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, 2021

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended
	March 31, 2021			March 31, 2020
	(in millions)
Net sales:
Primary Reporting Segment	$	1,332.3		$	1,072.5
China		169.3			189.9
Total net sales	$	1,501.6		$	1,262.4
Contribution margin(1):
Primary Reporting Segment	$	565.7		$	467.1
China(2)		147.6			168.4
Total contribution margin	$	713.3		$	635.5
Selling, general, and administrative expenses(2)		506.7			549.0
Other operating income		(15.9	)		(9.1	)
Interest expense, net		37.5			25.0
Income before income taxes		185.0			70.6
Income taxes		37.6			25.0
Net income	$	147.4		$	45.6

(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 $95.0 million and $105.7 million for the three months ended March 31, 2021 and 2020, 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, 2021		March 31, 2020
	(in millions)
Net sales:
United States	$	348.6	$	271.9
China		169.3		189.9
Mexico		118.2		114.9
Others		865.5		685.7
Total net sales	$	1,501.6	$	1,262.4