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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Components of Income before Income Taxes | The components of income before income taxes are as follows (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  | $ | (89.3 | ) |  | $ | 80.9 |  |  | $ | 94.0 |
Foreign |  |  | 454.0 |  |  |  | 405.5 |  |  |  | 327.3 |
Total |  | $ | 364.7 |  |  | $ | 486.4 |  |  | $ | 421.3 |
Components of Income Tax Expense | Income taxes are as follows (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Foreign |  | $ | 127.9 |  |  | $ | 147.0 |  |  | $ | 141.7 |
Federal |  |  | 12.4 |  |  |  | 35.4 |  |  |  | 47.4 |
State |  |  | 0.8 |  |  |  | 3.1 |  |  |  | 8.3 |
|  |  | 141.1 |  |  |  | 185.5 |  |  |  | 197.4 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Foreign |  |  | 12.5 |  |  |  | (13.2 | ) |  |  | (6.0 | )
Federal |  |  | (47.2 | ) |  |  | (23.8 | ) |  |  | (76.5 | )
State |  |  | (1.7 | ) |  |  | (1.2 | ) |  |  | (2.3 | )
|  |  | (36.4 | ) |  |  | (38.2 | ) |  |  | (84.8 | )
|  | $ | 104.7 |  |  | $ | 147.3 |  |  | $ | 112.6 |
Deferred Tax Assets and Liabilities | The significant categories of temporary differences that gave rise to deferred tax assets and liabilities are as follows (tax effected in millions):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Accruals not currently deductible |  | $ | 85.2 |  |  | $ | 84.6 |
Tax loss and credit carryforwards of certain foreign subsidiaries |  |  | 115.1 |  |  |  | 121.4 |
Tax loss and domestic tax credit carryforwards |  |  | 102.6 |  |  |  | 76.7 |
Unremitted foreign earnings |  |  | — |  |  |  | 6.4 |
Deferred compensation plan |  |  | 73.8 |  |  |  | 63.9 |
Accrued vacation |  |  | 6.2 |  |  |  | 5.8 |
Inventory reserve |  |  | 11.2 |  |  |  | 11.5 |
Other |  |  | 2.5 |  |  |  | 3.4 |
Gross deferred income tax assets |  |  | 396.6 |  |  |  | 373.7 |
Less: valuation allowance |  |  | (115.4 | ) |  |  | (121.3 | )
Total deferred income tax assets |  | $ | 281.2 |  |  | $ | 252.4 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  | $ | 112.2 |  |  | $ | 112.8 |
Depreciation/amortization |  |  | 15.9 |  |  |  | 22.1 |
Unremitted foreign earnings |  |  | 5.5 |  |  |  | — |
Other |  |  | 7.7 |  |  |  | 0.9 |
Total deferred income tax liabilities |  |  | 141.3 |  |  |  | 135.8 |
Total net deferred tax assets |  | $ | 139.9 |  |  | $ | 116.6 |
Reconciliation between Provision for Income Taxes at Statutory Rate and Provision for Income Taxes at Effective Tax Rate | The applicable statutory income tax rate in the Cayman Islands was zero for Herbalife Ltd. for the years being reported. For purposes of the reconciliation between the provision for income taxes at the statutory rate and the provision for income taxes at the effective tax rate, a notional 35% tax rate is applied as follows:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | (In millions) |
Tax expense at United States statutory rate |  | $ | 127.7 |  |  | $ | 170.2 |  |  | $ | 147.4 |
Increase (decrease) in tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Differences between U.S. and foreign tax rates on foreign income, including withholding taxes |  |  | (16.6 | ) |  |  | 203.1 |  |  |  | (60.0 | )
U.S. tax (benefit) on foreign income net of foreign tax credits |  |  | (10.2 | ) |  |  | (23.9 | ) |  |  | (73.4 | )
(Decrease) increase in valuation allowances |  |  | (5.6 | ) |  |  | (205.6 | ) |  |  | 85.7 |
State taxes, net of federal benefit |  |  | 0.3 |  |  |  | 1.7 |  |  |  | 4.1 |
Unrecognized tax benefits |  |  | 5.3 |  |  |  | 10.1 |  |  |  | 13.0 |
Other |  |  | 3.8 |  |  |  | (8.3 | ) |  |  | (4.2 | )
Total |  | $ | 104.7 |  |  | $ | 147.3 |  |  | $ | 112.6 |
Changes Occurred in Amount of Unrecognized Tax Benefits | The following changes occurred in the amount of unrecognized tax benefits during the years ended December 31, 2016, 2015, and 2014 (in millions):
|  | Year Ended December 31 2016 |  |  | Year Ended December 31 2015 |  |  | Year Ended December 31 2014 |
Beginning balance of unrecognized tax benefits |  | $ | 49.4 |  |  | $ | 40.5 |  |  | $ | 29.9 |
Additions for current year tax positions |  |  | 9.3 |  |  |  | 11.3 |  |  |  | 9.4 |
Additions for prior year tax positions |  |  | 2.0 |  |  |  | 2.5 |  |  |  | 6.1 |
Reductions for prior year tax positions |  |  | (4.7 | ) |  |  | (0.6 | ) |  |  | (1.0 | )
Reductions for audit settlements |  |  | — |  |  |  | (0.1 | ) |  |  | (0.1 | )
Reductions for the expiration of statutes of limitation |  |  | (4.2 | ) |  |  | (2.8 | ) |  |  | (2.5 | )
Changes due to foreign currency translation adjustments |  |  | (1.3 | ) |  |  | (1.4 | ) |  |  | (1.3 | )
Ending balance of unrecognized tax benefits (excluding interest and penalties) |  | $ | 50.5 |  |  | $ | 49.4 |  |  | $ | 40.5 |
Interest and penalties associated with unrecognized tax benefits |  |  | 11.5 |  |  |  | 8.6 |  |  |  | 6.7 |
Ending balance of unrecognized tax benefits (including interest and penalties) |  | $ | 62.0 |  |  | $ | 58.0 |  |  | $ | 47.2 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
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