Quarterly report pursuant to Section 13 or 15(d)

Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Detail)

v3.24.2
Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Contribution Margin        
Total Contribution margin $ 541.6 $ 538.2 $ 1,068.9 $ 1,042.0
Selling, general, and administrative expenses excluding service fees to China independent service providers [1],[2],[3] 461.2 416.0 916.6 858.2
Other operating income 0.0 (1.2) 0.0 (10.1)
Interest expense, net 57.7 38.4 95.6 77.8
Other expense, net 10.5 0.0 10.5 0.0
Income before income taxes 12.2 85.0 46.2 116.1
Income taxes 7.5 25.1 17.2 26.9
Net income 4.7 59.9 29.0 89.2
Primary Reporting Segment [Member]        
Contribution Margin        
Total Contribution margin 513.7 507.6 1,014.9 990.1
China [Member]        
Contribution Margin        
Total Contribution margin $ 27.9 30.6 54.0 51.9
Other operating income   $ (1.2) $ 0.0 $ (10.1)
[1] Contribution margin consists of net sales less cost of sales, Royalty overrides, and service fees to our independent service providers in China. For the China segment, contribution margin includes the portion of service fees to China independent service providers that are currently recorded in selling, general, and administrative expenses within the Company's accompanying condensed consolidated statements of income, which totaled $41.1 million and $44.5 million for the three months ended June 30, 2024 and 2023, respectively, and $77.9 million and $78.2 million for the six months ended June 30, 2024 and 2023, respectively.
[2] In the second quarter of 2024, the Company, as part of its restructuring initiatives, which are described further in Note 13, Restructuring Activities, changed its contribution margin presentation for its China segment which now includes expenses related to service fees to the Company's independent service providers in China as described in the footnotes immediately above. Historically, the China contribution margin did not include the portion of service fees that are recognized in selling, general and administrative expenses in the Company’s accompanying condensed consolidated statements of income. Historical information presented in the table above has been reclassified to conform with the current period contribution margin presentation. This change had no impact on the Company's accompanying condensed consolidated statements of income and only impacts this segment note presentation.
[3] Selling, general, and administrative expenses exclude the portion of service fees to China independent service providers that are included in selling, general, and administrative expenses within the Company's accompanying condensed consolidated statements of income as described in footnote (1) above.