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

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets or liabilities that have recurring measurements and are measured at fair value consisted of Level 2 derivatives and are shown below at their gross values at September 30, 2013, and December 31, 2012:

Fair Value Measurements at Reporting Date


	Derivative Balance Sheet Location	Significant Other Observable Inputs (Level 2) Fair Value at September 30, 2013		Significant Other Observable Inputs (Level 2) Fair Value at December 31, 2012
		(in millions)
ASSETS:
Derivatives designated as cash flow hedging instruments:
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges	Prepaid expenses and other current assets	$	5.6	$	0.5
Derivatives not designated as cash flow hedging instruments:
Foreign exchange currency contracts	Prepaid expenses and other current assets	$	4.9	$	0.7

		$	10.5	$	1.2

LIABILITIES:
Derivatives designated as cash flow hedging instruments:
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges	Accrued expenses	$	4.2	$	3.3
Interest rate swaps	Accrued expenses		—	$	2.0
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	$	0.5	$	1.3

		$	4.7	$	6.6

Offsetting of Derivative Assets

The following tables summarize the offsetting of the fair values of the Company’s derivative assets and derivative liabilities for presentation in the Company’s condensed consolidated balance sheet at September 30, 2013 and December 31, 2012:


	Offsetting of Derivative Assets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
	(In millions)
September 30, 2013
Foreign exchange currency contracts	$	10.5	$	(4.2	)	$	6.3

Total	$	10.5	$	(4.2	)	$	6.3

December 31, 2012
Foreign exchange currency contracts	$	1.2	$	(1.2	)		—

Total	$	1.2	$	(1.2	)		—

Offsetting of Derivative Liabilities

	Offsetting of Derivative Liabilities
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet			Net Amounts of Liabilities Presented in the Balance Sheet
	(In millions)
September 30, 2013
Foreign exchange currency contracts	$	4.7	$	(4.2	)	$	0.5

Total	$	4.7	$	(4.2	)	$	0.5

December 31, 2012
Foreign exchange currency contracts	$	4.6	$	(1.2	)	$	3.4
Interest rate swaps		2.0		—			2.0

Total	$	6.6	$	(1.2	)	$	5.4