XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.23.3

Shareholders' Deficit | 9 Months Ended
--- | ---
Sep. 30, 2023
Equity [Abstract] |
Shareholders' Deficit | 10. Shareholders’ Deficit Changes in shareholders’ deficit for the three months ended September 30, 2023 and 2022 were as follows:
|  | Three Months Ended September 30, 2023 |
|  | Common Shares |  |  | Paid-in Capital in Excess of Par Value |  |  | Accumulated Other Comprehensive Loss |  |  | Accumulated Deficit |  |  | Total Shareholders’ Deficit |
|  | (in millions) |
Balance as of June 30, 2023 |  | $ | 0.1 |  |  | $ | 202.8 |  |  | $ | (238.0 | ) |  | $ | (1,115.3 | ) |  | $ | (1,150.4 | )
Issuance of 0.1 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other |  |  | — |  |  |  | 0.8 |  |  |  |  |  |  |  |  |  | 0.8 |
Additional capital from share-based compensation |  |  |  |  |  | 13.7 |  |  |  |  |  |  |  |  |  | 13.7 |
Repurchases of — common shares |  |  | — |  |  |  | (0.3 | ) |  |  |  |  |  | — |  |  |  | (0.3 | )
Net income |  |  |  |  |  |  |  |  |  |  |  | 42.8 |  |  |  | 42.8 |
Foreign currency translation adjustment, net of income taxes of $(0.3) |  |  |  |  |  |  |  |  | (15.5 | ) |  |  |  |  |  | (15.5 | )
Unrealized gain on derivatives, net of income taxes of $— |  |  |  |  |  |  |  |  | 0.4 |  |  |  |  |  |  | 0.4 |
Other |  |  |  |  |  | 5.0 |  |  |  |  |  |  |  |  |  | 5.0 |
Balance as of September 30, 2023 |  | $ | 0.1 |  |  | $ | 222.0 |  |  | $ | (253.1 | ) |  | $ | (1,072.5 | ) |  | $ | (1,103.5 | )
|  | Three Months Ended September 30, 2022 |
|  | Common Shares |  |  | Treasury Stock |  |  | Paid-in Capital in Excess of Par Value |  |  | Accumulated Other Comprehensive Loss |  |  | Accumulated Deficit |  |  | Total Shareholders’ Deficit |
|  | (in millions) |
Balance as of June 30, 2022 |  | $ | 0.1 |  |  | $ | (328.9 | ) |  | $ | 185.8 |  |  | $ | (243.1 | ) |  | $ | (1,029.3 | ) |  | $ | (1,415.4 | )
Issuance of 0.1 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other |  |  | — |  |  |  |  |  |  | 1.2 |  |  |  |  |  |  |  |  |  | 1.2 |
Additional capital from share-based compensation |  |  |  |  |  |  |  |  | 11.4 |  |  |  |  |  |  |  |  |  | 11.4 |
Repurchases of — common shares |  |  | — |  |  |  |  |  |  | (0.1 | ) |  |  |  |  |  | — |  |  |  | (0.1 | )
Retirement of treasury stock |  |  |  |  |  | 328.9 |  |  |  | (17.3 | ) |  |  |  |  |  | (311.6 | ) |  |  | — |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 82.2 |  |  |  | 82.2 |
Foreign currency translation adjustment, net of income taxes of $0.6 |  |  |  |  |  |  |  |  |  |  |  | (39.6 | ) |  |  |  |  |  | (39.6 | )
Unrealized loss on derivatives, net of income taxes of $— |  |  |  |  |  |  |  |  |  |  |  | (1.6 | ) |  |  |  |  |  | (1.6 | )
Balance as of September 30, 2022 |  | $ | 0.1 |  |  | $ | — |  |  | $ | 181.0 |  |  | $ | (284.3 | ) |  | $ | (1,258.7 | ) |  | $ | (1,361.9 | )
Changes in shareholders’ deficit for the nine months ended September 30, 2023 and 2022 were as follows:
|  | Nine Months Ended September 30, 2023 |
|  | Common Shares |  |  | Paid-in Capital in Excess of Par Value |  |  | Accumulated Other Comprehensive Loss |  |  | Accumulated Deficit |  |  | Total Shareholders’ Deficit |
|  | (in millions) |
Balance as of December 31, 2022 |  | $ | 0.1 |  |  | $ | 188.7 |  |  | $ | (250.2 | ) |  | $ | (1,204.5 | ) |  | $ | (1,265.9 | )
Issuance of 1.6 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other |  |  | — |  |  |  | 2.3 |  |  |  |  |  |  |  |  |  | 2.3 |
Additional capital from share-based compensation |  |  |  |  |  | 35.7 |  |  |  |  |  |  |  |  |  | 35.7 |
Repurchases of 0.5 common shares |  |  | — |  |  |  | (9.7 | ) |  |  |  |  |  | — |  |  |  | (9.7 | )
Net income |  |  |  |  |  |  |  |  |  |  |  | 132.0 |  |  |  | 132.0 |
Foreign currency translation adjustment, net of income taxes of $(0.5) |  |  |  |  |  |  |  |  | (0.7 | ) |  |  |  |  |  | (0.7 | )
Unrealized loss on derivatives, net of income taxes of $(0.1) |  |  |  |  |  |  |  |  | (2.2 | ) |  |  |  |  |  | (2.2 | )
Other |  |  |  |  |  | 5.0 |  |  |  |  |  |  |  |  |  | 5.0 |
Balance as of September 30, 2023 |  | $ | 0.1 |  |  | $ | 222.0 |  |  | $ | (253.1 | ) |  | $ | (1,072.5 | ) |  | $ | (1,103.5 | )
|  | Nine Months Ended September 30, 2022 |
|  | Common Shares |  |  | Treasury Stock |  |  | Paid-in Capital in Excess of Par Value |  |  | Accumulated Other Comprehensive Loss |  |  | Accumulated Deficit |  |  | Total Shareholders’ Deficit |
|  | (in millions) |
Balance as of December 31, 2021 |  | $ | 0.1 |  |  | $ | (328.9 | ) |  | $ | 318.1 |  |  | $ | (211.8 | ) |  | $ | (1,169.0 | ) |  | $ | (1,391.5 | )
Issuance of 1.1 common shares from exercise of SARs, restricted stock units, employee stock purchase plan, and other |  |  | — |  |  |  |  |  |  | 3.4 |  |  |  |  |  |  |  |  |  | 3.4 |
Additional capital from share-based compensation |  |  |  |  |  |  |  |  | 37.5 |  |  |  |  |  |  |  |  |  | 37.5 |
