
2023 |
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September 30,
2022 |
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(in millions) |
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Net sales: |
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United States |
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$ |
270.1 |
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$ |
308.8 |
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|
$ |
854.6 |
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$ |
959.4 |
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India |
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|
215.9 |
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|
|
192.9 |
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|
|
583.9 |
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|
508.5 |
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Mexico |
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137.3 |
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|
114.8 |
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|
403.6 |
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|
357.1 |
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China |
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89.5 |
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110.6 |
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245.2 |
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319.9 |
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Others |
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568.5 |
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568.0 |
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1,760.1 |
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|
1,878.7 |
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Total net sales |
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$ |
1,281.3 |
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$ |
1,295.1 |
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$ |
3,847.4 |
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$ |
4,023.6 |
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