|12 Months Ended|
Dec. 31, 2015
|Segment Reporting [Abstract]|
10. Segment Information
The Company is a nutrition company that sells a wide range of weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products. The Company’s products are manufactured by third party providers and by the Company in its Changsha, Hunan, China extraction facility, Suzhou, China facility, Lake Forest, California facility, and Winston-Salem, North Carolina facility, and then are sold to Members who consume and sell Herbalife products to retail consumers or other Members. Revenues reflect sales of products by the Company to its Members and are categorized based on geographic location.
As of December 31, 2015, the Company sold products in 93 countries throughout the world and was organized and managed by six geographic regions: North America, Mexico, South & Central America, EMEA (Europe, Middle East, and Africa), Asia Pacific and China. The Company defines its operating segments as those geographical operations. The Company aggregates its operating segments, excluding China, into a reporting segment, or the Primary Reporting Segment, as management believes that the Company’s operating segments have similar operating characteristics and similar long term operating performance. In making this determination, management believes that the operating segments are similar in the nature of the products sold, the product acquisition process, the types of customers to whom products are sold, the methods used to distribute the products, the nature of the regulatory environment, and their economic characteristics. China has been identified as a separate reporting segment as it does not meet the criteria for aggregation. The Company reviews its net sales and contribution margin by operating segment, and reviews its assets and capital expenditures on a consolidated basis and not by operating segment. Therefore, net sales and contribution margin are presented by reportable segment and assets and capital expenditures by segment are not presented. The operating information for the two reportable segments, and sales by product line are as follows:
As of December 31, 2015 and 2014, goodwill allocated to the Company’s reporting units included in the Company’s Primary Reporting Segment was $88.5 million and $98.8 million, respectively. Goodwill allocated to the China segment was $3.3 million and $3.4 million as of December 31, 2015 and 2014, respectively.
The following table sets forth property, plant and equipment and deferred tax assets by geographic area:
The majority of the Company’s foreign subsidiaries designate their local currencies as their functional currency. As of December 31, 2015 and 2014, the total amount of cash held by foreign subsidiaries reported in the Company’s consolidated balance sheet was $310.5 million and $440.8 million, respectively, of which $19.1 million and $8.3 million, respectively, was maintained or invested in U.S. dollars. At December 31, 2015 and 2014, the total amount of cash and cash equivalents held by the Company’s parent and its U.S. entities was $579.3 million and $204.6 million, respectively.
The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.
Reference 1: http://www.xbrl.org/2003/role/presentationRef