| Schedule of Segment Reporting Information by Segment, Sales by Product Line, and Sales by Geographic Area |
Operating information for the two reportable segments, sales by product line, and sales by geographic area are as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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(in millions) |
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Net sales: |
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Primary Reporting Segment |
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$ |
4,758.4 |
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$ |
4,695.5 |
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$ |
4,735.0 |
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China |
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279.1 |
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297.6 |
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327.4 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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Significant segment expenses |
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Cost of Sales: |
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Primary Reporting Segment |
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$ |
1,077.0 |
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$ |
1,060.9 |
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$ |
1,141.0 |
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China |
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37.6 |
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43.4 |
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50.0 |
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Total cost of sales |
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$ |
1,114.6 |
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$ |
1,104.3 |
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$ |
1,191.0 |
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Selling expenses: |
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Primary Reporting Segment (2) |
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$ |
1,644.2 |
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$ |
1,630.3 |
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$ |
1,656.2 |
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China (3) |
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138.2 |
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152.5 |
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168.0 |
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Total selling expenses |
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$ |
1,782.4 |
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$ |
1,782.8 |
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$ |
1,824.2 |
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Contribution margin(1): |
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Primary Reporting Segment |
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$ |
2,037.2 |
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$ |
2,004.3 |
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$ |
1,937.8 |
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China |
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103.3 |
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101.7 |
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109.4 |
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Total contribution margin |
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$ |
2,140.5 |
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$ |
2,106.0 |
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$ |
2,047.2 |
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General and administrative expenses |
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1,664.3 |
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1,725.6 |
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1,701.0 |
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Other operating income |
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(4.8 |
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(5.5 |
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(10.2 |
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Interest expense |
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214.4 |
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218.3 |
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165.9 |
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Interest income |
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8.5 |
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12.3 |
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11.5 |
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Other expense (income), net |
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— |
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10.5 |
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(1.0 |
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Income before income taxes |
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275.1 |
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169.4 |
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203.0 |
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Income taxes |
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47.3 |
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(84.9 |
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60.8 |
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Net income |
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$ |
227.8 |
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$ |
254.3 |
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$ |
142.2 |
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Net sales by product line: |
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Weight Management |
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$ |
2,746.7 |
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$ |
2,768.1 |
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$ |
2,851.7 |
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Targeted Nutrition |
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1,509.6 |
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1,484.3 |
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1,480.0 |
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Energy, Sports, and Fitness |
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617.1 |
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572.2 |
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560.3 |
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Outer Nutrition |
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85.0 |
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83.6 |
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82.5 |
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Literature, Promotional, and Other |
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79.1 |
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84.9 |
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87.9 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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Net sales by geographic area: |
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United States |
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$ |
1,006.4 |
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$ |
1,026.0 |
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$ |
1,100.5 |
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China |
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279.1 |
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297.6 |
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327.4 |
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India |
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889.6 |
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844.8 |
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796.6 |
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Mexico |
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557.7 |
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538.6 |
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525.0 |
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Vietnam |
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278.2 |
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283.7 |
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279.0 |
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Others |
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2,026.5 |
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2,002.4 |
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2,033.9 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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(1)Contribution margin consists of net sales less cost of sales and selling expenses.
(2)
For the Primary Reporting Segment, selling expenses consists of Member compensation, which was previously presented as Royalty Overrides, as described further in Note 2, Basis of Presentation. Prior period amounts have been revised to reflect the current period presentation.
(3)
In China, selling expenses primarily consists of service fees to China independent service providers, which totaled $135.8 million, $149.8 million, and $165.0 million for the years ended December 31, 2025, 2024, and 2023, respectively, as described further in Note 2, Basis of Presentation.
(4)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
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| Schedule of Property, Plant and Equipment and Deferred Income Tax Assets by Geographic Area |
The following table sets forth property, plant, and equipment and deferred income tax assets by geographic area:
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December 31, |
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2025 |
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2024 |
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2023 |
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(in millions) |
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Property, plant, and equipment, net: |
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United States |
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$ |
399.7 |
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$ |
409.9 |
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$ |
437.6 |
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Foreign |
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48.0 |
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50.3 |
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68.9 |
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Total property, plant, and equipment, net |
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$ |
447.7 |
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$ |
460.2 |
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$ |
506.5 |
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Deferred income tax assets: |
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United States |
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$ |
297.5 |
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$ |
273.2 |
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$ |
209.1 |
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Foreign |
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271.3 |
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228.6 |
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78.7 |
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Total deferred income tax assets |
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$ |
568.8 |
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$ |
501.8 |
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$ |
287.8 |
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