Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HLF | |
Entity Registrant Name | HERBALIFE LTD. | |
Entity Central Index Key | 1,180,262 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 93,287,773 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,782.9 | $ 844 |
Receivables, net of allowance for doubtful accounts | 100.2 | 70.3 |
Inventories | 375 | 371.3 |
Prepaid expenses and other current assets | 151.4 | 176.9 |
Total current assets | 2,409.5 | 1,462.5 |
Property, at cost, net of accumulated depreciation and amortization | 373.3 | 378 |
Marketing related intangibles and other intangible assets, net | 310.1 | 310.1 |
Goodwill | 93.5 | 89.9 |
Other assets | 373.9 | 324.9 |
Total assets | 3,560.3 | 2,565.4 |
CURRENT LIABILITIES: | ||
Accounts payable | 80.7 | 66 |
Royalty overrides | 249.1 | 261.2 |
Current portion of long-term debt | 103.6 | 9.5 |
Other current liabilities | 507.2 | 454.8 |
Total current liabilities | 940.6 | 791.5 |
NON-CURRENT LIABILITIES: | ||
Long-term debt, net of current portion | 2,199.2 | 1,438.4 |
Other non-current liabilities | 153.1 | 139.2 |
Total liabilities | 3,292.9 | 2,369.1 |
CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Common shares, $0.001 par value; 1.0 billion shares authorized; 92.2 million (2017) and 93.1 million (2016) shares outstanding | 0.1 | 0.1 |
Paid-in capital in excess of par value | 469.2 | 467.6 |
Accumulated other comprehensive loss | (189.6) | (205.1) |
Retained earnings (accumulated deficit) | 48.4 | (66.3) |
Treasury stock, at cost, 1.1 million shares (2017) | (60.7) | |
Total shareholders’ equity | 267.4 | 196.3 |
Total liabilities and shareholders’ equity | $ 3,560.3 | $ 2,565.4 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common shares, par value | $ 0.001 | $ 0.001 |
Common shares, shares authorized | 1,000 | 1,000 |
Common shares, shares outstanding | 92.2 | 93.1 |
Treasury stock shares, at cost | 1.1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Product sales | $ 1,044.4 | $ 1,052 |
Shipping & handling revenues | 57.7 | 67.6 |
Net sales | 1,102.1 | 1,119.6 |
Cost of sales | 204.6 | 213.1 |
Gross profit | 897.5 | 906.5 |
Royalty overrides | 315.1 | 311.9 |
Selling, general & administrative expenses | 438.6 | 427.1 |
Other operating income | (0.8) | |
Operating income | 143.8 | 168.3 |
Interest expense, net | 30.2 | 24.9 |
Income before income taxes | 113.6 | 143.4 |
Income taxes | 28.4 | 47.6 |
NET INCOME | $ 85.2 | $ 95.8 |
Earnings per share: | ||
Basic | $ 1.03 | $ 1.16 |
Diluted | $ 0.98 | $ 1.12 |
Weighted average shares outstanding: | ||
Basic | 83.1 | 82.8 |
Diluted | 86.7 | 85.6 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 85.2 | $ 95.8 |
Other comprehensive income: | ||
Foreign currency translation adjustment, net of income taxes of $2.6 and $(0.8) for the three months ended March 31, 2017 and 2016, respectively | 23 | 20 |
Unrealized (loss) gain on derivatives, net of income tax of $(0.2) for the three months ended March 31, 2016 | (7.5) | (5.6) |
Other, net of income taxes of $0.1 for the three months ended March 31, 2016 | (0.1) | |
Total other comprehensive Income (loss) | 15.5 | 14.3 |
Total comprehensive income | $ 100.7 | $ 110.1 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax | $ 2.6 | $ (0.8) |
Unrealized (loss) gain on derivatives, tax | $ (0.2) | |
Other, tax | $ 0.1 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 85.2 | $ 95.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24.5 | 23.9 |
Share-based compensation expenses | 11.3 | 9.8 |
Non-cash interest expense | 14.4 | 15.6 |
Deferred income taxes | (3.2) | (3.2) |
Inventory write-downs | 4.6 | 7.3 |
Foreign exchange transaction gain | (0.4) | (0.7) |
Other | (1) | 1.1 |
Changes in operating assets and liabilities: | ||
Receivables | (27.9) | (17.3) |
Inventories | 7.3 | (2.6) |
Prepaid expenses and other current assets | 25.1 | 5.4 |
Accounts payable | 5 | 2.8 |
Royalty overrides | (18.8) | (10.4) |
Other current liabilities | 44.6 | 8.3 |
Other | 4.8 | 5.3 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 175.5 | 141.1 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (24.5) | (29.7) |
Other | (1.2) | 4.1 |
NET CASH USED IN INVESTING ACTIVITIES | (25.7) | (25.6) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings from senior secured credit facility, net of discount | 1,274 | |
Principal payments on senior secured credit facility and other debt | (413.4) | (229.7) |
Debt issuance costs | (22.6) | |
Share repurchases | (58.1) | (2.3) |
Other | 0.6 | (1.7) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 780.5 | (233.7) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 8.6 | 2.6 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 938.9 | (115.6) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 844 | 889.8 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,782.9 | $ 774.2 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization Herbalife Ltd., a Cayman Islands exempt limited liability company, was incorporated on April 4, 2002. Herbalife Ltd. (and together with its subsidiaries, the “Company” or “Herbalife”) is a global nutrition company that sells weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products to and through a network of independent members, or Members. In China, the Company sells its products to and through independent service providers, sales representatives, and sales officers to customers and preferred customers, as well as through Company-operated retail stores when necessary. 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. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated interim financial information of the Company has been prepared in accordance with Article 10 of the Securities and Exchange Commission’s, or the SEC, Regulation S-X. Accordingly, as permitted by Article 10 of the SEC’s Regulation S-X, it does not include all of the information required by generally accepted accounting principles in the U.S., or U.S. GAAP, for complete financial statements. The condensed consolidated balance sheet at December 31, 2016 was derived from the audited financial statements at that date and does not include all the disclosures required by U.S. GAAP, as permitted by Article 10 of the SEC’s Regulation S-X. The Company’s unaudited condensed consolidated financial statements as of March 31, 2017, and for the three months ended March 31, 2017 and 2016, include Herbalife Ltd. and all of its direct and indirect subsidiaries. In the opinion of management, the accompanying financial information contains all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s unaudited condensed consolidated financial statements as of March 31, 2017, and for the three months ended March 31, 2017 and 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, or the 2016 10-K. Operating results for the three months ended March 31, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Recently Adopted Pronouncements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Income Taxes Income Taxes In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments Derivatives and Hedging . In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The updated guidance requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the potential impact of this adoption on its consolidated financial statements, however, increases in both assets and liabilities are expected. In March 2016, the FASB issued ASU No. 2016-04, Liabilities — Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In June 2016, the FASB issued ASU No. 2016-13, Financial Instrument — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU changes the impairment model for most financial assets, requiring the use of an expected loss model which requires entities to estimate the lifetime expected credit loss on financial assets measured at amortized cost. Such credit losses will be recorded as an allowance to offset the amortized cost of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In addition, The amendments in this update are effective for reporting periods beginning after December 15, 2019, with early adoption permitted for reporting periods beginning after December 15, 2018. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU provides clarification on eight specific cash flow issues regarding presentation and classification in the statement of cash flows with the objective of reducing the existing diversity in practice. The amendments in this update are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Consolidation In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Other Operating Income To encourage local investment and operations, governments in various China provinces conduct grant programs. The Company applied for and received several such grants in China. Government grants are recorded into income when a legal right to the grant exists, there is a reasonable assurance that the grant proceeds will be received, and the substantive conditions under which the grants were provided have been met. During the three months ended March 31, 2017, the Company did not recognize any government grant income related to its regional headquarters and distribution centers within China. To conform to the current period presentation, for the three months ended March 31, 2016, $0.8 million in government grant income in China has been reclassified from selling, general, and administrative expenses to other operating income within its condensed consolidated statements of income. The Company intends to continue applying for government grants in China when programs are available; however, there is no assurance that the Company will receive grants in future periods. Reclassifications Certain reclassifications were made to the prior period condensed consolidated balance sheets, the condensed consolidated statements of comprehensive income, and the condensed consolidated statements of cash flows to conform to the current period presentation. See Note 13, Detail of Certain Balance Sheet Accounts , for further information on certain balance sheet items that are combined for financial statement presentation. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consist primarily of finished goods available for resale. Inventories are stated at lower of cost (primarily on the first-in, first-out basis) and net realizable value. The following are the major classes of inventory: March 31, 2017 December 31, 2016 (In millions) Raw materials $ 46.6 $ 49.3 Work in process 4.8 3.9 Finished goods 323.6 318.1 Total $ 375.0 $ 371.3 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-Term Debt Long-term debt consists of the following: March 31, 2017 December 31, 2016 (In millions) Borrowings under prior senior secured credit facility, carrying value $ — $ 410.0 Borrowings under new senior secured credit facility, carrying value 1,257.3 — Convertible senior notes, carrying value of liability component 1,035.8 1,024.8 Other 9.7 13.1 Total 2,302.8 1,447.9 Less: current portion 103.6 9.5 Long-term portion $ 2,199.2 $ 1,438.4 Senior Secured Credit Facility On May 4, 2015, the Company amended its prior senior secured credit facility, or the Prior Credit Facility, to extend the maturity date of its revolving credit facility, or the Prior Revolving Credit Facility, by one year to March 9, 2017. Pursuant to this amendment and upon execution, the Company made prepayments of approximately $20.3 million and $50.9 million on its $500 million term loan under the Prior Credit Facility, or the Prior Term Loan, and the Prior Revolving Credit Facility, respectively. Additionally, the Company’s $700 million borrowing capacity on its Prior Revolving Credit Facility was reduced by approximately $235.9 million upon execution of this amendment, and was further reduced by approximately $39.1 million on September 30, 2015. The Prior Term Loan matured on March 9, 2016 and was repaid in full. The total available borrowing capacity under the Prior Revolving Credit Facility was $425.0 million as of December 31, 2016. Prior to March 9, 2016, the interest rates on the Company’s borrowings under the Prior Credit Facility remained effectively unchanged except that the minimum applicable margin was increased by 0.50% and LIBOR was subject to a