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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Reconciliation of Revenue from Segments to Consolidated | Operating information for the two reportable segments is as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
|  | (in millions) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Primary Reporting Segment |  | $ | 1,199.4 |  |  | $ | 1,226.0 |  |  | $ | 2,388.5 |  |  | $ | 2,410.4 |
China |  |  | 81.7 |  |  |  | 88.0 |  |  |  | 156.9 |  |  |  | 155.7 |
Total net sales |  | $ | 1,281.1 |  |  | $ | 1,314.0 |  |  | $ | 2,545.4 |  |  | $ | 2,566.1 |
Contribution margin(1)(3): |  |  |  |  |  |  |  |  |  |  |  |
Primary Reporting Segment |  | $ | 513.7 |  |  | $ | 507.6 |  |  | $ | 1,014.9 |  |  | $ | 990.1 |
China |  |  | 27.9 |  |  |  | 30.6 |  |  |  | 54.0 |  |  |  | 51.9 |
Total contribution margin |  | $ | 541.6 |  |  | $ | 538.2 |  |  | $ | 1,068.9 |  |  | $ | 1,042.0 |
Selling, general, and administrative expenses excluding service fees to China independent service providers(1)(2)(3) |  |  | 461.2 |  |  |  | 416.0 |  |  |  | 916.6 |  |  |  | 858.2 |
Other operating income |  |  | — |  |  |  | (1.2 | ) |  |  | — |  |  |  | (10.1 | )
Interest expense, net |  |  | 57.7 |  |  |  | 38.4 |  |  |  | 95.6 |  |  |  | 77.8 |
Other expense, net |  |  | 10.5 |  |  |  | — |  |  |  | 10.5 |  |  |  | — |
Income before income taxes |  |  | 12.2 |  |  |  | 85.0 |  |  |  | 46.2 |  |  |  | 116.1 |
Income taxes |  |  | 7.5 |  |  |  | 25.1 |  |  |  | 17.2 |  |  |  | 26.9 |
Net income |  | $ | 4.7 |  |  | $ | 59.9 |  |  | $ | 29.0 |  |  | $ | 89.2 |
(1) Contribution margin consists of net sales less cost of sales, Royalty overrides, and service fees to our independent service providers in China. For the China segment, contribution margin includes the portion of service fees to China independent service providers that are currently recorded in selling, general, and administrative expenses within the Company's accompanying condensed consolidated statements of income, which totaled $41.1 million and $44.5 million for the three months ended June 30, 2024 and 2023, respectively, and $77.9 million and $78.2 million for the six months ended June 30, 2024 and 2023, respectively. (2) Selling, general, and administrative expenses exclude the portion of service fees to China independent service providers that are included in selling, general, and administrative expenses within the Company's accompanying condensed consolidated statements of income as described in footnote (1) above. (3) In the second quarter of 2024, the Company, as part of its restructuring initiatives, which are described further in Note 13, Restructuring Activities, changed its contribution margin presentation for its China segment which now includes expenses related to service fees to the Company's independent service providers in China as described in the footnotes immediately above. Historically, the China contribution margin did not include the portion of service fees that are recognized in selling, general and administrative expenses in the Company’s accompanying condensed consolidated statements of income. Historical information presented in the table above has been reclassified to conform with the current period contribution margin presentation. This change had no impact on the Company's accompanying condensed consolidated statements of income and only impacts this segment note presentation.
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table sets forth net sales by geographic area:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
|  | (in millions) |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 275.3 |  |  | $ | 295.3 |  |  | $ | 534.0 |  |  | $ | 584.5 |
India |  |  | 204.6 |  |  |  | 189.4 |  |  |  | 408.1 |  |  |  | 368.0 |
Mexico |  |  | 142.7 |  |  |  | 138.5 |  |  |  | 283.6 |  |  |  | 266.3 |
China |  |  | 81.7 |  |  |  | 88.0 |  |  |  | 156.9 |  |  |  | 155.7 |
Others |  |  | 576.8 |  |  |  | 602.8 |  |  |  | 1,162.8 |  |  |  | 1,191.6 |
Total net sales |  | $ | 1,281.1 |  |  | $ | 1,314.0 |  |  | $ | 2,545.4 |  |  | $ | 2,566.1 |

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- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total revenues from reportable segments to the entity's consolidated revenues. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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- 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 220 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2 + Details
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