Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

 v2.3.0.11
Segment Information (Tables)
6 Months Ended
Jun. 30, 2011
Segment Information [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2011     2010     2011     2010  
    (In millions)  
Net Sales:
                               
Primary Reporting Segment
                               
United States
  $ 179.4     $ 161.6     $ 341.6     $ 308.3  
Mexico
    113.9       80.9       217.8       152.7  
Others
    535.0       395.1       1,018.3       762.8  
 
                       
Total Primary Reporting Segment
    828.3       637.6       1,577.7       1,223.8  
China
    51.4       51.2       97.1       83.6  
 
                       
Total Net Sales
  $ 879.7     $ 688.8     $ 1,674.8     $ 1,307.4  
 
                       
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
                                 
Contribution Margin(1)(2)(3):
                               
Primary Reporting Segment
                               
United States
  $ 77.7     $ 66.0     $ 146.1     $ 131.1  
Mexico
    51.0       32.2       91.4       57.1  
Others
    245.6       182.4       464.5       333.6  
 
                       
Total Primary Reporting Segment
    374.3       280.6       702.0       521.8  
China
    45.1       46.8       85.4       76.5  
 
                       
Total Contribution Margin
  $ 419.4     $ 327.4     $ 787.4     $ 598.3  
 
                       
Selling, general and administrative expenses
    266.2       211.1       510.8       418.0  
Interest expense, net
    0.9       2.1       3.5       4.1  
 
                       
Income before income taxes
    152.3       114.2       273.1       176.2  
Income taxes
    41.1       32.0       73.9       42.2  
 
                       
Net Income
  $ 111.2     $ 82.2     $ 199.2     $ 134.0  
 
                       
 
     
(1)  
Contribution margin consists of net sales less cost of sales and royalty overrides. See Part I, Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q for a description of net sales, cost of sales and royalty overrides.
 
(2)  
In the third quarter of 2010, the Company changed its method of allocation for certain costs to its business segments. Historical information presented has been reclassified to conform to the current presentation. This change had no effect on the Company’s consolidated statements of income.
 
(3)  
Compensation to China sales employees and service fees to China licensed business providers totaling $23.7 million and $24.3 million for the three months ended June 30, 2011 and 2010, respectively, and $45.5 million and $40.5 million for the six months ended June 30, 2011 and 2010, respectively, is included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.
Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,     June 30,     June 30,  
    2011     2010     2011     2010  
    (In millions)  
Net sales by product line:
                               
Weight Management
  $ 552.3     $ 430.5     $ 1,050.9     $ 817.7  
Targeted Nutrition
    197.3       159.8       377.5       298.4  
Energy, Sports and Fitness
    43.4       30.1       78.9       55.9  
Outer Nutrition
    37.0       31.0       73.6       62.0  
Literature, promotional and other(4)
    49.7       37.4       93.9       73.4  
 
                       
Total Net Sales
  $ 879.7     $ 688.8     $ 1,674.8     $ 1,307.4  
 
                       
     
(4)  
Product buybacks and returns in all product categories are included in the literature, promotional and other category.
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area
                                 
Net sales by geographic region:
                               
North America
  $ 185.2     $ 166.4     $ 352.2     $ 317.7  
Mexico
    113.9       80.9       217.8       152.7  
South and Central America
    130.1       82.8       255.4       174.1  
EMEA
    162.0       135.6       315.9       266.4  
Asia Pacific
    237.1       171.9       436.4       312.9  
China
    51.4       51.2       97.1       83.6  
 
                       
Total Net Sales
  $ 879.7     $ 688.8     $ 1,674.8     $ 1,307.4