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, 2013

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

- 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