Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.3.0.814
Segment Information (Tables)
9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
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