minimum floor of 0.25%. After March 9, 2016, the applicable interest rates on the Company’s borrowings under the Prior Credit Facility increased by 2.00% such that borrowings under the Prior Credit Facility began bearing interest at either LIBOR plus the applicable margin between 4.00% and 5.00% or the base rate plus the applicable margin between 3.00% and 4.00%, based on the Company’s consolidated leverage ratio. The Company incurred approximately $6.2 million of debt issuance costs in connection with the amendment. These debt issuance costs were recorded on the Company’s condensed consolidated balance sheet and were amortized over the life of the Prior Revolving Credit Facility. On February 15, 2017, the Company entered into a new $1,450.0 million senior secured credit facility, or the Credit Facility, consisting of a $1,300.0 million term loan B, or the Term Loan, and a $150 million revolving credit facility, or the Revolving Credit Facility, with a syndicate of financial institutions as lenders, or Lenders. The Revolving Credit Facility matures on February 15, 2022 and the Term Loan matures on February 15, 2023. The Term Loan was issued to the Lenders at a 2% discount, or $26.0 million. In connection with the Credit Facility, the Company also repaid the $410.0 million outstanding balance on its Prior Revolving Credit Facility. The Company incurred approximately $22.6 million of debt issuance costs in connection with the Credit Facility. The debt issuance costs and the discount are recorded on the Company’s condensed consolidated balance sheet and are being amortized over the life of the Credit Facility using the effective interest method. Borrowings under the Term Loan bear interest at either the eurocurrency rate plus a margin of 5.50% or the base rate plus a margin of 4.50%. Prior to August 15, 2017, borrowings under the Revolving Credit Facility bear interest at the eurocurrency rate plus a margin of 4.75% or the base rate plus a margin of 3.75%. After August 15, 2017, borrowings under the Revolving Credit Facility, depending on Herbalife’s consolidated leverage ratio, will bear interest at either the eurocurrency rate plus a margin of either 4.50% or 4.75% or the base rate plus a margin of either 3.50% or 3.75%. The base rate represents the highest of the Federal Funds Rate plus 0.50%, one-month adjusted LIBOR plus 1.00%, and the prime rate set by Credit Suisse, and is subject to a floor of 1.75%. The eurocurrency rate is based on adjusted LIBOR and is subject to a floor of 0.75%. The Company is required to pay a commitment fee on the Revolving Facility of 0.50% per annum on the undrawn portion of the Revolving Credit Facility. Interest is due at least The Credit Facility requires the Company to comply with a leverage ratio. In addition, the Credit Facility contains customary events of default and 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. The Company is also required to maintain a minimum balance of $200.0 million of consolidated cash and cash equivalents. As of March 31, 2017 and December 31, 2016, the Company was in compliance with its debt covenants under the Credit Facility and the Prior Credit Facility, respectively. The Term Loan is payable in consecutive quarterly installments each in an aggregate principal amount of $24.4 million beginning June 30, 2017 . In addition, the Company may be required to make mandatory prepayments towards the Term Loan based on the Company’s consolidated leverage ratio and annual excess cash flows as defined under the terms of the Credit Facility. The Company is also permitted to make voluntary prepayments. These prepayments, if any, will be applied against remaining quarterly installments owed under the Term Loan in order of maturity . On March 31, 2017 and December 31, 2016, the weighted average interest rate for borrowings under the Credit Facility and the Prior Credit Facility, was 5.97% and 4.29%, respectively. During the three months ended March 31, 2017, the Company repaid a total amount of $410.0 million to repay in full amounts outstanding on the Prior Revolving Credit Facility. During the three months ended March 31, 2016, the Company repaid a total amount of $229.7 million to repay in full the Prior Term Loan. As of December 31, 2016, the U.S. dollar amount outstanding under the Prior Revolving Credit Facility was $410.0 million. During the three months ended March 31, 2017, the Company recognized $11.2 million of interest expense relating to the Term Loan, which included $0.6 million relating to non-cash interest expense relating to the debt discount and $0.4 million relating to amortization of debt issuance costs. The fair value of the outstanding borrowings on the Term Loan is determined by utilizing over-the-counter market quotes, which are considered Level 2 inputs as defined in Note 12, Fair Value Measurements The fair value of the outstanding borrowings on the Prior Revolving Credit Facility was determined by utilizing Level 2 inputs as defined in Note 12, Fair Value Measurements , such as observable market interest rates and yield curves Convertible Senior Notes 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 are senior unsecured obligations which rank effectively subordinate to any of the Company’s existing and future secured indebtedness, including amounts outstanding under the Credit Facility, to the extent of the value of the assets securing such indebtedness. 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. Holders of the Convertible Notes may convert their notes at their option under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending March 31, 2014, if the last reported sale price of the Company’s common shares for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price for the Convertible Notes on each applicable trading day; (ii) during the five business-day period immediately after any five consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of the Company’s common shares and the conversion rate for the Convertible Notes for each such day; or (iii) upon the occurrence of specified corporate events. On and after May 15, 2019, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. 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). The Company incurred approximately $26.6 million of issuance costs during the first quarter of 2014 relating to the issuance of the Convertible Notes. Of the $26.6 million issuance costs incurred, $21.5 million and $5.1 million were recorded as debt issuance costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the Convertible Notes. The $21.5 million of debt issuance cost recorded on the Company’s condensed consolidated balance sheet is being amortized over the contractual term of the Convertible Notes using the effective interest method. During February 2014, the $1.15 billion proceeds received from the issuance of the Convertible Notes were initially allocated between long-term debt, or liability component, and additional paid-in-capital, or equity component, within the Company’s condensed consolidated balance sheet at $930.9 million and $219.1 million, respectively. The liability component was measured using the nonconvertible debt interest rate. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Convertible Notes as a whole. Since the Company must still settle these Convertible Notes at face value at or prior to maturity, this liability component will be accreted up to its face value resulting in additional non-cash interest expense being recognized within the Company’s condensed consolidated statements of income while the Convertible Notes remain outstanding. The effective interest rate on the Convertible Notes is approximately 6.2% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. As of March 31, 2017, the outstanding principal on the Convertible Notes was $1.15 billion, the unamortized debt discount and debt issuance cost was $114.2 million, and the carrying amount of the liability component was $1,035.8 million, which was recorded to long-term debt within the Company’s condensed consolidated balance sheet as reflected in the table above within this Note. As of December 31, 2016, the outstanding principal on the Convertible Notes was $1.15 billion, the unamortized debt discount and debt issuance costs was $125.2 million, and the carrying amount of the liability component was $1,024.8 million, which was recorded to long-term debt within the Company’s consolidated balance sheet as reflected in the table above within this Note. In conjunction with the issuance of the Convertible Notes, during February 2014, the Company paid approximately $685.8 million to enter into prepaid forward share repurchase transactions, or the Forward Transactions, with certain financial institutions, and paid approximately $123.8 million to enter into capped call transactions with respect to its common shares, or the Capped Call Transactions, with certain financial institutions. See Note 10, Shareholders’ Equity During the three months ended March 31, 2017, the Company recognized $16.8 million of interest expense relating to the Convertible Notes, which included $10.0 million relating to non-cash interest expense relating to the debt discount and $1.0 million relating to amortization of debt issuance costs. During the three months ended March 31, 2016, the Company recognized $16.1 million of interest expense relating to the Convertible Notes, which included $9.4 million relating to non-cash interest expense relating to the debt discount and $0.9 million relating to amortization of debt issuance costs. Total Debt The Company’s total interest expense was $32.5 million and $26.0 million for the three months ended March 31, 2017 and 2016, respectively, which was recognized within its condensed consolidated statements of income. As of March 31, 2017, annual scheduled principal payments of debt were: $79.3 million for the remainder of 2017; and $100.4 million; $1,247.9 million; $97.8 million; $97.5 million; $97.5 million; and $739.4 million for the years ended December 31, 2018, 2019, 2020, 2021, 2022, and 2023, respectively. Certain vendors and government agencies may require letters of credit or similar guaranteeing arrangements to be issued or executed. As of March 31, 2017, the Company had $40.0 million of issued but undrawn letters of credit or similar arrangements that were unsecured, which included the Mexico Value Added Tax, or VAT, related surety bonds described in Note 5, Contingencies |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 5. 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. Tax Matters On May 7, 2010, the Company received an assessment from the Mexican Tax Administration Service in an amount equivalent to approximately $61 million, translated at the March 31, 2017 spot rate, for various items, the majority of which was 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 Company received notification on February 6, 2015 that the Tax Court of Mexico nullified substantially all of the assessment. On March 18, 2015, the Mexican Tax Administration Service filed an appeal against the verdict with the Circuit Court. On August 27, 2015, the Circuit Court remanded the case back to the Tax Court of Mexico to reconsider a portion of the procedural decision that was adverse to the Mexican Tax Administration Service. The Company received notification on March 18, 2016 that the Tax Court of Mexico nullified a portion of the assessment and upheld a portion of the original assessment. On August 25, 2016, the Company filed a further appeal of this decision to the Circuit Court. On April 6, 2017, the Circuit Court issued a verdict with the Company prevailing on some lesser issues and the Tax Administration Service prevailing on the core issue. The Company is currently reviewing this verdict and intends to file an appeal with the Supreme Court of Mexico. The Company believes that it has meritorious defenses if the assessment is reissued. The Company has not recognized a loss as the Company does not believe a loss is probable. 