Herbalife Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2012

Reconciliation of revenue from segments to consolidated


	Three Months Ended
	March 31, 2012		March 31, 2011
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	204.5	$	162.2
Mexico		117.1		103.9
South Korea		93.1		62.1
Others		492.6		421.2

Total Primary Reporting Segment		907.3		749.4
China		56.9		45.7

Total Net Sales	$	964.2	$	795.1

Reconciliation of operating profit (loss) from segments to consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States	$	95.4	$	68.4
Mexico		43.9		40.4
South Korea		42.0		27.2
Others		218.1		191.6

Total Primary Reporting Segment		399.4		327.6
China		51.2		40.3

Total Contribution Margin	$	450.6	$	367.9

Selling, general and administrative expenses(2)		296.4		244.5
Interest expense, net		1.4		2.6

Income before income taxes		152.8		120.8
Income taxes		44.6		32.8

Net Income	$	108.2	$	88.0

Schedule of entity-wide information, revenue from external customers by products and services

Net sales by product line:
Weight Management	$	601.8	$	498.6
Targeted Nutrition		224.9		180.2
Energy, Sports and Fitness		48.1		35.5
Outer Nutrition		36.7		36.6
Literature, promotional and other(3)		52.7		44.2

Total Net Sales	$	964.2	$	795.1

Schedule of revenue from external customers attributed to foreign countries by geographic area

Net sales by geographic region:
North America	$	210.7	$	167.0
Mexico		117.1		103.9
South and Central America		165.5		125.3
EMEA		154.0		153.9
Asia Pacific		260.0		199.3
China		56.9		45.7

Total Net Sales	$	964.2	$	795.1

(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)

Compensation to China sales employees and service fees to China independent service providers totaling $25.8 million and $21.8 million for the three months ended March 31, 2012 and 2011, respectively, are included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.

(3)	Product buybacks and returns in all product categories are included in the literature, promotional and other category.

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

+ References + Details

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References + Details