Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Reconciliation of Revenue from Segments to Consolidated

	Three Months Ended				Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
	(In millions)
Net Sales:
Primary Reporting Segment	$	878.0	$	1,074.9	$	2,744.8	$	3,337.8
China		224.9		181.3		625.8		487.2
Total Net Sales	$	1,102.9	$	1,256.2	$	3,370.6	$	3,825.0

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):
Primary Reporting Segment	$	390.5	$	476.0		$	1,209.3	$	1,487.2
China		200.8		161.3			563.3		438.0
Total Contribution Margin	$	591.3	$	637.3		$	1,772.6	$	1,925.2
Selling, general and administrative expenses(2)		429.7		609.7			1,331.6		1,573.7
Interest expense, net		24.1		19.9			69.3		56.2
Other expense, net		—		9.8			2.3		13.0
Income before income taxes		137.5		(2.1	)		369.4		282.3
Income taxes		43.9		(13.3	)		114.8		76.9
Net Income	$	93.6	$	11.2		$	254.6	$	205.4

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

(2)

Service fees to China independent service providers totaling $105.9 million and $86.6 million for the three months ended September 30, 2015 and 2014, respectively, and totaling $299.0 million and $229.1 million for the nine months ended September 30, 2015 and 2014, respectively, are included in selling, general and administrative expenses while Member compensation for all other countries is included in contribution margin.

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				Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
	(In millions)
Net Sales:
United States	$	214.7	$	218.4	$	661.5	$	705.7
Mexico		113.4		143.9		366.2		435.2
South Korea		65.2		121.3		214.3		338.2
China		224.9		181.3		625.8		487.2
Others		484.7		591.3		1,502.8		1,858.7
Total Net Sales	$	1,102.9	$	1,256.2	$	3,370.6	$	3,825.0