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)

6 Months Ended

Jun. 30, 2013

Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	(In millions)
Net Sales:
Primary Reporting Segment
United States	$	241.7	$	218.1	$	457.9	$	422.6
Mexico		145.6		119.5		278.5		236.6
South Korea		112.0		112.5		222.0		205.6
Others		601.9		504.7		1,197.9		997.3

Total Primary Reporting Segment		1,101.2		954.8		2,156.3		1,862.1
China		118.0		77.1		186.6		134.0

Total Net Sales	$	1,219.2	$	1,031.9	$	2,342.9	$	1,996.1

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Contribution Margin(1)(2):
Primary Reporting Segment
United States	$	99.5	$	93.6	$	194.2	$	189.0
Mexico		64.0		49.0		122.6		92.9
South Korea		56.4		55.0		111.6		97.0
Others		266.8		226.1		531.3		444.0

Total Primary Reporting Segment		486.7		423.7		959.7		822.9
China		105.8		69.4		166.3		120.6

Total Contribution Margin	$	592.5	$	493.1	$	1,126.0	$	943.5

Selling, general and administrative expenses(2)		400.1		306.3		764.8		602.7
Interest expense, net		5.6		3.2		10.9		4.5

Income before income taxes		186.8		183.6		350.3		336.3
Income taxes		43.6		51.6		88.3		96.4

Net Income	$	143.2	$	132.0	$	262.0	$	239.9

(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 the Original 10-Q for a description of net sales, cost of sales and royalty overrides.

(2)

Service fees to China independent service providers totaling $53.2 million and $33.5 million for the three months ended June 30, 2013 and 2012, respectively, and totaling $84.7 million and $59.3 million for the six months ended June 30, 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	$	778.2	$	646.8	$	1,489.8	$	1,248.6
Targeted Nutrition		277.5		241.0		534.4		465.9
Energy, Sports and Fitness		65.1		52.5		123.4		100.6
Outer Nutrition		37.8		37.7		76.0		74.4
Literature, promotional and other(3)		60.6		53.9		119.3		106.6

Total Net Sales	$	1,219.2	$	1,031.9	$	2,342.9	$	1,996.1

(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	$	247.5	$	224.7	$	469.0	$	435.4
Mexico		145.6		119.5		278.5		236.6
South and Central America		222.5		152.5		441.9		318.0
EMEA		186.4		161.6		355.9		315.6
Asia Pacific		299.2		296.5		611.0		556.5
China		118.0		77.1		186.6		134.0

Total Net Sales	$	1,219.2	$	1,031.9	$	2,342.9	$	1,996.1