Herbalife Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

Segment Information (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation of Revenue from Segments to Consolidated


	Year Ended December 31,
	2012		2011		2010
	(In millions)
Net Sales:
Primary Reporting Segment:
United States	$	816.9	$	676.9	$	595.4
Mexico		496.1		436.9		334.0
South Korea		421.4		343.5		208.9
Others		2,059.4		1,786.4		1,411.5

Total Primary Reporting Segment		3,793.8		3,243.7		2,549.8
China		278.5		210.8		184.4

Total Net Sales	$	4,072.3	$	3,454.5	$	2,734.2

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1):
Primary Reporting Segment:
United States	$	359.5	$	286.3	$	257.0
Mexico		205.6		191.1		131.7
South Korea		199.4		163.1		103.0
Others		906.5		810.0		618.5

Total Primary Reporting Segment		1,671.0		1,450.5		1,110.2
China(2)		250.1		186.4		165.0

Total Contribution Margin	$	1,921.1	$	1,636.9	$	1,275.2
Selling, general and administrative expense (2)		1,259.7		1,074.6		887.7
Interest expense		16.7		9.9		9.7
Interest income		6.2		7.4		2.3

Income before income taxes		650.9		559.8		380.1
Income taxes		186.9		144.8		87.2

Net Income	$	464.0	$	415.0	$	292.9

(1)

Contribution margin consists of net sales less cost of sales and royalty overrides. See Part II, Item 7 —Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Amendment to the Company’s Annual Report on Form 10-K for a description of net sales, cost of sales and royalty overrides.

(2)

Compensation to China sales employees and service fees to China independent service providers totaling $123.5 million, $96.8 million, and $87.3 million for the years ended December 31, 2012, 2011, and 2010, respectively, are included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.

Capital Expenditures

	Year Ended December 31,
	2012		2011		2010
	(In millions)
Capital Expenditures:
United States	$	81.6	$	60.4	$	51.0
Mexico		2.8		3.5		2.5
South Korea		4.1		2.1		0.4
China		15.4		6.6		3.1
Others		18.9		18.3		11.1

Total Capital Expenditures	$	122.8	$	90.9	$	68.1

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


	Year Ended December 31,
	2012		2011		2010
	(In millions)
Net sales by product line:
Weight Management	$	2,554.9	$	2,158.7	$	1,698.9
Targeted Nutrition		944.8		789.6		629.2
Energy, Sports & Fitness		209.4		169.8		121.3
Outer Nutrition		146.3		147.8		127.5
Literature, Promotional and Other(3)		216.9		188.6		157.3

Total Net Sales	$	4,072.3	$	3,454.5	$	2,734.2

(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


	Year Ended December 31,
	2012		2011		2010
	(In millions)
Net sales by geographic region:
North America	$	841.2	$	698.6	$	614.1
Mexico		496.1		436.9		334.0
South & Central America		688.8		554.4		390.4
EMEA		627.8		615.2		527.8
Asia Pacific		1139.9		938.6		683.5
China		278.5		210.8		184.4

Total Net Sales	$	4072.3	$	3,454.5	$	2,734.2

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

+ References + Details

- Definition

Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount.

+ References + Details

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details