Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 12, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'HLF | ' | ' |
Entity Registrant Name | 'HERBALIFE LTD. | ' | ' |
Entity Central Index Key | '0001180262 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 101,245,008 | ' |
Entity Public Float | ' | ' | $2,171 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $972,974 | $333,534 |
Receivables, net of allowance for doubtful accounts of $2,211 (2013) and $2,273 (2012) | 100,326 | 116,139 |
Inventories | 351,201 | 339,411 |
Prepaid expenses and other current assets | 148,774 | 145,624 |
Deferred income taxes | 69,845 | 49,339 |
Total current assets | 1,643,120 | 984,047 |
Property, plant and equipment - at cost: | ' | ' |
Land and Building | 22,215 | 22,193 |
Furniture and fixtures | 12,298 | 8,625 |
Equipment | 481,967 | 373,028 |
Building and leasehold improvements | 130,244 | 94,902 |
Property, plant and equipment - at cost: | 646,724 | 498,748 |
Less: accumulated depreciation and amortization | -327,864 | -255,862 |
Net property, plant and equipment | 318,860 | 242,886 |
Deferred compensation plan assets | 26,821 | 24,267 |
Other assets | 63,713 | 48,805 |
Deferred financing costs, net | 4,896 | 7,462 |
Marketing related intangibles and other intangible assets, net | 310,801 | 311,186 |
Goodwill | 105,490 | 105,490 |
Total assets | 2,473,701 | 1,724,143 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 82,665 | 75,209 |
Royalty overrides | 266,952 | 243,351 |
Accrued compensation | 111,905 | 95,220 |
Accrued expenses | 267,501 | 181,523 |
Current portion of long-term debt | 81,250 | 56,302 |
Advance sales deposits | 68,079 | 49,432 |
Income taxes payable | 43,826 | 61,325 |
Total current liabilities | 922,178 | 762,362 |
NON-CURRENT LIABILITIES: | ' | ' |
Long-term debt, net of current portion | 850,019 | 431,305 |
Deferred compensation plan liability | 37,226 | 29,454 |
Deferred income taxes | 66,026 | 62,982 |
Other non-current liabilities | 46,806 | 42,557 |
Total liabilities | 1,922,255 | 1,328,660 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Common shares, $0.001 par value, 1.0 billion shares authorized, 101.1 million (2013) and 106.9 million (2012) shares outstanding | 101 | 107 |
Paid-in capital in excess of par value | 323,860 | 303,975 |
Accumulated other comprehensive loss | -19,794 | -31,695 |
Retained earnings | 247,279 | 123,096 |
Total shareholders' equity | 551,446 | 395,483 |
Total liabilities and shareholders' equity | $2,473,701 | $1,724,143 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $2,211 | $2,273 |
Common shares, par value | $0.00 | $0.00 |
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common shares, shares outstanding | 101,100,000 | 106,900,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Product sales | $4,200,743 | $3,476,926 | $2,944,722 |
Shipping & handling revenues | 624,565 | 595,404 | 509,815 |
Net sales | 4,825,308 | 4,072,330 | 3,454,537 |
Cost of sales | 963,423 | 812,583 | 680,084 |
Gross profit | 3,861,885 | 3,259,747 | 2,774,453 |
Royalty overrides | 1,497,556 | 1,338,633 | 1,137,560 |
Selling, general and administrative expenses | 1,629,052 | 1,259,667 | 1,074,623 |
Operating income | 735,277 | 661,447 | 562,270 |
Interest expense | 26,552 | 16,736 | 9,864 |
Interest income | 7,992 | 6,195 | 7,373 |
Income before income taxes | 716,717 | 650,906 | 559,779 |
Income taxes | 189,192 | 186,944 | 144,820 |
NET INCOME | $527,525 | $463,962 | $414,959 |
Earnings per share | ' | ' | ' |
Basic | $5.14 | $4.13 | $3.53 |
Diluted | $4.91 | $3.94 | $3.32 |
Weighted average shares outstanding | ' | ' | ' |
Basic | 102,620 | 112,359 | 117,540 |
Diluted | 107,445 | 117,856 | 124,846 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $527,525 | $463,962 | $414,959 |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustment, net of income taxes of $(4,309) (2013), $283 (2012), and ($3,090) (2011) | 3,152 | 9,821 | -16,757 |
Unrealized gain (loss) on derivatives, net of income taxes of $1,700 (2013), ($1,161) (2012), and $1,455 (2011) | 8,654 | -3,707 | 6,233 |
Unrealized gain on available-for-sale investments, net of income taxes of $51 (2013) | 95 | ' | ' |
Total other comprehensive income (loss) | 11,901 | 6,114 | -10,524 |
Total comprehensive income | $539,426 | $470,076 | $404,435 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Foreign currency translation adjustment, tax | ($4,309) | $283 | ($3,090) |
Unrealized gain (loss) on derivatives, tax | 1,700 | -1,161 | 1,455 |
Unrealized gain on available-for-sale investments, net of income taxes | $51 | ' | ' |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Shares [Member] | Paid-in Capital in Excess of par Value [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
In Thousands | |||||
Beginning Balance at Dec. 31, 2010 | $473,996 | $118 | $249,902 | ($27,285) | $251,261 |
Issuance of 3.7 million, 2.1 million and 0.4 million common shares from exercise of stock options, SARs, restricted stock units, employee stock purchase plan, in 2011, 2012 and 2013 respectively and 0.4 million, 0.4 million from exercise of warrants, in 2011 and 2012, respectively | 26,467 | 4 | 26,463 | ' | ' |
Excess tax benefit from exercise of stock options, SARs and restricted stock grants | 26,241 | ' | 26,241 | ' | ' |
Additional capital from share based compensation | 24,133 | ' | 24,133 | ' | ' |
Repurchases of 6.0 million, 11.5 million and 6.2 million common shares in 2011, 2012 and 2013, respectively | -321,639 | -6 | -35,427 | ' | -286,206 |
Dividends and dividend equivalents ($0.73 per share, $1.20 per share and $1.20 per share) in 2011, 2012 and 2013, respectively | -85,489 | ' | 638 | ' | -86,127 |
Net income | 414,959 | ' | ' | ' | 414,959 |
Foreign currency translation adjustment, net of income taxes of ($3,090), $283 and $(4,309) in 2011, 2012 and 2013, respectively | -16,757 | ' | ' | -16,757 | ' |
Unrealized gain (loss) on derivatives, net of income taxes of $1,455, ($1,161) and $1,700 in 2011, 2012 and 2013, respectively | 6,233 | ' | ' | 6,233 | ' |
Ending Balance at Dec. 31, 2011 | 548,144 | 116 | 291,950 | -37,809 | 293,887 |
Issuance of 3.7 million, 2.1 million and 0.4 million common shares from exercise of stock options, SARs, restricted stock units, employee stock purchase plan, in 2011, 2012 and 2013 respectively and 0.4 million, 0.4 million from exercise of warrants, in 2011 and 2012, respectively | 11,264 | 3 | 11,261 | ' | ' |
Excess tax benefit from exercise of stock options, SARs and restricted stock grants | 29,684 | ' | 29,684 | ' | ' |
Additional capital from share based compensation | 28,133 | ' | 28,133 | ' | ' |
Repurchases of 6.0 million, 11.5 million and 6.2 million common shares in 2011, 2012 and 2013, respectively | -556,727 | -12 | -57,655 | ' | -499,060 |
Dividends and dividend equivalents ($0.73 per share, $1.20 per share and $1.20 per share) in 2011, 2012 and 2013, respectively | -135,091 | ' | 602 | ' | -135,693 |
Net income | 463,962 | ' | ' | ' | 463,962 |
Foreign currency translation adjustment, net of income taxes of ($3,090), $283 and $(4,309) in 2011, 2012 and 2013, respectively | 9,821 | ' | ' | 9,821 | ' |
Unrealized gain (loss) on derivatives, net of income taxes of $1,455, ($1,161) and $1,700 in 2011, 2012 and 2013, respectively | -3,707 | ' | ' | -3,707 | ' |
Ending Balance at Dec. 31, 2012 | 395,483 | 107 | 303,975 | -31,695 | 123,096 |
Issuance of 3.7 million, 2.1 million and 0.4 million common shares from exercise of stock options, SARs, restricted stock units, employee stock purchase plan, in 2011, 2012 and 2013 respectively and 0.4 million, 0.4 million from exercise of warrants, in 2011 and 2012, respectively | 975 | ' | 975 | ' | ' |
Excess tax benefit from exercise of stock options, SARs and restricted stock grants | 15,566 | ' | 15,566 | ' | ' |
Additional capital from share based compensation | 29,492 | ' | 29,492 | ' | ' |
Repurchases of 6.0 million, 11.5 million and 6.2 million common shares in 2011, 2012 and 2013, respectively | -306,441 | -6 | -26,532 | ' | -279,903 |
Dividends and dividend equivalents ($0.73 per share, $1.20 per share and $1.20 per share) in 2011, 2012 and 2013, respectively | -123,055 | ' | 384 | ' | -123,439 |
Net income | 527,525 | ' | ' | ' | 527,525 |
Foreign currency translation adjustment, net of income taxes of ($3,090), $283 and $(4,309) in 2011, 2012 and 2013, respectively | 3,152 | ' | ' | 3,152 | ' |
Unrealized gain (loss) on derivatives, net of income taxes of $1,455, ($1,161) and $1,700 in 2011, 2012 and 2013, respectively | 8,654 | ' | ' | 8,654 | ' |
Unrealized gain on available-for-sale investments, net of income taxes of $51 | 95 | ' | ' | 95 | ' |
Ending Balance at Dec. 31, 2013 | $551,446 | $101 | $323,860 | ($19,794) | $247,279 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Issuance of common shares | 0.4 | 2.1 | 3.7 |
Exercise of warrants | ' | 0.4 | 0.4 |
Repurchases of common shares | 6.2 | 11.5 | 6 |
Dividends declared per share | $1.20 | $1.20 | $0.73 |
Income tax effect on foreign currency translation adjustment | ($4,309) | $283 | ($3,090) |
Income tax effect of unrealized gain/loss on derivatives | 1,700 | -1,161 | 1,455 |
Income tax effect of unrealized gain on available-for-sale investments | 51 | ' | ' |
Common Shares [Member] | ' | ' | ' |
Issuance of common shares | 0.4 | 2.1 | 3.7 |
Exercise of warrants | ' | 0.4 | 0.4 |
Repurchases of common shares | 6.2 | 11.5 | 6 |
Paid-in Capital in Excess of par Value [Member] | ' | ' | ' |
Issuance of common shares | 0.4 | 2.1 | 3.7 |
Exercise of warrants | ' | 0.4 | 0.4 |
Repurchases of common shares | 6.2 | 11.5 | 6 |
Dividends declared per share | $1.20 | $1.20 | $0.73 |
Accumulated Other Comprehensive Loss [Member] | ' | ' | ' |
Income tax effect on foreign currency translation adjustment | -4,309 | 283 | -3,090 |
Income tax effect of unrealized gain/loss on derivatives | 1,700 | -1,161 | 1,455 |
Income tax effect of unrealized gain on available-for-sale investments | $51 | ' | ' |
Retained Earnings [Member] | ' | ' | ' |
Repurchases of common shares | 6.2 | 11.5 | 6 |
Dividends declared per share | $1.20 | $1.20 | $0.73 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | USD ($) | USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $527,525 | $463,962 | $414,959 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 84,739 | 74,384 | 71,853 |
Excess tax benefits from share-based payment arrangements | -15,566 | -29,684 | -26,241 |
Share based compensation expenses | 29,492 | 27,906 | 24,133 |
Amortization of discount and deferred financing costs | 2,579 | 1,797 | 1,007 |
Deferred income taxes | -24,910 | -7,758 | -21,271 |
Unrealized foreign exchange transaction loss (gain) | 5,757 | 2,121 | 9,403 |
Write-off of deferred financing costs | ' | ' | 914 |
Foreign exchange loss from Venezuela currency devaluation | 15,116 | ' | ' |
Other | 15,410 | 532 | 2,206 |
Changes in operating assets and liabilities: | ' | ' | ' |
Receivables | 9,224 | -28,186 | -9,687 |
Inventories | -39,878 | -82,177 | -84,880 |
Prepaid expenses and other current assets | -9,405 | 249 | 3,229 |
Other assets | -9,408 | -5,288 | -13,864 |
Accounts payable | 10,844 | 17,034 | 15,427 |
Royalty overrides | 28,765 | 41,868 | 44,041 |
Accrued expenses and accrued compensation | 86,039 | 39,440 | 28,749 |
Advance sales deposits | 21,959 | 17,790 | -1,538 |
Income taxes | 26,821 | 28,042 | 48,565 |
Deferred compensation plan liability | 7,772 | 5,752 | 3,535 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 772,875 | 567,784 | 510,540 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchases of property, plant and equipment | -146,958 | -121,524 | -90,408 |
Proceeds from sale of property, plant and equipment | 186 | 280 | 297 |
Investments in Venezuelan bonds | -4,050 | ' | ' |
Deferred compensation plan assets | ' | -3,756 | -1,975 |
NET CASH USED IN INVESTING ACTIVITIES | -150,822 | -125,000 | -92,086 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid | -123,055 | -135,091 | -85,489 |
Borrowings from long-term debt | 763,180 | 1,430,560 | 914,200 |
Principal payments on long-term debt | -319,483 | -1,146,580 | -888,865 |
Deferred financing costs | ' | -4,460 | -5,718 |
Share repurchases | -306,441 | -556,727 | -321,639 |
Excess tax benefits from share-based payment arrangements | 15,566 | 29,684 | 26,241 |
Proceeds from exercise of stock options and sale of stock under employee stock purchase plan | 975 | 11,373 | 22,262 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 30,742 | -371,241 | -339,008 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -13,355 | 3,216 | -11,221 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 639,440 | 74,759 | 68,225 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 333,534 | 258,775 | 190,550 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 972,974 | 333,534 | 258,775 |
CASH PAID DURING THE YEAR | ' | ' | ' |
Interest paid | 23,046 | 14,268 | 8,800 |
Income taxes paid | 197,078 | 169,725 | 118,906 |
NON CASH ACTIVITIES | ' | ' | ' |
Accrued capital expenditures | $29,625 | $15,310 | $9,054 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
1. Organization | |
Herbalife Ltd., a Cayman Islands exempt limited liability company, or Herbalife, was incorporated on April 4, 2002. Herbalife Ltd. (and together with its subsidiaries, the “Company”) is a leading global nutrition company that sells weight management products, nutritional supplements, energy, sports & fitness products and personal care products utilizing network marketing distribution. As of December 31, 2013, the Company sold its products to and through a network of 3.7 million Members, which included 0.2 million in China. In China, the Company currently sells its products through retail stores, sales representatives, sales officers and independent service providers. The Company reports revenue in six geographic regions: North America; Mexico; South and Central America; EMEA, which consists of Europe, the Middle East and Africa; Asia Pacific (excluding China); and China. |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||
2. Basis of Presentation | |||||||||||||||||||||
The Company’s consolidated financial statements refer to Herbalife and its subsidiaries. | |||||||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force). This ASU addresses when unrecognized tax benefits should be presented as reductions to deferred tax assets for net operating loss carryforwards in the financial statements. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements because it aligns with our current presentation. | |||||||||||||||||||||
Significant Accounting Policies | |||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||
The consolidated financial statements include the accounts of Herbalife Ltd. and its subsidiaries. All significant intercompany transactions and accounts have been eliminated. | |||||||||||||||||||||
Foreign Currency Translation and Transactions | |||||||||||||||||||||
In the majority of the countries that the Company operates, the functional currency is the local currency. The Company’s foreign subsidiaries’ asset and liability accounts are translated for consolidated financial reporting purposes into U.S. dollar amounts at year-end exchange rates. Revenue and expense accounts are translated at the average rates during the year. Foreign exchange translation adjustments are included in accumulated other comprehensive loss on the accompanying consolidated balance sheets. Foreign currency transaction gains and losses, which include the cost of foreign currency derivative contracts and the related settlement gains and losses but excluding certain foreign currency derivatives designated as cash flow hedges as discussed in Note 11, Derivative Instruments and Hedging Activities, are included in selling, general and administrative expenses in the accompanying consolidated statements of income. The Company recorded net foreign currency transaction losses of $37.9 million, $16.7 million, and $11.4 million, for the years ended December 31, 2013, 2012, and 2011, respectively, which includes the foreign exchange impact relating to the Company’s Venezuelan subsidiary, Herbalife Venezuela. Herbalife Venezuela’s foreign currency financial statement impact is discussed further below within this Note. | |||||||||||||||||||||
Forward Exchange Contracts, Option Contracts and Interest Rate Swaps | |||||||||||||||||||||
The Company enters into foreign currency derivative instruments such as forward exchange contracts and option contracts in managing its foreign exchange risk on sales to Members, purchase commitments denominated in foreign currencies, and intercompany transactions and bank loans. The Company also enters into interest rate swaps in managing its interest rate risk on its variable rate credit facility. The Company does not use the contracts for trading purposes. | |||||||||||||||||||||
In accordance with FASB Accounting Standards Codification, or ASC, Topic 815, Derivatives and Hedging, or ASC 815, the Company designates certain of its derivative instruments as cash flow hedges and formally documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction, at the time the derivative contract is executed. The Company assesses the effectiveness of the hedge both at inception and on an ongoing basis and determines whether the hedge is highly or perfectly effective in offsetting changes in cash flows of the hedged item. The Company records the effective portion of changes in the estimated fair value in accumulated other comprehensive income (loss) and subsequently reclassifies the related amount of accumulated other comprehensive income (loss) to earnings when the hedged item and underlying transaction impacts earnings. If it is determined that a derivative has ceased to be a highly effective hedge, the Company will discontinue hedge accounting for such transaction. For derivatives that are not designated as hedges, all changes in estimated fair value are recognized in the consolidated statements of income. | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents are comprised primarily of foreign and domestic bank accounts, and money market funds. These cash and cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents. | |||||||||||||||||||||
During 2011, the Company entered into a cash pooling arrangement with a financial institution for cash management purposes. This cash pooling arrangement allows certain of the Company’s participating foreign locations to withdraw cash from this financial institution to the extent aggregate cash deposits held by its participating locations are available at the financial institution. To the extent any participating location on an individual basis is in an overdraft position, these overdrafts will be recorded as liabilities and reflected as financing activities in the Company’s consolidated balance sheet and consolidated statement of cash flows, respectively. As of December 31, 2013 and December 31, 2012, the Company did not owe any amounts to this financial institution. | |||||||||||||||||||||
As of December 31, 2013 and 2012, the Company’s subsidiary in Venezuela, Herbalife Venezuela, had $215.9 million and $99.2 million, respectively, in Bolivar denominated cash and cash equivalents. Please see Remeasurement of Herbalife Venezuela’s Monetary Assets and Liabilities below for a further description of Herbalife Venezuela’s cash and cash equivalents balances. | |||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to the Company’s Members, and receivables from importers, who are utilized in a limited number of countries to sell products to Members. The Company believes the concentration of its collection risk related to its credit card receivables is diminished due to the geographic dispersion of its receivables. The receivables from credit card companies were $72.8 million and $81.1 million as of December 31, 2013 and 2012, respectively. Substantially all of the receivables from credit card companies were current as of December 31, 2013 and 2012. Although receivables from importers can be significant, the Company performs ongoing credit evaluations of its importers and maintains an allowance for potential credit losses. The Company considers customer credit-worthiness, past and current transaction history with the customer, contractual terms, current economic industry trends, and changes in customer payment terms when determining whether collectability is reasonably assured and whether to record allowances for its receivables. If the financial condition of the Company’s customers deteriorates and adversely affects their ability to make payments, additional allowances will be recorded. The Company believes that it provides adequate allowances for receivables from its Members and importers which are not material to its consolidated financial statements. During the years ended December 31, 2013, 2012 and 2011, the Company recorded $2.1 million, $2.9 million, and $2.6 million, respectively, in bad-debt expense related to allowances for the Company’s receivables. As of December 31, 2013 and 2012, the majority of the Company’s total outstanding accounts receivable were current. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The Company applies the provisions of FASB authoritative guidance as it applies to its financial and non-financial assets and liabilities. The FASB authoritative guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. | |||||||||||||||||||||
The Company has estimated the fair value of its financial instruments using the following methods and assumptions: | |||||||||||||||||||||
• | The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturities of these instruments; | ||||||||||||||||||||
• | The fair value of available-for-sale investments are based on prices of similar assets traded in active markets and observable yield curves; | ||||||||||||||||||||
• | The fair value of option and forward contracts are based on dealer quotes; and | ||||||||||||||||||||
• | The Company’s variable rate debt instruments are recorded at carrying value and are considered to approximate their fair values. See Note 4, Long-Term Debt for a further description. | ||||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories are stated at lower of cost (primarily on the first-in, first-out basis) or market. | |||||||||||||||||||||
Deferred Financing Costs | |||||||||||||||||||||
Deferred financing costs represent fees and expenses related to the borrowing of the Company’s long-term debt and are amortized over the term of the related debt using the interest method. | |||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
In December 2012, the Company purchased an approximate 800,000 square foot facility in Winston-Salem, North Carolina, for approximately $22.2 million. As of December 31, 2013 and 2012, the Company allocated $18.8 million and $3.4 million between buildings and land respectively, based on their relative fair values. As of December 31, 2013 and 2012, these amounts have been reflected in property, plant and equipment on the Company’s accompanying consolidated balance sheet. | |||||||||||||||||||||
Depreciation of furniture, fixtures, and equipment (includes computer hardware and software) is computed on a straight-line basis over the estimated useful lives of the related assets, which range from three to ten years. The Company capitalizes eligible costs to acquire or develop internal-use software that are incurred subsequent to the preliminary project stage. Computer hardware and software, the majority of which is comprised of capitalized internal-use software costs, was $140.6 million and $131.5 million as of December 31, 2013 and 2012, respectively, net of accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the life of the related asset or the term of the lease, whichever is shorter. Buildings are depreciated over 40 years. Building improvements are generally depreciated over ten to fifteen years. Land is not depreciated. Depreciation and amortization expenses recorded to selling, general and administrative expenses totaled $81.1 million, $70.9 million, and $68.9 million, for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
Long-lived assets are reviewed for impairment, based on undiscounted cash flows, whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss is based on the estimated fair value of the asset. | |||||||||||||||||||||
Goodwill and marketing related intangible assets with indefinite lives are evaluated on an annual basis for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. For goodwill, the Company uses a discounted cash flow approach to estimate the fair value of a reporting unit. If the fair value of the reporting unit is less than the carrying value then the implied fair value of the goodwill must be determined. If the implied fair value of the goodwill is less than its carrying value then a goodwill impairment amount is recorded for the difference. For the marketing related intangible assets, the Company uses a discounted cash flow model under the relief-from-royalty method in order to determine the fair value. If the fair value is less than its carrying value then an impairment amount is recorded for the difference. During the years ended December 31, 2013, 2012, and 2011, there were no goodwill or marketing related intangible asset impairments. At December 31, 2013, 2012, and 2011, the marketing related intangible asset balance was $310.0 million which consisted of the Company’s trademark, trade name, and marketing franchise. As of December 31, 2013, 2012, and 2011, the goodwill balance was $105.5 million. | |||||||||||||||||||||
Intangible assets with finite lives are amortized over their expected lives, and are expected to be fully amortized over the next three years. As of December 31, 2013, the Company’s intangible assets with finite lives decreased to $0.7 million. As of December 31, 2012, the Company’s intangible assets with finite lives decreased to $1.1 million. As of December 31, 2011, the Company’s intangible assets with finite lives increased to $1.7 million, net of $0.6 million amortization, due to the iChange Network acquisition. The annual amortization expense for finite life intangibles was $0.4 million, $0.6 million, and $0.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. At December 31, 2013, the annual expected amortization expense is as follows: 2014 — $0.3 million; 2015 — $0.3 million; and 2016 — $0.1 million. | |||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
Income tax expense includes income taxes payable for the current year and the change in deferred income tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or income tax returns. A valuation allowance is recognized to reduce the carrying value of deferred income tax assets if it is believed to be more likely than not that a component of the deferred income tax assets will not be realized. | |||||||||||||||||||||
The Company accounts for uncertainty in income taxes in accordance with FASB authoritative guidance which clarifies the accounting and reporting for uncertainties in income taxes recognized in an enterprise’s financial statements. This guidance prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. See Note 12, Income Taxes, for a further description on income taxes. | |||||||||||||||||||||
Royalty Overrides | |||||||||||||||||||||
A Member may earn commissions, called royalty overrides which include production bonuses, based on retail sales volume. Royalty overrides are based on the retail sales volume of certain other Members who are sponsored directly or indirectly by the Member. Royalty overrides are recorded when the products are delivered and revenue is recognized. The royalty overrides are compensation to Members for services rendered including the development, retention and the improved productivity of their sales organizations. As such royalty overrides are classified as an operating expense. Non-U.S. royalty override checks that have aged, for a variety of reasons, beyond a certainty of being paid, are taken back into income. Management has estimated this period of certainty to be three years worldwide. | |||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
Comprehensive income consists of net income, foreign currency translation adjustments, the effective portion of the unrealized gains or losses on derivatives, and unrealized gains or losses on available-for-sale investments. | |||||||||||||||||||||
Components of accumulated other comprehensive income (loss) consisted of the following (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Foreign currency translation adjustment, net of tax | $ | (25,636 | ) | $ | (28,788 | ) | $ | (38,609 | ) | ||||||||||||
Unrealized gain/(loss) on derivatives, net of tax | 5,747 | (2,907 | ) | 800 | |||||||||||||||||
Unrealized gain on available-for-sale investments, net of tax | 95 | — | — | ||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | (19,794 | ) | $ | (31,695 | ) | $ | (37,809 | ) | ||||||||||||
Operating Leases | |||||||||||||||||||||
The Company leases most of its physical properties under operating leases. Certain lease agreements generally include rent holidays and tenant improvement allowances. The Company recognizes rent holiday periods on a straight-line basis over the lease term beginning when the Company has the right to the leased space. The Company also records tenant improvement allowances and rent holidays as deferred rent liabilities and amortizes the deferred rent over the terms of the lease to rent expense. | |||||||||||||||||||||
Research and Development | |||||||||||||||||||||
The Company’s research and development is performed by in-house staff and outside consultants. For all periods presented, research and development costs were expensed as incurred and were not material. | |||||||||||||||||||||
Professional Fees | |||||||||||||||||||||
The Company expenses professional fees, including legal fees, as incurred. These professional fees are included in selling, general and administrative expenses in the Company’s consolidated statements of income. | |||||||||||||||||||||
Advertising | |||||||||||||||||||||
Advertising costs, including Company sponsorships, are expensed as incurred and amounted to approximately $57.9 million, $42.3 million, and $38.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. These expenses are included in selling, general and administrative expenses in the accompanying consolidated statements of income. | |||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||
Basic earnings per share represents net income for the period common shares were outstanding, divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share represents net income divided by the weighted average number of common shares outstanding, inclusive of the effect of dilutive securities such as outstanding stock options, SARs, stock units and warrants. | |||||||||||||||||||||
The following are the common share amounts used to compute the basic and diluted earnings per share for each period (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Weighted average shares used in basic computations | 102,620 | 112,359 | 117,540 | ||||||||||||||||||
Dilutive effect of exercise of equity grants outstanding | 4,825 | 5,457 | 7,046 | ||||||||||||||||||
Dilutive effect of warrants | — | 40 | 260 | ||||||||||||||||||
Weighted average shares used in diluted computations | 107,445 | 117,856 | 124,846 | ||||||||||||||||||
There were an aggregate of 3.0 million, 4.0 million, and 2.1 million of equity grants, consisting of stock options, SARs, and stock units that were outstanding during the years ended December 31, 2013, 2012, and 2011, respectively, but were not included in the computation of diluted earnings per share because their effect would be anti-dilutive. | |||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the Member or importer, or as products are sold in retail stores in China or through the Company’s independent service providers in China. Product sales are recognized net of product returns and discounts referred to as “distributor allowances.” Net sales include product sales and shipping and handling revenues. Shipping and handling costs paid by the Company are included in cost of sales. The Company generally receives the net sales price in cash or through credit card payments at the point of sale. The Company currently presents sales taxes collected from customers on a net basis. Allowances for product returns, primarily in connection with the Company’s buyback program, are provided at the time the sale is recorded. This accrual is based upon historical return rates for each country and the relevant return pattern, which reflects anticipated returns to be received over a period of up to 12 months following the original sale. Allowances for product returns were $4.7 million, $3.9 million and $2.8 million as of December 31, 2013, 2012 and 2011, respectively. Product returns were $9.7 million, $11.1 million and $10.4 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Share-Based Payments | |||||||||||||||||||||
The Company accounts for share-based compensation in accordance with FASB authoritative guidance which requires the measurement of share-based compensation expense for all share-based payment awards made to employees for service. The Company measures share-based compensation cost at the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the employee’s requisite service period. | |||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which the Company believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, and foreign currency have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||||||||||||||||||||
Currency Restrictions in Venezuela | |||||||||||||||||||||
Currency restrictions enacted by the Venezuelan government have become more restrictive and have impacted the ability of the Company’s subsidiary in Venezuela, Herbalife Venezuela, to timely obtain U.S. dollars in exchange for Venezuelan Bolivars, or Bolivars, at the official foreign exchange rate from the Venezuelan government. The application and approval process continue to be delayed and the Company’s ability to timely obtain U.S. dollars at the official exchange rate remains uncertain. In recent instances, the Company has been unsuccessful in obtaining U.S. dollars at the official rate and it remains uncertain whether the Company’s current pending applications and future anticipated applications will be approved. | |||||||||||||||||||||
In June 2010, the Venezuelan government introduced additional regulations under a new regulated system, SITME, which was controlled by the Central Bank of Venezuela. SITME provided a mechanism to exchange Bolivars into U.S. dollars through the purchase and sale of U.S. dollar denominated bonds issued in Venezuela. However, SITME was only available in certain limited circumstances. Specifically, SITME could only be used for product purchases and was not available for other matters such as the payment of dividends. Also, SITME could only be used for amounts of up to $50,000 per day and $350,000 per month and was generally only available to the extent the applicant had not exchanged and received U.S. dollars via the CADIVI process within the previous 90 days. Effective January 1, 2012, additional laws were enacted that required companies to register with the Registry of Users of the System of Transactions with Securities in Foreign Currency, or RUSITME, prior to transacting with the SITME, the regulated system, which was controlled by the Central Bank of Venezuela. | |||||||||||||||||||||
In February 2013, the Venezuela government announced that it devalued its Bolivar currency and will eliminate the SITME regulated system. The SITME 5.3 Bolivars per U.S. dollar rate was eliminated and the CADIVI rate has been devalued from 4.3 Bolivars to 6.3 Bolivars per U.S. dollar. In March 2013, the Venezuelan government also announced they will introduce an additional complimentary exchange mechanism known as SICAD. It is currently unknown whether Herbalife Venezuela will be able to timely access this new exchange mechanism and the Company is currently assessing and monitoring the restrictions and exchange rates relating to this alternative mechanism. | |||||||||||||||||||||
As an alternative exchange mechanism, the Company has also participated in certain bond offerings from the Venezuelan government and from Petróleos de Venezuela, S.A. or PDVSA, a Venezuelan state-owned petroleum company, where the Company effectively purchased bonds with its Bolivars and then sold the bonds for U.S. dollars. In other instances, the Company has also used other alternative legal exchange mechanisms for currency exchanges. | |||||||||||||||||||||
Highly Inflationary Economy and Accounting in Venezuela | |||||||||||||||||||||
Venezuela’s inflation rate as measured using the blended National Consumer Price Index and Consumer Price Index rate exceeded a three-year cumulative inflation rate of 100% as of December 31, 2009. Accordingly, effective January 1, 2010, Venezuela was considered a highly inflationary economy. Pursuant to the highly inflationary basis of accounting under U.S. GAAP, Herbalife Venezuela changed its functional currency from the Bolivar to the U.S. dollar. Subsequent movements in the Bolivar to U.S. dollar exchange rate will impact the Company’s consolidated earnings. Prior to January 1, 2010 when the Bolivar was the functional currency, movements in the Bolivar to U.S. dollar were recorded as a component of equity through other comprehensive income. Pursuant to highly inflationary accounting rules, the Company no longer translates Herbalife Venezuela’s financial statements as its functional currency is the U.S. dollar. | |||||||||||||||||||||
Remeasurement of Herbalife Venezuela’s Monetary Assets and Liabilities | |||||||||||||||||||||
Prior to February 2013, the Company used the SITME rate of 5.3 Bolivars per U.S. dollar to remeasure its Bolivar denominated transactions. In February 2011, Herbalife Venezuela purchased U.S. dollar denominated bonds with a face value of $20 million U.S. dollars in a bond offering from PDVSA for 86 million Bolivars and then immediately sold the bonds for $15 million U.S. dollars, resulting in an average effective conversion rate of 5.7 Bolivars per U.S. dollar. This Bolivar to U.S. dollar conversion resulted in the Company recording a net pre-tax loss of $1.3 million U.S. dollars during the first quarter of 2011 which is included in its consolidated statement of income for the year ended December 31, 2011. The Company was unsuccessful in accessing any subsequent PDVSA bond offerings and the frequency of future bond offerings is unknown. During 2011, the Company also accessed the SITME market in order to exchange its Bolivars to U.S. dollars. In less frequent instances, the Company has also accessed alternative legal exchange mechanisms, to exchange Bolivars for U.S. dollars, at less favorable rates than the SITME rate, which resulted in the Company recognizing $1.2 million of losses in selling, general and administration expenses included within its consolidated statement of income for the year ended December 31, 2011. | |||||||||||||||||||||
During the year ended December 31, 2012, the Company continued accessing the SITME market in order to exchange its Bolivars to U.S. dollars and the daily and monthly restrictions continued. In other instances, the Company recognized an aggregate of $4.8 million of foreign exchange losses as a result of exchanging Bolivars for U.S. dollars using alternative legal exchange mechanisms that were approximately 43% less favorable than the 5.3 Bolivars per U.S. dollar published SITME rate. During the year ended December 31, 2012, the Company exchanged 59.2 million Bolivars for $6.4 million U.S. dollars using these alternative legal exchange mechanisms. | |||||||||||||||||||||
Following the Venezuelan government’s devaluation of the Bolivar against the U.S. dollar and elimination of the SITME regulated system in February 2013, the Company uses the new CADIVI rate of 6.3 Bolivars per U.S. dollar to remeasure its Bolivar denominated transactions. This new CADIVI rate is approximately 16% less favorable than the previously published 5.3 SITME rate. The Company recognized approximately $15.1 million of net foreign exchange losses within its consolidated statement of income during the first quarter of 2013, as a result of remeasuring the Company’s Bolivar denominated monetary assets and liabilities at this new CADIVI rate of 6.3 Bolivars per U.S. dollar. The majority of these foreign exchange losses related to the approximately $16.9 million devaluation of Herbalife Venezuela’s Bolivar denominated cash and cash equivalents. During the year ended December 31, 2013, the Company also recognized $0.7 million of foreign exchange losses as a result of exchanging Bolivars for U.S. dollars using alternative legal exchange mechanisms that were approximately 75% less favorable than the new CADIVI rate. During the year ended December 31, 2013, the Company exchanged 5.6 million Bolivars for $0.2 million U.S. dollars using these alternative legal exchange mechanisms. During the fourth quarter of 2013, the Company also submitted a bid of approximately 6.8 million Bolivars, or approximately $1.1 million U.S. dollars remeasured using the CADIVI rate, through the SICAD mechanism. The Company received notification from the central bank of Venezuela that the bid was approved and the Company is to receive a distribution of approximately $0.6 million in U.S. dollars, resulting in a foreign exchange loss of approximately $0.5 million, or an effective exchange rate of 11.3 Bolivars per U.S. dollar. As of December 31, 2013, the Company has not received the U.S. dollars related to this approved bid. | |||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, Herbalife Venezuela’s net monetary assets and liabilities denominated in Bolivars was approximately $186.9 million and $82.9 million, respectively, and included approximately $215.9 million and $99.2 million, respectively, in Bolivar denominated cash and cash equivalents. As noted above, these Bolivar denominated assets and liabilities were remeasured at the CADIVI rate as of December 31, 2013 and at the SITME rate as of December 31, 2012. The Company remeasures its Bolivars at the official published CADIVI rate as of December 31, 2013 given the limited availability of alternative exchange mechanisms and the uncertainty in the effective exchange rate for alternative exchange mechanisms. These remeasured amounts, including cash and cash equivalents, being reported on the Company’s consolidated balance sheet using the published CADIVI rate may not accurately represent the amount of U.S. dollars that the Company could ultimately realize. While the Company continues to monitor the exchange mechanisms and restrictions imposed by the Venezuelan government, and assess and monitor the current economic and political environment in Venezuela, there is no assurance that the Company will be able to exchange Bolivars into U.S. dollars on a timely basis. | |||||||||||||||||||||
Investments in Bolivar-Denominated Bonds | |||||||||||||||||||||
During the fourth quarter of 2013, the Company invested in Bolivar denominated bonds, or bonds, issued by the Venezuelan government. The purchase price of the bonds was approximately 25.5 million Bolivars, or approximately $4.1 million using the CADIVI rate. The Company classifies these bonds as long-term available-for-sale investments which are carried at fair value, inclusive of unrealized gains and losses, and net of discount accretion and premium amortization. The fair value of these bonds are determined using Level 2 inputs which include prices of similar assets traded in active markets in Venezuela and observable yield curves. Net unrealized gains and losses on these bonds are included in other comprehensive income (loss) and are net of applicable income taxes. During 2013, the Company did not sell any of its bonds. | |||||||||||||||||||||
The Company’s investments in these bonds as of December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Amortized | Gross | Gross | Net | Market | |||||||||||||||||
Costs | Unrealized | Unrealized | Unrealized | Value | |||||||||||||||||
Gain | Loss | Gain | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Investments in Venezuelan bonds | $ | 4,042 | $ | 146 | $ | — | $ | 146 | $ | 4,188 | |||||||||||
As of December 31, 2013, there have been no events or developments which would indicate the value of these bonds have been impaired. There were no bonds with gross unrealized losses as of December 31, 2013. | |||||||||||||||||||||
The amortized cost and estimated fair value of these bonds as of December 31, 2013 by contractual maturity are as follows: | |||||||||||||||||||||
Amortized Cost | Estimated | ||||||||||||||||||||
Market Value | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Contractual Maturity | |||||||||||||||||||||
Due in 1 year or less | $ | — | $ | — | |||||||||||||||||
Due in 1-2 years | — | — | |||||||||||||||||||
Due in 2-5 years | — | — | |||||||||||||||||||
Due after 5 years | 4,042 | 4,188 | |||||||||||||||||||
Total investments | $ | 4,042 | $ | 4,188 | |||||||||||||||||
Expected disposal dates may be less than the contractual dates as indicated in the table above. | |||||||||||||||||||||
Consolidation of Herbalife Venezuela | |||||||||||||||||||||
The Company plans to continue its operation in Venezuela and to import products into Venezuela despite the foreign currency constraints described above. Herbalife Venezuela will continue to apply for legal exchange mechanisms to convert its Bolivars to U.S. dollars. Despite the currency exchange restrictions in Venezuela, the Company continues to control Herbalife Venezuela and its operations. The mere existence of the exchange restrictions discussed above does not in and of itself create a presumption that this lack of exchangeability is other-than-temporary, nor does it create a presumption that an entity should deconsolidate its Venezuelan operations. Therefore, the Company continues to consolidate Herbalife Venezuela in its consolidated financial statements for U.S. GAAP purposes. | |||||||||||||||||||||
Although Venezuela is an important market in the Company’s South and Central America Region, Herbalife Venezuela’s net sales represented approximately 6%, 4%, and 2% of the Company’s consolidated net sales for the years ended December 31, 2013, 2012, and 2011, respectively, and its total assets represented approximately 10% and 7% of the Company’s consolidated total assets as of December 31, 2013 and 2012, respectively. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
3. Inventories | |||||||||
Inventories consist primarily of finished goods available for resale and can be categorized as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Weight Management, Targeted Nutrition and Energy, Sports and Fitness | $ | 307.2 | $ | 303.8 | |||||
Outer Nutrition | 15.3 | 17.5 | |||||||
Literature, Promotional and Others | 28.7 | 18.1 | |||||||
Total | $ | 351.2 | $ | 339.4 | |||||
The following are the major classes of inventory (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 23.1 | $ | 19.6 | |||||
Work in process | 2.8 | 1.9 | |||||||
Finished goods | 325.3 | 317.9 | |||||||
Total | $ | 351.2 | $ | 339.4 | |||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
4. Long-Term Debt | |||||||||
Long-term debt consists of the following (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Borrowings under the senior secured credit facility | $ | 931.3 | $ | 487.5 | |||||
Capital leases | — | 0.1 | |||||||
931.3 | 487.6 | ||||||||
Less: current portion | 81.3 | 56.3 | |||||||
Long-term portion | $ | 850 | $ | 431.3 | |||||
On July 21, 2006, the Company entered into a $300.0 million senior secured credit facility, or the Prior Credit Facility, comprised of a $200.0 million term loan and a $100.0 million revolving credit facility, with a syndicate of financial institutions as lenders. In September 2007, the Company and its lenders amended the credit agreement, increasing the amount of the revolving credit facility by an aggregate principal amount of $150.0 million to $250.0 million primarily to finance the increase in the Company’s share repurchase program. See Note 8, Shareholders’ Equity, for further discussion of the share repurchase program and the share repurchase amounts during the years ended December 31, 2013, 2012, and 2011. The term loan bore interest at LIBOR plus a margin of 1.5%, or the base rate plus a margin of 0.50%. The revolving credit facility bore interest at LIBOR plus a margin of 1.25%, or the base rate plus a margin of 0.25%. | |||||||||
On March 9, 2011, the Company entered into a $700.0 million senior secured revolving credit facility, or the Credit Facility, with a syndicate of financial institutions as lenders and terminated the Prior Credit Facility. The Credit Facility has a five year maturity and expires on March 9, 2016. Based on the Company’s consolidated leverage ratio, U.S. dollar borrowings under the Credit Facility bear interest at either LIBOR plus the applicable margin between 1.50% and 2.50% or the base rate plus the applicable margin between 0.50% and 1.50%. The base rate under the Credit Facility represents the highest of the Federal Funds Rate plus 0.50%, one-month LIBOR plus 1.00%, and the prime rate offered by Bank of America. The Company, based on its consolidated leverage ratio, pays a commitment fee between 0.25% and 0.50% per annum on the unused portion of the Credit Facility. The Credit Facility also permits the Company to borrow limited amounts in Mexican Peso and Euro currencies based on variable rates. All obligations under the Credit Facility are unconditionally guaranteed by certain of the Company’s subsidiaries and are secured by substantially all of the assets of the U.S. subsidiaries of the Company’s parent, Herbalife Ltd. | |||||||||
In March 2011, the Company used $196.0 million in U.S. dollar borrowings under the Credit Facility to repay all amounts outstanding under the Prior Credit Facility. The Company incurred approximately $5.7 million of debt issuance costs in connection with the Credit Facility. These debt issuance costs were recorded as deferred financing costs on the Company’s consolidated balance sheet and are being amortized over the term of the Credit Facility. | |||||||||
On July 26, 2012, the Company amended the Credit Facility to include a $500.0 million term loan with a syndicate of financial institutions as lenders, or the Term Loan. The Term Loan is a part of the Credit Facility and is in addition to the Company’s current revolving credit facility. The Term Loan matures on March 9, 2016. The Company will make regular scheduled payments for the Term Loan consisting of both principal and interest components. Based on the Company’s consolidated leverage ratio, the Term Loan bears interest at either LIBOR plus the applicable margin between 1.50% and 2.50% or the base rate plus the applicable margin between 0.50% and 1.50% which are the same terms as the Company’s revolving credit facility. | |||||||||
In July 2012, the Company used all $500.0 million of the borrowings under the Term Loan to pay down amounts outstanding under the Company’s revolving credit facility. The Company incurred approximately $4.5 million of debt issuance costs in connection with the Term Loan. The debt issuance costs are recorded as deferred financing costs on the Company’s consolidated balance sheet and will be amortized over the life of the Term Loan. On December 31, 2013 and December 31, 2012, the weighted average interest rate for borrowings under the Credit Facility, including borrowings under the Term Loan, was 2.17% and 1.96%, respectively. | |||||||||
The Credit Facility requires the Company to comply with a leverage ratio and a coverage ratio. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company’s ability to incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, pay dividends, repurchase its common shares, merge or consolidate and enter into certain transactions with affiliates. As of December 31, 2013 and 2012, the Company was compliant with its debt covenants under the Credit Facility. The fair value of the Company’s Credit Facility, including the Term Loan, approximated its carrying value as of December 31, 2013, due to its variable interest rate which reprices frequently and represents floating market rates. The fair value of the Credit Facility is determined by utilizing Level 2 inputs as defined in Note 13, Fair Value Measurements, such as observable market interest rates and yield curves. | |||||||||
During 2013, the Company borrowed an aggregate amount of $763.0 million and paid a total amount of $319.2 million under the Credit Facility. During 2012, the Company borrowed an aggregate amount of $1,428.0 million and paid a total amount of $1,142.5 million under the Credit Facility. During 2011, the Company borrowed $859.7 million and $54.0 million under the Credit Facility and Prior Credit Facility, respectively, and paid a total of $657.7 million and $228.9 million under the Credit Facility and Prior Credit Facility, respectively. As of December 31, 2013 and December 31, 2012, the U.S. dollar amount outstanding under the Credit Facility was $931.3 million and $487.5 million, respectively. Of the $931.3 million U.S. dollar amount outstanding under the Credit Facility as of December 31, 2013, $431.3 million was outstanding on the Term Loan and $500.0 million was outstanding on the revolving credit facility. Of the $487.5 million U.S. dollar amount outstanding under the Credit Facility as of December 31, 2012, $487.5 million was outstanding on the Term Loan and no amounts were outstanding on the revolving credit facility. There were no outstanding foreign currency borrowings as of December 31, 2013 and December 31, 2012 under the Credit Facility. | |||||||||
As of December 31, 2013, the aggregate annual maturities of the Credit Facility were expected to be $81.3 million for 2014, $100.0 million for 2015, and $750.0 million for 2016. | |||||||||
Interest expense was $26.6 million, $16.7 million, and $9.9 million, for the years ended December 31, 2013, 2012, and 2011, respectively. Interest expense for the year ended December 31, 2011 included a $0.9 million write-off of unamortized deferred financing costs resulting from the extinguishment of the Prior Credit Facility, as discussed above. |
Lease_Obligations
Lease Obligations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Lease Obligations | ' | ||||||||
5. Lease obligations | |||||||||
The Company has warehouse, office, furniture, fixtures and equipment leases, which expire at various dates through 2023. Under the lease agreements, the Company is also obligated to pay property taxes, insurance and maintenance costs. | |||||||||
Certain leases contain renewal options. There were no material future minimum rental commitments for non-cancelable capital leases at December 31, 2013. Future minimum rental commitments for non-cancelable operating leases at December 31, 2013, were as follows (in millions): | |||||||||
Operating | |||||||||
2014 | $ | 54 | |||||||
2015 | 45.4 | ||||||||
2016 | 30 | ||||||||
2017 | 19 | ||||||||
2018 | 14.7 | ||||||||
Thereafter | 16.6 | ||||||||
Total | $ | 179.7 | |||||||
Rental expense for the years ended December 31, 2013, 2012, and 2011, was $57.5 million, $52.5 million, and $49.2 million, respectively. | |||||||||
Property, plant and equipment under capital leases are included in property, plant and equipment on the accompanying consolidated balance sheets as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Equipment | — | $ | 7.7 | ||||||
Less: accumulated depreciation | — | (7.4 | ) | ||||||
Total | — | $ | 0.3 | ||||||
Employee_Compensation_Plans
Employee Compensation Plans | 12 Months Ended |
Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | ' |
Employee Compensation Plans | ' |
6. Employee Compensation Plans | |
The Company maintains a profit sharing plan pursuant to Sections 401(a) and (k) of the Internal Revenue Code of 1986, as amended, or the Code. The plan is available to substantially all employees who meet the length of service requirements. Prior to January 1, 2009, employees could elect to contribute between 2% to 17% of their compensation, and the Company would make matching contributions in an amount equal to one dollar for each dollar of deferred earnings not to exceed 3% of the participants’ earnings. Participants are partially vested in the Company contributions after one year and fully vested after five years. Effective January 1, 2009, the Company amended its profit sharing plan. Starting January 1, 2009, employees may elect to contribute up to 75% of their compensation; however, contributions are limited to a maximum annual amount as set periodically by the Code. The Company will make matching contributions in an amount equal to one dollar for each dollar of deferred earnings up to the first 1%, and then make matching contributions in an amount equal to 50% of one dollar for each dollar on the subsequent 5% of deferred earnings. The contributions become fully vested after two years. The Company contributed $4.0 million, $2.7 million, and $2.5 million, to its profit sharing plan during the years ended December 31, 2013, 2012, and 2011, respectively. | |
The Company has non-qualified deferred compensation plans for select groups of management: the Herbalife Management Deferred Compensation Plan and the Herbalife Senior Executive Deferred Compensation Plan. The deferred compensation plans allow eligible employees to elect annually to defer up to 75% of their base annual salary and up to 100% of their annual bonus for each calendar year, or the Annual Deferral Amount. The Company makes matching contributions on behalf of each participant in the Senior Executive Deferred Compensation Plan. The Senior Executive Deferred Compensation Plan provides that the amount of the matching contributions is to be determined by the Company at its discretion. In 2013, 2012, and 2011, the Company’s matching contribution was 3.5% which aligns with the 401(k) retirement plan match. | |
Each participant in either of the non-qualified deferred compensation plans discussed above has, at all times, a fully vested and non-forfeitable interest in each year’s contribution, including interest credited thereto, and in any Company matching contributions, if applicable. In connection with a participant’s election to defer an Annual Deferral Amount, the participant may also elect to receive a short-term payout, equal to the Annual Deferral Amount plus interest. Such amount is payable in two or more years from the first day of the year in which the Annual Deferral Amount is actually deferred. | |
The total expense for the two non-qualified deferred compensation plans, excluding participant contributions, was $4.0 million, $2.9 million, and $0.2 million for the years ended December 31, 2013, 2012, and 2011, respectively. The total long-term deferred compensation liability under the two deferred compensation plans was $37.2 million and $29.5 million at December 31, 2013 and 2012, respectively. | |
The deferred compensation plans are unfunded and their benefits are paid from the general assets of the Company, except that the Company has contributed to a “rabbi trust” whose assets will be used to pay the benefits if the Company remains solvent, but can be reached by the Company’s creditors if the Company becomes insolvent. The value of the assets in the “rabbi trust” was $26.8 million and $24.3 million as of December 31, 2013 and 2012, respectively. | |
The Company has employees in international countries that are covered by various deferred compensation plans. These plans are administered based upon the legal requirements in the countries in which they are established. The Company’s compensation expenses relating to these plans were $8.4 million, $7.2 million, and $4.9 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
7. Contingencies | |
The Company is from time to time engaged in routine litigation. The Company regularly reviews all pending litigation matters in which it is involved and establishes reserves deemed appropriate by management for these litigation matters when a probable loss estimate can be made. | |
As a marketer of dietary and nutritional supplements, and other products that are ingested by consumers or applied to their bodies, the Company has been and is currently subjected to various product liability claims. The effects of these claims to date have not been material to the Company, and the reasonably possible range of exposure on currently existing claims is not material to the Company. The Company believes that it has meritorious defenses to the allegations contained in the lawsuits. The Company currently maintains product liability insurance with an annual deductible of $10 million. | |
Certain of the Company’s subsidiaries have been subject to tax audits by governmental authorities in their respective countries. In certain of these tax audits, governmental authorities are proposing that significant amounts of additional taxes and related interest and penalties are due. The Company and its tax advisors believe that there are substantial defenses to governmental allegations that additional taxes are owed, and the Company is vigorously contesting the additional proposed taxes and related charges. On May 7, 2010, the Company received an assessment from the Mexican Tax Administration Service in an amount equivalent to approximately $88 million, translated at the period ended spot rate, for various items, the majority of which was Value Added Tax, or VAT, allegedly owed on certain of the Company’s products imported into Mexico during the years 2005 and 2006. This assessment is subject to interest and inflationary adjustments. On July 8, 2010, the Company initiated a formal administrative appeal process. On May 13, 2011, the Mexican Tax Administration Service issued a resolution on the Company’s administrative appeal. The resolution nullified the assessment. Since the Mexican Tax Administration Service can further review the tax audit findings and re-issue some or all of the original assessment, the Company commenced litigation in the Tax Court of Mexico in August 2011 to dispute the assertions made by the Mexican Tax Administration Service in the case. The Mexican Tax Administration Service filed a response which was received by the Company in April 2012. The response challenged the assertions that the Company made in its August 2011 filing. Litigation in this case is currently ongoing. | |
Prior to the nullification of the Mexican Tax Administration Service assessment relating to the 2005 and 2006 years the Company entered into agreements with certain insurance companies to allow for the potential issuance of surety bonds in support of its appeal of the assessment. Such surety bonds, if issued, would not affect the availability of the Company’s Credit Facility. These arrangements with the insurance companies remain in place in the event that the assessment is re-issued. | |
The Mexican Tax Administration Service commenced audits of the Company’s Mexican subsidiaries for the period from January to September 2007 and on May 10, 2013, the Company received an assessment of approximately $22 million, translated at the period ended spot rate, related to that period. On July 11, 2013, the Company filed an administrative appeal disputing the assessment. The Company has not recognized a loss as the Company does not believe a loss is probable. | |
The Mexican Tax Administration Service audited the Company’s Mexican subsidiaries for the 2011 year. The audit focused on importation and VAT issues. On June 25, 2013, the Mexican Tax Administration Service closed the audit of the 2011 year without any assessment. | |
The Company has not recognized a loss with respect to any of these Mexican matters as the Company, based on its analysis and guidance from its advisors, does not believe a loss is probable. Further, the Company is currently unable to reasonably estimate a possible loss or range of loss that could result from an unfavorable outcome if the assessment was re-issued or any additional assessments were to be issued for these or other periods. The Company believes that it has meritorious defenses if the assessment is re-issued or would have meritorious defenses if any additional assessment is issued. | |
The Company received an assessment from the Spanish Tax Authority in an amount equivalent to approximately $4.4 million translated at the period ended spot rate, for withholding taxes, interest and penalties related to payments to Spanish Members for the 2003-2004 periods. The Company appealed the assessment to the National Appellate Court (Audiencia Nacional). Based on the ruling of the National Appellate Court, substantially all of the assessment was nullified. The Company began withholding taxes on payments to Spanish Members for the 2012 year. If the Spanish Tax Authority raises the same issue in later years, the Company believes that it has meritorious defenses. The Company has not recognized a loss as the Company does not believe a loss is probable. The Company is currently unable to reasonably estimate a possible loss or range of loss that could result from an unfavorable outcome if additional assessments for other periods were to be issued. | |
The Company received a tax assessment in September 2009, from the Federal Revenue Office of Brazil in an amount equivalent to approximately $3.6 million U.S. dollars, translated at the period ended spot rate, related to withholding/contributions based on payments to the Company’s Members during 2004. The Company has appealed this tax assessment to the Administrative Council of Tax Appeals (2nd level administrative appeal) as it believes it has meritorious defenses and it has not recognized a loss as the Company does not believe a loss is probable. The Company is currently unable to reasonably estimate the amount of the loss that may result from an unfavorable outcome if additional assessments for other periods were to be issued. | |
The Company received an order from a Rome Labor Court on behalf of the Social Security Authority on March 1, 2012, to pay an amount equivalent to approximately $7.4 million U.S. dollars, translated at the period ended spot rate, for social contributions, interest and penalties related to payments to Italian Members from 2002 through 2005. The Company has filed a writ with the Rome Labor Court appealing the order and the Social Security Authority filed a response brief. At a hearing on July 12, 2012, the Social Security Authority announced its intention to withdraw their claim as well as the order to pay the assessment. A hearing on this matter was originally scheduled for October 23, 2012 but it has been postponed and is rescheduled for June 26, 2014. The Company has not recognized a loss as the Company does not believe a loss is probable. | |
The Korea Customs Service is currently auditing the importation activities of Herbalife Korea for the 2009 - 2013 period. If an assessment is issued, the Company would be required to pay the amount requested in order to appeal the assessment. Based on the Company’s analysis and guidance from its advisors, the Company does not believe a loss is probable. Further, the Company is currently unable to reasonably estimate a possible loss or range of loss. | |
These matters may take several years to resolve. While the Company believes it has meritorious defenses, it cannot be sure of their ultimate resolution. Although the Company may reserve amounts for certain matters that the Company believes represent the most likely outcome of the resolution of these related disputes, if the Company is incorrect in its assessment, the Company may have to record additional expenses, when it becomes probable that an increased potential liability is warranted. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||
8. Shareholders’ Equity | |||||||||||||||||
The Company had 101.1 million, 106.9 million, and 115.8 million common shares outstanding at December 31, 2013, 2012, and 2011, respectively. In December 2004, the Company authorized 7.5 million preference shares at $0.002 par value. The 7.5 million authorized preference shares remained unissued as of December 31, 2013. Preference shares may be issued from time to time in one or more series, each of such series to have such voting powers (full or limited or without voting powers), designations, preferences and relative, participating, optional or other special rights and qualifications, limitations or restrictions as determined by the Company’s board of directors. | |||||||||||||||||
Dividends | |||||||||||||||||
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 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. The Credit Facility permits payments of dividends as long as no default or event of default exists and the consolidated leverage ratio specified in the Credit Facility is not exceeded. | |||||||||||||||||
During the second quarter of 2007, the Company’s board of directors adopted a regular quarterly cash dividend program. The Company’s board of directors authorized a $0.10 per common share cash dividend each quarter from the adoption of the program through the second quarter of 2010. On August 2, 2010, the Company announced that its board of directors approved an increase in the quarterly cash dividend to $0.13 per common share, an increase of $0.03 per common share from prior quarters. On May 2, 2011, the Company announced that its board of directors approved an increase in the quarterly cash dividend to $0.20 per common share, an increase of $0.07 per common share from prior quarters. On February 21, 2012, the Company announced that its board of directors approved an increase in the quarterly cash dividend to $0.30 per common share, an increase of $0.10 per common share from prior quarters. The aggregate amount of dividends paid and declared during the fiscal years ended December 31, 2013, 2012, and 2011 was approximately $123.1 million, $135.1 million, and $85.5 million, respectively. | |||||||||||||||||
Share Repurchases | |||||||||||||||||
On April 17, 2009, the Company’s share repurchase program adopted on April 18, 2007 expired pursuant to its terms. On April 30, 2009, the Company announced that its board of directors authorized a new program for the Company to repurchase up to $300 million of Herbalife common shares during the following two years, at such times and prices as determined by the Company’s management as market conditions warrant. On May 3, 2010, the Company’s board of directors approved an increase to this share repurchase program from $300 million to $1 billion. In addition, the Company’s board of directors approved the extension of the expiration date of this share repurchase program from April 2011 to December 2014. | |||||||||||||||||
On May 2, 2012, the Company entered into an agreement with Merrill Lynch International to repurchase $427.9 million of its common shares, which was the remaining authorized capacity under this share repurchase program at that time. Under the terms of the repurchase agreement, the Company paid $427.9 million on May 4, 2012 and the agreement expired on July 27, 2012. The Company received 5.3 million and 3.9 million of its common shares under the repurchase agreement during June 2012 and July 2012, respectively. The total number of common shares repurchased under the agreement was determined generally upon a discounted volume-weighted average share price of the Company’s common shares over the course of the agreement. On July 27, 2012, the Company completed this share repurchase program upon the final delivery of common shares repurchased under the repurchase agreement. | |||||||||||||||||
On July 30, 2012, the Company announced that its board of directors authorized a new $1 billion share repurchase program that will expire on June 30, 2017. This share repurchase program allows the Company to repurchase its common shares, at such times and prices as determined by the Company’s management as market conditions warrant, and to the extent Herbalife Ltd.’s distributable reserves are available under Cayman Islands law. The Credit Facility permits the Company to repurchase its common shares as long as no default or event of default exists and the consolidated leverage ratio specified in the Credit Facility is not exceeded. As of December 31, 2013, the remaining authorized capacity under this share repurchase program was $652.6 million. | |||||||||||||||||
During the year ended December 31, 2013, the Company repurchased 6.1 million of its common shares through open market purchases at an aggregate cost of approximately $297.4 million, or an average cost of $49.08 per share. During the year ended December 31, 2012, the Company repurchased 11.0 million of its common shares through open market purchases at an aggregate cost of approximately $527.8 million, or an average cost of $47.78 per share. During the year ended December 31, 2011, the Company repurchased 5.5 million of its common shares through open market purchases at an aggregate cost of approximately $298.8 million, or an average cost of $54.27 per share. | |||||||||||||||||
The Company reflects the aggregate purchase price of the common shares repurchased as a reduction to shareholders’ equity. The Company allocated the purchase price of the repurchased shares as a reduction to retained earnings, common shares and additional paid-in-capital. | |||||||||||||||||
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 minimum 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 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 share repurchase program described above. | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
The following table summarizes changes in accumulated other comprehensive income (loss) during the year ended December 31, 2013: | |||||||||||||||||
Changes in Accumulated Other Comprehensive | |||||||||||||||||
Income (Loss) by Component | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Foreign | Unrealized | Unrealized Gain | Total | ||||||||||||||
Currency | Gain (Loss) on | (Loss) on | |||||||||||||||
Translation | Derivatives | Available-For- | |||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||
(In millions) | |||||||||||||||||
Beginning Balance | $ | (28.8 | ) | $ | (2.9 | ) | $ | — | $ | (31.7 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | 3.2 | 2.4 | 0.1 | 5.7 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to income, | — | 6.2 | — | 6.2 | |||||||||||||
net of tax(1) | |||||||||||||||||
Total other comprehensive income (loss), net of reclassifications | 3.2 | 8.6 | 0.1 | 11.9 | |||||||||||||
Ending balance | $ | (25.6 | ) | $ | 5.7 | $ | 0.1 | $ | (19.8 | ) | |||||||
-1 | See Note 11, Derivative Instruments and Hedging Activities, for information regarding the location in the consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive income (loss) into income during the year ended December 31, 2013. | ||||||||||||||||
Other comprehensive income (loss) before reclassifications was net of tax benefits of $4.3 million, tax expense of $1.0 million, and tax expense of $0.1 million for foreign currency translation adjustments, unrealized gain (loss) on derivatives, and unrealized gain (loss) on available-for-sale investments, respectively, for the year ended December 31, 2013. Amounts reclassified from accumulated other comprehensive income (loss) to income was net of tax expense of $0.7 million for unrealized gain (loss) on derivatives for the year ended December 31, 2013. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||||||
9. Share-Based Compensation | |||||||||||||||||||||||||
The Company has five share-based compensation plans, the WH Holdings (Cayman Islands) Ltd. Stock Incentive Plan, or the Management Plan, the WH Holdings (Cayman Islands) Ltd. Independent Directors Stock Incentive Plan, or the Independent Directors Plan, the Herbalife Ltd. 2004 Stock Incentive Plan, or the 2004 Stock Incentive Plan, the Amended and Restated Herbalife Ltd. 2005 Stock Incentive Plan, or the 2005 Stock Incentive Plan, and the Amended and Restated Herbalife Ltd. Independent Directors Deferred Compensation and Stock Unit Plan, or the Independent Director Stock Unit Plan. The Management Plan provided for the grant of options to purchase common shares of Herbalife to members of the Company’s management. The Independent Directors Plan provided for the grant of options to purchase common shares of Herbalife to the Company’s independent directors. The 2004 Stock Incentive Plan replaced the Management Plan and the Independent Directors Plan and after the adoption thereof, no additional awards were made under either the Management Plan or the Independent Directors Plan. However, the shares remaining available for issuance under these plans were absorbed by and became available for issuance under the 2004 Stock Incentive Plan. The 2005 Stock Incentive Plan replaced the 2004 Stock Incentive Plan and after the adoption thereof, no additional awards were made under the 2004 Stock Incentive Plan. The terms of the 2005 Stock Incentive Plan are substantially similar to the terms of the 2004 Stock Incentive Plan. The 2005 Stock Incentive Plan authorizes the issuance of 14,400,000 common shares pursuant to awards granted under the plan, plus any shares that remained available for issuance under the 2004 Stock Incentive Plan at the time of the adoption of the 2005 Stock Incentive Plan. The purpose of the Independent Directors Stock Unit Plan is to facilitate equity ownership in the Company by its independent directors through the award of stock units. At December 31, 2013, an aggregate of approximately 1.9 million common shares remain available for future issuance under the 2005 Stock Incentive Plan and the Independent Directors Stock Unit Plan. | |||||||||||||||||||||||||
The Company’s share-based compensation plans provide for grants of stock options, SARs, and stock units, which are collectively referred to herein as awards. Stock options typically vest quarterly over a five-year period or less, beginning on the grant date. Certain SARs vest quarterly over a five-year period beginning on the grant date. Other SARs vest annually over a three-year period. The contractual term of service condition stock options and SARs is generally ten years. Stock unit awards under the 2005 Incentive Plan, or Incentive Plan Stock Units, vest annually over a three year period which is equal to the contractual term. Stock units awarded under the Independent Directors Stock Unit Plan, or Independent Director Stock Units, vest at a rate of 25% on each January 15, April 15, July 15 and October 15. In January 2009, the Company moved to granting SARs instead of stock units for its independent directors. In March 2008, the Company granted stock unit awards to its Chairman and Chief Executive Officer, which vest over a four-year period at a rate of 30% during each of the first three years and 10% during the fourth year. In February 2009, the Company granted stock units and SARs to certain employees subject to continued service, one-third of which vest on the third anniversary of the date of grant, one-third of which vest on the fourth anniversary of the date of grant, and the remaining one-third of which vest on the fifth anniversary of the date of grant. In 2010, the Company granted other stock units to certain key employees subject to continued service, one half of which vest on the first anniversary of the date of the grant, and the remaining half of which vest on the second anniversary of the date of the grant. | |||||||||||||||||||||||||
Awards can be subject to the following: market and service conditions, or market condition awards; performance and service conditions, or performance condition awards; market, service and performance conditions, or market and performance condition awards; or be subject only to continued service with the Company, or service condition awards. All awards granted by the Company are market condition awards, performance condition awards, market and performance condition awards, or service condition awards. Unless otherwise determined at the time of grant, the value of each stock unit shall be equal to one common share of Herbalife. The Company’s stock compensation awards outstanding as of December 31, 2013 include stock options, SARs, and stock units. | |||||||||||||||||||||||||
In March 2008, the Company granted SARs with market conditions to its Chairman and Chief Executive Officer, which fully vested during 2012. These SARs vested at the end of four years subject to his continued employment through that date and the achievement of certain conditions related to the market value of the Company’s common shares. The market conditions included targets for stock price appreciation of both a 10% and a 15% compound annual growth rate. The fair value of these SARs was determined on the date of the grant using the Monte Carlo lattice model. | |||||||||||||||||||||||||
In August 2011, the Company granted SARs with market and performance conditions to its Chairman and Chief Executive Officer. These awards will vest on December 31, 2014, subject to his continued employment through that date, the Company’s stock price appreciating and exceeding a targeted price, and the Company’s achievement of certain volume point performance targets. The fair value of these SARs was determined on the date of the grant using the Monte Carlo lattice model. | |||||||||||||||||||||||||
In December 2013, the Company granted SARs to certain employees with performance conditions. These awards vest 20% on June 2014, 20% on June 2015, and 60% on June 2016, subject to achievement of certain sales leader retention metrics. The fair value of these SARs was determined on the date of grant using the Black-Scholes-Merton option pricing model. The compensation expense for these grants is recognized over the vesting term using the graded vesting method. | |||||||||||||||||||||||||
The Company records compensation expense over the requisite service period which is equal to the vesting period. For awards granted on or after January 1, 2006, the compensation expense is recognized on a straight-line basis over the vesting term. Stock-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of income. For the years ended December 31, 2013, 2012, and 2011, share-based compensation expense, relating to service condition awards, amounted to $24.6 million, $22.7 million, and $19.2 million, respectively. For the years ended December 31, 2012 and 2011, share-based compensation expense, relating to market condition awards, amounted to $0.7 million and $2.9 million, respectively. No share-based compensation expense related to market condition awards was recognized in the year ended December 31, 2013, as all market condition awards had vested prior to 2013. For the year ended December 31, 2013, share-based compensation expense, relating to performance condition awards, amounted to $0.3 million. For the year ended December 31, 2013, 2012 and 2011, share-based compensation expense, relating to market and performance condition awards, amounted to $4.5 million, $4.6 million and $1.4 million, respectively. For the years ended December 31, 2013, 2012, and 2011, the related income tax benefits recognized in earnings for all awards amounted to $10.4 million, $9.5 million, and $7.5 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, the total unrecognized compensation cost related to non-vested service condition stock awards was $41.6 million and the related weighted-average period over which it is expected to be recognized is approximately 1.4 years. As of December 31, 2013, the total unrecognized compensation cost related to non-vested performance condition awards was $12.7 million and the related weighted-average period over which it is expected to be recognized is approximately 1.7 years. As of December 31, 2013, the total unrecognized compensation cost related to non-vested market and performance condition awards was $4.5 million and the related weighted-average period over which it is expected to be recognized is approximately 1.0 year. | |||||||||||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, excess tax benefits of $15.6 million, $29.7 million, and $26.2 million, respectively, were generated and recognized from exercises of awards. | |||||||||||||||||||||||||
Stock units are valued at the market value on the date of grant. The fair value of service condition SARs and performance condition SARs are estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The fair value of SARs with market conditions or with market and performance conditions are estimated on the date of grant using the Monte Carlo lattice model. Historically, the expected term of the SARs and stock options was based on the simple average of the average vesting period and the life of the award, or the simplified method. During the fourth quarter of 2011, the Company began calculating the expected term of its SARs based on historical data as more historical information was available. All groups of employees have been determined to have similar historical exercise patterns for valuation purposes. The expected volatility of the SARs and stock options are based upon the historical volatility of the Company’s common shares and it is also validated against the volatility rates of a peer group of companies. The risk free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the SARs and stock options. The expected dividend yield assumption is based on the Company’s historical and expected amount of dividend payouts. | |||||||||||||||||||||||||
There were no stock options granted during the years ended December 31, 2013, 2012, and 2011. The following table summarizes the weighted average assumptions used in the calculation of the fair value for service condition awards for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||
SARs | Independent Director’s SARs | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Expected volatility | 50.8 | % | 48.4 | % | 46.6 | % | 45.2 | % | 52.1 | % | 49.4 | % | |||||||||||||
Dividends yield | 1.7 | % | 2.7 | % | 1.5 | % | 1.5 | % | 2.7 | % | 1.5 | % | |||||||||||||
Expected term | 5.5 years | 5.3 years | 6.2 years | 3.6 years | 3.8 years | 3.8 years | |||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 1.9 | % | 0.7 | % | 0.4 | % | 1 | % | |||||||||||||
There were no performance condition awards granted during the years ended December 31, 2012 and 2011. For performance condition awards granted during the year ended December 31, 2013, the following table summarizes the weighted average assumptions used in the calculation of the fair value: | |||||||||||||||||||||||||
SARs | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Expected volatility | 50.9 | % | |||||||||||||||||||||||
Dividends yield | 1.5 | % | |||||||||||||||||||||||
Expected term | 5.5 years | ||||||||||||||||||||||||
Risk-free interest rate | 1.6 | % | |||||||||||||||||||||||
There were no market condition awards or market and performance condition awards granted during the years ended December 31, 2013 and 2012. For market and performance condition awards granted during the year ended December 31, 2011, the following table summarizes the weighted average assumptions used in the calculation of the fair value: | |||||||||||||||||||||||||
SARs | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Expected volatility | 44 | % | |||||||||||||||||||||||
Dividends yield | 1.4 | % | |||||||||||||||||||||||
Expected term | 5.2 years | ||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | |||||||||||||||||||||||
The following tables summarize the activity under all share-based compensation plans, which includes all stock awards, for the year ended December 31, 2013: | |||||||||||||||||||||||||
Stock Options & SARs | Awards | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise Price | Remaining | Value(1) | |||||||||||||||||||||||
Contractual Term | |||||||||||||||||||||||||
(In thousands) | (In millions) | ||||||||||||||||||||||||
Outstanding at December 31, 2012(2) (3) | 11,333 | $ | 28.62 | 5.9 years | $ | 119.1 | |||||||||||||||||||
Granted(4) | 1,176 | $ | 76.4 | ||||||||||||||||||||||
Exercised | (305 | ) | $ | 25.76 | |||||||||||||||||||||
Forfeited | (61 | ) | $ | 44.54 | |||||||||||||||||||||
Outstanding at December 31, 2013(2) (3) (4) | 12,143 | $ | 33.24 | 5.3 years | $ | 552.9 | |||||||||||||||||||
Exercisable at December 31, 2013(3) | 7,327 | $ | 20.84 | 3.8 years | $ | 424 | |||||||||||||||||||
-1 | The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock award. | ||||||||||||||||||||||||
-2 | Includes 0.9 million SARs with market and performance conditions. | ||||||||||||||||||||||||
-3 | Includes 1.5 million SARs with market conditions. | ||||||||||||||||||||||||
-4 | Includes 0.4 million SARs with performance conditions. | ||||||||||||||||||||||||
The weighted-average grant date fair value of service condition SARs granted during the years ended December 31, 2013, 2012, and 2011 was $30.57, $15.36, and $21.23, respectively. The weighted-average grant date fair value of SARs with performance conditions granted during the year ended December 31, 2013 was $33.04. The weighted-average grant date fair value of SARs with market and performance conditions granted during the year ended December 31, 2011 was $17.37. The total intrinsic value of service condition stock options and SARs exercised during the years ended December 31, 2013, 2012, and 2011 was $16.1 million, $98.6 million, and $133.8 million, respectively. There were no market condition, performance condition, or market condition and performance condition SARs exercised during the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||||||
Incentive Plan and Independent Directors Stock Units | Shares | Weighted | |||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Outstanding and nonvested at December 31, 2012 | 321.6 | $ | 11.7 | ||||||||||||||||||||||
Granted | 17 | $ | 59.96 | ||||||||||||||||||||||
Vested | (193.7 | ) | $ | 13.88 | |||||||||||||||||||||
Forfeited | (0.4 | ) | $ | 42.93 | |||||||||||||||||||||
Outstanding and nonvested at December 31, 2013 | 144.5 | $ | 14.36 | ||||||||||||||||||||||
The total vesting date fair value of stock units which vested during the years ended December 31, 2013, 2012, and 2011 was $7.3 million, $24.3 million, and $19.8 million, respectively. | |||||||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
During 2007, the Company adopted a qualified employee stock purchase plan, or ESPP, which was implemented during the first quarter of 2008. In connection with the adoption of the ESPP, the Company has reserved for issuance a total of 2 million common shares. At December 31, 2013, approximately 1.8 million common shares remain available for future issuance. Under the terms of the ESPP, rights to purchase common shares may be granted to eligible qualified employees subject to certain restrictions. The ESPP enables the Company’s eligible employees, through payroll withholdings, to purchase a limited number of common shares at 85% of the fair market value of a common share at the purchase date. Purchases are made on a quarterly basis. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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. The Company’s products are manufactured by third party providers and by the Company in its Changsha, Hunan, China extraction facility, Suzhou, China facility and in its Lake Forest, California facility, and then are sold to Members who consume and sell Herbalife products to retail consumers or other Members. Revenues reflect sales of products by the Company to its Members and are categorized based on geographic location. | |||||||||||||
As of December 31, 2013, the Company sold products in 91 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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Net Sales: | |||||||||||||
Primary Reporting Segment: | |||||||||||||
United States | $ | 881 | $ | 816.9 | $ | 676.9 | |||||||
Mexico | 562.4 | 496.1 | 436.9 | ||||||||||
South Korea | 433.7 | 421.4 | 343.5 | ||||||||||
Others | 2,476.60 | 2,059.40 | 1,786.40 | ||||||||||
Total Primary Reporting Segment | 4,353.70 | 3,793.80 | 3,243.70 | ||||||||||
China | 471.6 | 278.5 | 210.8 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 | |||||||
Contribution Margin(1): | |||||||||||||
Primary Reporting Segment: | |||||||||||||
United States | $ | 365.2 | $ | 359.5 | $ | 286.3 | |||||||
Mexico | 251.7 | 205.6 | 191.1 | ||||||||||
South Korea | 214.3 | 199.4 | 163.1 | ||||||||||
Others | 1,110.50 | 906.5 | 810 | ||||||||||
Total Primary Reporting Segment | 1,941.70 | 1,671.00 | 1,450.50 | ||||||||||
China(2) | 422.7 | 250.1 | 186.4 | ||||||||||
Total Contribution Margin | $ | 2,364.40 | $ | 1,921.10 | $ | 1,636.90 | |||||||
Selling, general and administrative expense (2) | 1,629.10 | 1,259.70 | 1,074.60 | ||||||||||
Interest expense | 26.6 | 16.7 | 9.9 | ||||||||||
Interest income | 8 | 6.2 | 7.4 | ||||||||||
Income before income taxes | 716.7 | 650.9 | 559.8 | ||||||||||
Income taxes | 189.2 | 186.9 | 144.8 | ||||||||||
Net Income | $ | 527.5 | $ | 464 | $ | 415 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Capital Expenditures: | |||||||||||||
United States | $ | 121.3 | $ | 81.6 | $ | 60.4 | |||||||
Mexico | 2.4 | 2.8 | 3.5 | ||||||||||
South Korea | 1.8 | 4.1 | 2.1 | ||||||||||
China | 12.6 | 15.4 | 6.6 | ||||||||||
Others | 24.4 | 18.9 | 18.3 | ||||||||||
Total Capital Expenditures | $ | 162.5 | $ | 122.8 | $ | 90.9 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Net sales by product line: | |||||||||||||
Weight Management | $ | 3,063.70 | $ | 2,554.90 | $ | 2,158.70 | |||||||
Targeted Nutrition | 1,109.90 | 944.8 | 789.6 | ||||||||||
Energy, Sports & Fitness | 254.5 | 209.4 | 169.8 | ||||||||||
Outer Nutrition | 157.2 | 146.3 | 147.8 | ||||||||||
Literature, Promotional and Other(3) | 240 | 216.9 | 188.6 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 | |||||||
Net sales by geographic region: | |||||||||||||
North America | $ | 908 | $ | 841.2 | $ | 698.6 | |||||||
Mexico | 562.4 | 496.1 | 436.9 | ||||||||||
South & Central America | 973.5 | 688.8 | 554.4 | ||||||||||
EMEA | 735.2 | 627.8 | 615.2 | ||||||||||
Asia Pacific | 1,174.60 | 1,139.90 | 938.6 | ||||||||||
China | 471.6 | 278.5 | 210.8 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 | |||||||
-1 | Contribution margin consists of net sales less cost of sales and royalty overrides. | ||||||||||||
-2 | Compensation to China sales employees and service fees to China independent service providers totaling $215.6 million, $123.5 million, and $96.8 million for the years ended December 31, 2013, 2012, and 2011, respectively, are included in selling, general and administrative expenses while Member 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, 2013 and 2012, total assets for the Company’s Primary Reporting Segment were $2,253.7 million and $1,607.2 million, respectively. Total assets for the China segment were $220.0 million and $116.9 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
As of December 31, 2013 and 2012, 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, 2013 and 2012. | |||||||||||||
As of December 31, 2013, the net property, plant and equipment located in the U.S. and in all foreign countries was $236.0 million and $82.9 million, respectively. 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, 2013, the deferred tax assets related to the U.S. and all foreign countries was $69.1 million and $58.7 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. | |||||||||||||
The majority of the Company’s foreign subsidiaries designate their local currencies as their functional currency. As of December 31, 2013 and 2012, the total amount of cash held by foreign subsidiaries reported in the Company’s consolidated balance sheet was $567.4 million and $321.3 million, respectively, of which $6.8 million and $6.9 million, respectively, was maintained or invested in U.S. dollars. At December 31, 2013 and 2012, the total amount of cash and cash equivalents held by U.S. entities was $405.6 million and $12.2 million, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||
11. Derivative Instruments and Hedging Activities | |||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||
The Company previously engaged in an interest rate hedging strategy for which the hedged transactions were the forecasted interest payments on the Credit Facility. The hedged risk was the variability of forecasted interest rate cash flows, where the hedging strategy involved the purchase of interest rate swaps. These interest rate swaps expired in July 2013 and the Company has not entered into new interest swap arrangements as of December 31, 2013. | |||||||||||||||||
During August 2009, the Company entered into four interest rate swap agreements with an effective date of December 31, 2009. The agreements collectively provided for the Company to pay interest for less than a four-year period at a weighted average fixed rate of 2.78% on notional amounts aggregating to $140.0 million while receiving interest for the same period at the one month LIBOR rate on the same notional amounts. As discussed above, these agreements expired in July 2013. These swaps at inception were designated as cash flow hedges against the variability in the LIBOR interest rate on the Company’s term loan under the Prior Credit Facility or against the variability in the LIBOR interest rate on the replacement debt. The Company’s term loan under the Prior Credit Facility was terminated in March 2011 and refinanced with the Credit Facility as discussed further in Note 4, Long-Term Debt. Until their expiration in July 2013, the Company’s swaps were effective and were designated as cash flow hedges against the variability in certain LIBOR interest rate borrowings under the Credit Facility at LIBOR plus 1.50% to 2.50%, fixing the Company’s weighted average effective rate on the notional amounts at 4.28% to 5.28%. There was no hedge ineffectiveness recorded as result of this refinancing event. | |||||||||||||||||
The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. During the years ended December 31, 2013 and 2012, the ineffective portion relating to these hedges was immaterial and the hedges remained effective until their expiration in July 2013 and as of December 31, 2012. Consequently, all changes in the fair value of the derivatives were deferred and recorded in other comprehensive income (loss) until the related forecasted transactions were recognized in the consolidated statements of income. The fair value of the interest rate swap agreements were based on third-party quotes. At December 31, 2012, the Company recorded the interest rate swaps as liabilities at their fair value of $2.0 million. No amount was recorded as of December 31, 2013 because the interest rate swaps had expired. | |||||||||||||||||
The table below describes the interest rate swaps in aggregate, and the fair value of the liabilities that were outstanding as of December 31, 2013 and 2012: | |||||||||||||||||
Interest Rate | Aggregate | Average | Aggregate | Maturity | |||||||||||||
Notional | Swap | Fair | Dates | ||||||||||||||
Amounts | Rate | Value | |||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Interest Rate Swaps | — | — | — | — | |||||||||||||
At December 31, 2012 | |||||||||||||||||
Interest Rate Swaps | $ | 140 | 2.78 | % | $ | (2.0 | ) | July 2013 | |||||||||
Foreign Currency Instruments | |||||||||||||||||
The Company also designates certain foreign currency derivatives, such as certain foreign currency forward and option contracts, as freestanding derivatives for which hedge accounting does not apply. The changes in the fair market value of these freestanding derivatives are included in selling, general and administrative expenses in the Company’s consolidated statements of income. The Company uses foreign currency forward contracts to hedge foreign-currency-denominated intercompany transactions and to partially mitigate the impact of foreign currency fluctuations. The Company also uses foreign currency option contracts to partially mitigate the impact of foreign currency fluctuations. The fair value of the forward and option contracts are based on third-party quotes. The Company’s foreign currency derivative contracts are generally executed on a monthly basis. | |||||||||||||||||
The Company designates as cash-flow hedges those foreign currency forward contracts it enters into to hedge forecasted inventory purchases and intercompany management fees that are subject to foreign currency exposures. Forward contracts are used to hedge forecasted inventory purchases over specific months. Changes in the fair value of these forward contracts, excluding forward points, designated as cash-flow hedges are recorded as a component of accumulated other comprehensive income (loss) within shareholders’ equity, and are recognized in cost of sales in the consolidated statement of income during the period which approximates the time the hedged inventory is sold. The Company also hedges forecasted intercompany management fees over specific months. These contracts allow the Company to sell Euros in exchange for U.S. dollars at specified contract rates. Changes in the fair value of these forward contracts designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within shareholders’ equity, and are recognized in selling, general and administrative expenses in the consolidated statement of income during the period when the hedged item and underlying transaction affect earnings. | |||||||||||||||||
As of December 31, 2013 and 2012, the aggregate notional amounts of all foreign currency contracts outstanding designated as cash flow hedges were approximately $244.7 million and $256.9 million, respectively. At December 31, 2013, these outstanding contracts were expected to mature over the next twelve months. The Company’s derivative financial instruments are recorded on the consolidated balance sheet at fair value based on third-party quotes. As of December 31, 2013, the Company recorded assets at fair value of $5.7 million and liabilities at fair value of $4.4 million relating to all outstanding foreign currency contracts designated as cash-flow hedges. As of December 31, 2012, the Company recorded assets at fair value of $0.5 million and liabilities at fair value of $3.3 million relating to all outstanding foreign currency contracts designated as cash-flow hedges. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. During the years ended December 31, 2013 and 2012, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of December 31, 2013 and 2012. | |||||||||||||||||
As of both December 31, 2013 and 2012, the majority of the Company’s outstanding foreign currency forward contracts had maturity dates of less than twelve months, with the majority of freestanding derivatives expiring within three months and one month, respectively. There were no foreign currency option contracts outstanding as of December 31, 2013 and 2012. | |||||||||||||||||
The table below describes all foreign currency forward contracts that were outstanding as of December 31, 2013 and 2012: | |||||||||||||||||
Foreign Currency | Average | Original | Fair Value | ||||||||||||||
Contract Rate | Notional Amount | Gain (Loss) | |||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Buy Australian dollar sell Euro | 1.55 | $ | 2.7 | $ | — | ||||||||||||
Buy Euro sell Australian dollar | 1.52 | 4.5 | 0.1 | ||||||||||||||
Buy Euro sell Chilean peso | 727.4 | 1.1 | — | ||||||||||||||
Buy Euro sell British pound | 0.83 | 2.5 | — | ||||||||||||||
Buy Euro sell Indonesian rupiah | 16,915.00 | 0.7 | — | ||||||||||||||
Buy Euro sell Mexican peso | 17.51 | 150.3 | 4.9 | ||||||||||||||
Buy Euro sell Russian ruble | 45.05 | 3 | — | ||||||||||||||
Buy Euro sell Singapore dollar | 1.74 | 3 | — | ||||||||||||||
Buy Euro sell U.S. dollar | 1.37 | 161.3 | — | ||||||||||||||
Buy British pound sell Euro | 1.01 | 4.9 | 0.1 | ||||||||||||||
Buy Japanese yen sell U.S. dollar | 104.71 | 2.9 | — | ||||||||||||||
Buy Malaysian ringgit sell U.S. dollar | 3.3 | 5.3 | — | ||||||||||||||
Buy Singapore dollar sell Euro | 1.71 | 2 | — | ||||||||||||||
Buy New Taiwan dollar sell U.S. dollar | 29.54 | 14.9 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell Brazilian real | 2.35 | 12.8 | 0.6 | ||||||||||||||
Buy U.S. dollar sell Euro | 1.34 | 171.8 | (4.2 | ) | |||||||||||||
Buy U.S. dollar sell South Korean won | 1,112.65 | 50 | 1.5 | ||||||||||||||
Total forward contracts | $ | 593.7 | $ | 2.9 | |||||||||||||
Foreign Currency | Average | Original | Fair | ||||||||||||||
Contract Rate | Notional Amount | Value | |||||||||||||||
Gain (Loss) | |||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2012 | |||||||||||||||||
Buy Brazilian real sell U.S. dollar | 2.08 | $ | 12.5 | $ | 0.2 | ||||||||||||
Buy Chinese yuan sell U.S. dollar | 6.29 | 1.3 | — | ||||||||||||||
Buy Euro sell Argentine peso | 6.66 | 3 | — | ||||||||||||||
Buy Euro sell Australian dollar | 1.27 | 1.4 | — | ||||||||||||||
Buy Euro sell Chilean peso | 633 | 1.5 | — | ||||||||||||||
Buy Euro sell Indonesian rupiah | 12,935.00 | 9.7 | — | ||||||||||||||
Buy Euro sell Mexican peso | 17.18 | 143.7 | 0.3 | ||||||||||||||
Buy Euro sell Malaysian ringgit | 4.06 | 15.2 | (0.1 | ) | |||||||||||||
Buy Euro sell Peruvian nuevo sol | 3.41 | 2 | — | ||||||||||||||
Buy Euro sell U.S. dollar | 1.33 | 82.1 | (0.4 | ) | |||||||||||||
Buy British pound sell Euro | 0.82 | 2.4 | — | ||||||||||||||
Buy Japanese yen sell U.S. dollar | 85.88 | 9.3 | (0.1 | ) | |||||||||||||
Buy South Korean won sell U.S. dollar | 1,077.18 | 52.5 | 0.2 | ||||||||||||||
Buy Malaysian ringgit sell Euro | 4.07 | 0.8 | — | ||||||||||||||
Buy Malaysian ringgit sell U.S. dollar | 3.08 | 21.7 | 0.1 | ||||||||||||||
Buy U.S. dollar sell Brazilian real | 2.05 | 12.6 | — | ||||||||||||||
Buy U.S. dollar sell Colombian peso | 1,800.10 | 11.7 | (0.2 | ) | |||||||||||||
Buy U.S. dollar sell Euro | 1.3 | 174.4 | (2.9 | ) | |||||||||||||
Buy U.S. dollar sell British pound | 1.62 | 16.2 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell South Korean won | 1,089.08 | 6.3 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell Mexican peso | 13.12 | 25.4 | (0.3 | ) | |||||||||||||
Buy U.S. dollar sell Philippine peso | 40.99 | 2.9 | — | ||||||||||||||
Buy U.S. dollar sell New Taiwan dollar | 28.98 | 0.8 | — | ||||||||||||||
Buy U.S. dollar sell South African rand | 8.54 | 0.7 | — | ||||||||||||||
Total forward contracts | $ | 610.1 | $ | (3.4 | ) | ||||||||||||
The following tables summarize the derivative activity during the years ended December 31, 2013, 2012, and 2011 relating to all the Company’s derivatives. | |||||||||||||||||
Gains and Losses on Derivative Instruments | |||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) Recognized | |||||||||||||||||
in Other Comprehensive Income (Loss) | |||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | $ | 3.5 | $ | (3.3 | ) | $ | 4.1 | ||||||||||
Interest rate swaps | $ | — | $ | (0.6 | ) | $ | (2.1 | ) | |||||||||
As of December 31, 2013, the estimated amount of existing net gains related to cash flow hedges recorded in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings over the next twelve months was $3.1 million. | |||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) | Location of Gain (Loss) | ||||||||||||||||
Recognized in Income | Recognized in Income | ||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1) | $ | (5.2 | ) | $ | (1.8 | ) | $ | — | Selling, general and administrative expenses | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts | $ | 6.4 | $ | (10.0 | ) | $ | 2.7 | Selling, general and administrative expenses | |||||||||
-1 | For foreign exchange contracts designated as hedging instruments, the amounts recognized in income (loss) represent the amounts excluded from the assessment of hedge effectiveness. There were no ineffective amounts reported for derivatives designated as hedging instruments. | ||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) Reclassified | Location of Gain | ||||||||||||||||
from Accumulated Other | (Loss) Reclassified | ||||||||||||||||
Comprehensive Loss into Income | from Accumulated Other | ||||||||||||||||
For the Year Ended | Comprehensive Loss into | ||||||||||||||||
December 31, | December 31, | December 31, | Income (effective portion) | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory hedges | $ | (4.1 | ) | $ | 0.1 | $ | (0.3 | ) | Cost of sales | ||||||||
Foreign exchange currency contracts relating to intercompany management fee hedges | $ | (0.7 | ) | $ | 4.5 | $ | (1.8 | ) | Selling, general and administrative expenses | ||||||||
Interest rate contracts | $ | (2.0 | ) | $ | (3.6 | ) | $ | (3.6 | ) | Interest expense, net | |||||||
The Company reports its derivatives at fair value as either assets or liabilities within its consolidated balance sheet. See Note 13, Fair Value Measurements, for information on derivative fair values and their consolidated balance sheet location as of December 31, 2013 and 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
12. Income Taxes | |||||||||||||
The components of income before income taxes are as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 155.6 | $ | 172.3 | $ | 143.9 | |||||||
Foreign | 561.1 | 478.6 | 415.9 | ||||||||||
Total | $ | 716.7 | $ | 650.9 | $ | 559.8 | |||||||
Income taxes are as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 138.1 | $ | 104 | $ | 103.3 | |||||||
Federal | 68.8 | 82.1 | 55.3 | ||||||||||
State | 7.2 | 8.6 | 7.4 | ||||||||||
214.1 | 194.7 | 166 | |||||||||||
Deferred: | |||||||||||||
Foreign | (16.3 | ) | (6.3 | ) | (11.8 | ) | |||||||
Federal | (9.4 | ) | (2.7 | ) | (8.7 | ) | |||||||
State | 0.8 | 1.2 | (0.7 | ) | |||||||||
(24.9 | ) | (7.8 | ) | (21.2 | ) | ||||||||
$ | 189.2 | $ | 186.9 | $ | 144.8 | ||||||||
The Company recognizes excess tax benefits associated with share-based compensation to shareholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company, which are also subject to applicable limitations. As of December 31, 2013 and 2012, the Company had $15.4 million and $25.9 million, respectively, of unrealized excess tax benefits. The reduction primarily relates to the utilization of previously unrealized excess tax benefits. The $15.4 million of excess tax benefits at December 31, 2013 relates to foreign tax credits generated and carried forward on US federal income tax returns. If unused, tax credit carryforwards of $2.4 million will expire in 2021 and $13.0 million will expire in 2022. | |||||||||||||
Venezuela has experienced cumulative inflation of at least 100% during the three year period ended December 31, 2009. Therefore, as of January 1, 2010 the Bolivar is hyperinflationary for U.S. federal income tax purposes. As a result, because Herbalife Venezuela is considered a dual incorporated entity, it is now required to account for its operations using the Dollar Approximate Separate Transactions Method of accounting, or DASTM. See Note 2, Basis of Presentation, for a further discussion on Herbalife Venezuela and Venezuela’s highly inflationary economy. | |||||||||||||
The significant categories of temporary differences that gave rise to deferred tax assets and liabilities are as follows (tax effected in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accruals not currently deductible | $ | 53.4 | $ | 48 | |||||||||
Tax loss carry forwards of certain foreign subsidiaries | 29.2 | 22 | |||||||||||
Depreciation/amortization | 3.5 | 13.5 | |||||||||||
Deferred compensation plan | 47.4 | 35.6 | |||||||||||
Deferred interest expense | 218.7 | 186.9 | |||||||||||
Accrued vacation | 5.5 | 4.6 | |||||||||||
Inventory reserve | 13.2 | 6.4 | |||||||||||
Hyperinflationary adjustment | — | 3.5 | |||||||||||
Other | 4.5 | 8.6 | |||||||||||
Gross deferred income tax assets | 375.4 | 329.1 | |||||||||||
Less: valuation allowance | (247.6 | ) | (209.3 | ) | |||||||||
Total deferred income tax assets | $ | 127.8 | $ | 119.8 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Intangible assets | $ | 113 | $ | 111.7 | |||||||||
Unremitted foreign earnings | 0.7 | 13.9 | |||||||||||
Other | 4.5 | 4.5 | |||||||||||
Total deferred income tax liabilities | $ | 118.2 | $ | 130.1 | |||||||||
Total net deferred tax assets (liabilities) | $ | 9.6 | $ | (10.3 | ) | ||||||||
Net operating loss carryforwards of subsidiaries for 2013 and 2012 were $29.2 million and $22.0 million, respectively. If unused, net operating losses and tax credits of $3.6 million will expire between 2014 and 2023 and $25.6 million can be carried forward indefinitely. Deferred interest carryforwards of subsidiaries for 2013 and 2012 were $218.7 million and $186.9 million, respectively, and can be carried forward indefinitely. | |||||||||||||
The Company recognizes valuation allowances on deferred tax assets reported if, based on the weight of the evidence it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2013 and 2012 the Company held valuation allowances against net deferred tax assets of certain subsidiaries, primarily related to deferred interest expense carryforwards and net operating loss carryforwards, in the amount of $247.6 million and $209.3 million, respectively. The change in the Company’s valuation allowance during 2013 of $38.3 million was related to $36.7 million of net additions charged to income tax expense and $1.6 million of currency translation adjustments recognized within other comprehensive income. The change in the Company’s valuation allowance during 2012 of $41.2 million was related to $40.2 million of net additions charged to income tax expense and $1.0 million of currency translation adjustments recognized within other comprehensive income. The change in the Company’s valuation allowance during 2011 of $29.5 million was related to $31.8 million of net additions charged to income tax expense, reduced by $2.3 million of currency translation adjustments recognized within other comprehensive income. | |||||||||||||
At December 31, 2013, the Company’s U.S. consolidated group had approximately $88.1 million of unremitted earnings that were permanently reinvested from certain foreign subsidiaries. In addition, at December 31, 2013, Herbalife Ltd. had approximately $2.0 billion of permanently reinvested unremitted earnings relating to its operating subsidiaries. Since these unremitted earnings have been permanently reinvested, deferred taxes were not provided on these unremitted earnings. Further, it is not practicable to determine the amount of unrecognized deferred taxes with respect to these unremitted earnings. If the Company were to remit these unremitted earnings then it would be subject to income tax on these remittances. Deferred taxes have been accrued for earnings that are not considered indefinitely reinvested. The deferred tax liability on the unremitted foreign earnings as of December 31, 2013 and 2012 was $0.7 million and $13.9 million, respectively. | |||||||||||||
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 (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Tax expense at United States statutory rate | $ | 250.9 | $ | 227.8 | $ | 195.9 | |||||||
Increase (decrease) in tax resulting from: | |||||||||||||
Differences between U.S. and foreign tax rates on foreign income, including withholding taxes | (82.1 | ) | (97.9 | ) | (78.1 | ) | |||||||
U.S. tax (benefit) on foreign income net of foreign tax credits | (4.7 | ) | 1.8 | (8.8 | ) | ||||||||
Increase (decrease) in valuation allowances | 36.7 | 40.2 | 31.8 | ||||||||||
State taxes, net of federal benefit | 5.7 | 7.3 | 5.2 | ||||||||||
Unrecognized tax benefits | (10.3 | ) | 6.6 | 1.1 | |||||||||
Other | (7.0 | ) | 1.1 | (2.3 | ) | ||||||||
Total | $ | 189.2 | $ | 186.9 | $ | 144.8 | |||||||
During the years ended December 31, 2012, and 2011, the Company benefited from the terms of a tax holiday in the People’s Republic of China. The tax holiday commenced on January 1, 2008 and concluded on December 31, 2012. Under the terms of the holiday, the Company was subject to an 11% tax rate in 2010, a 12% tax rate in 2011, and a 12.5% tax rate in 2012. The Company was subject to the statutory tax rate of 25% in 2013. | |||||||||||||
As of December 31, 2013, the total amount of unrecognized tax benefits, including related interest and penalties was $34.6 million. If the total amount of unrecognized tax benefits was recognized, $28.4 million of unrecognized tax benefits, $3.7 million of interest and $0.8 million of penalties would impact the effective tax rate. As of December 31, 2012, the total amount of unrecognized tax benefits, including related interest and penalties was $47.1 million. If the total amount of unrecognized tax benefits was recognized, $38.2 million of unrecognized tax benefits, $5.7 million of interest and $1.7 million of penalties would impact the effective tax rate. | |||||||||||||
The Company accounts for the interest and penalties generated by tax contingencies as a component of income tax expense. During the year ended December 31, 2013, the Company recorded a reversal in interest and penalty expense related to uncertain tax positions of $1.6 million and $0.7 million, respectively. During the year ended December 31, 2012, the Company recorded an increase in interest and penalty expense related to uncertain tax positions of $0.2 million and $0.6 million, respectively. During the year ended December 31, 2011, the Company recorded an increase in interest expense and a reversal of penalty expense related to uncertain tax positions of $0.1 million and $0.1 million, respectively. As of December 31, 2013, total amount of interest and penalties related to unrecognized tax benefits recognized in the statement of financial position were $3.7 million and $0.8 million respectively. As of December 31, 2012, total amount of interest and penalties related to unrecognized tax benefits recognized in the statement of financial position were $5.7 million and $1.7 million respectively. | |||||||||||||
The following changes occurred in the amount of unrecognized tax benefits during the years ended December 31, 2013, 2012, and 2011 (in millions): | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance of unrecognized tax benefits | $ | 39.7 | $ | 32.4 | $ | 31.6 | |||||||
Additions for current year tax positions | 10.3 | 7.8 | 5.5 | ||||||||||
Additions for prior year tax positions | 4.1 | 4.5 | 2 | ||||||||||
Reductions for prior year tax positions | (3.9 | ) | (0.1 | ) | (0.9 | ) | |||||||
Reductions for audit settlements | (10.0 | ) | (0.3 | ) | (0.7 | ) | |||||||
Reductions for the expiration of statutes of limitation | (8.4 | ) | (4.9 | ) | (4.5 | ) | |||||||
Changes due to foreign currency translation adjustments | (1.9 | ) | 0.3 | (0.6 | ) | ||||||||
Ending balance of unrecognized tax benefits (excluding interest and penalties) | $ | 29.9 | $ | 39.7 | $ | 32.4 | |||||||
Interest and penalties associated with unrecognized tax benefits | 4.7 | 7.4 | 6.6 | ||||||||||
Ending balance of unrecognized tax benefits (including interest and penalties) | $ | 34.6 | $ | 47.1 | $ | 39 | |||||||
The amount of income taxes the Company pays is subject to ongoing audits by taxing jurisdictions around the world. The Company’s estimate of the potential outcome of any uncertain tax position is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. The Company believes that it has adequately provided for these matters. However, the Company’s future results may include favorable or unfavorable adjustments to its estimates in the period the audits are resolved, which may impact the Company’s effective tax rate. As of December 31, 2013, the Company’s tax filings are generally subject to examination in major tax jurisdictions for years ending on or after December 31, 2009. | |||||||||||||
The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $10.7 million within the next twelve months. Of this possible decrease, $6.8 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $3.9 million would be due to the expiration of statute of limitations in various jurisdictions. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
13. Fair Value Measurements | |||||||||||||
The Company applies the provisions of FASB ASC Topic 820, Fair Value Measurements and Disclosures, or ASC 820, for its financial and non-financial assets and liabilities. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | |||||||||||||
Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||
Level 3 inputs are unobservable inputs for the asset or liability. | |||||||||||||
The Company measures certain assets and liabilities at fair value as discussed throughout the notes to its consolidated financial statements. Foreign exchange currency contracts and interest rate swaps are valued using standard calculations and models. Foreign exchange currency contracts are valued primarily based on inputs such as observable forward rates, spot rates and foreign currency exchange rates at the reporting period ended date. Interest rate swaps are valued primarily based on inputs such as LIBOR and swap yield curves at the reporting period ended date. The Company’s derivative assets and liabilities are measured at fair value and consisted of Level 2 inputs and their amounts are shown below at their gross values at December 31, 2013 and 2012: | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Derivative Balance Sheet Location | Significant | Significant | |||||||||||
Other | Other | ||||||||||||
Observable | Observable | ||||||||||||
Inputs | Inputs | ||||||||||||
(Level 2) | (Level 2) | ||||||||||||
Fair Value at | Fair Value at | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||
ASSETS: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | Prepaid expenses and other current assets | $ | 5.7 | $ | 0.5 | ||||||||
Derivatives not designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts | Prepaid expenses and other current assets | $ | 2.3 | $ | 0.7 | ||||||||
$ | 8 | $ | 1.2 | ||||||||||
LIABILITIES: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | Accrued expenses | $ | 4.4 | $ | 3.3 | ||||||||
Interest rate swaps | Accrued expenses | $ | — | $ | 2 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Foreign exchange currency contracts | Accrued expenses | $ | 0.7 | $ | 1.3 | ||||||||
$ | 5.1 | $ | 6.6 | ||||||||||
The Company’s deferred compensation plan assets consist of Company owned life insurance policies. As these policies are recorded at their cash surrender value, they are not required to be included in the fair value table above. See Note 6, Employee Compensation Plans, for a further description of its deferred compensation plan assets. | |||||||||||||
The following tables summarize the offsetting of the fair values of the Company’s derivative assets and derivative liabilities for presentation in the Company’s consolidated balance sheet at December 31, 2013 and 2012: | |||||||||||||
Offsetting of Derivative Assets | |||||||||||||
Gross | Gross | Net Amounts | |||||||||||
Amounts of | Amounts | of Assets | |||||||||||
Recognized | Offset in the | Presented in | |||||||||||
Assets | Balance Sheet | the Balance | |||||||||||
Sheet | |||||||||||||
(In millions) | |||||||||||||
December 31, 2013 | |||||||||||||
Foreign exchange currency contracts | $ | 8 | $ | (3.0 | ) | $ | 5 | ||||||
Total | $ | 8 | $ | (3.0 | ) | $ | 5 | ||||||
December 31, 2012 | |||||||||||||
Foreign exchange currency contracts | $ | 1.2 | $ | (1.2 | ) | — | |||||||
Total | $ | 1.2 | $ | (1.2 | ) | — | |||||||
Offsetting of Derivative Liabilities | |||||||||||||
Gross | Gross | Net Amounts | |||||||||||
Amounts of | Amounts | of Liabilities | |||||||||||
Recognized | Offset in the | Presented in | |||||||||||
Liabilities | Balance Sheet | the Balance | |||||||||||
Sheet | |||||||||||||
(In millions) | |||||||||||||
December 31, 2013 | |||||||||||||
Foreign exchange currency contracts | $ | 5.1 | $ | (3.0 | ) | $ | 2.1 | ||||||
Total | $ | 5.1 | $ | (3.0 | ) | $ | 2.1 | ||||||
December 31, 2012 | |||||||||||||
Foreign exchange currency contracts | $ | 4.6 | $ | (1.2 | ) | $ | 3.4 | ||||||
Interest rate swaps | 2 | — | 2 | ||||||||||
Total | $ | 6.6 | $ | (1.2 | ) | $ | 5.4 | ||||||
The Company offsets all of its derivative assets and derivative liabilities in its consolidated balance sheet to the extent it maintains master netting arrangements with related financial institutions. As of December 31, 2013 and 2012, all of the Company’s derivatives were subject to master netting arrangements and no collateralization was required for the Company’s derivative assets and derivative liabilities. |
Professional_Fees_and_Other_Ex
Professional Fees and Other Expenses | 12 Months Ended |
Dec. 31, 2013 | |
Asset Retirement Obligation Disclosure [Abstract] | ' |
Professional Fees and Other Expenses | ' |
14. Professional Fees and Other Expenses | |
In late 2012, a hedge fund manager publicly raised allegations regarding the legality of the Company’s network marketing program and announced that the hedge fund manager had taken a significant short position regarding the Company’s common shares, leading to intense public scrutiny and significant stock price volatility. The Company believes that the hedge fund manager’s allegations are inaccurate and misleading. The Company has engaged legal and advisory firms to assist with responding to the allegations and to perform other related services in connection to these recent events. The Company recognizes the related expenses as a part of selling, general & administrative expenses within its consolidated statement of income. For the year ended December 31, 2013, the Company recorded approximately $29.1 million of professional fees and other expenses related to this matter. | |
Of the approximately $29.1 million in expenses incurred during the year ended December 31, 2013 discussed above, approximately $6.0 million was recognized for advisory retainer fees. The minimum guaranteed retainer fees were approximately $4.0 million as of December 31, 2013 and the expense recognition of these fees could accelerate based on certain conditions. | |
The Company also had a cash settlement liability award, or the Liability Award, outstanding as of December 31, 2013, which is tied to the Company’s stock price and which only vests if certain conditions are met relating to the above matter. The fair value of the Liability Award will be revalued each quarter until settlement and the Company will recognize and adjust the expense over the expected requisite service period. The expense recognized during the year ended December 31, 2013, relating to the Liability Award was approximately $3.5 million, and is included in the approximately $29.1 million expense described above. The remaining unrecognized expense relating to the Liability Award was approximately $3.3 million as of December 31, 2013, based on the fair value of the Liability Award as of that date. The recognition of the unrecognized expense relating to the Liability Award could accelerate and change based on certain conditions. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
15. Subsequent Events | |
On February 3, 2014, the Company announced that its board of directors authorized an increase in the existing share repurchase authorization to an available balance of $1.5 billion. The Company’s former share repurchase authorization of $1 billion had an available balance of $652.6 million as of December 31, 2013. | |
On February 18, 2014, the Company announced that its board of directors approved a quarterly cash dividend of $0.30 per common share to shareholders of record as of March 4, 2014, payable on March 18, 2014. | |
During February 2014, the Company initially issued $1 billion aggregate principal amount of convertible senior notes, or Convertible Notes, in a private offering to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933, as amended. The Company granted an option to the initial purchasers to purchase up to an additional $150 million aggregate principal amount of Convertible Notes which was subsequently exercised in full during February 2014, resulting in a total issuance of $1.15 billion aggregate principal amount of Convertible Notes. The Convertible Notes pay interest at a rate of 2.00% per annum payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2014. The Convertible Notes mature on August 15, 2019, unless earlier repurchased or converted. The Company may not redeem the Convertible Notes prior to their stated maturity date. These Convertible Notes are not puttable by the note holders other than in the context of a defined fundamental change. Upon conversion, the Convertible Notes will be settled in cash and, if applicable, the Company’s common shares, based on the applicable conversion rate at such time. The Convertible Notes had an initial conversion rate of 11.5908 common shares per $1,000 principal amount of the Convertible Notes (which is equal to an initial conversion price of approximately $86.28 per common share), representing an initial conversion premium of approximately 25% above the last reported sale price of $69.02 per common share on February 3, 2014. The Company is also expected to incur approximately $26 million of deferred financing costs as a result of issuing these Convertible Notes. | |
During the first quarter of 2014, the $1.15 billion proceeds received from the issuance of the Convertible Notes must be allocated between total liabilities and shareholders’ equity within the Company’s consolidated balance sheet due to the fact the Convertible Notes may be partially settled in cash and that there is an existing equity conversion feature within the Convertible Notes that permits the Company to settle any amounts above the conversion price with its common shares. As of February 18, 2014, the $1.15 billion allocation between total liabilities and shareholders’ equity had not been finalized. Preliminarily, it is expected that a majority of the $1.15 billion will be allocated to total liabilities. As a result of this required allocation, the liability component will be measured based on the fair value of the Convertible Notes which will be discounted using the nonconvertible debt interest rate; therefore, this will result in discounted debt being recognized within total liabilities on the Company’s consolidated balance sheet. The difference between the proceeds received from the Convertible Notes issuance and this discounted debt would then be allocated to shareholders’ equity. Since the Company must still settle these Convertible Notes at face value at or prior to maturity, this discounted debt will be accreted up to its face value resulting in additional non-cash interest expense being recognized in subsequent periods within the Company’s consolidated statements of income while the Convertible Notes remain outstanding. | |
In connection with the issuance of Convertible Notes, the Company paid approximately $124 million to enter into capped call transactions with respect to its common shares, or the Capped Call Transactions, with certain financial institutions. The Capped Call Transactions are expected generally to reduce the potential dilution upon conversion of the Convertible Notes in the event that the market price of the common shares is greater than the strike price of the Capped Call Transactions, with such reduction of potential dilution subject to a cap based on the cap price of the Capped Call Transactions. The cap price of the Capped Call Transactions will initially be $120.79 per common share, representing a premium of approximately 75% above the last reported sale price of $69.02 per common share on February 3, 2014, and is subject to certain adjustments under the terms of the Capped Call Transactions. As a result of this transaction, the Company’s additional paid-in capital within shareholders’ equity on its consolidated balance sheet was reduced by $124 million during the first quarter of 2014. | |
In addition, the Company paid approximately $686 million to enter into prepaid forward share repurchase transactions, or the Forward Transactions, with certain financial institutions, or Forward Counterparties, pursuant to which the Company purchased approximately 9.9 million common shares for settlement on or around the August 15, 2019 maturity date for the Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transaction early. The Forward Transactions are generally expected to facilitate privately negotiated derivative transactions between the Forward Counterparties and holders of the Convertible Notes, including swaps, relating to the common shares by which holders of the Convertible Notes establish short positions relating to the common shares and otherwise hedge their investments in the Convertible Notes concurrently with, or shortly after, the pricing of the Convertible Notes. As a result of this transaction, the Company’s total shareholders’ equity within its consolidated balance sheet was reduced by approximately $686 million during the first quarter of 2014, with amounts being allocated between retained earnings and additional paid in capital within total shareholders’ equity. The Company will also record non-cash deferred financing costs and a corresponding amount to additional paid in capital reflecting the fair value of the Forward Transactions as these transactions were also executed to facilitate the issuance of the Company’s Convertible Notes as described above. As of February 18, 2014, the fair value was not finalized. | |
In February 2014, in connection with executing the Convertible Notes, Forward Transactions, and Capped Call Transactions, the Company also amended the Credit Facility. Pursuant to this amendment, the Company amended the terms of the Credit Facility to provide for technical amendments to the indebtedness, asset sale and dividend covenants and the cross-default event of default to accommodate the foregoing transactions. The amendment will also increase by 0.50% the highest applicable margin payable by Herbalife in the event that Herbalife’s consolidated total leverage ratio exceeds 2.50 to 1.00 and increase the permitted consolidated total leverage ratio of Herbalife under the Credit Facility. |
Quarterly_Information
Quarterly Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||
Quarterly Information | ' | ||||||||
16. Quarterly Information (Unaudited) | |||||||||
2013 | 2012 | ||||||||
(In millions, except per share data) | |||||||||
First Quarter Ended March 31 | |||||||||
Net sales | $ | 1,123.60 | $ | 964.2 | |||||
Gross profit | 897.7 | 768 | |||||||
Net income | 118.9 | 107.9 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.14 | $ | 0.93 | |||||
Diluted | $ | 1.1 | $ | 0.88 | |||||
Second Quarter Ended June 30 | |||||||||
Net sales | $ | 1,219.20 | $ | 1,031.90 | |||||
Gross profit | 972 | 828.2 | |||||||
Net income | 143.2 | 132 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.39 | $ | 1.13 | |||||
Diluted | $ | 1.34 | $ | 1.09 | |||||
Third Quarter Ended September 30 | |||||||||
Net sales | $ | 1,213.50 | $ | 1,016.90 | |||||
Gross profit | 975.1 | 815.3 | |||||||
Net income | 142 | 111.9 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.39 | $ | 1.03 | |||||
Diluted | $ | 1.32 | $ | 0.98 | |||||
Fourth Quarter Ended December 31 | |||||||||
Net sales | $ | 1,268.90 | $ | 1,059.30 | |||||
Gross profit | 1,017.10 | 848.2 | |||||||
Net income | 123.5 | 112.2 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.22 | $ | 1.04 | |||||
Diluted | $ | 1.15 | $ | 1 |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
New Accounting Pronouncements | ' | ||||||||||||||||||||
New Accounting Pronouncements | |||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force). This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force). This ASU addresses when unrecognized tax benefits should be presented as reductions to deferred tax assets for net operating loss carryforwards in the financial statements. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements because it aligns with our current presentation. | |||||||||||||||||||||
Consolidation Policy | ' | ||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||
The consolidated financial statements include the accounts of Herbalife Ltd. and its subsidiaries. All significant intercompany transactions and accounts have been eliminated. | |||||||||||||||||||||
Foreign Currency Translation and Transactions | ' | ||||||||||||||||||||
Foreign Currency Translation and Transactions | |||||||||||||||||||||
In the majority of the countries that the Company operates, the functional currency is the local currency. The Company’s foreign subsidiaries’ asset and liability accounts are translated for consolidated financial reporting purposes into U.S. dollar amounts at year-end exchange rates. Revenue and expense accounts are translated at the average rates during the year. Foreign exchange translation adjustments are included in accumulated other comprehensive loss on the accompanying consolidated balance sheets. Foreign currency transaction gains and losses, which include the cost of foreign currency derivative contracts and the related settlement gains and losses but excluding certain foreign currency derivatives designated as cash flow hedges as discussed in Note 11, Derivative Instruments and Hedging Activities, are included in selling, general and administrative expenses in the accompanying consolidated statements of income. The Company recorded net foreign currency transaction losses of $37.9 million, $16.7 million, and $11.4 million, for the years ended December 31, 2013, 2012, and 2011, respectively, which includes the foreign exchange impact relating to the Company’s Venezuelan subsidiary, Herbalife Venezuela. Herbalife Venezuela’s foreign currency financial statement impact is discussed further below within this Note. | |||||||||||||||||||||
Forward Exchange Contracts, Option Contracts and Interest Rate Swaps | ' | ||||||||||||||||||||
Forward Exchange Contracts, Option Contracts and Interest Rate Swaps | |||||||||||||||||||||
The Company enters into foreign currency derivative instruments such as forward exchange contracts and option contracts in managing its foreign exchange risk on sales to Members, purchase commitments denominated in foreign currencies, and intercompany transactions and bank loans. The Company also enters into interest rate swaps in managing its interest rate risk on its variable rate credit facility. The Company does not use the contracts for trading purposes. | |||||||||||||||||||||
In accordance with FASB Accounting Standards Codification, or ASC, Topic 815, Derivatives and Hedging, or ASC 815, the Company designates certain of its derivative instruments as cash flow hedges and formally documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction, at the time the derivative contract is executed. The Company assesses the effectiveness of the hedge both at inception and on an ongoing basis and determines whether the hedge is highly or perfectly effective in offsetting changes in cash flows of the hedged item. The Company records the effective portion of changes in the estimated fair value in accumulated other comprehensive income (loss) and subsequently reclassifies the related amount of accumulated other comprehensive income (loss) to earnings when the hedged item and underlying transaction impacts earnings. If it is determined that a derivative has ceased to be a highly effective hedge, the Company will discontinue hedge accounting for such transaction. For derivatives that are not designated as hedges, all changes in estimated fair value are recognized in the consolidated statements of income. | |||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents are comprised primarily of foreign and domestic bank accounts, and money market funds. These cash and cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents. | |||||||||||||||||||||
During 2011, the Company entered into a cash pooling arrangement with a financial institution for cash management purposes. This cash pooling arrangement allows certain of the Company’s participating foreign locations to withdraw cash from this financial institution to the extent aggregate cash deposits held by its participating locations are available at the financial institution. To the extent any participating location on an individual basis is in an overdraft position, these overdrafts will be recorded as liabilities and reflected as financing activities in the Company’s consolidated balance sheet and consolidated statement of cash flows, respectively. As of December 31, 2013 and December 31, 2012, the Company did not owe any amounts to this financial institution. | |||||||||||||||||||||
As of December 31, 2013 and 2012, the Company’s subsidiary in Venezuela, Herbalife Venezuela, had $215.9 million and $99.2 million, respectively, in Bolivar denominated cash and cash equivalents. Please see Remeasurement of Herbalife Venezuela’s Monetary Assets and Liabilities below for a further description of Herbalife Venezuela’s cash and cash equivalents balances. | |||||||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||||||
Accounts Receivable | |||||||||||||||||||||
Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to the Company’s Members, and receivables from importers, who are utilized in a limited number of countries to sell products to Members. The Company believes the concentration of its collection risk related to its credit card receivables is diminished due to the geographic dispersion of its receivables. The receivables from credit card companies were $72.8 million and $81.1 million as of December 31, 2013 and 2012, respectively. Substantially all of the receivables from credit card companies were current as of December 31, 2013 and 2012. Although receivables from importers can be significant, the Company performs ongoing credit evaluations of its importers and maintains an allowance for potential credit losses. The Company considers customer credit-worthiness, past and current transaction history with the customer, contractual terms, current economic industry trends, and changes in customer payment terms when determining whether collectability is reasonably assured and whether to record allowances for its receivables. If the financial condition of the Company’s customers deteriorates and adversely affects their ability to make payments, additional allowances will be recorded. The Company believes that it provides adequate allowances for receivables from its Members and importers which are not material to its consolidated financial statements. During the years ended December 31, 2013, 2012 and 2011, the Company recorded $2.1 million, $2.9 million, and $2.6 million, respectively, in bad-debt expense related to allowances for the Company’s receivables. As of December 31, 2013 and 2012, the majority of the Company’s total outstanding accounts receivable were current. | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The Company applies the provisions of FASB authoritative guidance as it applies to its financial and non-financial assets and liabilities. The FASB authoritative guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. | |||||||||||||||||||||
The Company has estimated the fair value of its financial instruments using the following methods and assumptions: | |||||||||||||||||||||
• | The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturities of these instruments; | ||||||||||||||||||||
• | The fair value of available-for-sale investments are based on prices of similar assets traded in active markets and observable yield curves; | ||||||||||||||||||||
• | The fair value of option and forward contracts are based on dealer quotes; and | ||||||||||||||||||||
• | The Company’s variable rate debt instruments are recorded at carrying value and are considered to approximate their fair values. See Note 4, Long-Term Debt for a further description. | ||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||
Inventories | |||||||||||||||||||||
Inventories are stated at lower of cost (primarily on the first-in, first-out basis) or market. | |||||||||||||||||||||
Deferred Financing Costs | ' | ||||||||||||||||||||
Deferred Financing Costs | |||||||||||||||||||||
Deferred financing costs represent fees and expenses related to the borrowing of the Company’s long-term debt and are amortized over the term of the related debt using the interest method. | |||||||||||||||||||||
Long-Lived Assets | ' | ||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||
In December 2012, the Company purchased an approximate 800,000 square foot facility in Winston-Salem, North Carolina, for approximately $22.2 million. As of December 31, 2013 and 2012, the Company allocated $18.8 million and $3.4 million between buildings and land respectively, based on their relative fair values. As of December 31, 2013 and 2012, these amounts have been reflected in property, plant and equipment on the Company’s accompanying consolidated balance sheet. | |||||||||||||||||||||
Depreciation of furniture, fixtures, and equipment (includes computer hardware and software) is computed on a straight-line basis over the estimated useful lives of the related assets, which range from three to ten years. The Company capitalizes eligible costs to acquire or develop internal-use software that are incurred subsequent to the preliminary project stage. Computer hardware and software, the majority of which is comprised of capitalized internal-use software costs, was $140.6 million and $131.5 million as of December 31, 2013 and 2012, respectively, net of accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the life of the related asset or the term of the lease, whichever is shorter. Buildings are depreciated over 40 years. Building improvements are generally depreciated over ten to fifteen years. Land is not depreciated. Depreciation and amortization expenses recorded to selling, general and administrative expenses totaled $81.1 million, $70.9 million, and $68.9 million, for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
Long-lived assets are reviewed for impairment, based on undiscounted cash flows, whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Measurement of an impairment loss is based on the estimated fair value of the asset. | |||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||
Goodwill and marketing related intangible assets with indefinite lives are evaluated on an annual basis for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. For goodwill, the Company uses a discounted cash flow approach to estimate the fair value of a reporting unit. If the fair value of the reporting unit is less than the carrying value then the implied fair value of the goodwill must be determined. If the implied fair value of the goodwill is less than its carrying value then a goodwill impairment amount is recorded for the difference. For the marketing related intangible assets, the Company uses a discounted cash flow model under the relief-from-royalty method in order to determine the fair value. If the fair value is less than its carrying value then an impairment amount is recorded for the difference. During the years ended December 31, 2013, 2012, and 2011, there were no goodwill or marketing related intangible asset impairments. At December 31, 2013, 2012, and 2011, the marketing related intangible asset balance was $310.0 million which consisted of the Company’s trademark, trade name, and marketing franchise. As of December 31, 2013, 2012, and 2011, the goodwill balance was $105.5 million. | |||||||||||||||||||||
Intangible assets with finite lives are amortized over their expected lives, and are expected to be fully amortized over the next three years. As of December 31, 2013, the Company’s intangible assets with finite lives decreased to $0.7 million. As of December 31, 2012, the Company’s intangible assets with finite lives decreased to $1.1 million. As of December 31, 2011, the Company’s intangible assets with finite lives increased to $1.7 million, net of $0.6 million amortization, due to the iChange Network acquisition. The annual amortization expense for finite life intangibles was $0.4 million, $0.6 million, and $0.6 million for the years ended December 31, 2013, 2012, and 2011, respectively. At December 31, 2013, the annual expected amortization expense is as follows: 2014 — $0.3 million; 2015 — $0.3 million; and 2016 — $0.1 million. | |||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||
Income Taxes | |||||||||||||||||||||
Income tax expense includes income taxes payable for the current year and the change in deferred income tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or income tax returns. A valuation allowance is recognized to reduce the carrying value of deferred income tax assets if it is believed to be more likely than not that a component of the deferred income tax assets will not be realized. | |||||||||||||||||||||
The Company accounts for uncertainty in income taxes in accordance with FASB authoritative guidance which clarifies the accounting and reporting for uncertainties in income taxes recognized in an enterprise’s financial statements. This guidance prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. See Note 12, Income Taxes, for a further description on income taxes. | |||||||||||||||||||||
Royalty Overrides | ' | ||||||||||||||||||||
Royalty Overrides | |||||||||||||||||||||
A Member may earn commissions, called royalty overrides which include production bonuses, based on retail sales volume. Royalty overrides are based on the retail sales volume of certain other Members who are sponsored directly or indirectly by the Member. Royalty overrides are recorded when the products are delivered and revenue is recognized. The royalty overrides are compensation to Members for services rendered including the development, retention and the improved productivity of their sales organizations. As such royalty overrides are classified as an operating expense. Non-U.S. royalty override checks that have aged, for a variety of reasons, beyond a certainty of being paid, are taken back into income. Management has estimated this period of certainty to be three years worldwide. | |||||||||||||||||||||
Comprehensive Income | ' | ||||||||||||||||||||
Comprehensive Income | |||||||||||||||||||||
Comprehensive income consists of net income, foreign currency translation adjustments, the effective portion of the unrealized gains or losses on derivatives, and unrealized gains or losses on available-for-sale investments. | |||||||||||||||||||||
Components of accumulated other comprehensive income (loss) consisted of the following (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Foreign currency translation adjustment, net of tax | $ | (25,636 | ) | $ | (28,788 | ) | $ | (38,609 | ) | ||||||||||||
Unrealized gain/(loss) on derivatives, net of tax | 5,747 | (2,907 | ) | 800 | |||||||||||||||||
Unrealized gain on available-for-sale investments, net of tax | 95 | — | — | ||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | (19,794 | ) | $ | (31,695 | ) | $ | (37,809 | ) | ||||||||||||
Operating Leases | ' | ||||||||||||||||||||
Operating Leases | |||||||||||||||||||||
The Company leases most of its physical properties under operating leases. Certain lease agreements generally include rent holidays and tenant improvement allowances. The Company recognizes rent holiday periods on a straight-line basis over the lease term beginning when the Company has the right to the leased space. The Company also records tenant improvement allowances and rent holidays as deferred rent liabilities and amortizes the deferred rent over the terms of the lease to rent expense. | |||||||||||||||||||||
Research and Development | ' | ||||||||||||||||||||
Research and Development | |||||||||||||||||||||
The Company’s research and development is performed by in-house staff and outside consultants. For all periods presented, research and development costs were expensed as incurred and were not material. | |||||||||||||||||||||
Professional Fees | ' | ||||||||||||||||||||
Professional Fees | |||||||||||||||||||||
The Company expenses professional fees, including legal fees, as incurred. These professional fees are included in selling, general and administrative expenses in the Company’s consolidated statements of income. | |||||||||||||||||||||
Advertising | ' | ||||||||||||||||||||
Advertising | |||||||||||||||||||||
Advertising costs, including Company sponsorships, are expensed as incurred and amounted to approximately $57.9 million, $42.3 million, and $38.4 million for the years ended December 31, 2013, 2012, and 2011, respectively. These expenses are included in selling, general and administrative expenses in the accompanying consolidated statements of income. | |||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||
Basic earnings per share represents net income for the period common shares were outstanding, divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share represents net income divided by the weighted average number of common shares outstanding, inclusive of the effect of dilutive securities such as outstanding stock options, SARs, stock units and warrants. | |||||||||||||||||||||
The following are the common share amounts used to compute the basic and diluted earnings per share for each period (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Weighted average shares used in basic computations | 102,620 | 112,359 | 117,540 | ||||||||||||||||||
Dilutive effect of exercise of equity grants outstanding | 4,825 | 5,457 | 7,046 | ||||||||||||||||||
Dilutive effect of warrants | — | 40 | 260 | ||||||||||||||||||
Weighted average shares used in diluted computations | 107,445 | 117,856 | 124,846 | ||||||||||||||||||
There were an aggregate of 3.0 million, 4.0 million, and 2.1 million of equity grants, consisting of stock options, SARs, and stock units that were outstanding during the years ended December 31, 2013, 2012, and 2011, respectively, but were not included in the computation of diluted earnings per share because their effect would be anti-dilutive. | |||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the Member or importer, or as products are sold in retail stores in China or through the Company’s independent service providers in China. Product sales are recognized net of product returns and discounts referred to as “distributor allowances.” Net sales include product sales and shipping and handling revenues. Shipping and handling costs paid by the Company are included in cost of sales. The Company generally receives the net sales price in cash or through credit card payments at the point of sale. The Company currently presents sales taxes collected from customers on a net basis. Allowances for product returns, primarily in connection with the Company’s buyback program, are provided at the time the sale is recorded. This accrual is based upon historical return rates for each country and the relevant return pattern, which reflects anticipated returns to be received over a period of up to 12 months following the original sale. Allowances for product returns were $4.7 million, $3.9 million and $2.8 million as of December 31, 2013, 2012 and 2011, respectively. Product returns were $9.7 million, $11.1 million and $10.4 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Share-Based Payments | ' | ||||||||||||||||||||
Share-Based Payments | |||||||||||||||||||||
The Company accounts for share-based compensation in accordance with FASB authoritative guidance which requires the measurement of share-based compensation expense for all share-based payment awards made to employees for service. The Company measures share-based compensation cost at the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the employee’s requisite service period. | |||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which the Company believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, and foreign currency have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||||||||||||||||||||
Investments | ' | ||||||||||||||||||||
Investments in Bolivar-Denominated Bonds | |||||||||||||||||||||
During the fourth quarter of 2013, the Company invested in Bolivar denominated bonds, or bonds, issued by the Venezuelan government. The purchase price of the bonds was approximately 25.5 million Bolivars, or approximately $4.1 million using the CADIVI rate. The Company classifies these bonds as long-term available-for-sale investments which are carried at fair value, inclusive of unrealized gains and losses, and net of discount accretion and premium amortization. The fair value of these bonds are determined using Level 2 inputs which include prices of similar assets traded in active markets in Venezuela and observable yield curves. Net unrealized gains and losses on these bonds are included in other comprehensive income (loss) and are net of applicable income taxes. During 2013, the Company did not sell any of its bonds. | |||||||||||||||||||||
The Company’s investments in these bonds as of December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Amortized | Gross | Gross | Net | Market | |||||||||||||||||
Costs | Unrealized | Unrealized | Unrealized | Value | |||||||||||||||||
Gain | Loss | Gain | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Investments in Venezuelan bonds | $ | 4,042 | $ | 146 | $ | — | $ | 146 | $ | 4,188 | |||||||||||
As of December 31, 2013, there have been no events or developments which would indicate the value of these bonds have been impaired. There were no bonds with gross unrealized losses as of December 31, 2013. | |||||||||||||||||||||
The amortized cost and estimated fair value of these bonds as of December 31, 2013 by contractual maturity are as follows: | |||||||||||||||||||||
Amortized Cost | Estimated | ||||||||||||||||||||
Market Value | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Contractual Maturity | |||||||||||||||||||||
Due in 1 year or less | $ | — | $ | — | |||||||||||||||||
Due in 1-2 years | — | — | |||||||||||||||||||
Due in 2-5 years | — | — | |||||||||||||||||||
Due after 5 years | 4,042 | 4,188 | |||||||||||||||||||
Total investments | $ | 4,042 | $ | 4,188 | |||||||||||||||||
Expected disposal dates may be less than the contractual dates as indicated in the table above. | |||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||
The Company is a nutrition company that sells a wide range of weight management products, nutritional supplements and personal care products. The Company’s products are manufactured by third party providers and by the Company in its Changsha, Hunan, China extraction facility, Suzhou, China facility and in its Lake Forest, California facility, and then are sold to Members who consume and sell Herbalife products to retail consumers or other Members. Revenues reflect sales of products by the Company to its Members and are categorized based on geographic location. | |||||||||||||||||||||
As of December 31, 2013, the Company sold products in 91 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. | |||||||||||||||||||||
Venezuela [Member] | ' | ||||||||||||||||||||
Consolidation Policy | ' | ||||||||||||||||||||
Consolidation of Herbalife Venezuela | |||||||||||||||||||||
The Company plans to continue its operation in Venezuela and to import products into Venezuela despite the foreign currency constraints described above. Herbalife Venezuela will continue to apply for legal exchange mechanisms to convert its Bolivars to U.S. dollars. Despite the currency exchange restrictions in Venezuela, the Company continues to control Herbalife Venezuela and its operations. The mere existence of the exchange restrictions discussed above does not in and of itself create a presumption that this lack of exchangeability is other-than-temporary, nor does it create a presumption that an entity should deconsolidate its Venezuelan operations. Therefore, the Company continues to consolidate Herbalife Venezuela in its consolidated financial statements for U.S. GAAP purposes. | |||||||||||||||||||||
Although Venezuela is an important market in the Company’s South and Central America Region, Herbalife Venezuela’s net sales represented approximately 6%, 4%, and 2% of the Company’s consolidated net sales for the years ended December 31, 2013, 2012, and 2011, respectively, and its total assets represented approximately 10% and 7% of the Company’s consolidated total assets as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
Currency Restrictions | ' | ||||||||||||||||||||
Currency Restrictions in Venezuela | |||||||||||||||||||||
Currency restrictions enacted by the Venezuelan government have become more restrictive and have impacted the ability of the Company’s subsidiary in Venezuela, Herbalife Venezuela, to timely obtain U.S. dollars in exchange for Venezuelan Bolivars, or Bolivars, at the official foreign exchange rate from the Venezuelan government. The application and approval process continue to be delayed and the Company’s ability to timely obtain U.S. dollars at the official exchange rate remains uncertain. In recent instances, the Company has been unsuccessful in obtaining U.S. dollars at the official rate and it remains uncertain whether the Company’s current pending applications and future anticipated applications will be approved. | |||||||||||||||||||||
In June 2010, the Venezuelan government introduced additional regulations under a new regulated system, SITME, which was controlled by the Central Bank of Venezuela. SITME provided a mechanism to exchange Bolivars into U.S. dollars through the purchase and sale of U.S. dollar denominated bonds issued in Venezuela. However, SITME was only available in certain limited circumstances. Specifically, SITME could only be used for product purchases and was not available for other matters such as the payment of dividends. Also, SITME could only be used for amounts of up to $50,000 per day and $350,000 per month and was generally only available to the extent the applicant had not exchanged and received U.S. dollars via the CADIVI process within the previous 90 days. Effective January 1, 2012, additional laws were enacted that required companies to register with the Registry of Users of the System of Transactions with Securities in Foreign Currency, or RUSITME, prior to transacting with the SITME, the regulated system, which was controlled by the Central Bank of Venezuela. | |||||||||||||||||||||
In February 2013, the Venezuela government announced that it devalued its Bolivar currency and will eliminate the SITME regulated system. The SITME 5.3 Bolivars per U.S. dollar rate was eliminated and the CADIVI rate has been devalued from 4.3 Bolivars to 6.3 Bolivars per U.S. dollar. In March 2013, the Venezuelan government also announced they will introduce an additional complimentary exchange mechanism known as SICAD. It is currently unknown whether Herbalife Venezuela will be able to timely access this new exchange mechanism and the Company is currently assessing and monitoring the restrictions and exchange rates relating to this alternative mechanism. | |||||||||||||||||||||
As an alternative exchange mechanism, the Company has also participated in certain bond offerings from the Venezuelan government and from Petróleos de Venezuela, S.A. or PDVSA, a Venezuelan state-owned petroleum company, where the Company effectively purchased bonds with its Bolivars and then sold the bonds for U.S. dollars. In other instances, the Company has also used other alternative legal exchange mechanisms for currency exchanges. | |||||||||||||||||||||
Highly Inflationary Economy and Accounting | ' | ||||||||||||||||||||
Highly Inflationary Economy and Accounting in Venezuela | |||||||||||||||||||||
Venezuela’s inflation rate as measured using the blended National Consumer Price Index and Consumer Price Index rate exceeded a three-year cumulative inflation rate of 100% as of December 31, 2009. Accordingly, effective January 1, 2010, Venezuela was considered a highly inflationary economy. Pursuant to the highly inflationary basis of accounting under U.S. GAAP, Herbalife Venezuela changed its functional currency from the Bolivar to the U.S. dollar. Subsequent movements in the Bolivar to U.S. dollar exchange rate will impact the Company’s consolidated earnings. Prior to January 1, 2010 when the Bolivar was the functional currency, movements in the Bolivar to U.S. dollar were recorded as a component of equity through other comprehensive income. Pursuant to highly inflationary accounting rules, the Company no longer translates Herbalife Venezuela’s financial statements as its functional currency is the U.S. dollar. | |||||||||||||||||||||
Remeasurement of Monetary Assets and Liabilities | ' | ||||||||||||||||||||
Remeasurement of Herbalife Venezuela’s Monetary Assets and Liabilities | |||||||||||||||||||||
Prior to February 2013, the Company used the SITME rate of 5.3 Bolivars per U.S. dollar to remeasure its Bolivar denominated transactions. In February 2011, Herbalife Venezuela purchased U.S. dollar denominated bonds with a face value of $20 million U.S. dollars in a bond offering from PDVSA for 86 million Bolivars and then immediately sold the bonds for $15 million U.S. dollars, resulting in an average effective conversion rate of 5.7 Bolivars per U.S. dollar. This Bolivar to U.S. dollar conversion resulted in the Company recording a net pre-tax loss of $1.3 million U.S. dollars during the first quarter of 2011 which is included in its consolidated statement of income for the year ended December 31, 2011. The Company was unsuccessful in accessing any subsequent PDVSA bond offerings and the frequency of future bond offerings is unknown. During 2011, the Company also accessed the SITME market in order to exchange its Bolivars to U.S. dollars. In less frequent instances, the Company has also accessed alternative legal exchange mechanisms, to exchange Bolivars for U.S. dollars, at less favorable rates than the SITME rate, which resulted in the Company recognizing $1.2 million of losses in selling, general and administration expenses included within its consolidated statement of income for the year ended December 31, 2011. | |||||||||||||||||||||
During the year ended December 31, 2012, the Company continued accessing the SITME market in order to exchange its Bolivars to U.S. dollars and the daily and monthly restrictions continued. In other instances, the Company recognized an aggregate of $4.8 million of foreign exchange losses as a result of exchanging Bolivars for U.S. dollars using alternative legal exchange mechanisms that were approximately 43% less favorable than the 5.3 Bolivars per U.S. dollar published SITME rate. During the year ended December 31, 2012, the Company exchanged 59.2 million Bolivars for $6.4 million U.S. dollars using these alternative legal exchange mechanisms. | |||||||||||||||||||||
Following the Venezuelan government’s devaluation of the Bolivar against the U.S. dollar and elimination of the SITME regulated system in February 2013, the Company uses the new CADIVI rate of 6.3 Bolivars per U.S. dollar to remeasure its Bolivar denominated transactions. This new CADIVI rate is approximately 16% less favorable than the previously published 5.3 SITME rate. The Company recognized approximately $15.1 million of net foreign exchange losses within its consolidated statement of income during the first quarter of 2013, as a result of remeasuring the Company’s Bolivar denominated monetary assets and liabilities at this new CADIVI rate of 6.3 Bolivars per U.S. dollar. The majority of these foreign exchange losses related to the approximately $16.9 million devaluation of Herbalife Venezuela’s Bolivar denominated cash and cash equivalents. During the year ended December 31, 2013, the Company also recognized $0.7 million of foreign exchange losses as a result of exchanging Bolivars for U.S. dollars using alternative legal exchange mechanisms that were approximately 75% less favorable than the new CADIVI rate. During the year ended December 31, 2013, the Company exchanged 5.6 million Bolivars for $0.2 million U.S. dollars using these alternative legal exchange mechanisms. During the fourth quarter of 2013, the Company also submitted a bid of approximately 6.8 million Bolivars, or approximately $1.1 million U.S. dollars remeasured using the CADIVI rate, through the SICAD mechanism. The Company received notification from the central bank of Venezuela that the bid was approved and the Company is to receive a distribution of approximately $0.6 million in U.S. dollars, resulting in a foreign exchange loss of approximately $0.5 million, or an effective exchange rate of 11.3 Bolivars per U.S. dollar. As of December 31, 2013, the Company has not received the U.S. dollars related to this approved bid. | |||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, Herbalife Venezuela’s net monetary assets and liabilities denominated in Bolivars was approximately $186.9 million and $82.9 million, respectively, and included approximately $215.9 million and $99.2 million, respectively, in Bolivar denominated cash and cash equivalents. As noted above, these Bolivar denominated assets and liabilities were remeasured at the CADIVI rate as of December 31, 2013 and at the SITME rate as of December 31, 2012. The Company remeasures its Bolivars at the official published CADIVI rate as of December 31, 2013 given the limited availability of alternative exchange mechanisms and the uncertainty in the effective exchange rate for alternative exchange mechanisms. These remeasured amounts, including cash and cash equivalents, being reported on the Company’s consolidated balance sheet using the published CADIVI rate may not accurately represent the amount of U.S. dollars that the Company could ultimately realize. While the Company continues to monitor the exchange mechanisms and restrictions imposed by the Venezuelan government, and assess and monitor the current economic and political environment in Venezuela, there is no assurance that the Company will be able to exchange Bolivars into U.S. dollars on a timely basis. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Components of accumulated other comprehensive income (loss) consisted of the following (in thousands): | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Foreign currency translation adjustment, net of tax | $ | (25,636 | ) | $ | (28,788 | ) | $ | (38,609 | ) | ||||||||||||
Unrealized gain/(loss) on derivatives, net of tax | 5,747 | (2,907 | ) | 800 | |||||||||||||||||
Unrealized gain on available-for-sale investments, net of tax | 95 | — | — | ||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | (19,794 | ) | $ | (31,695 | ) | $ | (37,809 | ) | ||||||||||||
Common Share Amounts Used to Compute Basic and Diluted Earnings Per Share | ' | ||||||||||||||||||||
The following are the common share amounts used to compute the basic and diluted earnings per share for each period (in thousands): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Weighted average shares used in basic computations | 102,620 | 112,359 | 117,540 | ||||||||||||||||||
Dilutive effect of exercise of equity grants outstanding | 4,825 | 5,457 | 7,046 | ||||||||||||||||||
Dilutive effect of warrants | — | 40 | 260 | ||||||||||||||||||
Weighted average shares used in diluted computations | 107,445 | 117,856 | 124,846 | ||||||||||||||||||
Investments in Venezuelan Bonds | ' | ||||||||||||||||||||
The Company’s investments in these bonds as of December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Amortized | Gross | Gross | Net | Market | |||||||||||||||||
Costs | Unrealized | Unrealized | Unrealized | Value | |||||||||||||||||
Gain | Loss | Gain | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Investments in Venezuelan bonds | $ | 4,042 | $ | 146 | $ | — | $ | 146 | $ | 4,188 | |||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Bonds by Contractual Maturity | ' | ||||||||||||||||||||
The amortized cost and estimated fair value of these bonds as of December 31, 2013 by contractual maturity are as follows: | |||||||||||||||||||||
Amortized Cost | Estimated | ||||||||||||||||||||
Market Value | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Contractual Maturity | |||||||||||||||||||||
Due in 1 year or less | $ | — | $ | — | |||||||||||||||||
Due in 1-2 years | — | — | |||||||||||||||||||
Due in 2-5 years | — | — | |||||||||||||||||||
Due after 5 years | 4,042 | 4,188 | |||||||||||||||||||
Total investments | $ | 4,042 | $ | 4,188 | |||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Finished Goods Available for Resale | ' | ||||||||
Inventories consist primarily of finished goods available for resale and can be categorized as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Weight Management, Targeted Nutrition and Energy, Sports and Fitness | $ | 307.2 | $ | 303.8 | |||||
Outer Nutrition | 15.3 | 17.5 | |||||||
Literature, Promotional and Others | 28.7 | 18.1 | |||||||
Total | $ | 351.2 | $ | 339.4 | |||||
Classes of Inventory | ' | ||||||||
The following are the major classes of inventory (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 23.1 | $ | 19.6 | |||||
Work in process | 2.8 | 1.9 | |||||||
Finished goods | 325.3 | 317.9 | |||||||
Total | $ | 351.2 | $ | 339.4 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-Term Debt | ' | ||||||||
Long-term debt consists of the following (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Borrowings under the senior secured credit facility | $ | 931.3 | $ | 487.5 | |||||
Capital leases | — | 0.1 | |||||||
931.3 | 487.6 | ||||||||
Less: current portion | 81.3 | 56.3 | |||||||
Long-term portion | $ | 850 | $ | 431.3 | |||||
Lease_Obligations_Tables
Lease Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Future Minimum Rental Commitments for Non-Cancelable Operating Leases | ' | ||||||||
Future minimum rental commitments for non-cancelable operating leases at December 31, 2013, were as follows (in millions): | |||||||||
Operating | |||||||||
2014 | $ | 54 | |||||||
2015 | 45.4 | ||||||||
2016 | 30 | ||||||||
2017 | 19 | ||||||||
2018 | 14.7 | ||||||||
Thereafter | 16.6 | ||||||||
Total | $ | 179.7 | |||||||
Capital Leases Included in Property, Plant and Equipment on Accompanying Consolidated Balance Sheets | ' | ||||||||
Property, plant and equipment under capital leases are included in property, plant and equipment on the accompanying consolidated balance sheets as follows (in millions): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Equipment | — | $ | 7.7 | ||||||
Less: accumulated depreciation | — | (7.4 | ) | ||||||
Total | — | $ | 0.3 | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following table summarizes changes in accumulated other comprehensive income (loss) during the year ended December 31, 2013: | |||||||||||||||||
Changes in Accumulated Other Comprehensive | |||||||||||||||||
Income (Loss) by Component | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Foreign | Unrealized | Unrealized Gain | Total | ||||||||||||||
Currency | Gain (Loss) on | (Loss) on | |||||||||||||||
Translation | Derivatives | Available-For- | |||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||
(In millions) | |||||||||||||||||
Beginning Balance | $ | (28.8 | ) | $ | (2.9 | ) | $ | — | $ | (31.7 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax | 3.2 | 2.4 | 0.1 | 5.7 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to income, | — | 6.2 | — | 6.2 | |||||||||||||
net of tax(1) | |||||||||||||||||
Total other comprehensive income (loss), net of reclassifications | 3.2 | 8.6 | 0.1 | 11.9 | |||||||||||||
Ending balance | $ | (25.6 | ) | $ | 5.7 | $ | 0.1 | $ | (19.8 | ) | |||||||
-1 | See Note 11, Derivative Instruments and Hedging Activities, for information regarding the location in the consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive income (loss) into income during the year ended December 31, 2013. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Weighted Average Assumptions Use in Calculation of Fair Value for Service, Performance Condition, and Market and Performance Condition Awards | ' | ||||||||||||||||||||||||
The following table summarizes the weighted average assumptions used in the calculation of the fair value for service condition awards for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||
SARs | Independent Director’s SARs | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Expected volatility | 50.8 | % | 48.4 | % | 46.6 | % | 45.2 | % | 52.1 | % | 49.4 | % | |||||||||||||
Dividends yield | 1.7 | % | 2.7 | % | 1.5 | % | 1.5 | % | 2.7 | % | 1.5 | % | |||||||||||||
Expected term | 5.5 years | 5.3 years | 6.2 years | 3.6 years | 3.8 years | 3.8 years | |||||||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 1.9 | % | 0.7 | % | 0.4 | % | 1 | % | |||||||||||||
SARs | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Expected volatility | 50.9 | % | |||||||||||||||||||||||
Dividends yield | 1.5 | % | |||||||||||||||||||||||
Expected term | 5.5 years | ||||||||||||||||||||||||
Risk-free interest rate | 1.6 | % | |||||||||||||||||||||||
SARs | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Expected volatility | 44 | % | |||||||||||||||||||||||
Dividends yield | 1.4 | % | |||||||||||||||||||||||
Expected term | 5.2 years | ||||||||||||||||||||||||
Risk-free interest rate | 1.2 | % | |||||||||||||||||||||||
Summary of Activity Under Share-Based Compensation Plans | ' | ||||||||||||||||||||||||
The following tables summarize the activity under all share-based compensation plans, which includes all stock awards, for the year ended December 31, 2013: | |||||||||||||||||||||||||
Stock Options & SARs | Awards | Weighted | Weighted | Aggregate | |||||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||
Exercise Price | Remaining | Value(1) | |||||||||||||||||||||||
Contractual Term | |||||||||||||||||||||||||
(In thousands) | (In millions) | ||||||||||||||||||||||||
Outstanding at December 31, 2012(2) (3) | 11,333 | $ | 28.62 | 5.9 years | $ | 119.1 | |||||||||||||||||||
Granted(4) | 1,176 | $ | 76.4 | ||||||||||||||||||||||
Exercised | (305 | ) | $ | 25.76 | |||||||||||||||||||||
Forfeited | (61 | ) | $ | 44.54 | |||||||||||||||||||||
Outstanding at December 31, 2013(2) (3) (4) | 12,143 | $ | 33.24 | 5.3 years | $ | 552.9 | |||||||||||||||||||
Exercisable at December 31, 2013(3) | 7,327 | $ | 20.84 | 3.8 years | $ | 424 | |||||||||||||||||||
-1 | The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock award. | ||||||||||||||||||||||||
-2 | Includes 0.9 million SARs with market and performance conditions. | ||||||||||||||||||||||||
-3 | Includes 1.5 million SARs with market conditions. | ||||||||||||||||||||||||
-4 | Includes 0.4 million SARs with performance conditions. | ||||||||||||||||||||||||
Incentive Plan and Independent Directors Stock Units | Shares | Weighted | |||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Outstanding and nonvested at December 31, 2012 | 321.6 | $ | 11.7 | ||||||||||||||||||||||
Granted | 17 | $ | 59.96 | ||||||||||||||||||||||
Vested | (193.7 | ) | $ | 13.88 | |||||||||||||||||||||
Forfeited | (0.4 | ) | $ | 42.93 | |||||||||||||||||||||
Outstanding and nonvested at December 31, 2013 | 144.5 | $ | 14.36 | ||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Net Sales: | |||||||||||||
Primary Reporting Segment: | |||||||||||||
United States | $ | 881 | $ | 816.9 | $ | 676.9 | |||||||
Mexico | 562.4 | 496.1 | 436.9 | ||||||||||
South Korea | 433.7 | 421.4 | 343.5 | ||||||||||
Others | 2,476.60 | 2,059.40 | 1,786.40 | ||||||||||
Total Primary Reporting Segment | 4,353.70 | 3,793.80 | 3,243.70 | ||||||||||
China | 471.6 | 278.5 | 210.8 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 | |||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ' | ||||||||||||
Contribution Margin(1): | |||||||||||||
Primary Reporting Segment: | |||||||||||||
United States | $ | 365.2 | $ | 359.5 | $ | 286.3 | |||||||
Mexico | 251.7 | 205.6 | 191.1 | ||||||||||
South Korea | 214.3 | 199.4 | 163.1 | ||||||||||
Others | 1,110.50 | 906.5 | 810 | ||||||||||
Total Primary Reporting Segment | 1,941.70 | 1,671.00 | 1,450.50 | ||||||||||
China(2) | 422.7 | 250.1 | 186.4 | ||||||||||
Total Contribution Margin | $ | 2,364.40 | $ | 1,921.10 | $ | 1,636.90 | |||||||
Selling, general and administrative expense (2) | 1,629.10 | 1,259.70 | 1,074.60 | ||||||||||
Interest expense | 26.6 | 16.7 | 9.9 | ||||||||||
Interest income | 8 | 6.2 | 7.4 | ||||||||||
Income before income taxes | 716.7 | 650.9 | 559.8 | ||||||||||
Income taxes | 189.2 | 186.9 | 144.8 | ||||||||||
Net Income | $ | 527.5 | $ | 464 | $ | 415 | |||||||
-1 | Contribution margin consists of net sales less cost of sales and royalty overrides. | ||||||||||||
-2 | Compensation to China sales employees and service fees to China independent service providers totaling $215.6 million, $123.5 million, and $96.8 million for the years ended December 31, 2013, 2012, and 2011, respectively, are included in selling, general and administrative expenses while Member compensation for all other countries is included in contribution margin. | ||||||||||||
Capital Expenditures | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Capital Expenditures: | |||||||||||||
United States | $ | 121.3 | $ | 81.6 | $ | 60.4 | |||||||
Mexico | 2.4 | 2.8 | 3.5 | ||||||||||
South Korea | 1.8 | 4.1 | 2.1 | ||||||||||
China | 12.6 | 15.4 | 6.6 | ||||||||||
Others | 24.4 | 18.9 | 18.3 | ||||||||||
Total Capital Expenditures | $ | 162.5 | $ | 122.8 | $ | 90.9 | |||||||
Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Net sales by product line: | |||||||||||||
Weight Management | $ | 3,063.70 | $ | 2,554.90 | $ | 2,158.70 | |||||||
Targeted Nutrition | 1,109.90 | 944.8 | 789.6 | ||||||||||
Energy, Sports & Fitness | 254.5 | 209.4 | 169.8 | ||||||||||
Outer Nutrition | 157.2 | 146.3 | 147.8 | ||||||||||
Literature, Promotional and Other(3) | 240 | 216.9 | 188.6 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 | |||||||
-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 | $ | 908 | $ | 841.2 | $ | 698.6 | |||||||
Mexico | 562.4 | 496.1 | 436.9 | ||||||||||
South & Central America | 973.5 | 688.8 | 554.4 | ||||||||||
EMEA | 735.2 | 627.8 | 615.2 | ||||||||||
Asia Pacific | 1,174.60 | 1,139.90 | 938.6 | ||||||||||
China | 471.6 | 278.5 | 210.8 | ||||||||||
Total Net Sales | $ | 4,825.30 | $ | 4,072.30 | $ | 3,454.50 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Aggregate Interest Rate Swaps and Fair Value of Liabilities Outstanding | ' | ||||||||||||||||
The table below describes the interest rate swaps in aggregate, and the fair value of the liabilities that were outstanding as of December 31, 2013 and 2012: | |||||||||||||||||
Interest Rate | Aggregate | Average | Aggregate | Maturity | |||||||||||||
Notional | Swap | Fair | Dates | ||||||||||||||
Amounts | Rate | Value | |||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Interest Rate Swaps | — | — | — | — | |||||||||||||
At December 31, 2012 | |||||||||||||||||
Interest Rate Swaps | $ | 140 | 2.78 | % | $ | (2.0 | ) | July 2013 | |||||||||
Summary of Foreign Currency Forward Contracts Outstanding | ' | ||||||||||||||||
The table below describes all foreign currency forward contracts that were outstanding as of December 31, 2013 and 2012: | |||||||||||||||||
Foreign Currency | Average | Original | Fair Value | ||||||||||||||
Contract Rate | Notional Amount | Gain (Loss) | |||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||
Buy Australian dollar sell Euro | 1.55 | $ | 2.7 | $ | — | ||||||||||||
Buy Euro sell Australian dollar | 1.52 | 4.5 | 0.1 | ||||||||||||||
Buy Euro sell Chilean peso | 727.4 | 1.1 | — | ||||||||||||||
Buy Euro sell British pound | 0.83 | 2.5 | — | ||||||||||||||
Buy Euro sell Indonesian rupiah | 16,915.00 | 0.7 | — | ||||||||||||||
Buy Euro sell Mexican peso | 17.51 | 150.3 | 4.9 | ||||||||||||||
Buy Euro sell Russian ruble | 45.05 | 3 | — | ||||||||||||||
Buy Euro sell Singapore dollar | 1.74 | 3 | — | ||||||||||||||
Buy Euro sell U.S. dollar | 1.37 | 161.3 | — | ||||||||||||||
Buy British pound sell Euro | 1.01 | 4.9 | 0.1 | ||||||||||||||
Buy Japanese yen sell U.S. dollar | 104.71 | 2.9 | — | ||||||||||||||
Buy Malaysian ringgit sell U.S. dollar | 3.3 | 5.3 | — | ||||||||||||||
Buy Singapore dollar sell Euro | 1.71 | 2 | — | ||||||||||||||
Buy New Taiwan dollar sell U.S. dollar | 29.54 | 14.9 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell Brazilian real | 2.35 | 12.8 | 0.6 | ||||||||||||||
Buy U.S. dollar sell Euro | 1.34 | 171.8 | (4.2 | ) | |||||||||||||
Buy U.S. dollar sell South Korean won | 1,112.65 | 50 | 1.5 | ||||||||||||||
Total forward contracts | $ | 593.7 | $ | 2.9 | |||||||||||||
Foreign Currency | Average | Original | Fair | ||||||||||||||
Contract Rate | Notional Amount | Value | |||||||||||||||
Gain (Loss) | |||||||||||||||||
(In millions) | (In millions) | ||||||||||||||||
At December 31, 2012 | |||||||||||||||||
Buy Brazilian real sell U.S. dollar | 2.08 | $ | 12.5 | $ | 0.2 | ||||||||||||
Buy Chinese yuan sell U.S. dollar | 6.29 | 1.3 | — | ||||||||||||||
Buy Euro sell Argentine peso | 6.66 | 3 | — | ||||||||||||||
Buy Euro sell Australian dollar | 1.27 | 1.4 | — | ||||||||||||||
Buy Euro sell Chilean peso | 633 | 1.5 | — | ||||||||||||||
Buy Euro sell Indonesian rupiah | 12,935.00 | 9.7 | — | ||||||||||||||
Buy Euro sell Mexican peso | 17.18 | 143.7 | 0.3 | ||||||||||||||
Buy Euro sell Malaysian ringgit | 4.06 | 15.2 | (0.1 | ) | |||||||||||||
Buy Euro sell Peruvian nuevo sol | 3.41 | 2 | — | ||||||||||||||
Buy Euro sell U.S. dollar | 1.33 | 82.1 | (0.4 | ) | |||||||||||||
Buy British pound sell Euro | 0.82 | 2.4 | — | ||||||||||||||
Buy Japanese yen sell U.S. dollar | 85.88 | 9.3 | (0.1 | ) | |||||||||||||
Buy South Korean won sell U.S. dollar | 1,077.18 | 52.5 | 0.2 | ||||||||||||||
Buy Malaysian ringgit sell Euro | 4.07 | 0.8 | — | ||||||||||||||
Buy Malaysian ringgit sell U.S. dollar | 3.08 | 21.7 | 0.1 | ||||||||||||||
Buy U.S. dollar sell Brazilian real | 2.05 | 12.6 | — | ||||||||||||||
Buy U.S. dollar sell Colombian peso | 1,800.10 | 11.7 | (0.2 | ) | |||||||||||||
Buy U.S. dollar sell Euro | 1.3 | 174.4 | (2.9 | ) | |||||||||||||
Buy U.S. dollar sell British pound | 1.62 | 16.2 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell South Korean won | 1,089.08 | 6.3 | (0.1 | ) | |||||||||||||
Buy U.S. dollar sell Mexican peso | 13.12 | 25.4 | (0.3 | ) | |||||||||||||
Buy U.S. dollar sell Philippine peso | 40.99 | 2.9 | — | ||||||||||||||
Buy U.S. dollar sell New Taiwan dollar | 28.98 | 0.8 | — | ||||||||||||||
Buy U.S. dollar sell South African rand | 8.54 | 0.7 | — | ||||||||||||||
Total forward contracts | $ | 610.1 | $ | (3.4 | ) | ||||||||||||
Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) Recognized | |||||||||||||||||
in Other Comprehensive Income (Loss) | |||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | $ | 3.5 | $ | (3.3 | ) | $ | 4.1 | ||||||||||
Interest rate swaps | $ | — | $ | (0.6 | ) | $ | (2.1 | ) | |||||||||
Gains (Losses) Relating to Derivative Instruments Recorded to Income | ' | ||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments recorded to income during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) | Location of Gain (Loss) | ||||||||||||||||
Recognized in Income | Recognized in Income | ||||||||||||||||
For the Year Ended | |||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1) | $ | (5.2 | ) | $ | (1.8 | ) | $ | — | Selling, general and administrative expenses | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts | $ | 6.4 | $ | (10.0 | ) | $ | 2.7 | Selling, general and administrative expenses | |||||||||
-1 | For foreign exchange contracts designated as hedging instruments, the amounts recognized in income (loss) represent the amounts excluded from the assessment of hedge effectiveness. There were no ineffective amounts reported for derivatives designated as hedging instruments. | ||||||||||||||||
Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion | ' | ||||||||||||||||
The following table summarizes gains (losses) relating to derivative instruments reclassified from accumulated other comprehensive loss into income during the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||
Amount of Gain (Loss) Reclassified | Location of Gain | ||||||||||||||||
from Accumulated Other | (Loss) Reclassified | ||||||||||||||||
Comprehensive Loss into Income | from Accumulated Other | ||||||||||||||||
For the Year Ended | Comprehensive Loss into | ||||||||||||||||
December 31, | December 31, | December 31, | Income (effective portion) | ||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In millions) | |||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||
Foreign exchange currency contracts relating to inventory hedges | $ | (4.1 | ) | $ | 0.1 | $ | (0.3 | ) | Cost of sales | ||||||||
Foreign exchange currency contracts relating to intercompany management fee hedges | $ | (0.7 | ) | $ | 4.5 | $ | (1.8 | ) | Selling, general and administrative expenses | ||||||||
Interest rate contracts | $ | (2.0 | ) | $ | (3.6 | ) | $ | (3.6 | ) | Interest expense, net |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic | $ | 155.6 | $ | 172.3 | $ | 143.9 | |||||||
Foreign | 561.1 | 478.6 | 415.9 | ||||||||||
Total | $ | 716.7 | $ | 650.9 | $ | 559.8 | |||||||
Components of Income Tax Expense | ' | ||||||||||||
Income taxes are as follows (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 138.1 | $ | 104 | $ | 103.3 | |||||||
Federal | 68.8 | 82.1 | 55.3 | ||||||||||
State | 7.2 | 8.6 | 7.4 | ||||||||||
214.1 | 194.7 | 166 | |||||||||||
Deferred: | |||||||||||||
Foreign | (16.3 | ) | (6.3 | ) | (11.8 | ) | |||||||
Federal | (9.4 | ) | (2.7 | ) | (8.7 | ) | |||||||
State | 0.8 | 1.2 | (0.7 | ) | |||||||||
(24.9 | ) | (7.8 | ) | (21.2 | ) | ||||||||
$ | 189.2 | $ | 186.9 | $ | 144.8 | ||||||||
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): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Accruals not currently deductible | $ | 53.4 | $ | 48 | |||||||||
Tax loss carry forwards of certain foreign subsidiaries | 29.2 | 22 | |||||||||||
Depreciation/amortization | 3.5 | 13.5 | |||||||||||
Deferred compensation plan | 47.4 | 35.6 | |||||||||||
Deferred interest expense | 218.7 | 186.9 | |||||||||||
Accrued vacation | 5.5 | 4.6 | |||||||||||
Inventory reserve | 13.2 | 6.4 | |||||||||||
Hyperinflationary adjustment | — | 3.5 | |||||||||||
Other | 4.5 | 8.6 | |||||||||||
Gross deferred income tax assets | 375.4 | 329.1 | |||||||||||
Less: valuation allowance | (247.6 | ) | (209.3 | ) | |||||||||
Total deferred income tax assets | $ | 127.8 | $ | 119.8 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Intangible assets | $ | 113 | $ | 111.7 | |||||||||
Unremitted foreign earnings | 0.7 | 13.9 | |||||||||||
Other | 4.5 | 4.5 | |||||||||||
Total deferred income tax liabilities | $ | 118.2 | $ | 130.1 | |||||||||
Total net deferred tax assets (liabilities) | $ | 9.6 | $ | (10.3 | ) | ||||||||
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 (in millions): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In millions) | |||||||||||||
Tax expense at United States statutory rate | $ | 250.9 | $ | 227.8 | $ | 195.9 | |||||||
Increase (decrease) in tax resulting from: | |||||||||||||
Differences between U.S. and foreign tax rates on foreign income, including withholding taxes | (82.1 | ) | (97.9 | ) | (78.1 | ) | |||||||
U.S. tax (benefit) on foreign income net of foreign tax credits | (4.7 | ) | 1.8 | (8.8 | ) | ||||||||
Increase (decrease) in valuation allowances | 36.7 | 40.2 | 31.8 | ||||||||||
State taxes, net of federal benefit | 5.7 | 7.3 | 5.2 | ||||||||||
Unrecognized tax benefits | (10.3 | ) | 6.6 | 1.1 | |||||||||
Other | (7.0 | ) | 1.1 | (2.3 | ) | ||||||||
Total | $ | 189.2 | $ | 186.9 | $ | 144.8 | |||||||
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, 2013, 2012, and 2011 (in millions): | |||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning balance of unrecognized tax benefits | $ | 39.7 | $ | 32.4 | $ | 31.6 | |||||||
Additions for current year tax positions | 10.3 | 7.8 | 5.5 | ||||||||||
Additions for prior year tax positions | 4.1 | 4.5 | 2 | ||||||||||
Reductions for prior year tax positions | (3.9 | ) | (0.1 | ) | (0.9 | ) | |||||||
Reductions for audit settlements | (10.0 | ) | (0.3 | ) | (0.7 | ) | |||||||
Reductions for the expiration of statutes of limitation | (8.4 | ) | (4.9 | ) | (4.5 | ) | |||||||
Changes due to foreign currency translation adjustments | (1.9 | ) | 0.3 | (0.6 | ) | ||||||||
Ending balance of unrecognized tax benefits (excluding interest and penalties) | $ | 29.9 | $ | 39.7 | $ | 32.4 | |||||||
Interest and penalties associated with unrecognized tax benefits | 4.7 | 7.4 | 6.6 | ||||||||||
Ending balance of unrecognized tax benefits (including interest and penalties) | $ | 34.6 | $ | 47.1 | $ | 39 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Derivative Assets and Liabilities Measured at Fair Value | ' | ||||||||||||
The Company’s derivative assets and liabilities are measured at fair value and consisted of Level 2 inputs and their amounts are shown below at their gross values at December 31, 2013 and 2012: | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Derivative Balance Sheet Location | Significant | Significant | |||||||||||
Other | Other | ||||||||||||
Observable | Observable | ||||||||||||
Inputs | Inputs | ||||||||||||
(Level 2) | (Level 2) | ||||||||||||
Fair Value at | Fair Value at | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||
ASSETS: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | Prepaid expenses and other current assets | $ | 5.7 | $ | 0.5 | ||||||||
Derivatives not designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts | Prepaid expenses and other current assets | $ | 2.3 | $ | 0.7 | ||||||||
$ | 8 | $ | 1.2 | ||||||||||
LIABILITIES: | |||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges | Accrued expenses | $ | 4.4 | $ | 3.3 | ||||||||
Interest rate swaps | Accrued expenses | $ | — | $ | 2 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Foreign exchange currency contracts | Accrued expenses | $ | 0.7 | $ | 1.3 | ||||||||
$ | 5.1 | $ | 6.6 | ||||||||||
Offsetting of Derivative Assets | ' | ||||||||||||
The following tables summarize the offsetting of the fair values of the Company’s derivative assets and derivative liabilities for presentation in the Company’s consolidated balance sheet at December 31, 2013 and 2012: | |||||||||||||
Offsetting of Derivative Assets | |||||||||||||
Gross | Gross | Net Amounts | |||||||||||
Amounts of | Amounts | of Assets | |||||||||||
Recognized | Offset in the | Presented in | |||||||||||
Assets | Balance Sheet | the Balance | |||||||||||
Sheet | |||||||||||||
(In millions) | |||||||||||||
December 31, 2013 | |||||||||||||
Foreign exchange currency contracts | $ | 8 | $ | (3.0 | ) | $ | 5 | ||||||
Total | $ | 8 | $ | (3.0 | ) | $ | 5 | ||||||
December 31, 2012 | |||||||||||||
Foreign exchange currency contracts | $ | 1.2 | $ | (1.2 | ) | — | |||||||
Total | $ | 1.2 | $ | (1.2 | ) | — | |||||||
Offsetting of Derivative Liabilities | ' | ||||||||||||
Offsetting of Derivative Liabilities | |||||||||||||
Gross | Gross | Net Amounts | |||||||||||
Amounts of | Amounts | of Liabilities | |||||||||||
Recognized | Offset in the | Presented in | |||||||||||
Liabilities | Balance Sheet | the Balance | |||||||||||
Sheet | |||||||||||||
(In millions) | |||||||||||||
December 31, 2013 | |||||||||||||
Foreign exchange currency contracts | $ | 5.1 | $ | (3.0 | ) | $ | 2.1 | ||||||
Total | $ | 5.1 | $ | (3.0 | ) | $ | 2.1 | ||||||
December 31, 2012 | |||||||||||||
Foreign exchange currency contracts | $ | 4.6 | $ | (1.2 | ) | $ | 3.4 | ||||||
Interest rate swaps | 2 | — | 2 | ||||||||||
Total | $ | 6.6 | $ | (1.2 | ) | $ | 5.4 | ||||||
Quarterly_Information_Tables
Quarterly Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||
Quarterly Net Income, Basic Earnings Per Share and Diluted Earnings Per Share | ' | ||||||||
2013 | 2012 | ||||||||
(In millions, except per share data) | |||||||||
First Quarter Ended March 31 | |||||||||
Net sales | $ | 1,123.60 | $ | 964.2 | |||||
Gross profit | 897.7 | 768 | |||||||
Net income | 118.9 | 107.9 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.14 | $ | 0.93 | |||||
Diluted | $ | 1.1 | $ | 0.88 | |||||
Second Quarter Ended June 30 | |||||||||
Net sales | $ | 1,219.20 | $ | 1,031.90 | |||||
Gross profit | 972 | 828.2 | |||||||
Net income | 143.2 | 132 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.39 | $ | 1.13 | |||||
Diluted | $ | 1.34 | $ | 1.09 | |||||
Third Quarter Ended September 30 | |||||||||
Net sales | $ | 1,213.50 | $ | 1,016.90 | |||||
Gross profit | 975.1 | 815.3 | |||||||
Net income | 142 | 111.9 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.39 | $ | 1.03 | |||||
Diluted | $ | 1.32 | $ | 0.98 | |||||
Fourth Quarter Ended December 31 | |||||||||
Net sales | $ | 1,268.90 | $ | 1,059.30 | |||||
Gross profit | 1,017.10 | 848.2 | |||||||
Net income | 123.5 | 112.2 | |||||||
Earnings per share | |||||||||
Basic | $ | 1.22 | $ | 1.04 | |||||
Diluted | $ | 1.15 | $ | 1 |
Organization_Additional_Inform
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Distributor | |
Segment | |
Organization And Description Of Business [Line Items] | ' |
Number of geographic regions | 6 |
Number of network marketing members | 3,700,000 |
China [Member] | ' |
Organization And Description Of Business [Line Items] | ' |
Number of network marketing members | 200,000 |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Feb. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2011 | Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Feb. 28, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | VEF | USD ($) | VEF | USD ($) | USD ($) | USD ($) | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | SICAD [Member] | Alternative Bolivar Exchange Mechanisms [Member] | Alternative Bolivar Exchange Mechanisms [Member] | Alternative Bolivar Exchange Mechanisms [Member] | Alternative Bolivar Exchange Mechanisms [Member] | SITME rate [Member] | New CADIVI Rate [Member] | CADIVI Rate [Member] | CADIVI Rate [Member] | CADIVI Rate [Member] | SITME [Member] | Devaluation of Bolivar Denominated Cash [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Venezuela [Member] | Buildings [Member] | Buildings [Member] | Land [Member] | Land [Member] | Furniture, Fixtures and Equipment [Member] | Building Improvements [Member] | Building Improvements [Member] | |||
sqft | sqft | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | VEF | USD ($) | USD ($) | USD ($) | SICAD [Member] | SICAD [Member] | Venezuela [Member] | USD ($) | USD ($) | VEF | USD ($) | USD ($) | PDVSA Bond Offering [Member] | SITME rate [Member] | New CADIVI Rate [Member] | CADIVI Rate [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | |||||||||||
USD ($) | VEF | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction losses | ' | ' | ' | ($37,900,000) | ' | ($16,700,000) | ($11,400,000) | ' | ' | ' | ' | ' | ' | ($700,000) | ' | ' | ' | ' | ' | ($500,000) | ' | ' | ' | ($16,900,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 333,534,000 | ' | 972,974,000 | ' | 333,534,000 | 258,775,000 | 190,550,000 | ' | 215,900,000 | 99,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,900,000 | 99,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from credit card company | ' | 81,100,000 | ' | 72,800,000 | ' | 81,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bad-debt expense | ' | ' | ' | 2,100,000 | ' | 2,900,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Square footage of facility purchased | ' | 800,000 | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of facility | ' | 22,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,800,000 | 18,800,000 | ' | ' | ' | ' | ' |
Purchase price of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 3,400,000 | ' | ' | ' |
Estimated useful lives of long lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Three to ten years | ' | ' |
Capitalized internal-use software costs | ' | 131,500,000 | ' | 140,600,000 | ' | 131,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life of buildings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | ' | ' | ' | ' | '10 years | '15 years |
Depreciation and amortization of property, plant and equipment | ' | ' | ' | 81,100,000 | ' | 70,900,000 | 68,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketing related intangible assets | ' | 310,000,000 | ' | 310,000,000 | ' | 310,000,000 | 310,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | 105,490,000 | ' | 105,490,000 | ' | 105,490,000 | 105,490,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairments of goodwill or marketing related intangible asset | ' | ' | ' | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets with finite lives are amortized over their expected lives | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets with finite lives | ' | 1,100,000 | ' | 700,000 | ' | 1,100,000 | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense for finite life intangible assets | ' | ' | ' | 400,000 | ' | 600,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense for 2014 | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense for 2015 | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense for 2016 | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | ' | 57,900,000 | ' | 42,300,000 | 38,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity grants, outstanding | ' | ' | ' | 3 | 3 | 4 | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of receiving anticipated returns | ' | ' | ' | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for product returns | ' | ' | ' | 4,700,000 | ' | 3,900,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product returns | ' | ' | ' | 9,700,000 | ' | 11,100,000 | 10,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SITME could only be used for amount per day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SITME could only be used for amount per month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to use denominated bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate, Bolivars per USD | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.3 | 11.3 | ' | ' | ' | ' | ' | ' | ' | 5.3 | 6.3 | 4.3 | ' | ' | ' | ' | ' | ' | ' |
Percentage of cumulative inflation rate | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of U.S. denominated bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire U.S. denominated bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of U.S. denominated bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average effective conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency transaction losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent by which alternative legal exchange mechanism was less favorable than SITME | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.00% | 43.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SITME rate for remeasurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.3 | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Currency exchanged through alternative legal exchange mechanisms | ' | ' | ' | 200,000 | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | 6,400,000 | 59,200,000 | ' | ' | ' | ' | 1,100,000 | 6,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized foreign exchange losses, net | ' | ' | ' | 15,116,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent by which new CADIVI rate being less favorable than SITME | 16.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CADIVI rate for remeasurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent by which alternative legal exchange mechanism was less favorable than new CADIVI rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net monetary Bolivars denominated assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186,900,000 | 82,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of bonds invested in Boliver denominated bonds | ' | ' | 25,500,000 | $4,050,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary's net sales to Company's consolidated net sales, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 4.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary asset as percentage of consolidated assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis_of_Presentation_Componen
Basis of Presentation - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' |
Foreign currency translation adjustment, net of tax | ($25,636) | ($28,788) | ($38,609) |
Unrealized gain/(loss) on derivatives, net of tax | 5,747 | -2,907 | 800 |
Unrealized gain on available-for-sale investments, net of tax | 95 | ' | ' |
Total accumulated other comprehensive income (loss) | ($19,794) | ($31,695) | ($37,809) |
Basis_of_Presentation_Common_S
Basis of Presentation - Common Share Amounts Used to Compute Basic and Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average shares used in basic computations | 102,620 | 112,359 | 117,540 |
Dilutive effect of exercise of equity grants outstanding | 4,825 | 5,457 | 7,046 |
Dilutive effect of warrants | ' | 40 | 260 |
Weighted average shares used in diluted computations | 107,445 | 117,856 | 124,846 |
Basis_of_Presentation_Investme
Basis of Presentation - Investments in Venezuelan Bonds (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in Venezuelan bonds, Market Value | $4,188 |
Venezuelan bonds [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Investments in Venezuelan bonds, Amortized Costs | 4,042 |
Investments in Venezuelan bonds, Gross Unrealized Gain | 146 |
Investments in Venezuelan bonds, Gross Unrealized Loss | ' |
Investments in Venezuelan bonds, Net Unrealized Gain | 146 |
Investments in Venezuelan bonds, Market Value | $4,188 |
Basis_of_Presentation_Schedule
Basis of Presentation - Schedule of Amortized Cost and Estimated Fair Value of Bonds by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Collaboration Arrangement Disclosure [Abstract] | ' |
Amortized Cost, Due in 1 year or less | ' |
Amortized Cost, Due in 1-2 years | ' |
Amortized Cost, Due in 2-5 years | ' |
Amortized Cost, Due after 5 years | 4,042 |
Amortized Cost, Total investments | 4,042 |
Estimated Market Value, Due in 1 year or less | ' |
Estimated Market Value, Due in 1-2 years | ' |
Estimated Market Value, Due in 2-5 years | ' |
Estimated Market Value, Due after 5 years | 4,188 |
Estimated Market Value, Total investments | $4,188 |
Inventories_Finished_Goods_Ava
Inventories - Finished Goods Available for Resale (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Total | $351,201 | $339,411 |
Weight Management, Targeted Nutrition and Energy, Sports and Fitness [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Total | 307,200 | 303,800 |
Outer Nutrition [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Total | 15,300 | 17,500 |
Literature, Promotional and Other [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Total | $28,700 | $18,100 |
Inventories_Classes_of_Invento
Inventories - Classes of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $23,100,000 | $19,600,000 |
Work in process | 2,800,000 | 1,900,000 |
Finished goods | 325,300,000 | 317,900,000 |
Total | $351,201,000 | $339,411,000 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ' | ' |
Borrowings under the senior secured credit facility | $931,300,000 | $487,500,000 |
Capital leases | ' | 100,000 |
Total | 931,300,000 | 487,600,000 |
Less: current portion | 81,250,000 | 56,302,000 |
Long-term portion | $850,019,000 | $431,305,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jul. 21, 2006 | Jul. 21, 2006 | Sep. 30, 2007 | Jul. 21, 2006 | Mar. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2012 | Dec. 31, 2013 | Jul. 26, 2012 | Dec. 31, 2013 | Mar. 09, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Prior Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | Credit Facility [Member] | ||||
Term Loan [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | Minimum [Member] | Maximum [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option One [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | Interest Rate Option Two [Member] | ||||||||||
Term Loan [Member] | Senior secured revolving credit facility [Member] | Term Loan [Member] | Senior secured revolving credit facility [Member] | Minimum [Member] | Maximum [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | Senior secured revolving credit facility [Member] | ||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum amount | ' | ' | ' | ' | $300,000,000 | $200,000,000 | $250,000,000 | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | $700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in maximum aggregate borrowing capacity | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.25% | 0.50% | 0.25% | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | 1.50% | 2.50% | ' | 0.50% | 1.50% | ' | 0.50% | 1.50% |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'Base rate | 'Base rate | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | 'Base rate | ' | ' | 'The base rate under the Credit Facility represents the highest of the Federal Funds Rate plus 0.50%, one-month LIBOR plus 1.00%, and the prime rate offered by Bank of America. | ' | ' |
Credit facility, maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9-Mar-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate in excess of Federal Funds Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' |
Base rate in excess of one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Credit facility, unused capacity, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility borrowings used to repay outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 196,000,000 | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700,000 | ' | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.17% | 1.96% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount borrowed | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 763,000,000 | 1,428,000,000 | 859,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount repaid | ' | ' | ' | 228,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 319,200,000 | 1,142,500,000 | 657,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | 931,300,000 | 487,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 931,300,000 | 487,500,000 | ' | ' | ' | ' | 431,300,000 | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate annual maturities, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate annual maturities, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate annual maturities, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 26,600,000 | 16,700,000 | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of unamortized deferred financing costs resulting from the extinguishment of credit facility | ' | ' | $914,000 | $900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease_Obligations_Additional_I
Lease Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Future minimum rental commitments for non-cancelable capital leases | $0 | ' | ' |
Rental expense | $57.50 | $52.50 | $49.20 |
Lease_Obligations_Future_Minim
Lease Obligations - Future Minimum Rental Commitments for Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
Operating leases due, 2014 | $54 |
Operating leases due, 2015 | 45.4 |
Operating leases due, 2016 | 30 |
Operating leases due, 2017 | 19 |
Operating leases due, 2018 | 14.7 |
Operating leases due, Thereafter | 16.6 |
Operating leases due, Total | $179.70 |
Lease_Obligations_Capital_Leas
Lease Obligations - Capital Leases Included in Property, Plant and Equipment on Accompanying Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Leases [Abstract] | ' | ' |
Equipment | ' | $7.70 |
Less: accumulated depreciation | ' | -7.4 |
Total | ' | $0.30 |
Employee_Compensation_Plans_Ad
Employee Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | |
Compensation Related Costs [Abstract] | ' | ' | ' | ' |
Percentage of compensation employees could elect to contribute prior to 2009 maximum | ' | ' | ' | 17.00% |
Percentage of compensation employees could elect to contribute prior to 2009 minimum | ' | ' | ' | 2.00% |
Maximum percentage of contribution by employer into compensation plan prior to 2009 | ' | ' | ' | 3.00% |
Percentage of employee may elect to contribute limited to maximum annual amount | 75.00% | ' | ' | ' |
Percentage of deferred earnings for which the company matches contribution one dollar for each dollar | 1.00% | ' | ' | ' |
Percentage of matching contribution for each dollar of deferred earnings above 1% for additional subsequent earnings of 5% | 50.00% | ' | ' | ' |
Percentage of subsequent deferred earnings | 5.00% | ' | ' | ' |
Fully vested contribution period | '2 years | ' | ' | ' |
Contribution made by company to its profit sharing plan | $4,000,000 | $2,700,000 | $2,500,000 | ' |
Percentage of base annual salary deferred by employees | 75.00% | ' | ' | ' |
Percentage of annual bonus deferred by employees | 100.00% | ' | ' | ' |
Increased percentage of matching contribution to align with retirement plan match | 3.50% | 3.50% | 3.50% | ' |
Deferred compensation plans expense excluding participant contributions | 4,000,000 | 2,900,000 | 200,000 | ' |
Total long term deferred compensation liability | 37,226,000 | 29,454,000 | ' | ' |
Value of the assets in the rabbi trust | 26,821,000 | 24,267,000 | ' | ' |
Expenses relating to international deferred compensation plans | $8,400,000 | $7,200,000 | $4,900,000 | ' |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | 10-May-13 | 7-May-10 | Dec. 31, 2013 | Sep. 30, 2009 | Mar. 01, 2012 |
Mexican Tax Administration Service [Member] | Mexican Tax Administration Service [Member] | Spanish Tax Authority [Member] | Federal Revenue Office of Brazil [Member] | Rome Labor Court on behalf of Social Security Authority [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Deductible for product liability insurance | $10 | ' | ' | ' | ' | ' |
Administrative assessment amount from Mexican Tax Administration Service | ' | 22 | 88 | ' | ' | ' |
Tax assessment for withholding taxes, interest and penalties related to payments to Spanish Members during 2003-2004 periods | ' | ' | ' | 4.4 | ' | ' |
Tax assessment received relating to withholding/contributions to Company's Members during 2004 | ' | ' | ' | ' | 3.6 | ' |
Equivalent amount under order for social contributions, interest and penalties related to payments to Italian Members from 2002 through 2005 | ' | ' | ' | ' | ' | $7.40 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Jul. 30, 2012 | 4-May-12 | 2-May-12 | 3-May-10 | Apr. 30, 2009 | Jul. 31, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Sep. 30, 2010 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.1 | 106.9 | 115.8 |
Preference shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.5 | ' | ' |
Preference shares par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' |
Dividend declared per common share | ' | ' | ' | ' | ' | ' | ' | $0.30 | $0.20 | $0.13 | $0.10 | $1.20 | $1.20 | $0.73 |
Increase in cash dividends per common share | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.07 | $0.03 | ' | ' | ' | ' |
Dividend declaration date | ' | ' | ' | ' | ' | ' | ' | 21-Feb-12 | 2-May-11 | 2-Aug-10 | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $123,055,000 | $135,091,000 | $85,489,000 |
Share repurchase program authorized amount | 1,000,000,000 | ' | ' | 1,000,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' |
Previous expiration date of share repurchase program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Apr-11 | ' | ' |
Revised expiration date of share repurchase program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Dec-14 | ' | ' |
Repurchase of common stock, amount | ' | 427,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 306,441,000 | 556,727,000 | 321,639,000 |
Agreement expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Jul-12 | ' | ' |
Repurchase of common stock, shares | ' | ' | 427.9 | ' | ' | 3.9 | 5.3 | ' | ' | ' | ' | 6.2 | 11.5 | 6 |
Share repurchase program expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-17 | ' | ' |
Share repurchase program, remaining authorized capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 652,600,000 | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.1 | 11 | 5.5 |
Shares repurchased through open market purchases, aggregate cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,400,000 | 527,800,000 | 298,800,000 |
Average cost per share of shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49.08 | $47.78 | $54.27 |
Other comprehensive income (loss) before reclassifications, Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | -1,161,000 | 1,455,000 |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) before reclassifications, Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,300,000 | ' | ' |
Unrealized Gain (Loss) on Derivatives [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) before reclassifications, Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Unrealized Gain (Loss) on Available-For-Sale Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) before reclassifications, Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' |
Shareholders_Equity_Summary_of
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($31,695,000) | ($37,809,000) | ' |
Other comprehensive income (loss) before reclassifications, net of tax | 5,700,000,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | 6,200,000,000 | ' | ' |
Total other comprehensive income (loss) | 11,901,000 | 6,114,000 | -10,524,000 |
Ending balance | -19,794,000 | -31,695,000 | -37,809,000 |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -28,800,000 | ' | ' |
Other comprehensive income (loss) before reclassifications, net of tax | 3,200,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | ' | ' | ' |
Total other comprehensive income (loss) | 3,200,000 | ' | ' |
Ending balance | -25,600,000 | ' | ' |
Unrealized Gain (Loss) on Derivatives [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -2,900,000 | ' | ' |
Other comprehensive income (loss) before reclassifications, net of tax | 2,400,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | 6,200,000 | ' | ' |
Total other comprehensive income (loss) | 8,600,000 | ' | ' |
Ending balance | 5,700,000 | ' | ' |
Unrealized Gain (Loss) on Available-For-Sale Investments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ' | ' | ' |
Other comprehensive income (loss) before reclassifications, net of tax | 100,000 | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | ' | ' | ' |
Total other comprehensive income (loss) | 100,000 | ' | ' |
Ending balance | $100,000 | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 28, 2009 | Mar. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2008 | Mar. 31, 2008 | Mar. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Plans | Independent Director Stock Units [Member] | Chairman and Chief Executive Officer [Member] | Chairman and Chief Executive Officer [Member] | Performance conditions [Member] | Performance conditions [Member] | Performance conditions [Member] | Management Plan [Member] | 2004 Stock Incentive Plan [Member] | Incentive Plan Stock Units [Member] | SARs [Member] | SARs [Member] | Stock Options [Member] | Stock Units [Member] | Stock Units [Member] | Market Condition 1 [Member] | Market Condition Target 2 [Member] | Service condition awards [Member] | Service condition awards [Member] | Service condition awards [Member] | Market and performance condition awards [Member] | Market and performance condition awards [Member] | Market and performance condition awards [Member] | Performance condition awards [Member] | Performance condition awards [Member] | Performance condition awards [Member] | Market condition awards [Member] | Market condition awards [Member] | Market condition awards [Member] | |||
June 2014 [Member] | June 2015 [Member] | June 2016 [Member] | Incentive Plan Stock Units Other [Member] | Independent Director Stock Units [Member] | Chairman and Chief Executive Officer [Member] | ||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share-based compensation plan | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional awards | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares authorized under 2005 Stock Incentive Plan | 14,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares remain for future issuance under share-based compensation plans | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '10 years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period beginning from the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years | '3 years | '5 years | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock units vesting rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock units vesting rate during first three years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock units vesting rate during fourth year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted stock unit awards to Chairman and Chief Executive Officer vesting | ' | ' | ' | ' | 'The Company granted stock units and SARs to certain employees subject to continued service, one-third of which vest on the third anniversary of the date of grant, one-third of which vest on the fourth anniversary of the date of grant, and the remaining one-third of which vest on the fifth anniversary of the date of grant. | 'Over a four-year period at a rate of 30% during each of the first three years and 10% during the fourth year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price appreciation rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards vest, percentage | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,600,000 | $22,700,000 | $19,200,000 | $4,500,000 | $4,600,000 | $1,400,000 | $300,000 | ' | ' | $0 | $700,000 | $2,900,000 |
Realized income tax benefit for all awards | 10,400,000 | 9,500,000 | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost on non-vested stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,600,000 | ' | ' | 4,500,000 | ' | ' | 12,700,000 | ' | ' | ' | ' | ' |
Unrecognized compensation cost on non-vested stock awards, weighted-average period of recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 4 months 24 days | ' | ' | '1 year | ' | ' | '1 year 8 months 12 days | ' | ' | ' | ' | ' |
Excess tax benefit | 15,566,000 | 29,684,000 | 26,241,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards granted | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 0 | 0 | ' | ' | ' |
Total intrinsic value of awards exercised for options and SARs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,100,000 | 98,600,000 | 133,800,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Weighted-average grant date fair value of SARs granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30.57 | $15.36 | $21.23 | ' | ' | $17.37 | $33.04 | ' | ' | ' | ' | ' |
Total vesting date fair value of stock units | $7,300,000 | $24,300,000 | $19,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of fair market value for which eligible employees can purchase common shares under employee stock purchase plan | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserved for issuance under employee stock purchase plan | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Issuance of employee stock purchase plan | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Assumptions Use in Calculation of Fair Value for Service, Performance Condition, and Market and Performance Condition Awards (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SARs [Member] | ' | ' | ' |
Share Based Payment Award Valuation Assumptions [Line Items] | ' | ' | ' |
Expected volatility | 50.80% | 48.40% | 46.60% |
Dividends yield | 1.70% | 2.70% | 1.50% |
Expected term | '5 years 6 months | '5 years 3 months 18 days | '6 years 2 months 12 days |
Risk-free interest rate | 1.50% | 0.70% | 1.90% |
Incentive Plan and Independent Directors Stock Units [Member] | ' | ' | ' |
Share Based Payment Award Valuation Assumptions [Line Items] | ' | ' | ' |
Expected volatility | 45.20% | 52.10% | 49.40% |
Dividends yield | 1.50% | 2.70% | 1.50% |
Expected term | '3 years 7 months 6 days | '3 years 9 months 18 days | '3 years 9 months 18 days |
Risk-free interest rate | 0.70% | 0.40% | 1.00% |
Performance condition awards [Member] | ' | ' | ' |
Share Based Payment Award Valuation Assumptions [Line Items] | ' | ' | ' |
Expected volatility | 50.90% | ' | ' |
Dividends yield | 1.50% | ' | ' |
Expected term | '5 years 6 months | ' | ' |
Risk-free interest rate | 1.60% | ' | ' |
Market and performance condition awards [Member] | ' | ' | ' |
Share Based Payment Award Valuation Assumptions [Line Items] | ' | ' | ' |
Expected volatility | ' | ' | 44.00% |
Dividends yield | ' | ' | 1.40% |
Expected term | ' | ' | '5 years 2 months 12 days |
Risk-free interest rate | ' | ' | 1.20% |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Activity Under Share-Based Compensation Plans (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards Outstanding, Beginning Balance | 11,333,000 |
Granted, Awards | 1,176,000 |
Exercised, Awards | -305,000 |
Forfeited, Awards | -61,000 |
Awards Outstanding, Ending Balance | 12,143,000 |
Awards Exercisable, Ending Balance | 7,327,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $28.62 |
Granted, Weighted Average Exercise Price | $76.40 |
Exercised, Weighted Average Exercise Price | $25.76 |
Forfeited, Weighted Average Exercise Price | $44.54 |
Weighted Average Exercise Price Outstanding, Ending Balance | $33.24 |
Exercisable, Weighted Average Exercise Price, Ending Balance | $20.84 |
Weighted Average Remaining Contractual Term Outstanding, Beginning Balance | '5 years 10 months 24 days |
Weighted Average Remaining Contractual Term Outstanding, Ending Balance | '5 years 3 months 18 days |
Exercisable, Weighted Average Remaining Contractual Term, Ending Balance | '3 years 9 months 18 days |
Aggregate Intrinsic Value Outstanding, Beginning balance | $119.10 |
Aggregate Intrinsic Value Outstanding, Ending balance | 552.9 |
Exercisable, Aggregate Intrinsic Value, Ending Balance | $424 |
Incentive Plan and Independent Directors Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding and non-vested at December 31, 2012, Shares | 321,600 |
Granted, Shares | 17,000 |
Vested, Shares | -193,700 |
Forfeited, Shares | -400 |
Outstanding and non-vested at December 31, 2013, Shares | 144,500 |
Outstanding and non-vested at December 31, 2012, Weighted Average Grant Date Fair Value | $11.70 |
Granted, Weighted Average Grant Date Fair Value | $59.96 |
Vested, Weighted Average Grant Date Fair Value | $13.88 |
Forfeited, Weighted Average Grant Date Fair Value | $42.93 |
Outstanding and non-vested at December 31, 2013, Weighted Average Grant Date Fair Value | $14.36 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Activity Under Share-Based Compensation Plans (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Market and performance condition awards [Member] | Market and performance condition awards [Member] | Market condition awards [Member] | Market condition awards [Member] | Performance condition awards [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Outstanding SARs | 0.9 | 0.9 | 1.5 | 1.5 | 0.4 |
Exercisable SARs | ' | ' | 1.5 | ' | ' |
Granted SARs | ' | ' | ' | ' | 0.4 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Segment | ||||
Country | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of countries in which the Company sells products | 91 | ' | ' | ' |
Number of reportable segment | 2 | ' | ' | ' |
Total assets for the Company's Segment | $2,473,701,000 | $1,724,143,000 | ' | ' |
Goodwill allocated to the Company's Segment | 105,490,000 | 105,490,000 | 105,490,000 | ' |
Net property, plant and equipment located in the U.S. and in all foreign countries | 318,860,000 | 242,886,000 | ' | ' |
Deferred tax assets related to U.S. and foreign countries | 127,800,000 | 119,800,000 | ' | ' |
Cash and cash equivalents | 972,974,000 | 333,534,000 | 258,775,000 | 190,550,000 |
Total amount of cash held by foreign subsidiaries maintained or invested in U.S. dollars | 6,800,000 | 6,900,000 | ' | ' |
Primary Reporting Segment [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total assets for the Company's Segment | 2,253,700,000 | 1,607,200,000 | ' | ' |
Goodwill allocated to the Company's Segment | 102,400,000 | 102,400,000 | ' | ' |
China [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total assets for the Company's Segment | 220,000,000 | 116,900,000 | ' | ' |
Goodwill allocated to the Company's Segment | 3,100,000 | 3,100,000 | ' | ' |
U.S. [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net property, plant and equipment located in the U.S. and in all foreign countries | 236,000,000 | 170,900,000 | ' | ' |
Deferred tax assets related to U.S. and foreign countries | 69,100,000 | 68,400,000 | ' | ' |
Cash and cash equivalents | 405,600,000 | 12,200,000 | ' | ' |
Foreign countries [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net property, plant and equipment located in the U.S. and in all foreign countries | 82,900,000 | 71,900,000 | ' | ' |
Deferred tax assets related to U.S. and foreign countries | 58,700,000 | 51,400,000 | ' | ' |
Foreign subsidiaries [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $567,400,000 | $321,300,000 | ' | ' |
Segment_Information_Reconcilia
Segment Information - Reconciliation of Revenue from Segments to Consolidated (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | $1,268,900 | $1,213,500 | $1,219,200 | $1,123,600 | $1,059,300 | $1,016,900 | $1,031,900 | $964,200 | $4,825,308 | $4,072,330 | $3,454,537 |
Reportable Geographical Components [Member] | United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 881,000 | 816,900 | 676,900 |
Reportable Geographical Components [Member] | Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 562,400 | 496,100 | 436,900 |
Reportable Geographical Components [Member] | South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 433,700 | 421,400 | 343,500 |
Reportable Geographical Components [Member] | Others [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,476,600 | 2,059,400 | 1,786,400 |
Reportable Geographical Components [Member] | Primary Reporting Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 4,353,700 | 3,793,800 | 3,243,700 |
Reportable Geographical Components [Member] | China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $471,600 | $278,500 | $210,800 |
Segment_Information_Reconcilia1
Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | $2,364,400,000 | $1,921,100,000 | $1,636,900,000 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,629,052,000 | 1,259,667,000 | 1,074,623,000 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 26,552,000 | 16,736,000 | 9,864,000 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 7,992,000 | 6,195,000 | 7,373,000 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 716,717,000 | 650,906,000 | 559,779,000 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 189,192,000 | 186,944,000 | 144,820,000 |
Net income | 123,500,000 | 142,000,000 | 143,200,000 | 118,900,000 | 112,200,000 | 111,900,000 | 132,000,000 | 107,900,000 | 527,525,000 | 463,962,000 | 414,959,000 |
Reportable Geographical Components [Member] | United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | 365,200,000 | 359,500,000 | 286,300,000 |
Reportable Geographical Components [Member] | Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | 251,700,000 | 205,600,000 | 191,100,000 |
Reportable Geographical Components [Member] | South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | 214,300,000 | 199,400,000 | 163,100,000 |
Reportable Geographical Components [Member] | Others [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | 1,110,500,000 | 906,500,000 | 810,000,000 |
Reportable Geographical Components [Member] | Primary Reporting Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | 1,941,700,000 | 1,671,000,000 | 1,450,500,000 |
Reportable Geographical Components [Member] | China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Contribution Margin | ' | ' | ' | ' | ' | ' | ' | ' | $422,700,000 | $250,100,000 | $186,400,000 |
Segment_Information_Capital_Ex
Segment Information - Capital Expenditures (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | $162.50 | $122.80 | $90.90 |
United States [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | 121.3 | 81.6 | 60.4 |
Mexico [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | 2.4 | 2.8 | 3.5 |
South Korea [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | 1.8 | 4.1 | 2.1 |
China [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | 12.6 | 15.4 | 6.6 |
Others [Member] | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Total Capital Expenditures | $24.40 | $18.90 | $18.30 |
Segment_Information_Schedule_o
Segment Information - Schedule of Entity-Wide Information, Revenue from External Customers by Products and Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,268,900 | $1,213,500 | $1,219,200 | $1,123,600 | $1,059,300 | $1,016,900 | $1,031,900 | $964,200 | $4,825,308 | $4,072,330 | $3,454,537 |
Operating Segments [Member] | Weight Management [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,063,700 | 2,554,900 | 2,158,700 |
Operating Segments [Member] | Targeted Nutrition [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,109,900 | 944,800 | 789,600 |
Operating Segments [Member] | Energy, Sports and Fitness [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 254,500 | 209,400 | 169,800 |
Operating Segments [Member] | Outer Nutrition [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 157,200 | 146,300 | 147,800 |
Operating Segments [Member] | Literature, Promotional and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $240,000 | $216,900 | $188,600 |
Segment_Information_Schedule_o1
Segment Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,268,900 | $1,213,500 | $1,219,200 | $1,123,600 | $1,059,300 | $1,016,900 | $1,031,900 | $964,200 | $4,825,308 | $4,072,330 | $3,454,537 |
Reportable Geographical Components [Member] | North America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 908,000 | 841,200 | 698,600 |
Reportable Geographical Components [Member] | Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 562,400 | 496,100 | 436,900 |
Reportable Geographical Components [Member] | South and Central America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 973,500 | 688,800 | 554,400 |
Reportable Geographical Components [Member] | EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 735,200 | 627,800 | 615,200 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,174,600 | 1,139,900 | 938,600 |
Reportable Geographical Components [Member] | China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $471,600 | $278,500 | $210,800 |
Segment_Information_Reconcilia2
Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Parenthetical) (Detail) (China [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
China [Member] | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Independent service providers service fee costs | $215.60 | $123.50 | $96.80 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Agreement | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative aggregate notional amounts | $593.70 | $610.10 |
Derivative liability fair value | 5.1 | 6.6 |
Derivative asset fair value | 8 | 1.2 |
Cash flow hedges reclassified into earnings over next twelve months | 3.1 | ' |
Interest Rate Swaps [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Number of derivative instruments held | 4 | ' |
Derivative aggregate notional amounts | 140 | 140 |
Weighted average fixed interest rate on notional amounts | 2.78% | 2.78% |
Interest rate applicable on interest rate swap agreements for stipulated period | 'One month LIBOR rate | ' |
Expiration date of interest rate swap agreements | 31-Jul-13 | 31-Jul-13 |
Effective date of interest rate swap agreements | 31-Dec-09 | ' |
Inception date of interest rate swap agreements | 31-Aug-09 | ' |
Payment of interest period | 'Less than a four-year period | ' |
Derivative liability fair value | 0 | 2 |
Foreign exchange currency contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative liability fair value | 5.1 | 4.6 |
Derivative asset fair value | 8 | 1.2 |
Foreign exchange currency contracts [Member] | Derivatives designated as cash flow hedging instruments [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative aggregate notional amounts | 244.7 | 256.9 |
Derivative liability fair value | 4.4 | 3.3 |
Derivative remaining maturity period | '12 months | ' |
Derivative asset fair value | $5.70 | $0.50 |
Foreign exchange forward contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative maximum remaining maturity period | '12 months | '12 months |
Freestanding derivatives [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative average remaining maturity period | '3 months | '1 month |
Foreign currency option contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Number of derivative instruments held | 0 | 0 |
Prior Credit Facility [Member] | Term Loan [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Termination date | 'March 2011 | ' |
Credit Facility [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Variable rate basis | 'LIBOR | ' |
Average effective fixed rate on notional balances, minimum | 4.28% | ' |
Average effective fixed rate on notional balances, maximum | 5.28% | ' |
Credit Facility [Member] | Minimum [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest rate spread on variable rate | 1.50% | ' |
Credit Facility [Member] | Maximum [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest rate spread on variable rate | 2.50% | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Aggregate Interest Rate Swaps and Fair Value of Liabilities Outstanding (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Aggregate Notional Amounts | $593.70 | $610.10 |
Interest Rate Swaps [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Aggregate Notional Amounts | 140 | 140 |
Average Swap Rate | 2.78% | 2.78% |
Aggregate Fair Value | ' | ($2) |
Maturity Dates | 31-Jul-13 | 31-Jul-13 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Summary of Foreign Currency Forward Contracts Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Original Notional Amount | $593.70 | $610.10 |
Fair Value Gain (Loss) | 2.9 | -3.4 |
Buy Brazilian real sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 2.08 |
Original Notional Amount | ' | 12.5 |
Fair Value Gain (Loss) | ' | 0.2 |
Buy Chinese yuan sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 6.29 |
Original Notional Amount | ' | 1.3 |
Buy Euro sell Argentine peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 6.66 |
Original Notional Amount | ' | 3 |
Buy Euro sell Australian dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.52 | 1.27 |
Original Notional Amount | 4.5 | 1.4 |
Fair Value Gain (Loss) | 0.1 | ' |
Buy Euro sell Chilean peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 727.4 | 633 |
Original Notional Amount | 1.1 | 1.5 |
Buy Euro sell Indonesian rupiah [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 16,915 | 12,935 |
Original Notional Amount | 0.7 | 9.7 |
Buy Euro sell Mexican peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 17.51 | 17.18 |
Original Notional Amount | 150.3 | 143.7 |
Fair Value Gain (Loss) | 4.9 | 0.3 |
Buy Euro sell Malaysian ringgit [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 4.06 |
Original Notional Amount | ' | 15.2 |
Fair Value Gain (Loss) | ' | -0.1 |
Buy Euro sell Peruvian nuevo sol [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 3.41 |
Original Notional Amount | ' | 2 |
Buy Euro sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.37 | 1.33 |
Original Notional Amount | 161.3 | 82.1 |
Fair Value Gain (Loss) | ' | -0.4 |
Buy British pound sell Euro [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.01 | 0.82 |
Original Notional Amount | 4.9 | 2.4 |
Fair Value Gain (Loss) | 0.1 | ' |
Buy Japanese yen sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 104.71 | 85.88 |
Original Notional Amount | 2.9 | 9.3 |
Fair Value Gain (Loss) | ' | -0.1 |
Buy South Korean won sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 1,077.18 |
Original Notional Amount | ' | 52.5 |
Fair Value Gain (Loss) | ' | 0.2 |
Buy Malaysian ringgit sell Euro [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 4.07 |
Original Notional Amount | ' | 0.8 |
Buy Malaysian ringgit sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 3.3 | 3.08 |
Original Notional Amount | 5.3 | 21.7 |
Fair Value Gain (Loss) | ' | 0.1 |
Buy U.S. dollar sell Brazilian real [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 2.35 | 2.05 |
Original Notional Amount | 12.8 | 12.6 |
Fair Value Gain (Loss) | 0.6 | ' |
Buy U.S. dollar sell Colombian peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 1,800.10 |
Original Notional Amount | ' | 11.7 |
Fair Value Gain (Loss) | ' | -0.2 |
Buy U.S. dollar sell Euro [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.34 | 1.3 |
Original Notional Amount | 171.8 | 174.4 |
Fair Value Gain (Loss) | -4.2 | -2.9 |
Buy U.S. dollar sell British pound [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 1.62 |
Original Notional Amount | ' | 16.2 |
Fair Value Gain (Loss) | ' | -0.1 |
Buy U.S. dollar sell South Korean won [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1,112.65 | 1,089.08 |
Original Notional Amount | 50 | 6.3 |
Fair Value Gain (Loss) | 1.5 | -0.1 |
Buy U.S. dollar sell Mexican peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 13.12 |
Original Notional Amount | ' | 25.4 |
Fair Value Gain (Loss) | ' | -0.3 |
Buy U.S. dollar sell Philippine peso [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 40.99 |
Original Notional Amount | ' | 2.9 |
Buy U.S. dollar sell New Taiwan dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 28.98 |
Original Notional Amount | ' | 0.8 |
Buy U.S. dollar sell South African rand [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | ' | 8.54 |
Original Notional Amount | ' | 0.7 |
Buy Australian dollar sell Euro [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.55 | ' |
Original Notional Amount | 2.7 | ' |
Buy Euro sell British pound [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 0.83 | ' |
Original Notional Amount | 2.5 | ' |
Buy Euro sell Russian ruble [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 45.05 | ' |
Original Notional Amount | 3 | ' |
Buy Euro sell Singapore dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.74 | ' |
Original Notional Amount | 3 | ' |
Buy Singapore dollar sell Euro [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 1.71 | ' |
Original Notional Amount | 2 | ' |
Buy New Taiwan dollar sell U.S. dollar [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Average Contract Rate | 29.54 | ' |
Original Notional Amount | 14.9 | ' |
Fair Value Gain (Loss) | ($0.10) | ' |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (Loss) (Detail) (Derivatives designated as cash flow hedging instruments [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $3.50 | ($3.30) | $4.10 |
Interest Rate Swaps [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | ' | ($0.60) | ($2.10) |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Recorded to Income (Detail) (Selling, general and administrative expenses [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges [Member] | Derivatives designated as cash flow hedging instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | ($5.20) | ($1.80) | ' |
Foreign exchange currency contracts [Member] | Derivatives not designated as hedging instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income | $6.40 | ($10) | $2.70 |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion (Detail) (Derivatives designated as cash flow hedging instruments [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Foreign exchange currency contracts relating to inventory hedges [Member] | Cost of sales [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ($4.10) | $0.10 | ($0.30) |
Foreign exchange currency contracts relating to intercompany management fee hedges [Member] | Selling, general and administrative expenses [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | -0.7 | 4.5 | -1.8 |
Interest rate contracts [Member] | Interest expense, net [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ($2) | ($3.60) | ($3.60) |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $155,600,000 | $172,300,000 | $143,900,000 |
Foreign | 561,100,000 | 478,600,000 | 415,900,000 |
Income before income taxes | $716,717,000 | $650,906,000 | $559,779,000 |
Income_Taxes_Components_of_Inc1
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current: | ' | ' | ' |
Foreign | $138,100,000 | $104,000,000 | $103,300,000 |
Federal | 68,800,000 | 82,100,000 | 55,300,000 |
State | 7,200,000 | 8,600,000 | 7,400,000 |
Current Income Tax Expense (Benefit), Total | 214,100,000 | 194,700,000 | 166,000,000 |
Deferred: | ' | ' | ' |
Foreign | -16,300,000 | -6,300,000 | -11,800,000 |
Federal | -9,400,000 | -2,700,000 | -8,700,000 |
State | 800,000 | 1,200,000 | -700,000 |
Deferred Income Tax Expense (Benefit), Total | -24,910,000 | -7,758,000 | -21,271,000 |
Total | $189,192,000 | $186,944,000 | $144,820,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Unrealized excess tax benefits | 15,400,000 | 25,900,000 | ' | ' |
Foreign tax credit carryforwards | 15,400,000 | ' | ' | ' |
Percentage cumulative inflation | 100.00% | ' | ' | ' |
Net operating loss carryforwards of subsidiaries | 29,200,000 | 22,000,000 | ' | ' |
Amount of net operating losses and tax credits that will expire between 2014 and 2023 | 3,600,000 | ' | ' | ' |
Amount of net operating losses and tax credits that can be carried forward indefinitely | 25,600,000 | ' | ' | ' |
Deferred interest carryforwards of subsidiaries | 218,700,000 | 186,900,000 | ' | ' |
Valuation allowance | 247,600,000 | 209,300,000 | ' | ' |
Valuation allowance, deferred tax asset, change in amount | 38,300,000 | 41,200,000 | 29,500,000 | ' |
Additional charge to income tax expenses | 36,700,000 | 40,200,000 | 31,800,000 | ' |
Other comprehensive income (loss), foreign currency translation gain (loss) arising during period, tax | 1,600,000 | 1,000,000 | -2,300,000 | ' |
Unremitted earnings that were permanently reinvested relating to operating subsidiaries | 2,000,000,000 | ' | ' | ' |
Deferred tax liability on unremitted foreign earnings | 700,000 | 13,900,000 | ' | ' |
Effective tax rate applied | 35.00% | ' | ' | ' |
Total amount of unrecognized tax benefits, including related interest and penalties | 34,600,000 | 47,100,000 | 39,000,000 | ' |
Unrecognized tax benefits excluding interest and penalties that if recognized would affect the effective tax rate | 28,400,000 | 38,200,000 | ' | ' |
Total accrued interest for tax contingencies | 3,700,000 | 5,700,000 | ' | ' |
Total accrued penalties for tax contingencies | 800,000 | 1,700,000 | ' | ' |
Reversal in interest expense related to uncertain tax positions | 1,600,000 | ' | ' | ' |
Increase in interest expense related to uncertain tax positions | ' | 200,000 | 100,000 | ' |
Reversal in penalty expense related to uncertain tax positions | 700,000 | ' | ' | ' |
Increase in reversal penalties to uncertain tax positions | ' | 600,000 | 100,000 | ' |
Amount of unrecognized tax benefits that could decrease within the next 12 months | 10,700,000 | ' | ' | ' |
Decrease in unrecognized tax benefits due to the settlement of audits or resolution of administrative or judicial proceedings | 6,800,000 | ' | ' | ' |
Decrease in unrecognized tax benefits expiration of statute of limitations | 3,900,000 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Open tax years by major tax jurisdiction | '2009 | ' | ' | ' |
Carryforwards expiring in 2021 [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Foreign tax credit carryforwards | 2,400,000 | ' | ' | ' |
Expiration date of tax credit carryforwards | 31-Dec-21 | ' | ' | ' |
Carryforwards expiring in 2022 [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Foreign tax credit carryforwards | 13,000,000 | ' | ' | ' |
Expiration date of tax credit carryforwards | 31-Dec-22 | ' | ' | ' |
United States [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Unremitted earnings that were permanently reinvested | 88,100,000 | ' | ' | ' |
China [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Maximum percentage of tax during holiday period | ' | 12.50% | 12.00% | 11.00% |
Statutory tax rate | 25.00% | ' | ' | ' |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Accruals not currently deductible | $53.40 | $48 |
Tax loss carry forwards of certain foreign subsidiaries | 29.2 | 22 |
Depreciation/amortization | 3.5 | 13.5 |
Deferred compensation plan | 47.4 | 35.6 |
Deferred interest expense | 218.7 | 186.9 |
Accrued vacation | 5.5 | 4.6 |
Inventory reserve | 13.2 | 6.4 |
Hyperinflationary adjustment | ' | 3.5 |
Other | 4.5 | 8.6 |
Gross deferred income tax assets | 375.4 | 329.1 |
Less: valuation allowance | -247.6 | -209.3 |
Total deferred income tax assets | 127.8 | 119.8 |
Deferred income tax liabilities: | ' | ' |
Intangible assets | 113 | 111.7 |
Unremitted foreign earnings | 0.7 | 13.9 |
Other | 4.5 | 4.5 |
Total deferred income tax liabilities | 118.2 | 130.1 |
Total net deferred tax assets (liabilities) | $9.60 | ($10.30) |
Income_Taxes_Reconciliation_be
Income Taxes - Reconciliation between Provision for Income Taxes at Statutory Rate and Provision for Income Taxes at Effective Tax Rate (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax expense at United States statutory rate | $250,900,000 | $227,800,000 | $195,900,000 |
Increase (decrease) in tax resulting from: | ' | ' | ' |
Differences between U.S. and foreign tax rates on foreign income, including withholding taxes | -82,100,000 | -97,900,000 | -78,100,000 |
U.S. tax (benefit) on foreign income net of foreign tax credits | -4,700,000 | 1,800,000 | -8,800,000 |
Increase (decrease) in valuation allowances | 36,700,000 | 40,200,000 | 31,800,000 |
State taxes, net of federal benefit | 5,700,000 | 7,300,000 | 5,200,000 |
Unrecognized tax benefits | -10,300,000 | 6,600,000 | 1,100,000 |
Other | -7,000,000 | 1,100,000 | -2,300,000 |
Total | $189,192,000 | $186,944,000 | $144,820,000 |
Income_Taxes_Changes_Occurred_
Income Taxes - Changes Occurred in Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning balance of unrecognized tax benefits | $39.70 | $32.40 | $31.60 |
Additions for current year tax positions | 10.3 | 7.8 | 5.5 |
Additions for prior year tax positions | 4.1 | 4.5 | 2 |
Reductions for prior year tax positions | -3.9 | -0.1 | -0.9 |
Reductions for audit settlements | -10 | -0.3 | -0.7 |
Reductions for the expiration of statutes of limitation | -8.4 | -4.9 | -4.5 |
Changes due to foreign currency translation adjustments | -1.9 | 0.3 | -0.6 |
Ending balance of unrecognized tax benefits (excluding interest and penalties) | 29.9 | 39.7 | 32.4 |
Interest and penalties associated with unrecognized tax benefits | 4.7 | 7.4 | 6.6 |
Ending balance of unrecognized tax benefits (including interest and penalties) | $34.60 | $47.10 | $39 |
Fair_Value_Measurements_Deriva
Fair Value Measurements - Derivative Assets and Liabilities Measured at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives asset | $8 | $1.20 |
Fair value derivatives liabilities | 5.1 | 6.6 |
Foreign exchange currency contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives asset | 8 | 1.2 |
Fair value derivatives liabilities | 5.1 | 4.6 |
Interest Rate Swaps [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives liabilities | 0 | 2 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value measurements, assets total | 8 | 1.2 |
Fair value measurements, liabilities total | 5.1 | 6.6 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives designated as cash flow hedging instruments [Member] | Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges [Member] | Prepaid expenses and other current assets [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives asset | 5.7 | 0.5 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives designated as cash flow hedging instruments [Member] | Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges [Member] | Accrued expenses [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives liabilities | 4.4 | 3.3 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives designated as cash flow hedging instruments [Member] | Interest Rate Swaps [Member] | Accrued expenses [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives liabilities | ' | 2 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange currency contracts [Member] | Prepaid expenses and other current assets [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives asset | 2.3 | 0.7 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange currency contracts [Member] | Accrued expenses [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair value derivatives liabilities | $0.70 | $1.30 |
Fair_Value_Measurements_Offset
Fair Value Measurements - Offsetting of Derivative Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | $8 | $1.20 |
Gross Amounts Offset in the Balance Sheet, Derivative Assets | -3 | -1.2 |
Net Amounts of Assets Presented in the Balance Sheet | 5 | ' |
Foreign exchange currency contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Assets | 8 | 1.2 |
Gross Amounts Offset in the Balance Sheet, Derivative Assets | -3 | -1.2 |
Net Amounts of Assets Presented in the Balance Sheet | $5 | ' |
Fair_Value_Measurements_Offset1
Fair Value Measurements - Offsetting of Derivative Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Liabilities | $5.10 | $6.60 |
Gross Amounts Offset in the Balance Sheet, Derivative Liabilities | -3 | -1.2 |
Net Amounts of Liabilities Presented in the Balance Sheet | 2.1 | 5.4 |
Foreign exchange currency contracts [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Liabilities | 5.1 | 4.6 |
Gross Amounts Offset in the Balance Sheet, Derivative Liabilities | -3 | -1.2 |
Net Amounts of Liabilities Presented in the Balance Sheet | 2.1 | 3.4 |
Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Gross Amounts of Recognized Liabilities | 0 | 2 |
Net Amounts of Liabilities Presented in the Balance Sheet | ' | $2 |
Professional_Fees_and_Other_Ex1
Professional Fees and Other Expenses - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Other Income And Expenses [Abstract] | ' |
Professional fees and other expenses | $29.10 |
Advisory retainer fees | 6 |
Minimum guaranteed retainer fees | 4 |
Liability Award expense recognized | 3.5 |
Liability Award expense unrecognized | $3.30 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Jul. 30, 2012 | 3-May-10 | Apr. 30, 2009 | Feb. 28, 2014 | Mar. 31, 2012 | Jun. 30, 2011 | Sep. 30, 2010 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 03, 2014 | Feb. 18, 2013 | Mar. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Feb. 03, 2014 | Mar. 31, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||
Prepaid Forward Share Repurchase Transactions [Member] | Credit Facility [Member] | Capped Call Transactions [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Notes [Member] | ||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share repurchase transaction, authorized amount | $1,000,000,000 | $1,000,000,000 | $300,000,000 | ' | ' | ' | ' | ' | $1,000,000,000 | ' | ' | $1,500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Remaining available balance for repurchase program | ' | ' | ' | ' | ' | ' | ' | ' | 652,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declaration date | ' | ' | ' | ' | 21-Feb-12 | 2-May-11 | 2-Aug-10 | ' | ' | ' | ' | ' | 18-Feb-14 | ' | ' | ' | ' | ' | ' |
Dividend declared per common share | ' | ' | ' | ' | $0.30 | $0.20 | $0.13 | $0.10 | $1.20 | $1.20 | $0.73 | ' | $0.30 | ' | ' | ' | ' | ' | ' |
Dividend date of record | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-Mar-14 | ' | ' | ' | ' | ' | ' |
Dividend payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18-Mar-14 | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of convertible senior notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' |
Additional principal amount of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' |
Convertible notes, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' |
Convertible notes maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Aug-19 | ' | ' |
Total principal amount of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,150,000,000 | ' | ' |
Convertible notes initial conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.5908 | ' | ' |
Principal amount of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Convertible notes initial conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $86.28 | ' | ' |
Initial conversion premium above stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Common stock sale price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $69.02 | ' |
Direct issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | ' |
Aggregate principal amount of convertible senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,150,000,000 |
Capped call transactions with financial institutions | ' | ' | ' | ' | ' | ' | ' | ' | 593,700,000 | 610,100,000 | ' | ' | ' | ' | ' | 124,000,000 | ' | ' | ' |
Capped call transactions price per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120.79 | ' | ' | ' |
Premium percentage over stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' |
Decrease in additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 124,000,000 | ' | ' | ' |
Forward share repurchase transactions amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $686,000,000 | ' | ' | ' | ' | ' |
Share repurchase transaction, shares to be purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.9 | ' | ' | ' | ' | ' |
Maturity date of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 15, 2019 | ' | ' | ' | ' | ' |
Applicable margin payable, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' |
Consolidated leverage ratio | ' | ' | ' | 250.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly_Information_Quarterl
Quarterly Information - Quarterly Net Income, Basic Earnings Per Share and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,268,900 | $1,213,500 | $1,219,200 | $1,123,600 | $1,059,300 | $1,016,900 | $1,031,900 | $964,200 | $4,825,308 | $4,072,330 | $3,454,537 |
Gross profit | 1,017,100 | 975,100 | 972,000 | 897,700 | 848,200 | 815,300 | 828,200 | 768,000 | 3,861,885 | 3,259,747 | 2,774,453 |
Net income | $123,500 | $142,000 | $143,200 | $118,900 | $112,200 | $111,900 | $132,000 | $107,900 | $527,525 | $463,962 | $414,959 |
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share | $1.22 | $1.39 | $1.39 | $1.14 | $1.04 | $1.03 | $1.13 | $0.93 | $5.14 | $4.13 | $3.53 |
Diluted earnings per share | $1.15 | $1.32 | $1.34 | $1.10 | $1 | $0.98 | $1.09 | $0.88 | $4.91 | $3.94 | $3.32 |