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Segment Information | 12 Months Ended
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Dec. 31, 2012
Segment Reporting [Abstract] |
Segment Information | 10. Segment Information The Company is a nutrition company that sells a wide range of weight management products, nutritional supplements and personal care products within one industry segment as defined under FASB ASC Topic 280, Segment Reporting. The Company’s products are manufactured by third party providers and by the Company in its Suzhou, China facility and in its Lake Forest, California facility, and then are sold to independent distributors who both consume and sell Herbalife products to retail consumers or other distributors. Revenues reflect sales of products by the Company to its distributors and are categorized based on geographic location. As of December 31, 2012, the Company sold products in 88 countries throughout the world and was organized and managed by geographic regions. The Company aggregates its operating segments, excluding China, into one reporting segment, or the Primary Reporting Segment, as management believes that the Company’s operating segments have similar operating characteristics and similar long term operating performance. In making this determination, management believes that the operating segments are similar in the nature of the products sold, the product acquisition process, the types of customers to whom products are sold, the methods used to distribute the products, and the nature of the regulatory environment. China has been identified as a separate reporting segment as it does not meet the criteria for aggregation. The operating information for the Primary Reporting Segment and China, and sales by product line are as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In millions) |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |
Primary Reporting Segment: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 816.9 |  |  | $ | 676.9 |  |  | $ | 595.4 |
Mexico |  |  | 496.1 |  |  |  | 436.9 |  |  |  | 334.0 |
South Korea |  |  | 421.4 |  |  |  | 343.5 |  |  |  | 208.9 |
Others |  |  | 2,059.4 |  |  |  | 1,786.4 |  |  |  | 1,411.5 |
Total Primary Reporting Segment |  |  | 3,793.8 |  |  |  | 3,243.7 |  |  |  | 2,549.8 |
China |  |  | 278.5 |  |  |  | 210.8 |  |  |  | 184.4 |
Total Net Sales |  | $ | 4,072.3 |  |  | $ | 3,454.5 |  |  | $ | 2,734.2 |
Contribution Margin(1): |  |  |  |  |  |  |  |  |  |  |  |
Primary Reporting Segment: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 359.5 |  |  | $ | 286.3 |  |  | $ | 257.0 |
Mexico |  |  | 205.6 |  |  |  | 191.1 |  |  |  | 131.7 |
South Korea |  |  | 199.4 |  |  |  | 163.1 |  |  |  | 103.0 |
Others |  |  | 906.5 |  |  |  | 810.0 |  |  |  | 618.5 |
Total Primary Reporting Segment |  |  | 1,671.0 |  |  |  | 1,450.5 |  |  |  | 1,110.2 |
China(2) |  |  | 250.1 |  |  |  | 186.4 |  |  |  | 165.0 |
Total Contribution Margin |  | $ | 1,921.1 |  |  | $ | 1,636.9 |  |  | $ | 1,275.2 |
Selling, general and administrative expense (2) |  |  | 1,259.7 |  |  |  | 1,074.6 |  |  |  | 887.7 |
Interest expense |  |  | 16.7 |  |  |  | 9.9 |  |  |  | 9.7 |
Interest income |  |  | 6.2 |  |  |  | 7.4 |  |  |  | 2.3 |
Income before income taxes |  |  | 650.9 |  |  |  | 559.8 |  |  |  | 380.1 |
Income taxes |  |  | 186.9 |  |  |  | 144.8 |  |  |  | 87.2 |
Net Income |  | $ | 464.0 |  |  | $ | 415.0 |  |  | $ | 292.9 |
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In millions) |
Capital Expenditures: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 81.6 |  |  | $ | 60.4 |  |  | $ | 51.0 |
Mexico |  |  | 2.8 |  |  |  | 3.5 |  |  |  | 2.5 |
South Korea |  |  | 4.1 |  |  |  | 2.1 |  |  |  | 0.4 |
China |  |  | 15.4 |  |  |  | 6.6 |  |  |  | 3.1 |
Others |  |  | 18.9 |  |  |  | 18.3 |  |  |  | 11.1 |
Total Capital Expenditures |  | $ | 122.8 |  |  | $ | 90.9 |  |  | $ | 68.1 |
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In millions) |
Net sales by product line: |  |  |  |  |  |  |  |  |  |  |  |
Weight Management |  | $ | 2,554.9 |  |  | $ | 2,158.7 |  |  | $ | 1,698.9 |
Targeted Nutrition |  |  | 944.8 |  |  |  | 789.6 |  |  |  | 629.2 |
Energy, Sports & Fitness |  |  | 209.4 |  |  |  | 169.8 |  |  |  | 121.3 |
Outer Nutrition |  |  | 146.3 |  |  |  | 147.8 |  |  |  | 127.5 |
Literature, Promotional and Other(3) |  |  | 216.9 |  |  |  | 188.6 |  |  |  | 157.3 |
Total Net Sales |  | $ | 4,072.3 |  |  | $ | 3,454.5 |  |  | $ | 2,734.2 |
Net sales by geographic region: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 841.2 |  |  | $ | 698.6 |  |  | $ | 614.1 |
Mexico |  |  | 496.1 |  |  |  | 436.9 |  |  |  | 334.0 |
South & Central America |  |  | 688.8 |  |  |  | 554.4 |  |  |  | 390.4 |
EMEA |  |  | 627.8 |  |  |  | 615.2 |  |  |  | 527.8 |
Asia Pacific |  |  | 1,139.9 |  |  |  | 938.6 |  |  |  | 683.5 |
China |  |  | 278.5 |  |  |  | 210.8 |  |  |  | 184.4 |
Total Net Sales |  | $ | 4,072.3 |  |  | $ | 3,454.5 |  |  | $ | 2,734.2 |
(1) | Contribution margin consists of net sales less cost of sales and royalty overrides. See Part II, Item 7 —Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Amendment to the Company’s Annual Report on Form 10-K for a description of net sales, cost of sales and royalty overrides.
(2) | Compensation to China sales employees and service fees to China independent service providers totaling $123.5 million, $96.8 million, and $87.3 million for the years ended December 31, 2012, 2011, and 2010, respectively, are included in selling, general and administrative expenses while distributor compensation for all other countries is included in contribution margin.
(3) | Product buybacks and returns in all product categories are included in the literature, promotional and other category.
As of December 31, 2012 and 2011, total assets for the Company’s Primary Reporting Segment were $1,607.2 million and $1,374.3 million, respectively. Total assets for the China segment were $116.9 million and $88.8 million as of December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, goodwill allocated to the Company’s reporting units included in the Company’s Primary Reporting Segment was $102.4 million for both periods. Goodwill allocated to the China segment was $3.1 million as of December 31, 2012 and 2011. As of December 31, 2012, the net property, plant and equipment located in the U.S. and in all foreign countries was $170.9 million and $71.9 million, respectively. As of December 31, 2011, the net property, plant and equipment located in the U.S. and in all foreign countries was $144.2 million and $49.5 million, respectively. As of December 31, 2012, the deferred tax assets related to the U.S. and all foreign countries was $68.4 million and $51.4 million, respectively. As of December 31, 2011, the deferred tax assets related to the U.S. and all foreign countries was $67.3 million and $46.2 million, respectively. The majority of the Company’s foreign subsidiaries designate their local currencies as their functional currency. As of December 31, 2012 and 2011, the total amount of cash held by foreign subsidiaries reported in the Company’s consolidated balance sheet was $321.3 million and $246.0 million, respectively, of which $6.9 million and $9.2 million, respectively, was maintained or invested in U.S. dollars.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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