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 $15.7 million, translated at the March 31, 2017 spot rate, related to that period. On July 11, 2013, the Company filed an administrative appeal disputing the assessment. On September 22, 2014, the Mexican Tax Administration Service denied the Company’s administrative appeal. The Company commenced litigation in the Tax Court of Mexico in November 2014 to dispute the assertions made by the Mexican Tax Administration Service in the case. The Company issued a surety bond in the amount of $17.4 million, translated at the March 31, 2017 spot rate, through an insurance company to guarantee payment of the tax assessment as required while the Company pursues an appeal of the assessment. Litigation in this case is currently ongoing. The Company has not recognized a loss as the Company does not believe a loss is probable. The Mexican Tax Administration Service has delayed processing VAT refunds for companies operating in Mexico and the Company believes that the process for its Mexico subsidiary to receive VAT refunds may be delayed. As of March 31, 2017, the Company had $46.9 million of Mexico VAT related assets, of which $39.7 million was within non-current other assets and $7.2 million was within prepaid expenses and other current assets on its consolidated balance sheet. This amount relates to VAT payments made over various periods and the Company believes these amounts are recoverable by refund or they may be applied against certain future tax liabilities. The Company has not recognized any losses related to these VAT related assets as the Company does not believe a loss is probable. On March 26, 2015, the Office of the President of Mexico issued a decree relating to the application of VAT to Nutritional Supplements. The Company continues to believe its application of the VAT law in Mexico is correct. At March 31, 2017, the Company has not recognized any losses as the Company, based on its current analysis and guidance from its advisors, does not believe a loss is probable. The Company continues to evaluate and monitor its situation as it develops, including whether it will make any changes to its operations in Mexico. 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 an 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. As previously disclosed, the Mexican Tax Administration Service has requested information related to the Company’s 2010 year. This information has been provided and the Tax Administration Service has now completed its income tax audit related to the 2010 year. The Tax Administration Service is now discussing its preliminary findings with the Company. It is possible that the Company could receive a final assessment from the Tax Administration Service after these discussions are completed. The Company believes that it has recognized an appropriate amount of income tax expense with respect to its Mexican operations during the 2010 year. The Company believes that it has meritorious defenses if a formal assessment is issued by the Tax Administration Service. The Company is currently unable to reasonably estimate the amount of loss that may result from an unfavorable outcome if a formal assessment is issued by the Tax Administration Service. The Company received a tax assessment in September 2009 from the Federal Revenue Office of Brazil in an amount equivalent to approximately $2.3 million, translated at the March 31, 2017 spot rate, related to withholding/contributions based on payments to the Company’s Members during 2004. On December 28, 2010, the Company appealed this tax assessment to the Administrative Council of Tax Appeals (2nd level administrative appeal). The Company believes it has meritorious defenses and it has not recognized a loss as the Company does not believe a loss is probable. On March 6, 2014, the Company was notified of a similar audit of the 2011 year. In January 2016, the Company received a tax assessment for an amount equivalent to approximately $5.6 million, translated at the March 31, 2017 spot rate, related to contributions based on payments to the Company’s Members during 2011. The Company filed a first level administrative appeal against most of the assessment on February 23, 2016, which was subsequently denied. The Company’s Brazilian subsidiary pays ICMS-ST taxes on its product purchases, similar to VAT. The Company had $16.6 million, translated at the March 31, 2017 spot rate, of Brazil ICMS-ST related assets within other assets on its consolidated balance sheet. The Company believes it will be able to utilize or recover these ICMS-ST credits in the future. The Company is under examination in several Brazilian states related to ICMS and ICMS-ST taxation. Some of these examinations have resulted in assessments for underpaid tax that the Company has appealed. The State of Sao Paulo has audited the Company for the 2013 and 2014 tax years. During July 2016, for the State of Sao Paulo, the Company received an assessment in the aggregate amount of approximately $51.3 million, translated at the March 31, 2017 spot rate, relating to various ICMS issues for its 2013 tax year and it is possible the Company could receive a similar assessment for its 2014 tax year. In August 2016, the Company filed a first level administrative appeal which was denied in February 2017. The Company filed a further appeal on March 9, 2017. The Company has not recognized a loss as the Company does not believe a loss is probable. The Company has also received other ICMS tax assessments in Brazil. During the fourth quarter of 2015, the Company filed appeals with state judicial courts against three of the assessments. The Company had issued surety bonds in the aggregate amount of $13.3 million, translated at the March 31, 2017 spot rate, to guarantee payment of some of the tax assessments as required while the Company pursues the appeals. In addition, the Company has received several ICMS tax assessments in the aggregate amount of $8.5 million, translated at the March 31, 2017 spot rate, from several Brazilian states where surety bonds have not been issued. Litigation in all these cases is currently ongoing. The Company has not recognized a loss as the Company does not believe a loss is probable. The Company has received various tax assessments in multiple states in India for multiple years from the Indian VAT authorities in an amount equivalent to approximately $8.1 million, translated at the March 31, 2017 spot rate. These assessments are for underpaid VAT. The Company is litigating these cases at the tax administrative level and the tax tribunal levels as it believes it has meritorious defenses. The Company has not recognized a loss as it does not believe a loss is probable. The Korea Customs Service audited the importation activities of Herbalife Korea for the period January 2011 through May 2013. The total assessment for the audit period is $32.0 million translated at the March 31, 2017 spot rate. The Company has paid the assessment and has recognized these payments within other assets on its condensed consolidated balance sheet. The Company lodged a first level administrative appeal, which was denied on October 21, 2016. On January 31, 2017, the Company filed a further appeal to the National Tax Tribunal of Korea. The Company disagrees with the assertions made in the assessments, as well as the calculation methodology used in the assessments. The Company has not recognized a loss as the Company does not believe a loss is probable. During the course of 2016, the Company received various questions from the Greek Social Security Agency and on December 29, 2016, the Greek Social Security Agency issued an assessment of approximately $2.1 million translated at the March 31, 2017 spot rate, with respect to Social Security Contributions on Member earnings for the 2006 year. For Social Security issues, the Statute of Limitations is open for 2007 and later years in Greece. The Company could receive similar assessments covering other years. The Company disputes the allegations raised in the assessment and has filed an administrative appeal against the assessment with the Social Security Agency. The Company has not recognized a loss as it does not believe a loss is probable. U.S. Federal Trade Commission Consent Order As previously disclosed, the Company received from the U.S. Federal Trade Commission, or the FTC, a Civil Investigative Demand, or a CID, relating to the FTC’s confidential investigation of whether the Company has complied with federal law in the advertising, marketing, or sale of business opportunities. On July 15, 2016, the Company and the FTC entered into a proposed Stipulation to Entry of Order for Permanent Injunction and Monetary Judgment, or the Consent Order. The Consent Order was lodged with the U.S. District Court for the Central District of California on July 15, 2016 and became effective on July 25, 2016, or the Effective Date, upon final approval by the Court. The Consent Order resolved the FTC’s multi-year investigation of the Company. Pursuant to the Consent Order, under which the Company neither admitted nor denied the FTC’s allegations (except as to the Court having jurisdiction over the matter), the Company made, through its wholly owned subsidiary Herbalife International of America, Inc., a $200 million payment to the FTC. Additionally, the Company agreed to implement certain new procedures and enhance certain existing procedures in the U.S., most of which the Company will have 10 months from the Effective Date to implement. Among other requirements, Other Matters As a marketer of foods, 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. The Company currently maintains product liability insurance with an annual deductible of $15 million. The SEC and the Department of Justice have requested from the Company documents and other information relating to the Company’s anti-corruption compliance in China and the Company is conducting its own review. The Company is cooperating with the government and cannot predict the eventual scope, duration, or outcome of the matter at this time. Since late 2012, a short seller has made and continues to make allegations regarding the Company and its network marketing program. The Company believes these allegations are without merit and is vigorously defending itself against such claims, including proactively reaching out to governmental authorities about what the Company believes is manipulative activity with respect to its securities. Because of these allegations, the Company and others have received and may receive additional regulatory and governmental inquiries. For example, the Company has previously disclosed inquiries from the FTC, Securities and Exchange Commission and other governmental authorities. In the future, governmental authorities may determine to seek information from the Company and other persons relating to these same or other allegations. If the Company believes any governmental or regulatory inquiry or investigation is or becomes material it will be disclosed individually. Consistent with its policies, the Company has cooperated and will continue to fully cooperate with any governmental or regulatory inquiries or investigations. These matters described in this Note 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 6. Segment Information The Company is a nutrition company that sells a wide range of weight management, targeted nutrition, energy, sports & fitness, and outer nutrition 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, Nanjing, China facility, Lake Forest, California facility, and in its Winston-Salem, North Carolina 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 March 31, 2017, the Company sold products in 94 countries throughout the world and was organized into and managed through six geographic regions: North America, Mexico, South & Central America, EMEA (Europe, Middle East, and Africa), Asia Pacific and China The Company defines its operating segments as those geographical operations. The operating information for the two reportable segments are as follows: Three Months Ended March 31, 2017 March 31, 2016 (In millions) Net Sales: Primary Reporting Segment $ 886.5 $ 902.2 China 215.6 217.4 Total Net Sales $ 1,102.1 $ 1,119.6 Contribution Margin(1): Primary Reporting Segment $ 386.6 $ 397.0 China(2) 195.8 197.6 Total Contribution Margin $ 582.4 $ 594.6 Selling, general and