| Reconciliation of Revenue from Segments to Consolidated |
Operating information for the two reportable segments is as follows:
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
1,137.4
|
|
|
$
|
1,053.1
|
|
|
$
|
2,209.9
|
|
|
$
|
2,074.9
|
|
|
China
|
|
|
209.5
|
|
|
|
187.0
|
|
|
|
399.4
|
|
|
|
337.4
|
|
|
Total net sales
|
|
$
|
1,346.9
|
|
|
$
|
1,240.1
|
|
|
$
|
2,609.3
|
|
|
$
|
2,412.3
|
|
|
Contribution margin(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary Reporting Segment
|
|
$
|
480.1
|
|
|
$
|
461.5
|
|
|
$
|
947.2
|
|
|
$
|
899.5
|
|
|
China(2)
|
|
|
187.1
|
|
|
|
168.6
|
|
|
|
355.5
|
|
|
|
301.7
|
|
|
Total contribution margin
|
|
$
|
667.2
|
|
|
$
|
630.1
|
|
|
$
|
1,302.7
|
|
|
$
|
1,201.2
|
|
|
Selling, general, and administrative expenses(2)
|
|
|
480.8
|
|
|
|
477.0
|
|
|
|
1,029.8
|
|
|
|
912.4
|
|
|
Other operating income
|
|
|
(3.3
|
)
|
|
|
—
|
|
|
|
(12.4
|
)
|
|
|
(27.3
|
)
|
|
Interest expense, net
|
|
|
28.8
|
|
|
|
36.3
|
|
|
|
53.8
|
|
|
|
72.4
|
|
|
Other income, net
|
|
|
—
|
|
|
|
(5.9
|
)
|
|
|
—
|
|
|
|
(14.4
|
)
|
|
Income before income taxes
|
|
|
160.9
|
|
|
|
122.7
|
|
|
|
231.5
|
|
|
|
258.1
|
|
|
Income taxes
|
|
|
45.8
|
|
|
|
46.2
|
|
|
|
70.8
|
|
|
|
85.3
|
|
|
Net income
|
|
$
|
115.1
|
|
|
$
|
76.5
|
|
|
$
|
160.7
|
|
|
$
|
172.8
|
|
|
(1)
|
Contribution margin consists of net sales less cost of sales and Royalty overrides. For the China segment, contribution margin does not include service fees to China independent service providers.
|
|
(2)
|
Service fees to China independent service providers totaling $122.2 million and $108.2 million for the three months ended June 30, 2020 and 2019, respectively, and $227.9 million and $184.7 million for the six months ended June 30, 2020 and 2019, respectively, are included in selling, general, and administrative expenses.
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|
| Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area |
The following table sets forth net sales by geographic area:
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
June 30,
2020
|
|
|
June 30,
2019
|
|
|
|
|
(in millions)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
375.3
|
|
|
$
|
272.0
|
|
|
$
|
647.2
|
|
|
$
|
522.7
|
|
|
China
|
|
|
209.5
|
|
|
|
187.0
|
|
|
|
399.4
|
|
|
|
337.4
|
|
|
Mexico
|
|
|
96.4
|
|
|
|
121.2
|
|
|
|
211.3
|
|
|
|
240.5
|
|
|
Others
|
|
|
665.7
|
|
|
|
659.9
|
|
|
|
1,351.4
|
|
|
|
1,311.7
|
|
|
Total net sales
|
|
$
|
1,346.9
|
|
|
$
|
1,240.1
|
|
|
$
|
2,609.3
|
|
|
$
|
2,412.3
|
|
|