Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.3.1.900
Segment Information (Tables)
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

The operating information for the two reportable segments, and sales by product line are as follows:

 

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

3,622.8

 

 

$

4,294.3

 

 

$

4,353.7

 

China

 

 

846.2

 

 

 

664.3

 

 

 

471.6

 

Total Net Sales

 

$

4,469.0

 

 

$

4,958.6

 

 

$

4,825.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution Margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

1,598.8

 

 

$

1,908.0

 

 

$

1,941.7

 

China(2)

 

 

762.8

 

 

 

596.6

 

 

 

422.7

 

Total Contribution Margin

 

$

2,361.6

 

 

$

2,504.6

 

 

$

2,364.4

 

Selling, general and administrative expense (2)

 

 

1,778.0

 

 

 

1,991.1

 

 

 

1,629.1

 

Interest expense

 

 

100.5

 

 

 

91.7

 

 

 

26.6

 

Interest income

 

 

5.6

 

 

 

12.5

 

 

 

8.0

 

Other expense, net

 

 

2.3

 

 

 

13.0

 

 

 

 

Income before income taxes

 

 

486.4

 

 

 

421.3

 

 

 

716.7

 

Income taxes

 

 

147.3

 

 

 

112.6

 

 

 

189.2

 

Net Income

 

$

339.1

 

 

$

308.7

 

 

$

527.5

 

 

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

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(In millions)

 

Net sales by product line:

 

 

 

 

 

 

 

 

 

 

 

 

Weight Management

 

$

2,862.8

 

 

$

3,177.0

 

 

$

3,063.7

 

Targeted Nutrition

 

 

1,015.4

 

 

 

1,108.5

 

 

 

1,109.9

 

Energy, Sports & Fitness

 

 

250.9

 

 

 

260.6

 

 

 

254.5

 

Outer Nutrition

 

 

133.0

 

 

 

178.9

 

 

 

157.2

 

Literature, Promotional and Other(3)

 

 

206.9

 

 

 

233.6

 

 

 

240.0

 

Total Net Sales

 

$

4,469.0

 

 

$

4,958.6

 

 

$

4,825.3

 

Net sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

860.0

 

 

$

905.1

 

 

$

886.9

 

Mexico

 

 

479.9

 

 

 

567.9

 

 

 

562.4

 

South Korea

 

 

266.9

 

 

 

416.0

 

 

 

433.7

 

China

 

 

846.2

 

 

 

664.3

 

 

 

471.6

 

Others

 

 

2,016.0

 

 

 

2,405.3

 

 

 

2,470.7

 

Total Net Sales

 

$

4,469.0

 

 

$

4,958.6

 

 

$

4,825.3

 

 

(1)

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

(2)

Service fees to China independent service providers totaling $403.5 million, $312.7 million, and $215.6 million for the years ended December 31, 2015, 2014, and 2013, respectively, are included in selling, general and administrative expenses while Member compensation for all other countries is included in contribution margin.

(3)

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

Schedule of Property, Plant and Equipment and Deferred Tax Assets by Geographic Area

The following table sets forth property, plant and equipment and deferred tax assets by geographic area:

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(In millions)

 

Property, Plant and Equipment, net:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

264.2

 

 

$

289.8

 

 

$

236.0

 

Foreign

 

 

75.0

 

 

 

76.9

 

 

 

82.9

 

Total Property, Plant and Equipment, net

 

$

339.2

 

 

$

366.7

 

 

$

318.9

 

Deferred Tax Assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

188.5

 

 

$

154.3

 

 

$

69.1

 

Foreign

 

 

63.9

 

 

 

63.6

 

 

 

58.7

 

Total Deferred Tax Assets

 

$

252.4

 

 

$

217.9

 

 

$

127.8