administrative expenses(2) 438.6 427.1 Other operating income — (0.8 ) Interest expense, net 30.2 24.9 Income before income taxes 113.6 143.4 Income taxes 28.4 47.6 Net Income $ 85.2 $ 95.8 (1) Contribution margin consists of net sales less cost of sales and royalty overrides. For the China segment, contribution margin does not include service fees to China independent service providers. (2) Service fees to China independent service providers totaling $111.6 million and $102.5 million for the three months ended March 31, 2017 and 2016, respectively, are included in selling, general and administrative expenses. The following table sets forth net sales by geographic area: Three Months Ended March 31, 2017 March 31, 2016 (In millions) Net Sales: United States $ 224.7 $ 240.9 Mexico 104.8 109.7 China 215.6 217.4 Others 557.0 551.6 Total Net Sales $ 1,102.1 $ 1,119.6 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 7. Share-Based Compensation The Company has share-based compensation plans, which are more fully described in Note 9, Share-Based Compensation For the three months ended March 31, 2017 and 2016, share-based compensation expense amounted to $11.3 million and $9.8 million, respectively. As of March 31, 2017, the total unrecognized compensation cost related to all non-vested stock awards was $75.1 million and the related weighted-average period over which it is expected to be recognized is approximately 1.7 years. The following tables summarize the activity under all share-based compensation plans for the three months ended March 31, 2017: SARs Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value(1) (In thousands) (In millions) Outstanding at December 31, 2016(2)(3) 11,998 $ 41.52 6.0 years $ 148.7 Granted 1,345 $ 57.19 Exercised (481 ) $ 21.39 Forfeited (34 ) $ 54.97 Outstanding at March 31, 2017(2) (3) 12,828 $ 43.88 6.4 years $ 211.4 Exercisable at March 31, 2017(4) 7,223 $ 39.34 4.7 years $ 157.1 (1) The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock awards. (2) Includes 0.1 million market condition SARs as of both March 31, 2017 and December 31, 2016. (3) Includes 3.3 million and 2.9 million performance condition SARs as of March 31, 2017 and December 31, 2016, respectively. (4) Includes 1.1 million performance condition SARs. The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2017 and 2016 was $28.32 and $21.69, respectively. The total intrinsic value of SARs exercised during the three months ended March 31, 2017 and 2016 was $16.8 million and $5.9 million, respectively. Incentive Plan and Independent Directors Stock Units Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding and nonvested December 31, 2016 26 $ 62.35 Granted — — Vested (1 ) $ 61.14 Forfeited — — Outstanding and nonvested March 31, 2017 25 $ 62.37 The total vesting date fair value of stock units which vested during both the three months ended March 31, 2017 and 2016 was less than $0.1 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income taxes were $28.4 million for the three months ended March 31, 2017, as compared to $47.6 million for the same period in 2016. The effective income tax rate was 25.0% for the three months ended March 31, 2017, as compared to 33.2% for the same period in 2016. The decrease in the effective tax rate for the three months ended March 31, 2017, as compared to the same period in 2016, was primarily due to the increase in net benefits from discrete events in addition to the impact of changes in the geographic mix of the Company’s income. Included in the discrete events for the three months ended March 31, 2017 was the impact of $4.3 million of excess tax benefits generated during the quarter relating to the Company’s application of ASU 2016-09 that was adopted on January 1, 2017. As of March 31, 2017, the total amount of unrecognized tax benefits, including related interest and penalties was $67.5 million. If the total amount of unrecognized tax benefits was recognized, $48.9 million of unrecognized tax benefits, $10.3 million of interest and $2.2 million of penalties would impact the effective tax rate. The Company believes that it is reasonably possible that the amount of unrecognized tax benefits could decrease by up to approximately $11.5 million within the next twelve months. Of this possible decrease, $4.7 million would be due to the settlement of audits or resolution of administrative or judicial proceedings. The remaining possible decrease of $6.8 million would be due to the expiration of statute of limitations in various jurisdictions. For a description on contingency matters relating to income taxes see Note 5, Contingencies |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 9. Derivative Instruments and Hedging Activities Foreign Currency Instruments The Company designates certain foreign currency derivatives, primarily comprised of foreign currency forward 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 condensed consolidated statements of income. The Company uses freestanding foreign currency derivatives to hedge foreign-currency-denominated intercompany transactions and to partially mitigate the impact of foreign currency fluctuations. The fair value of the freestanding foreign currency derivatives is 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 condensed consolidated statements 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 condensed consolidated statements of income during the period when the hedged item and underlying transaction affect earnings. As of March 31, 2017 and December 31, 2016, the aggregate notional amounts of all foreign currency contracts outstanding designated as cash flow hedges were approximately $117.0 million and $90.0 million, respectively. At March 31, 2017, these outstanding contracts were expected to mature over the next fifteen months. The Company’s derivative financial instruments are recorded on the condensed consolidated balance sheet at fair value based on third-party quotes. As of March 31, 2017, the Company recorded assets at fair value of $2.7 million and liabilities at fair value of $4.5 million relating to all outstanding foreign currency contracts designated as cash-flow hedges. As of December 31, 2016, the Company recorded assets at fair value of $4.6 million. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. During the three months ended March 31, 2017 and 2016, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of March 31, 2017 and December 31, 2016. As of March 31, 2017 and December 31, 2016, 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 one month as of both March 31, 2017 and December 31, 2016. As of March 31, 2017, the Company had aggregate notional amounts of approximately $358.8 million of foreign currency contracts, inclusive of freestanding contracts and contracts designated as cash flow hedges. Gains and Losses on Derivative Instruments The following table summarizes gains (losses) relating to derivative instruments recorded in other comprehensive income (loss) during the three months ended March 31, 2017 and 2016: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) For the Three Months Ended March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges $ (6.1 ) $ (0.9 ) As of March 31, 2017, the estimated amount of existing net losses related to cash flow hedges recorded in accumulated other comprehensive loss that are expected to be reclassified into earnings over the next twelve months was $1.1 million. The following table summarizes gains (losses) relating to derivative instruments recorded to income during the three months ended March 31, 2017 and 2016: Location of Gain Amount of Gain (Loss) Recognized in Income (Loss) For the Three Months Ended Recognized in Income March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1) Selling, administrative expenses $ (0.5 ) $ (0.4 ) Derivatives not designated as hedging instruments: Foreign exchange currency contracts Selling, general and administrative expenses $ (1.3 ) $ (2.3 ) (1) For foreign exchange contracts designated as hedging instruments, the amounts recognized in income primarily represent the amounts excluded from the assessment of hedge effectiveness. There were no material 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 three months ended March 31, 2017 and 2016: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Income (Loss) into Income For the Three Months Ended (Effective Portion) March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory hedges Cost of sales $ 0.9 $ 5.0 Foreign exchange currency contracts relating to intercompany management fee hedges Selling, general and administrative expenses $ 0.5 $ (0.1 ) The Company reports its derivatives at fair value as either assets or liabilities within its condensed consolidated balance sheet. See Note 12, Fair Value Measurements, |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders’ Equity 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. Share Repurchases On February 21, 2017, the Company’s board of directors authorized a new three-year $1.5 billion share repurchase program that will expire on February 21, 2020, which replaced the Company’s prior share repurchase authorization which was set to expire on June 30, 2017 which, as of December 31, 2016, had $232.9 million of remaining authorized capacity. This share repurchase program allows the Company, which includes an indirect wholly owned subsidiary of Herbalife Ltd., to repurchase the Company’s common shares, at such times and prices as determined by 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 other conditions such as specified consolidated leverage ratios are met. In conjunction with the issuance of the Convertible Notes during February 2014, the Company paid approximately $685.8 million to enter into prepaid forward share repurchase transactions, or the Forward Transactions, with certain financial institutions, or the Forward Counterparties, pursuant to which the Company purchased approximately 9.9 million common shares, at an average cost of $69.02 per share, 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 Transactions early. S ee Note 4 , Long-Term Debt for further information on the conditions for which Holders of the Convertible Notes may convert their notes prior to the maturity date. As a result of the Forward Transactions, the Company’s total shareholders’ equity within its condensed consolidated balance sheet was reduced by approximately $685.8 million during the first quarter of 2014, with amounts of $653.9 million and $31.9 million being allocated between accumulated deficit and additional paid-in-capital, respectively, within total shareholders’ equity. Also, upon executing the Forward Transactions, the Company recorded, at fair value, $35.8 million in non-cash issuance costs to other assets and a corresponding amount to additional paid-in-capital within its condensed consolidated balance sheet. These non-cash issuance costs will be amortized to interest expense over the contractual term of the Forward Transactions. For both the three months ended March 31. 