Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended				Nine Months Ended
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	223.6	$	202.9	$	681.5	$	625.5
Mexico		141.2		127.5		419.8		364.0
South Korea		111.5		109.3		333.5		314.9
Others		600.5		499.8		1,798.3		1,497.2

Total Primary Reporting Segment		1,076.8		939.5		3,233.1		2,801.6
China		136.7		77.4		323.3		211.4

Total Net Sales	$	1,213.5	$	1,016.9	$	3,556.4	$	3,013.0

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States	$	90.7	$	91.0	$	284.9	$	280.0
Mexico		65.1		54.9		187.7		147.8
South Korea		57.8		53.9		169.4		150.9
Others		265.7		215.5		797.2		659.6

Total Primary Reporting Segment		479.3		415.3		1,439.2		1,238.3
China		122.6		69.7		288.9		190.3

Total Contribution Margin	$	601.9	$	485.0	$	1,728.1	$	1,428.6

Selling, general and administrative expenses(2)		409.7		324.2		1,174.6		926.9
Interest expense, net		4.7		3.5		15.7		8.1

Income before income taxes		187.5		157.3		537.8		493.6
Income taxes		45.5		45.4		133.8		141.8

Net Income	$	142.0	$	111.9	$	404.0	$	351.8

(1)	Contribution margin consists of net sales less cost of sales and royalty overrides.

(2)

Service fees to China independent service providers totaling $61.0 million and $34.4 million for the three months ended September 30, 2013 and 2012, respectively, and totaling $145.7 million and $93.7 million for the nine months ended September 30, 2013 and 2012, respectively, are included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.

Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services

Net sales by product line:
Weight Management	$	772.9	$	635.9	$	2,262.7	$	1,884.5
Targeted Nutrition		280.7		237.4		815.1		703.3
Energy, Sports and Fitness		65.5		54.8		188.9		155.4
Outer Nutrition		36.4		34.2		112.4		108.6
Literature, promotional and other(3)		58.0		54.6		177.3		161.2

Total Net Sales	$	1,213.5	$	1,016.9	$	3,556.4	$	3,013.0

(3)	Product buybacks and returns in all product categories are included in the literature, promotional and other category.

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

Net sales by geographic region:
North America	$	228.7	$	208.8	$	697.6	$	644.2
Mexico		141.2		127.5		419.8		364.0
South and Central America		241.2		167.5		683.1		485.6
EMEA		181.7		147.5		537.6		463.1
Asia Pacific		284.0		288.2		895.0		844.7
China		136.7		77.4		323.3		211.4

Total Net Sales	$	1,213.5	$	1,016.9	$	3,556.4	$	3,013.0