Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v2.4.0.8
Segment Information (Tables)
3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
     Three Months Ended  
     March 31,
2013
     March 31,
2012
 
     (In millions)  

Net Sales:

     

Primary Reporting Segment

     

United States

   $ 216.2       $ 204.5   

Mexico

     132.9         117.1   

South Korea

     110.0         93.1   

Others

     596.0         492.6   
  

 

 

    

 

 

 

Total Primary Reporting Segment

     1,055.1         907.3   

China

     68.5         56.9   
  

 

 

    

 

 

 

Total Net Sales

   $ 1,123.6       $ 964.2   
  

 

 

    

 

 

 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):

     

Primary Reporting Segment

     

United States

   $ 94.7       $ 95.4   

Mexico

     58.6         43.9   

South Korea

     55.2         42.0   

Others

     264.7         218.1   
  

 

 

    

 

 

 

Total Primary Reporting Segment

     473.2         399.4   

China

     60.5         51.2   
  

 

 

    

 

 

 

Total Contribution Margin

   $ 533.7       $ 450.6   
  

 

 

    

 

 

 

Selling, general and administrative expenses(2)

     364.7         296.4   

Interest expense, net

     5.4         1.4   
  

 

 

    

 

 

 

Income before income taxes

     163.6         152.8   

Income taxes

     44.7         44.8   
  

 

 

    

 

 

 

Net Income

   $ 118.9       $ 108.0   
  

 

 

    

 

 

 
(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 Amendment for a description of net sales, cost of sales and royalty overrides.
(2) Service fees to China independent service providers totaling $31.4 million and $25.8 million for the three months ended March 31, 2013 and 2012, respectively, are 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

Net sales by product line:

     

Weight Management

   $ 711.6       $ 601.8   

Targeted Nutrition

     256.9         224.9   

Energy, Sports and Fitness

     58.3         48.1   

Outer Nutrition

     38.2         36.7   

Literature, promotional and other(3)

     58.6         52.7   
  

 

 

    

 

 

 

Total Net Sales

   $ 1,123.6       $ 964.2   
  

 

 

    

 

 

 
(3) 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

   $ 221.5       $ 210.7   

Mexico

     132.9         117.1   

South and Central America

     219.4         165.5   

EMEA

     169.5         154.0   

Asia Pacific

     311.8         260.0   

China

     68.5         56.9   
  

 

 

    

 

 

 

Total Net Sales

   $ 1,123.6       $ 964.2