2017 and 2016, the Company recognized $1.6 million of non-cash interest expense within its condensed consolidated statements of income relating to amortization of these non-cash issuance costs. During the three months ended March 31, 2017, an indirect wholly owned subsidiary of the Company purchased 1.1 million of Herbalife Ltd.’s common shares through open market purchases at an aggregate cost of approximately $60.7 million or an average cost of $56.10 per share which reduced the Company’s total shareholders’ equity and is reflected at cost within the Company’s accompanying condensed consolidated balance sheet. Although these shares are owned by an indirect wholly owned subsidiary of the Company, they are reflected as treasury shares under U.S. GAAP and therefore reduce the number of common shares outstanding within the Company’s condensed consolidated financial statements and the weighted-average number of common shares outstanding used in calculating earnings per share. As of March 31, 2017, the Company held approximately 1.1 million of treasury shares for U.S. GAAP purposes. The Company did not repurchase any common shares in the open market during the three months ended March 31, 2016. As of March 31, 2017, the remaining authorized capacity under the Company’s $1.5 billion share repurchase program was $1,439.3 million. The number of shares issued upon vesting or exercise for certain restricted stock units and SARs granted pursuant to the Company’s share-based compensation plans is net of the statutory withholding requirements that the Company pays on behalf of its employees. Although shares withheld are not issued, they are treated as common share repurchases in the Company’s condensed consolidated financial statements and reduce the Company’s additional paid-in-capital within total shareholders’ equity and are reflected as share repurchases on the Company’s condensed consolidated statements of cash flows as they reduce the number of shares that would have been issued upon vesting. These shares do not count against the authorized capacity under the Company’s share repurchase program described above. For the three months ended March 31, 2017 and March 31, 2016, the Company’s share repurchases were $60.7 million and none, respectively, under the Company’s share repurchase programs and $7.5 million and $2.3 million, respectively, due to shares withheld for tax purposes related to the Company’s share-based compensation plans. For the three months ended March 31, 2017 and March 31, 2016, the Company’s total share repurchases, including shares withheld for tax purposes, were $68.2 million and $2.3 million, respectively, and have been recorded as a reduction to shareholders’ equity within the Company’s condensed consolidated balance sheet. The Company recorded $58.1 million of total share repurchases within financing activities on its condensed consolidated statement of cash flows for the three months ended March 31, 2017, which excludes $10.1 million of share repurchases for which payment was made subsequent to the quarter end and therefore reflected as a liability within the Company’s condensed consolidated balance sheet as of March 31, 2017. Capped Call Transactions In February 2014, in connection with the issuance of Convertible Notes, the Company paid approximately $123.8 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, initially set at $86.28 per common share, with such reduction of potential dilution subject to a cap based on the cap price initially set at $120.79 per common share. The strike price and cap price are subject to certain adjustments under the terms of the Capped Call Transactions. Therefore, as a result of executing the Capped Call Transactions, the Company in effect will only be exposed to potential net dilution once the market price of its common shares exceeds the adjusted cap price. As a result of the Capped Call Transactions, the Company’s additional paid-in capital within shareholders’ equity on its condensed consolidated balance sheet was reduced by $123.8 million during the first quarter of 2014. Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in accumulated other comprehensive income (loss) during the three months ended March 31, 2017 and 2016: Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2017 2016 Foreign Currency Translation Adjustments Unrealized Gain on Derivatives Total Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Derivatives Other Total (In millions) Beginning Balance $ (215.5 ) $ 10.4 $ (205.1 ) $ (183.0 ) $ 17.4 $ 0.1 $ (165.5 ) Other comprehensive income (loss) before reclassifications, net of tax 23.0 (6.1 ) 16.9 20.0 (0.7 ) — 19.3 Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax(1) — (1.4 ) (1.4 ) — (4.9 ) (0.1 ) (5.0 ) Total other comprehensive income (loss), net of reclassifications 23.0 (7.5 ) 15.5 20.0 (5.6 ) (0.1 ) 14.3 Ending balance $ (192.5 ) $ 2.9 $ (189.6 ) $ (163.0 ) $ 11.8 $ — $ (151.2 ) (1) See Note 9, Derivative Instruments and Hedging Activities Other comprehensive income (loss) before reclassifications was net of tax expense of $2.6 million for foreign currency translation adjustment for the three months ended March 31, 2017. Other comprehensive income (loss) before reclassifications was net of tax benefits of $0.8 million and $0.2 million for foreign currency translation adjustment and unrealized gain (loss) on derivatives, respectively, for the three months ended March 31, 2016. Amounts reclassified from other comprehensive income (loss) to income were net of tax expense of $0.1 million for unrealized gain (loss) on available-for-sale- investments for the three months ended March 31, 2016. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share Basic earnings per share represents net income 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 SARs and stock units. The following are the common share amounts used to compute the basic and diluted earnings per share for each period: For the Three Months Ended March 31, 2017 2016 (in millions) Weighted average shares used in basic computations 83.1 82.8 Dilutive effect of exercise of equity grants outstanding 3.6 2.8 Weighted average shares used in diluted computations 86.7 85.6 There were an aggregate of 5.3 million and 4.7 million of equity grants, consisting of SARs, and stock units that were outstanding during the three months ended March 31, 2017 and 2016, respectively , Since the Company will settle the principal amount of its Convertible Notes in cash and settle the conversion feature for the amount above the conversion price in common shares, or the conversion spread, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted earnings per share, if applicable. The conversion spread will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common shares for a given period exceeds the initial conversion price of $86.28 per share. For the three months ended March 31, 2017 and 2016, the Convertible Notes have been excluded from the computation of diluted earnings per share as the effect would be anti-dilutive since the conversion price of the Convertible Notes exceeded the average market price of the Company’s common shares for the three months ended , 2017 and 2016. The initial conversion rate and conversion price is described further in Note 4, Long-Term Debt . The Capped Call Transactions are excluded from the calculation of diluted earnings per share because their impact is always anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements The Company applies the provisions of the FASB Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures 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 condensed consolidated financial statements. Foreign exchange currency contracts are valued using standard calculations and models primarily based on inputs such as observable forward rates, spot rates and foreign currency exchange rates 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 March 31, 2017 and December 31, 2016: Fair Value Measurements at Reporting Date Derivative Balance Sheet Location Significant Other Observable Inputs (Level 2) Fair Value at March 31, 2017 Significant Other Observable Inputs (Level 2) Fair Value at December 31, 2016 (in millions) ASSETS: Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges Prepaid expenses and other current assets $ 2.7 $ 4.6 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Prepaid expenses and other current assets $ 0.5 $ 2.8 $ 3.2 $ 7.4 LIABILITIES: Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges Other current liabilities $ 4.5 $ — Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current liabilities $ 1.8 $ 3.5 $ 6.3 $ 3.5 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 of money market funds and foreign and domestic bank accounts. 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. 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 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 condensed consolidated balance sheet at March 31, 2017 and December 31, 2016: Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet (In millions) March 31, 2017 Foreign exchange currency contracts $ 3.2 $ (2.8 ) $ 0.4 Total $ 3.2 $ (2.8 ) $ 0.4 December 31, 2016 Foreign exchange currency contracts $ 7.4 $ (3.0 ) $ 4.4 Total $ 7.4 $ (3.0 ) $ 4.4 Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet (In millions) March 31, 2017 Foreign exchange currency contracts $ 6.3 $ (2.8 ) $ 3.5 Total $ 6.3 $ (2.8 ) $ 3.5 December 31, 2016 Foreign exchange currency contracts $ 3.5 $ (3.0 ) $ 0.5 Total $ 3.5 $ (3.0 ) $ 0.5 The Company offsets all of its derivative assets and derivative liabilities in its condensed consolidated balance sheet to the extent it maintains master netting arrangements with related financial institutions. As of March 31, 2017 and December 31, 2016, 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. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Details of Certain Balance Sheet Accounts | 13. Detail of Certain Balance Sheet Accounts Other Assets The Other assets on the Company’s accompanying condensed consolidated balance sheets includes deferred compensation plan assets of $31.5 million and $30.6 million and long-term deferred tax assets of $189.9 million and $155.2 million as of March 31, 2017 and December 31, 2016, respectively. Other Current Liabilities Other current liabilities consist of the following: March 31, 2017 December 31, 2016 (In millions) Accrued compensation $ 91.8 $ 125.8 Accrued liabilities 269.8 236.9 Advance sales deposits 113.2 50.1 Income taxes payable 32.4 42.0 Total $ 507.2 $ 454.8 Other Non-Current Liabilities The Other non-current liabilities on the Company’s accompanying condensed consolidated balance sheets includes deferred compensation plan liabilities of $52.6 million and $50.0 million and deferred income tax liabilities of $15.8 million and $15.3 million as of March 31, 2017 and December 31, 2016 respectively. See Note 6, Employee Compensation Plans |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events During April 2017, an indirect wholly owned subsidiary of the Company repurchased approximately 1.0 million of the Company’s common shares for aggregate consideration of approximately $57.9 million through open market purchases under the Company’s $1.5 billion share repurchase program. These repurchases were effected pursuant to Rule 10b5-1 trading plans. See Note 10, Shareholders’ Equity |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated interim financial information of the Company has been prepared in accordance with Article 10 of the Securities and Exchange Commission’s, or the SEC, Regulation S-X. Accordingly, as permitted by Article 10 of the SEC’s Regulation S-X, it does not include all of the information required by generally accepted accounting principles in the U.S., or U.S. GAAP, for complete financial statements. The condensed consolidated balance sheet at December 31, 2016 was derived from the audited financial statements at that date and does not include all the disclosures required by U.S. GAAP, as permitted by Article 10 of the SEC’s Regulation S-X. The Company’s unaudited condensed consolidated financial statements as of March 31, 2017, and for the three months ended March 31, 2017 and 2016, include Herbalife Ltd. and all of its direct and indirect subsidiaries. In the opinion of management, the accompanying financial information contains all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company’s unaudited condensed consolidated financial statements as of March 31, 2017, and for the three months ended March 31, 2017 and 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, or the 2016 10-K. Operating results for the three months ended March 31, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. |
