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, 2015

At December 31, 2015 and 2014, the Company’s net property, plant and equipment consisted of the following (in millions):

	December 31,
	2015			2014
Property, plant and equipment — at cost:(1)
Land and Building	$	22.2		$	22.2
Furniture and fixtures		25.0			25.6
Equipment		652.4			630.4
Building and leasehold improvements		177.0			171.8
		876.6			850.0
Less: accumulated depreciation and amortization(1)		(537.4	)		(483.3	)
Net property, plant and equipment	$	339.2		$	366.7

(1)

At year-end 2015, the Company determined that property, plant and equipment at cost and accumulated depreciation as of December 31, 2014, as previously reported, were each understated by approximately $90 million. These understatements offset one another and did not have an impact on the Company’s net property plant and equipment balances and consolidated balance sheets as of December 31, 2014 and 2013. This did not have any impact to the Company’s operating results or cash flows for the years ended December 31, 2014, 2013 and 2012, including the interim periods within those years. Property, plant and equipment at cost and accumulated depreciation as of December 31, 2014, in the table above have been revised to correct for the immaterial impact of these offsetting understatements for comparative purposes.

Components of Accumulated Other Comprehensive Income (Loss)

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

	December 31,
	2015			2014			2013
Foreign currency translation adjustment, net of tax	$	(183.0	)	$	(96.4	)	$	(25.6	)
Unrealized gain on derivatives, net of tax		17.4			18.0			5.7
Unrealized gain on available-for-sale investments, net of tax		0.1			0.2			0.1
Total accumulated other comprehensive loss	$	(165.5	)	$	(78.2	)	$	(19.8	)

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 millions):

	Year Ended December 31,
	2015		2014		2013
Weighted average shares used in basic computations		82.6		86.3		102.6
Dilutive effect of exercise of equity grants outstanding		2.7		4.5		4.8
Weighted average shares used in diluted computations		85.3		90.8		107.4