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)

9 Months Ended

Sep. 30, 2021

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended					Nine Months Ended
	September 30, 2021		September 30, 2020			September 30, 2021			September 30, 2020
	(in millions)
Net sales:
Primary Reporting Segment	$	1,276.9	$	1,301.8		$	3,985.7		$	3,511.7
China		154.0		220.0			499.1			619.4
Total net sales	$	1,430.9	$	1,521.8		$	4,484.8		$	4,131.1
Contribution margin(1):
Primary Reporting Segment	$	538.8	$	538.2		$	1,690.3		$	1,485.4
China(2)		136.9		197.8			442.0			553.3
Total contribution margin	$	675.7	$	736.0		$	2,132.3		$	2,038.7
Selling, general, and administrative expenses(2)		486.3		529.7			1,498.9			1,559.5
Other operating income		—		(0.6	)		(16.4	)		(13.0	)
Interest expense, net		37.7		35.2			112.0			89.0
Other expense, net		—		—			24.6			—
Income before income taxes		151.7		171.7			513.2			403.2
Income taxes		34.3		33.6			104.2			104.4
Net income	$	117.4	$	138.1		$	409.0		$	298.8

(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 $85.9 million and $124.1 million for the three months ended September 30, 2021 and 2020, respectively, and $279.1 million and $352.0 million for the nine months ended September 30, 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				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
	(in millions)
Net sales:
United States	$	345.3	$	386.7	$	1,093.0	$	1,033.9
China		154.0		220.0		499.1		619.4
Mexico		117.5		110.3		354.5		321.6
Others		814.1		804.8		2,538.2		2,156.2
Total net sales	$	1,430.9	$	1,521.8	$	4,484.8	$	4,131.1