Recently Adopted Pronouncements | Recently Adopted Pronouncements In March 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Income Taxes Income Taxes In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments Derivatives and Hedging . In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The updated guidance requires lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the potential impact of this adoption on its consolidated financial statements, however, increases in both assets and liabilities are expected. In March 2016, the FASB issued ASU No. 2016-04, Liabilities — Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products In June 2016, the FASB issued ASU No. 2016-13, Financial Instrument — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU changes the impairment model for most financial assets, requiring the use of an expected loss model which requires entities to estimate the lifetime expected credit loss on financial assets measured at amortized cost. Such credit losses will be recorded as an allowance to offset the amortized cost of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. In addition, The amendments in this update are effective for reporting periods beginning after December 15, 2019, with early adoption permitted for reporting periods beginning after December 15, 2018. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . This ASU provides clarification on eight specific cash flow issues regarding presentation and classification in the statement of cash flows with the objective of reducing the existing diversity in practice. The amendments in this update are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Consolidation In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
Reclassifications | Reclassifications Certain reclassifications were made to the prior period condensed consolidated balance sheets, the condensed consolidated statements of comprehensive income, and the condensed consolidated statements of cash flows to conform to the current period presentation. See Note 13, Detail of Certain Balance Sheet Accounts , for further information on certain balance sheet items that are combined for financial statement presentation. |
Segment Reporting | The Company is a nutrition company that sells a wide range of weight management, targeted nutrition, energy, sports & fitness, and outer nutrition 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, Nanjing, China facility, Lake Forest, California facility, and in its Winston-Salem, North Carolina 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 March 31, 2017, the Company sold products in 94 countries throughout the world and was organized into and managed through six geographic regions: North America, Mexico, South & Central America, EMEA (Europe, Middle East, and Africa), Asia Pacific and China The Company defines its operating segments as those geographical operations. |
Derivatives and Hedging Policies | Foreign Currency Instruments The Company designates certain foreign currency derivatives, primarily comprised of foreign currency forward 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 condensed consolidated statements of income. The Company uses freestanding foreign currency derivatives to hedge foreign-currency-denominated intercompany transactions and to partially mitigate the impact of foreign currency fluctuations. The fair value of the freestanding foreign currency derivatives is 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 condensed consolidated statements 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 condensed consolidated statements of income during the period when the hedged item and underlying transaction affect earnings. |
Fair Value Measurement | The Company applies the provisions of the FASB Accounting Standards Codification, or ASC, Topic 820, Fair Value Measurements and Disclosures 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 condensed consolidated financial statements. Foreign exchange currency contracts are valued using standard calculations and models primarily based on inputs such as observable forward rates, spot rates and foreign currency exchange rates at the reporting period ended date. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Classes of Inventory | The following are the major classes of inventory: March 31, 2017 December 31, 2016 (In millions) Raw materials $ 46.6 $ 49.3 Work in process 4.8 3.9 Finished goods 323.6 318.1 Total $ 375.0 $ 371.3 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: March 31, 2017 December 31, 2016 (In millions) Borrowings under prior senior secured credit facility, carrying value $ — $ 410.0 Borrowings under new senior secured credit facility, carrying value 1,257.3 — Convertible senior notes, carrying value of liability component 1,035.8 1,024.8 Other 9.7 13.1 Total 2,302.8 1,447.9 Less: current portion 103.6 9.5 Long-term portion $ 2,199.2 $ 1,438.4 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The operating information for the two reportable segments are as follows: Three Months Ended March 31, 2017 March 31, 2016 (In millions) Net Sales: Primary Reporting Segment $ 886.5 $ 902.2 China 215.6 217.4 Total Net Sales $ 1,102.1 $ 1,119.6 Contribution Margin(1): Primary Reporting Segment $ 386.6 $ 397.0 China(2) 195.8 197.6 Total Contribution Margin $ 582.4 $ 594.6 Selling, general and administrative expenses(2) 438.6 427.1 Other operating income — (0.8 ) Interest expense, net 30.2 24.9 Income before income taxes 113.6 143.4 Income taxes 28.4 47.6 Net Income $ 85.2 $ 95.8 (1) Contribution margin consists of net sales less cost of sales and royalty overrides. For the China segment, contribution margin does not include service fees to China independent service providers. (2) Service fees to China independent service providers totaling $111.6 million and $102.5 million for the three months ended March 31, 2017 and 2016, respectively, are included in selling, general and administrative expenses. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following table sets forth net sales by geographic area: Three Months Ended March 31, 2017 March 31, 2016 (In millions) Net Sales: United States $ 224.7 $ 240.9 Mexico 104.8 109.7 China 215.6 217.4 Others 557.0 551.6 Total Net Sales $ 1,102.1 $ 1,119.6 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity Under Share-Based Compensation Plans | The following tables summarize the activity under all share-based compensation plans for the three months ended March 31, 2017: SARs Awards Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value(1) (In thousands) (In millions) Outstanding at December 31, 2016(2)(3) 11,998 $ 41.52 6.0 years $ 148.7 Granted 1,345 $ 57.19 Exercised (481 ) $ 21.39 Forfeited (34 ) $ 54.97 Outstanding at March 31, 2017(2) (3) 12,828 $ 43.88 6.4 years $ 211.4 Exercisable at March 31, 2017(4) 7,223 $ 39.34 4.7 years $ 157.1 (1) The intrinsic value is the amount by which the current market value of the underlying stock exceeds the exercise price of the stock awards. (2) Includes 0.1 million market condition SARs as of both March 31, 2017 and December 31, 2016. (3) Includes 3.3 million and 2.9 million performance condition SARs as of March 31, 2017 and December 31, 2016, respectively. (4) Includes 1.1 million performance condition SARs. Incentive Plan and Independent Directors Stock Units Shares Weighted Average Grant Date Fair Value (In thousands) Outstanding and nonvested December 31, 2016 26 $ 62.35 Granted — — Vested (1 ) $ 61.14 Forfeited — — Outstanding and nonvested March 31, 2017 25 $ 62.37 |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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 three months ended March 31, 2017 and 2016: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) For the Three Months Ended March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges $ (6.1 ) $ (0.9 ) |
Gains (Losses) Relating to Derivative Instruments Recorded to Income | The following table summarizes gains (losses) relating to derivative instruments recorded to income during the three months ended March 31, 2017 and 2016: Location of Gain Amount of Gain (Loss) Recognized in Income (Loss) For the Three Months Ended Recognized in Income March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory hedges and intercompany management fee hedges(1) Selling, administrative expenses $ (0.5 ) $ (0.4 ) Derivatives not designated as hedging instruments: Foreign exchange currency contracts Selling, general and administrative expenses $ (1.3 ) $ (2.3 ) (1) For foreign exchange contracts designated as hedging instruments, the amounts recognized in income primarily represent the amounts excluded from the assessment of hedge effectiveness. There were no material 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 three months ended March 31, 2017 and 2016: Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Income (Loss) into Income For the Three Months Ended (Effective Portion) March 31, 2017 March 31, 2016 (In millions) Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory hedges Cost of sales $ 0.9 $ 5.0 Foreign exchange currency contracts relating to intercompany management fee hedges Selling, general and administrative expenses $ 0.5 $ (0.1 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following table summarizes changes in accumulated other comprehensive income (loss) during the three months ended March 31, 2017 and 2016: Changes in Accumulated Other Comprehensive Income (Loss) by Component Three Months Ended March 31, 2017 2016 Foreign Currency Translation Adjustments Unrealized Gain on Derivatives Total Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Derivatives Other Total (In millions) Beginning Balance $ (215.5 ) $ 10.4 $ (205.1 ) $ (183.0 ) $ 17.4 $ 0.1 $ (165.5 ) Other comprehensive income (loss) before reclassifications, net of tax 23.0 (6.1 ) 16.9 20.0 (0.7 ) — 19.3 Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax(1) — (1.4 ) (1.4 ) — (4.9 ) (0.1 ) (5.0 ) Total other comprehensive income (loss), net of reclassifications 23.0 (7.5 ) 15.5 20.0 (5.6 ) (0.1 ) 14.3 Ending balance $ (192.5 ) $ 2.9 $ (189.6 ) $ (163.0 ) $ 11.8 $ — $ (151.2 ) (1) See Note 9, Derivative Instruments and Hedging Activities |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of 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: For the Three Months Ended March 31, 2017 2016 (in millions) Weighted average shares used in basic computations 83.1 82.8 Dilutive effect of exercise of equity grants outstanding 3.6 2.8 Weighted average shares used in diluted computations 86.7 85.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016: Derivative Balance Sheet Location Significant Other Observable Inputs (Level 2) Fair Value at March 31, 2017 Significant Other Observable Inputs (Level 2) Fair Value at December 31, 2016 (in millions) ASSETS: Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges Prepaid expenses and other current assets $ 2.7 $ 4.6 Derivatives not designated as hedging instruments: Foreign exchange currency contracts Prepaid expenses and other current assets $ 0.5 $ 2.8 $ 3.2 $ 7.4 LIABILITIES: Derivatives designated as hedging instruments: Foreign exchange currency contracts relating to inventory and intercompany management fee hedges Other current liabilities $ 4.5 $ — Derivatives not designated as hedging instruments: Foreign exchange currency contracts Other current liabilities $ 1.8 $ 3.5 $ 6.3 $ 3.5 |
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 condensed consolidated balance sheet at March 31, 2017 and December 31, 2016: Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet (In millions) March 31, 2017 Foreign exchange currency contracts $ 3.2 $ (2.8 ) $ 0.4 Total $ 3.2 $ (2.8 ) $ 0.4 December 31, 2016 Foreign exchange currency contracts $ 7.4 $ (3.0 ) $ 4.4 Total $ 7.4 $ (3.0 ) $ 4.4 |
Offsetting of Derivative Liabilities | Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet (In millions) March 31, 2017 Foreign exchange currency contracts $ 6.3 $ (2.8 ) $ 3.5 Total $ 6.3 $ (2.8 ) $ 3.5 December 31, 2016 Foreign exchange currency contracts $ 3.5 $ (3.0 ) $ 0.5 Total $ 3.5 $ (3.0 ) $ 0.5 |
Detail of Certain Balance She31
Detail of Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: March 31, 2017 December 31, 2016 (In millions) Accrued compensation $ 91.8 $ 125.8 Accrued liabilities 269.8 236.9 Advance sales deposits 113.2 50.1 Income taxes payable 32.4 42.0 Total $ 507.2 $ 454.8 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Organization And Description Of Business [Abstract] | |
Number of geographic regions | 6 |
Significant Accounting Polici33
Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Subsidiary or Equity Method Investee [Line Items] | |||
Deferred income tax expense (benefits) | $ (3,200,000) | $ (3,200,000) | |
Other operating income | 800,000 | ||
