Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.4.0.3
Segment Information (Tables)
3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

The operating information for the two reportable segments are as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

2016

 

 

March 31,

2015

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

902.2

 

 

$

941.2

 

China

 

 

217.4

 

 

 

164.2

 

Total Net Sales

 

$

1,119.6

 

 

$

1,105.4

 

 

Contribution Margin(1):

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

397.0

 

 

$

419.0

 

China(2)

 

 

197.6

 

 

 

148.0

 

Total Contribution Margin

 

$

594.6

 

 

$

567.0

 

Selling, general and administrative expenses(2)

 

 

426.3

 

 

 

431.4

 

Interest expense, net

 

 

24.9

 

 

 

21.5

 

Other expense, net

 

 

 

 

 

2.3

 

Income before income taxes

 

 

143.4

 

 

 

111.8

 

Income taxes

 

 

47.6

 

 

 

33.6

 

Net Income

 

$

95.8

 

 

$

78.2

 

 

(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 $102.5 million and $78.7 million for the three months ended March 31, 2016 and 2015, respectively, are included in selling, general and administrative expenses.

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

 

 

 

March 31,

2016

 

 

March 31,

2015

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

United States

 

$

240.9

 

 

$

221.9

 

Mexico

 

 

109.7

 

 

 

123.6

 

China

 

 

217.4

 

 

 

164.2

 

Others

 

 

551.6

 

 

 

595.7

 

Total Net Sales

 

$

1,119.6

 

 

$

1,105.4