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Income Taxes
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6 Months Ended |
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Jun. 30, 2014
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
8. Income Taxes Income taxes were $55.4 million and $90.2 million for the three and six months ended June 30, 2014, respectively, as compared to $43.6 million and $88.3 million for the same periods in 2013. The effective income tax rate was 31.6% and 31.7% for the three and six months ended June 30, 2014, respectively, as compared to 23.4% and 25.2% for the same periods in 2013. The increase in the effective tax rate for the three and six months ended June 30, 2014, as compared to the same periods in 2013, was primarily due to the inability to fully realize a tax benefit relating to Herbalife Ltd.’s interest expense and Herbalife Venezuela’s foreign exchange losses, the impact of changes in the geographic mix of the Company’s income, and a decrease in net benefits from discrete events, principally related to favorable tax audit settlements in the comparative 2013 periods. As of June 30, 2014, the total amount of unrecognized tax benefits, including related interest and penalties was $40.4 million. If the total amount of unrecognized tax benefits was recognized, $32.9 million of unrecognized tax benefits, $4.5 million of interest and $1.0 million of penalties would impact the effective tax rate. The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $9.9 million within the next twelve months. Of this possible decrease, $6.4 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $3.5 million would be due to the expiration of statute of limitations in various jurisdictions. |