China [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Other operating income | 0 | $ 800,000 | |
Accounting Standards Update 2016-09 [Member] | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Deferred income tax expense (benefits) | $ (29,600,000) | ||
Excess tax benefits | $ 4,300,000 |
Inventories - Classes of Invent
Inventories - Classes of Inventory (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46.6 | $ 49.3 |
Work in process | 4.8 | 3.9 |
Finished goods | 323.6 | 318.1 |
Total | $ 375 | $ 371.3 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Convertible senior notes, carrying value of liability component | $ 1,035.8 | $ 1,024.8 |
Other | 9.7 | 13.1 |
Total | 2,302.8 | 1,447.9 |
Less: current portion | 103.6 | 9.5 |
Long-term portion | 2,199.2 | 1,438.4 |
Prior Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under senior secured credit facility, carrying value | $ 410 | |
New Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings under senior secured credit facility, carrying value | $ 1,257.3 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Sep. 30, 2015 | May 04, 2015 | Feb. 15, 2017 | Feb. 28, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2014 | Dec. 31, 2016 | Jul. 26, 2012 | Mar. 09, 2011 |
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | $ 6,200,000 | ||||||||||
Interest expense | $ 32,500,000 | $ 26,000,000 | |||||||||
Paid-in-capital in excess of par value | 469,200,000 | $ 467,600,000 | |||||||||
Long-term debt | 2,302,800,000 | 1,447,900,000 | |||||||||
Convertible senior notes, carrying value of liability component | 1,035,800,000 | 1,024,800,000 | |||||||||
Letters of credit issued but undrawn | 40,000,000 | ||||||||||
Prepaid forward share repurchase transactions [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Paid-in-capital in excess of par value | $ 31,900,000 | ||||||||||
Forward share repurchase transactions amount | $ 685,800,000 | 685,800,000 | |||||||||
Capped call transactions [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Capped call transactions with financial institutions | 123,800,000 | ||||||||||
Senior secured prior revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, amount repaid | 410,000,000 | ||||||||||
Senior secured revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Borrowings under the senior secured credit facility | 0 | ||||||||||
Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest expense | 11,200,000 | ||||||||||
Non-cash interest expense | 600,000 | ||||||||||
Amortization of deferred financing costs | 400,000 | ||||||||||
Term Loan [Member] | Level 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Carrying amount of Term Loan | 1,257,300,000 | ||||||||||
Debt instrument, fair value | 1,300,000,000 | ||||||||||
Convertible Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | 26,600,000 | ||||||||||
Interest expense | 16,800,000 | 16,100,000 | |||||||||
Non-cash interest expense | 10,000,000 | 9,400,000 | |||||||||
Amortization of deferred financing costs | 1,000,000 | $ 900,000 | |||||||||
Carrying amount of Term Loan | 1,150,000,000 | $ 1,150,000,000 | 1,150,000,000 | ||||||||
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 | Aug. 15, 2019 | ||||||||||
Convertible notes, conversion feature | Holders of the Convertible Notes may convert their notes at their option under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending March 31, 2014, if the last reported sale price of the Company’s common shares for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 130% of the conversion price for the Convertible Notes on each applicable trading day; (ii) during the five business-day period immediately after any five consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of that measurement period was less than 98% of the product of the last reported sale price of the Company’s common shares and the conversion rate for the Convertible Notes for each such day; or (iii) upon the occurrence of specified corporate events. On and after May 15, 2019, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. | ||||||||||
Convertible notes, number of trading days of threshold limit (whether or not consecutive) | 20 days | ||||||||||
Convertible notes, number of trading days of threshold limit in consecutive days | 30 days | ||||||||||
Minimum percentage of common share price over conversion price for conversion | 130.00% | ||||||||||
Principal amount of convertible notes | $ 1,000 | ||||||||||
Minimum percentage of the product of common share price and conversion rate for convertible notes | 98.00% | ||||||||||
Convertible notes initial conversion rate | 11.5908 | ||||||||||
Convertible notes initial conversion price | $ 86.28 | $ 86.28 | |||||||||
Paid-in-capital in excess of par value | $ 219,100,000 | 5,100,000 | |||||||||
Proceeds received from the issuance of the Convertible notes | 1,150,000,000 | ||||||||||
Long-term debt | $ 930,900,000 | ||||||||||
Effective interest rate on convertible notes | 6.20% | ||||||||||
Unamortized debt discount and debt issuance costs | $ 114,200,000 | 125,200,000 | |||||||||
Convertible senior notes, carrying value of liability component | 1,035,800,000 | 1,024,800,000 | |||||||||
Fair value of liability to convertible notes | $ 1,040,500,000 | $ 961,300,000 | |||||||||
Convertible Debt [Member] | Debt Issuance Costs [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | $ 21,500,000 | ||||||||||
Convertible Debt [Member] | Capped call transactions [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Convertible notes initial conversion price | $ 86.28 | ||||||||||
Senior Secured Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, maximum amount | $ 1,450,000,000 | ||||||||||
Credit facility amendment date | May 4, 2015 | ||||||||||
Credit facility interest rate description | After March 9, 2016, the applicable interest rates on the Company’s borrowings under the Prior Credit Facility increased by 2.00% such that borrowings under the Prior Credit Facility began bearing interest at either LIBOR plus the applicable margin between 4.00% and 5.00% or the base rate plus the applicable margin between 3.00% and 4.00% | ||||||||||
Deferred financing costs | $ 22,600,000 | ||||||||||
Senior secured credit facility, discount percentage | 2.00% | ||||||||||
Senior secured credit facility, discount amount | $ 26,000,000 | ||||||||||
Repayment of prior senior secured credit facility | $ 410,000,000 | ||||||||||
Line of credit facility, frequency of interest payments | quarterly | ||||||||||
Amount required to maintain on consolidated cash and cash equivalents | $ 200,000,000 | ||||||||||
Long-term debt, weighted average interest rate | 5.97% | 4.29% | |||||||||
Annual scheduled principal payments of debt, Remainder of 2017 | $ 79,300,000 | ||||||||||
Annual scheduled principal payments of debt, 2018 | 100,400,000 | ||||||||||
Annual scheduled principal payments of debt, 2019 | 1,247,900,000 | ||||||||||
Annual scheduled principal payments of debt, 2020 | 97,800,000 | ||||||||||
Annual scheduled principal payments of debt, 2021 | 97,500,000 | ||||||||||
Annual scheduled principal payments of debt, 2022 | 97,500,000 | ||||||||||
Annual scheduled principal payments of debt, 2023 | $ 739,400,000 | ||||||||||
Senior Secured Credit Facility [Member] | Senior secured prior revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility extended maturity period | 1 year | ||||||||||
Credit facility prepayments | 50,900,000 | ||||||||||
Credit facility, maximum amount | $ 425,000,000 | $ 700,000,000 | |||||||||
Amended maturity date of credit facility | Mar. 9, 2017 | ||||||||||
Decreased amount in credit facility borrowing capacity | $ (39,100,000) | (235,900,000) | |||||||||
Borrowings under the senior secured credit facility | 410,000,000 | ||||||||||
Foreign currency borrowings, outstanding | $ 0 | $ 0 | |||||||||
Senior Secured Credit Facility [Member] | Senior secured revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, maximum amount | $ 150,000,000 | ||||||||||
Credit facility, maturity date | Feb. 15, 2022 | ||||||||||
Credit facility LIBOR minimum floor rate interest | 0.75% | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||||
Senior Secured Credit Facility [Member] | Prior Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility prepayments | $ 20,300,000 | ||||||||||
Credit facility, maximum amount | $ 500,000,000 | ||||||||||
Credit facility, amount repaid | $ 229,700,000 | ||||||||||
Senior Secured Credit Facility [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, maximum amount | $ 1,300,000,000 | ||||||||||
Credit facility, maturity date | Feb. 15, 2023 | ||||||||||
Borrowings under the senior secured credit facility | $ 1,300,000,000 | ||||||||||
Senior Secured Credit Facility [Member] | LIBOR [Member] | Senior secured prior revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility LIBOR minimum floor rate interest | 0.25% | ||||||||||
Senior Secured Credit Facility [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate basis | Facility increased by 2.00% such that borrowings under the Prior Credit Facility began bearing interest at either LIBOR plus the applicable margin between 4.00% and 5.00% or the base rate plus the applicable margin between 3.00% and 4.00% | ||||||||||
Base rate interest rate floor | 1.75% | ||||||||||
Senior Secured Credit Facility [Member] | Base Rate [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.50% | ||||||||||
Senior Secured Credit Facility [Member] | Eurodollar [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 5.50% | ||||||||||
Senior Secured Credit Facility [Member] | Federal Funds Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 0.50% | ||||||||||
Senior Secured Credit Facility [Member] | Adjusted LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 1.00% | ||||||||||
Until March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate increase by percentage | 0.50% | ||||||||||
After March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate increased by percentage | 2.00% | ||||||||||
After March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.00% | ||||||||||
After March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 5.00% | ||||||||||
After March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 3.00% | ||||||||||
After March 9, 2016 [Member] | Senior Secured Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.00% | ||||||||||
Until August 15, 2017 [Member] | Senior Secured Credit Facility [Member] | Base Rate [Member] | Senior secured revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 3.75% | ||||||||||
Until August 15, 2017 [Member] | Senior Secured Credit Facility [Member] | Eurodollar [Member] | Senior secured revolving credit facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.75% | ||||||||||
Scenario Leverage Ratio One [Member] | Senior Secured Credit Facility [Member] | Base Rate [Member] | Senior secured revolving credit facility [Member] | After August 15, 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 3.50% | ||||||||||
Scenario Leverage Ratio One [Member] | Senior Secured Credit Facility [Member] | Eurodollar [Member] | Senior secured revolving credit facility [Member] | After August 15, 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.50% | ||||||||||
Scenario Leverage Ratio Two [Member] | Senior Secured Credit Facility [Member] | Base Rate [Member] | Senior secured revolving credit facility [Member] | After August 15, 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 3.75% | ||||||||||
Scenario Leverage Ratio Two [Member] | Senior Secured Credit Facility [Member] | Eurodollar [Member] | Senior secured revolving credit facility [Member] | After August 15, 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate spread on variable rate | 4.75% | ||||||||||
Scenario, Forecast | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Quarterly periodic payment, Principal | $ 24,400,000 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 29, 2016 | Jul. 31, 2016 | Jan. 31, 2016 | May 31, 2013 | May 10, 2013 | May 07, 2010 | Sep. 30, 2009 | |
Loss Contingencies [Line Items] | |||||||||
Surety bond through insurance company to guarantee payment of tax assessment | $ 17,400,000 | ||||||||
