Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.10.0.1
Segment Information (Tables)
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

2018

 

 

September 30,

2017

 

 

September 30,

2018

 

 

September 30,

2017

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

976.3

 

 

$

875.6

 

 

$

2,939.7

 

 

$

2,666.4

 

China

 

 

266.5

 

 

 

209.8

 

 

 

765.5

 

 

 

668.0

 

Total net sales

 

$

1,242.8

 

 

$

1,085.4

 

 

$

3,705.2

 

 

$

3,334.4

 

Contribution margin(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary Reporting Segment

 

$

431.2

 

 

$

375.9

 

 

$

1,286.2

 

 

$

1,155.7

 

China(2)

 

 

249.5

 

 

 

184.0

 

 

 

694.5

 

 

 

595.8

 

Total contribution margin

 

$

680.7

 

 

$

559.9

 

 

$

1,980.7

 

 

$

1,751.5

 

Selling, general, and administrative expenses(2)

 

 

499.4

 

 

 

445.2

 

 

 

1,469.7

 

 

 

1,327.0

 

Other operating income

 

 

(6.0

)

 

 

(4.6

)

 

 

(23.9

)

 

 

(43.5

)

Interest expense, net

 

 

39.9

 

 

 

38.4

 

 

 

124.1

 

 

 

106.5

 

Other expense, net

 

 

30.9

 

 

 

 

 

 

60.0

 

 

 

 

Income before income taxes

 

 

116.5

 

 

 

80.9

 

 

 

350.8

 

 

 

361.5

 

Income taxes

 

 

45.3

 

 

 

26.4

 

 

 

103.1

 

 

 

84.2

 

Net income

 

$

71.2

 

 

$

54.5

 

 

$

247.7

 

 

$

277.3

 

 

 

(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 $135.7 million and $99.5 million for the three months ended September 30, 2018 and 2017, respectively, and $398.3 million and $316.9 million for the nine months ended September 30, 2018 and 2017, 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

 

 

Nine Months Ended

 

 

 

September 30,

2018

 

 

September 30,

2017

 

 

September 30,

2018

 

 

September 30,

2017

 

 

 

(in millions)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

234.5

 

 

$

193.5

 

 

$

716.4

 

 

$

631.3

 

China

 

 

266.5

 

 

 

209.8

 

 

 

765.5

 

 

 

668.0

 

Mexico

 

 

121.2

 

 

 

114.3

 

 

 

353.4

 

 

 

334.7

 

Others

 

 

620.6

 

 

 

567.8

 

 

 

1,869.9

 

 

 

1,700.4

 

Total net sales

 

$

1,242.8

 

 

$

1,085.4

 

 

$

3,705.2

 

 

$

3,334.4