Herbalife Ltd. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Leases (Tables)

Leases (Tables)

12 Months Ended

Dec. 31, 2025

Summary of Lease Assets and Liabilities Recognized Within Consolidated Balance Sheets

Leases with an initial term of twelve months or less are not recorded on the Company’s consolidated balance sheets, and generally, the Company does not separate nonlease components from lease components. The Company’s lease assets and liabilities recognized within its consolidated balance sheets were as follows:


	December 31,
	2025		2024		Balance Sheet Location
	(in millions)
ASSETS:
Operating lease right-of-use assets	$	168.3	$	185.7	Operating lease right-of-use assets(1)
Finance lease right-of-use assets		2.4		1.9	Property, plant, and equipment, at cost, net of accumulated depreciation and amortization(2)
Total lease assets	$	170.7	$	187.6
LIABILITIES:
Current:
Operating lease liabilities	$	35.5	$	39.7	Other current liabilities
Finance lease liabilities		0.9		0.8	Current portion of long-term debt
Non-current:
Operating lease liabilities		155.7		169.5	Non-current operating lease liabilities
Finance lease liabilities		1.6		1.2	Long-term debt, net of current portion
Total lease liabilities	$	193.7	$	211.2

(1)

Operating lease right-of-use assets in United States are $99.0 million and $112.9 million, and in foreign jurisdictions are $69.3 million and $72.8 million, as of December 31, 2025 and 2024, respectively.

(2)

Finance lease assets are recorded net of accumulated amortization of $4.5 million and $3.8 million as of December 31, 2025 and 2024, respectively.

Summary of Lease Cost Recognized Over the Lease Term

Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost are as follows:


	Year Ended December 31,
	2025		2024		2023
	(in millions)
Operating lease cost(1)(2)	$	66.2	$	62.1	$	61.3
Finance lease cost
Amortization of right-of-use assets		0.8		0.8		0.6
Interest on lease liabilities		0.1		0.1		0.1
Net lease cost	$	67.1	$	63.0	$	62.0

(1)

Includes short-term leases and variable lease costs, which were $7.1 million and $4.8 million, respectively, for the year ended December 31, 2025, $6.2 million and $3.6 million, respectively, for the year ended December 31, 2024, and $6.2 million and $3.2 million, respectively, for the year ended December 31, 2023. Variable lease costs, which include items such as real estate taxes, common area maintenance, and changes based on an index or rate, are not included in the calculation of the right-of-use assets and are recognized as incurred.

(2)

Amount includes $62.0 million, $57.3 million, and $56.7 million recorded to general and administrative expenses within the Company’s consolidated statements of income for the years ended December 31, 2025, 2024, and 2023, respectively, and $4.2 million, $4.8 million, and $4.6 million capitalized as part of the cost of another asset, which includes inventories, for the years ended December 31, 2025, 2024, and 2023, respectively.

Summary of Annual Scheduled Lease Payments

As of December 31, 2025, annual scheduled lease payments were as follows:


	Operating Leases(1)		Finance Leases
	(in millions)
2026	$	46.7	$	1.1
2027		42.2		0.8
2028		33.7		0.5
2029		29.6		0.3
2030		24.7		0.2
Thereafter		67.0		—
Total lease payments		243.9		2.9
Less: imputed interest		52.7		0.4
Present value of lease liabilities	$	191.2	$	2.5

(1)

Operating lease payments exclude $2.4 million of legally binding minimum lease payments for leases signed but not yet commenced.

Summary of Weighted-average Remaining Lease Term and Weighted-average Discount Rate

The weighted-average remaining lease term and weighted-average discount rate used to calculate the present value of lease liabilities are as follows:


	December 31,
	2025			2024			2023
Weighted-average remaining lease term:
Operating leases	6.4 years			6.3 years			6.7 years
Finance leases	3.3 years			2.8 years			2.5 years
Weighted-average discount rate:
Operating leases		7.1	%		5.8	%		5.2	%
Finance leases		9.1	%		7.6	%		5.5	%

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
	2025		2024		2023
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	55.7	$	54.0	$	52.0
Operating cash flows for finance leases		0.1		0.1		0.1
Financing cash flows for finance leases		0.9		0.9		0.6
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		21.5		46.4		19.5
Finance leases		1.3		1.2		1.1