Repurchases of 4.1 common shares |  |  | — |  |  |  |  |  |  | (24.0 | ) |  |  |  |  |  | (122.6 | ) |  |  | (146.6 | )
Retirement of treasury stock |  |  |  |  |  | 328.9 |  |  |  | (17.3 | ) |  |  |  |  |  | (311.6 | ) |  |  | — |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 266.9 |  |  |  | 266.9 |
Foreign currency translation adjustment, net of income taxes of $0.2 |  |  |  |  |  |  |  |  |  |  |  | (67.1 | ) |  |  |  |  |  | (67.1 | )
Unrealized loss on derivatives, net of income taxes of $— |  |  |  |  |  |  |  |  |  |  |  | (5.4 | ) |  |  |  |  |  | (5.4 | )
Cumulative effect of accounting change relating to adoption of ASU 2020-06 |  |  |  |  |  |  |  |  | (136.7 | ) |  |  |  |  |  | 77.6 |  |  |  | (59.1 | )
Balance as of September 30, 2022 |  | $ | 0.1 |  |  | $ | — |  |  | $ | 181.0 |  |  | $ | (284.3 | ) |  | $ | (1,258.7 | ) |  | $ | (1,361.9 | )
Dividends The Company has not declared or paid cash dividends since 2014. The declaration of future dividends is subject to the discretion of the Company’s board of directors and will depend upon various factors, including its earnings, financial condition, Herbalife Ltd.’s available distributable reserves under Cayman Islands law, restrictions imposed by the 2018 Credit Facility and the terms of any other indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by its board of directors. Share Repurchases On February 9, 2021, the Company’s board of directors authorized a new three-year $1.5 billion share repurchase program that will expire on February 9, 2024, which replaced the Company’s prior share repurchase authorization that was set to expire on October 30, 2023 and had approximately $7.9 million of remaining authorized capacity when it was replaced. This share repurchase program allows the Company, which includes an indirect wholly-owned subsidiary of Herbalife Ltd., to repurchase the Company’s common shares at such times and prices as determined by management, as market conditions warrant, and to the extent Herbalife Ltd.’s distributable reserves are available under Cayman Islands law. The 2018 Credit Facility permits the Company to repurchase its common shares as long as no default or event of default exists and other conditions, such as specified consolidated leverage ratios, are met. As of September 30, 2023, the remaining authorized capacity under the Company’s $1.5 billion share repurchase program was approximately $985.5 million. During the nine months ended September 30, 2023, the Company did no t repurchase any of its common shares through open-market purchases. During the nine months ended September 30, 2022, the Company repurchased approximately 3.7 million of its common shares through open-market purchases at an aggregate cost of approximately $131.8 million, or an average cost of $35.73 per share, and subsequently retired these shares. The number of shares issued upon vesting or exercise for certain restricted stock units and SARs granted pursuant to the Company’s share-based compensation plans is net of the statutory withholding requirements that the Company pays on behalf of its employees. Although shares withheld are not issued, they are treated as common share repurchases in the Company’s condensed consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. These shares do not count against the authorized capacity under the Company’s share repurchase program described above. During the three and nine months ended September 30, 2023 and 2022, the Company withheld shares on its vested restricted stock units and exercised SARs relating to its share-based compensation plans. The Company reflects the aggregate purchase price of its common shares repurchased as an increase to shareholders’ deficit. The Company generally allocates the purchase price of the repurchased shares to accumulated deficit, common shares and additional paid-in capital. For the nine months ended September 30, 2023 and 2022, the Company’s share repurchases, inclusive of transaction costs, were zero and $131.8 million, respectively, under the Company’s share repurchase programs, and $9.7 million and $14.8 million, respectively, due to shares withheld for tax purposes related to the Company’s share-based compensation plans. For the nine months ended September 30, 2023 and 2022, the Company’s total share repurchases, including shares withheld for tax purposes, were $9.7 million and $146.6 million, respectively, and have been recorded as an increase to shareholders’ deficit within the Company’s condensed consolidated balance sheets. Accumulated Other Comprehensive Loss The following table summarizes changes in accumulated other comprehensive loss by component during the three months ended September 30, 2023 and 2022:
|  | Changes in Accumulated Other Comprehensive Loss by Component |
|  | Three Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |
|  | Foreign Currency Translation Adjustments |  |  | Unrealized (Loss) Gain on Derivatives |  |  | Total |  |  | Foreign Currency Translation Adjustments |  |  | Unrealized Loss on Derivatives |  |  | Total |
|  | (in millions) |
Beginning balance |  | $ | (233.4 | ) |  | $ | (4.6 | ) |  | $ | (238.0 | ) |  | $ | (239.1 | ) |  | $ | (4.0 | ) |  | $ | (243.1 | )
Other comprehensive loss before reclassifications, net of tax |  |  | (15.5 | ) |  |  | (1.0 | ) |  |  | (16.5 | ) |  |  | (39.6 | ) |  |  | (2.6 | ) |  |  | (42.2 | )
Amounts reclassified from accumulated other comprehensive loss to income, net of tax(1) |  |  | — |  |  |  | 1.4 |  |  |  | 1.4 |  |  |  | — |  |  |  | 1.0 |  |  |  | 1.0 |
Total other comprehensive (loss) income, net of reclassifications |  |  | (15.5 | ) |  |  | 0.4 |  |  |  | (15.1 | ) |  |  | (39.6 | ) |  |  | (1.6 | ) |  |  | (41.2 | )
Ending balance |  | $ | (248.9 | ) |  | $ | (4.2 | ) |  | $ | (253.1 | ) |  | $ | (278.7 | ) |  | $ | (5.6 | ) |  | $ | (284.3 | )
(1) See Note 9, Derivative Instruments and Hedging Activities, for information regarding the location within the condensed consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive loss to income during the three months ended September 30, 2023 and 2022. Other comprehensive income (loss) before reclassifications was net of tax benefit of $0.3 million for foreign currency translation adjustments for the three months ended September 30, 2023. Other comprehensive income (loss) before reclassifications was net of tax expense of $0.6 million for foreign currency translation adjustments for the three months ended September 30, 2022. The following table summarizes changes in accumulated other comprehensive loss by component duri ng the nine months ended September 30, 2023 and 2022:
|  | Changes in Accumulated Other Comprehensive Loss by Component |
|  | Nine Months Ended |
|  | September 30, 2023 |  |  | September 30, 2022 |
|  | Foreign Currency Translation Adjustments |  |  | Unrealized Loss on Derivatives |  |  | Total |  |  | Foreign Currency Translation Adjustments |  |  | Unrealized Loss on Derivatives |  |  | Total |
|  | (in millions) |
Beginning balance |  | $ | (248.2 | ) |  | $ | (2.0 | ) |  | $ | (250.2 | ) |  | $ | (211.6 | ) |  | $ | (0.2 | ) |  | $ | (211.8 | )
Other comprehensive loss before reclassifications, net of tax |  |  | (0.7 | ) |  |  | (8.0 | ) |  |  | (8.7 | ) |  |  | (67.1 | ) |  |  | (6.5 | ) |  |  | (73.6 | )
Amounts reclassified from accumulated other comprehensive loss to income, net of tax(1) |  |  | — |  |  |  | 5.8 |  |  |  | 5.8 |  |  |  | — |  |  |  | 1.1 |  |  |  | 1.1 |
Total other comprehensive loss, net of reclassifications |  |  | (0.7 | ) |  |  | (2.2 | ) |  |  | (2.9 | ) |  |  | (67.1 | ) |  |  | (5.4 | ) |  |  | (72.5 | )
Ending balance |  | $ | (248.9 | ) |  | $ | (4.2 | ) |  | $ | (253.1 | ) |  | $ | (278.7 | ) |  | $ | (5.6 | ) |  | $ | (284.3 | )
(1) See Note 9, Derivative Instruments and Hedging Activities, for information regarding the location within the condensed consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive loss to income during the nine months ended September 30, 2023 and 2022. Other comprehensive income (loss) before reclassifications was net of tax benefit of $0.5 million for foreign currency translation adjustments for the nine months ended September 30, 2023. Amounts reclassified from accumulated other comprehensive loss to income was net of tax benefit of $0.1 million for unrealized gain (loss) on derivatives for the nine months ended September 30, 2023. Other comprehensive income (loss) before reclassifications was net of tax expense of $0.2 million for foreign currency translation adjustments for the nine months ended September 30, 2022.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-13 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-14 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481062/946-235-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481062/946-235-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 505 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481004/946-505-50-6 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-6 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//505/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-13 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-13 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-13 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-14 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-14 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 16 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-16 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-18 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-18 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-18 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration