Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.7.0.1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

2017

 

 

June 30,

2016

 

 

June 30,

2017

 

 

June 30,

2016

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

904.2

 

 

$

959.3

 

 

$

1,790.8

 

 

$

1,861.5

 

China

 

 

242.7

 

 

 

242.5

 

 

 

458.2

 

 

 

459.9

 

Total Net Sales

 

$

1,146.9

 

 

$

1,201.8

 

 

$

2,249.0

 

 

$

2,321.4

 

 

Contribution Margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

393.2

 

 

$

405.7

 

 

$

779.8

 

 

$

802.7

 

China(2)

 

 

216.0

 

 

 

223.1

 

 

 

411.8

 

 

 

420.7

 

Total Contribution Margin

 

 

609.2

 

 

 

628.8

 

 

 

1,191.6

 

 

 

1,223.4

 

Selling, general and administrative expenses(2)

 

 

443.2

 

 

 

676.8

 

 

 

881.8

 

 

 

1,103.9

 

Other operating income

 

 

(38.9

)

 

 

(28.1

)

 

 

(38.9

)

 

 

(28.9

)

Interest expense, net

 

 

37.9

 

 

 

23.1

 

 

 

68.1

 

 

 

48.0

 

Income (loss) before income taxes

 

 

167.0

 

 

 

(43.0

)

 

 

280.6

 

 

 

100.4

 

Income taxes

 

 

29.4

 

 

 

(20.1

)

 

 

57.8

 

 

 

27.5

 

Net income (loss)

 

$

137.6

 

 

$

(22.9

)

 

$

222.8

 

 

$

72.9

 

 

 

(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 $104.5 million and $115.7 million for the three months ended June 30, 2017 and 2016, respectively, and $216.1 million and $218.2 million for the six months ended June 30, 2017 and 2016, 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

 

 

Six Months Ended

 

 

 

June 30,

2017

 

 

June 30,

2016

 

 

June 30,

2017

 

 

June 30,

2016

 

 

 

(In millions)

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

213.1

 

 

$

260.8

 

 

$

437.8

 

 

$

501.7

 

Mexico

 

 

115.6

 

 

 

119.3

 

 

 

220.4

 

 

 

229.0

 

China

 

 

242.7

 

 

 

242.5

 

 

 

458.2

 

 

 

459.9

 

Others

 

 

575.5

 

 

 

579.2

 

 

 

1,132.6

 

 

 

1,130.8

 

Total Net Sales

 

$

1,146.9

 

 

$

1,201.8

 

 

$

2,249.0

 

 

$

2,321.4