Herbalife Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Basis of Presentation (Tables)

Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Effects of Prior Period Errors in Consolidated Financial Statements

The effects of these prior period errors in the consolidated financial statements are as follows:

Consolidated Balance Sheets


	December 31, 2012				December 31, 2011
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Prepaid expenses and other current assets	$	125,425	$	145,624	$	117,073	$	134,605
Deferred income taxes	$	49,339	$	49,339	$	55,615	$	54,949
Total current assets	$	963,848	$	984,047	$	768,819	$	785,685
Total assets	$	1,703,944	$	1,724,143	$	1,446,209	$	1,463,075
Income taxes payable	$	15,854	$	61,325	$	31,415	$	62,283
Total current liabilities	$	716,891	$	762,362	$	548,689	$	579,557
Deferred income taxes	$	62,982	$	62,982	$	72,348	$	70,390
Total liabilities	$	1,283,189	$	1,328,660	$	886,021	$	914,931
Retained earnings	$	148,368	$	123,096	$	305,931	$	293,887
Total shareholders’ equity	$	420,755	$	395,483	$	560,188	$	548,144
Total liabilities and shareholders’ equity	$	1,703,944	$	1,724,143	$	1,446,209	$	1,463,075

Consolidated Statements of Income


	Three months Ended March 31, 2012 (Unaudited)				Three months Ended June 30, 2012 (Unaudited)				Three months Ended September 30, 2012 (Unaudited)
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Income taxes	$	44,570	$	44,801	$	50,169	$	51,586	$	39,518	$	45,424
Net Income	$	108,162	$	107,931	$	133,368	$	131,951	$	117,779	$	111,873
Basic earnings per share	$	0.93	$	0.93	$	1.14	$	1.13	$	1.08	$	1.03
Diluted earnings per share	$	0.88	$	0.88	$	1.10	$	1.09	$	1.04	$	0.98

	Three months Ended December 31, 2012 (Unaudited)				Three months Ended March 31, 2011 (Unaudited)				Three months Ended June 30, 2011 (Unaudited)
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Income taxes	$	39,459	$	45,133	$	32,733	$	31,925	$	41,139	$	43,718
Net Income	$	117,881	$	112,207	$	88,019	$	88,827	$	111,180	$	108,601
Basic earnings per share	$	1.10	$	1.04	$	0.74	$	0.75	$	0.93	$	0.91
Diluted earnings per share	$	1.05	$	1.00	$	0.70	$	0.71	$	0.88	$	0.86


	Three months Ended September 30, 2011 (Unaudited)				Three months Ended December 31, 2011 (Unaudited)
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Income taxes	$	42,980	$	43,543	$	30,349	$	25,634
Net Income	$	108,022	$	107,459	$	105,357	$	110,072
Basic earnings per share	$	0.92	$	0.92	$	0.91	$	0.95
Diluted earnings per share	$	0.87	$	0.86	$	0.86	$	0.90


	Year Ended December 31, 2012				Year Ended December 31, 2011				Year Ended December 31, 2010
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Income taxes	$	173,716	$	186,944	$	147,201	$	144,820	$	80,880	$	87,212
Net Income	$	477,190	$	463,962	$	412,578	$	414,959	$	299,215	$	292,883
Basic earnings per share	$	4.25	$	4.13	$	3.51	$	3.53	$	2.51	$	2.46
Diluted earnings per share	$	4.05	$	3.94	$	3.30	$	3.32	$	2.37	$	2.32

Consolidated Statements of Comprehensive Income


	Year Ended December 31, 2012				Year Ended December 31, 2011				Year Ended December 31, 2010
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Net Income	$	477,190	$	463,962	$	412,578	$	414,959	$	299,215	$	292,883
Total comprehensive income	$	483,304	$	470,076	$	402,054	$	404,435	$	295,326	$	288,994

Consolidated Statements of Changes in Shareholders’ Equity


	Paid-in Capital in Excess of par Value				Retained Earnings				Total Shareholders’ Equity
	As Previously Reported		As Adjusted		As Previously Reported		As Adjusted		As Previously Reported		As Adjusted
	(In thousands, except per share amount)
Balance at December 31, 2009	$	222,882	$	222,882	$	159,705	$	151,612	$	359,311	$	351,218
Excess tax benefit from exercise of stock options, SARs and restricted stock grants	$	8,045	$	9,254					$	8,045	$	9,254
Net income					$	299,215	$	292,883	$	299,215	$	292,883
Balance at December 31, 2010	$	248,693	$	249,902	$	265,686	$	251,261	$	487,212	$	473,996
Excess tax benefit from exercise of stock options, SARs and restricted stock grants	$	27,450	$	26,241					$	27,450	$	26,241
Net income					$	412,578	$	414,959	$	412,578	$	414,959
Balance at December 31, 2011	$	291,950	$	291,950	$	305,931	$	293,887	$	560,188	$	548,144
Net income					$	477,190	$	463,962	$	477,190	$	463,962
Balance at December 31, 2012	$	303,975	$	303,975	$	148,368	$	123,096	$	420,755	$	395,483

Consolidated Statement of Cash Flows


	Year Ended December 31, 2012						Year Ended December 31, 2011						Year Ended December 31, 2010
	As Previously Reported			As Adjusted			As Previously Reported			As Adjusted			As Previously Reported			As Adjusted
	(In thousands, except per share amount)
Net income	$	477,190		$	463,962		$	412,578		$	414,959		$	299,215		$	292,883
Excess tax benefits from share-based payment arrangements	$	(29,684	)	$	(29,684	)	$	(27,450	)	$	(26,241	)	$	(7,728	)	$	(8,937	)
Deferred income taxes	$	(9,050	)	$	(7,758	)	$	(12,984	)	$	(21,271	)	$	(33,313	)	$	(33,338	)
Income taxes	$	16,106		$	28,042		$	42,659		$	48,565		$	(8,807	)	$	(2,450	)
Net cash provided by operating activities	$	567,784		$	567,784		$	509,331		$	510,540		$	389,084		$	387,875
Excess tax benefits from share-based payment arrangements	$	29,684		$	29,684		$	27,450		$	26,241		$	7,728		$	8,937
Net cash used in financing activities	$	(371,241	)	$	(371,241	)	$	(337,799	)	$	(339,008	)	$	(263,162	)	$	(261,953	)

Components of Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss) consisted of the following (in thousands):


	December 31,
	2012			2011			2010
Foreign currency translation adjustment, net of tax	$	(28,788	)	$	(38,609	)	$	(21,852	)
Unrealized loss on derivatives, net of tax		(2,907	)		800			(5,433	)

Total accumulated other comprehensive income (loss)	$	(31,695	)	$	(37,809	)	$	(27,285	)

Common Share Amounts Used to Compute Basic and Diluted Earnings Per Share

The following are the common share amounts used to compute the basic and diluted earnings per share for each period (in thousands):


	Year Ended December 31,
	2012		2011		2010
Weighted average shares used in basic computations		112,359		117,540		119,004
Dilutive effect of exercise of equity grants outstanding		5,457		7,046		7,059
Dilutive effect of warrants		40		260		432

Weighted average shares used in diluted computations		117,856		124,846		126,495

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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