Other assets | 373,900,000 | $ 324,900,000 | |||||||
Deductible for product liability insurance | 15,000,000 | ||||||||
Herbalife International of America, Inc., [Member] | U.S. Federal Trade Commission [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Settlement amount paid for consent order | $ 200,000,000 | ||||||||
Third-party monitoring by independent compliance auditor, period | 7 years | ||||||||
Implement of new and enhance existing procedures, period | 10 months | ||||||||
Federal Revenue Office of Brazil [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 5,600,000 | $ 2,300,000 | |||||||
Mexican Tax Administration Service [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 15,700,000 | $ 61,000,000 | |||||||
Other assets current and non current | $ 46,900,000 | ||||||||
Other assets | 39,700,000 | ||||||||
Prepaid expense and other current assets | 7,200,000 | ||||||||
Loss related to other assets | 0 | ||||||||
Brazilian ICMS [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | 8,500,000 | ||||||||
Surety bond through insurance company to guarantee payment of tax assessment | 13,300,000 | ||||||||
Other assets | 16,600,000 | ||||||||
Brazilian ICMS [Member] | State of Sao Paulo [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 51,300,000 | ||||||||
Indian VAT Authorities [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 8,100,000 | ||||||||
South Korean Customs Authority [Member] | Other Noncurrent Assets [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 32,000,000 | ||||||||
Greek Social Security Agency [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Assessment amount from tax administration service | $ 2,100,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017SegmentCountry | |
Segment Reporting [Abstract] | |
Number of countries in which the Company sells products | Country | 94 |
Number of reportable segments | Segment | 2 |
Segment Information - Reconcili
Segment Information - Reconciliation of Revenue from Segments to Consolidated (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | $ 1,102.1 | $ 1,119.6 |
Primary Reporting Segment [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | 886.5 | 902.2 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | $ 215.6 | $ 217.4 |
Segment Information - Reconci40
Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Contribution Margin | ||
Total Contribution Margin | $ 582,400,000 | $ 594,600,000 |
Selling, general and administrative expenses | 438,600,000 | 427,100,000 |
Other operating income | (800,000) | |
Interest expense, net | 30,200,000 | 24,900,000 |
Income before income taxes | 113,600,000 | 143,400,000 |
Income taxes | 28,400,000 | 47,600,000 |
NET INCOME | 85,200,000 | 95,800,000 |
Primary Reporting Segment [Member] | ||
Contribution Margin | ||
Total Contribution Margin | 386,600,000 | 397,000,000 |
China [Member] | ||
Contribution Margin | ||
Total Contribution Margin | 195,800,000 | 197,600,000 |
Other operating income | $ 0 | $ (800,000) |
Segment Information - Reconci41
Segment Information - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Selling, General and Administrative Expenses [Member] | China [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Independent service providers service fees costs | $ 111.6 | $ 102.5 |
Segment Information - Schedule
Segment Information - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | $ 1,102.1 | $ 1,119.6 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | 224.7 | 240.9 |
Mexico [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | 104.8 | 109.7 |
China [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | 215.6 | 217.4 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Net Sales | $ 557 | $ 551.6 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 11.3 | $ 9.8 |
Unrecognized compensation cost on non-vested stock awards | $ 75.1 | |
Unrecognized compensation cost on non-vested stock awards, weighted-average period of recognition | 1 year 8 months 12 days | |
Total vesting date fair value of stock units | $ 0.1 | $ 0.1 |
SARs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value of SARs granted | $ 28.32 | $ 21.69 |
Total intrinsic value of awards exercised for SARs | $ 16.8 | $ 5.9 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Activity Under Share-Based Compensation Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards Outstanding, Beginning Balance | 11,998 | ||
Granted, Awards | 1,345 | ||
Exercised, Awards | (481) | ||
Forfeited, Awards | (34) | ||
Awards Outstanding, Ending Balance | 12,828 | 11,998 | |
Exercisable Awards, Ending Balance | 7,223 | ||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 41.52 | ||
Granted, Weighted Average Exercise Price | 57.19 | ||
Exercised, Weighted Average Exercise Price | 21.39 | ||
Forfeited, Weighted Average Exercise Price | 54.97 | ||
Weighted Average Exercise Price Outstanding, Ending Balance | 43.88 | $ 41.52 | |
Exercisable, Weighted Average Exercise Price, Ending Balance | $ 39.34 | ||
Weighted Average Remaining Contractual Term Outstanding | 6 years 4 months 24 days | 6 years | |
Exercisable Weighted Average Remaining Contractual Term | 4 years 8 months 12 days | ||
Aggregate Intrinsic Value Outstanding | $ 211.4 | $ 148.7 | |
Exercisable, Aggregate Intrinsic Value | $ 157.1 | ||
Granted, Weighted Average Grant Date Fair Value | $ 28.32 | $ 21.69 | |
Incentive Plan and Independent Directors Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and nonvested December 31, 2016, Shares | 26 | ||
Vested, Shares | (1) | ||
Outstanding and nonvested March 31, 2017, Shares | 25 | 26 | |
Outstanding and nonvested December 31, 2016, Weighted Average Grant Date Fair Value | $ 62.35 | ||
Vested, Weighted Average Grant Date Fair Value | 61.14 | ||
Outstanding and nonvested March 31, 2017, Weighted Average Grant Date Fair Value | $ 62.37 | $ 62.35 |
Share-Based Compensation - Su45
Share-Based Compensation - Summary of Activity Under Share-Based Compensation Plans (Parenthetical) (Detail) - shares shares in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Market condition awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding SARs | 0.1 | 0.1 |
Performance condition SARs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding SARs | 3.3 | 2.9 |
Exercisable SARs | 1.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Line Items] | ||
Income taxes (benefit) expense | $ 28.4 | $ 47.6 |
Effective income tax rate | 25.00% | 33.20% |
Total amount of unrecognized tax benefits, including related interest and penalties | $ 67.5 | |
Unrecognized tax benefits excluding interest and penalties that if recognized would affect the effective tax rate | 48.9 | |
Total accrued interest for tax contingencies | 10.3 | |
Total accrued penalties for tax contingencies | 2.2 | |
Amount of unrecognized tax benefits that could decrease within the next 12 months | 11.5 | |
Decrease in unrecognized tax benefits due to the settlement of audits or resolution of administrative or judicial proceedings | 4.7 | |
Decrease in unrecognized tax benefits expiration of statute of limitations | 6.8 | |
Accounting Standards Update 2016-09 [Member] | ||
Income Taxes [Line Items] | ||
Excess tax benefits included in discrete events | $ 4.3 |
Derivative Instruments and He47
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative asset fair value | $ 3.2 | $ 7.4 |
Derivative liability fair value | 6.3 | 3.5 |
Cash flow hedges reclassified into earnings over next twelve months | (1.1) | |
Foreign exchange currency contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative aggregate notional amounts | 358.8 | |
Derivative asset fair value | 3.2 | 7.4 |
Derivative liability fair value | 6.3 | 3.5 |
Foreign exchange currency contracts [Member] | Derivatives designated as cash flow hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative aggregate notional amounts | 117 | 90 |
Derivative asset fair value | 2.7 | $ 4.6 |
Derivative liability fair value | $ 4.5 | |
Freestanding derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative average remaining maturity period | 1 month | 1 month |
Maximum [Member] | Foreign exchange currency contracts [Member] | Derivatives designated as cash flow hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative maximum remaining maturity period | 15 months | |
Maximum [Member] | Foreign exchange forward contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative maximum remaining maturity period | 12 months | 12 months |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Recorded in Other Comprehensive Income (loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges [Member] | Derivatives designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ (6.1) | $ (0.9) |
Derivative Instruments and He49
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Recorded to Income (Detail) - Selling, general and administrative expenses [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Foreign exchange currency contracts relating to inventory and intercompany management fee hedges [Member] | Derivatives designated as hedging instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | $ (0.5) | $ (0.4) |
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 | $ (1.3) | $ (2.3) |
Derivative Instruments and He50
Derivative Instruments and Hedging Activities - Gains (Losses) Relating to Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss into Income Effective Portion (Detail) - Foreign exchange currency contracts relating to inventory hedges [Member] - Derivatives designated as hedging instruments [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cost of sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | $ 0.9 | $ 5 |
Selling, general and administrative expenses [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | $ 0.5 | $ (0.1) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2014 | Dec. 31, 2016 | Feb. 21, 2017 | |
Stockholders Equity [Line Items] | ||||||
Share repurchase program authorized amount | $ 1,500 | |||||
Share repurchase program, remaining authorized capacity | $ 232.9 | |||||
Share repurchase program expiration date | Feb. 21, 2020 | Jun. 30, 2017 | ||||
Retained earnings (accumulated deficit) | $ 48.4 | $ (66.3) | ||||
Additional paid-in-capital | (469.2) | $ (467.6) | ||||
Repurchase of common stock, value | $ 68.2 | $ 2.3 | ||||
Treasury stock shares, at cost | 1,100,000 | |||||
Shares repurchases, value | $ 60.7 | 0 | ||||
Withheld for tax purpose for share-based compensation plans | 7.5 | 2.3 | ||||
Share repurchases recorded amount | 58.1 | 2.3 | ||||
Liability for unsettled share repurchases | 10.1 | |||||
Other comprehensive income (loss) before foreign currency translation adjustments reclassifications, Tax expense (benefits) | 2.6 | (0.8) | ||||
Other comprehensive Unrealized Gain (Loss) on Derivatives before reclassifications, Tax expense (benefits) | (0.2) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) to income, tax expense (benefits) unrealized gain (loss) on available-for-sale investments | 0.1 | |||||
Capped call transactions [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Capped call transactions with financial institutions | $ 123.8 | |||||
Capped call transactions price per common share | $ 120.79 | |||||
Increase (decrease) in additional paid-in capital, other | $ (123.8) | |||||
Capped call transactions [Member] | Convertible Notes [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Convertible notes initial conversion price | $ 86.28 | |||||
Prepaid forward share repurchase transactions [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Share repurchase program, remaining authorized capacity | $ 1,439.3 | |||||
Forward share repurchase transactions amount | $ 685.8 | 685.8 | ||||
Share repurchase transaction, shares to be purchased | 9,900,000 | |||||
Average cost per share of shares repurchased | $ 69.02 | |||||
Settlement date of forward transactions | Aug. 15, 2019 | |||||
Retained earnings (accumulated deficit) | (653.9) | |||||
Additional paid-in-capital | (31.9) | |||||
Non-cash forward transaction issuance costs | $ 35.8 | |||||
Non-cash interest expense relating to amortization of non-cash issuance costs | $ 1.6 | $ 1.6 | ||||
Open market purchases [Member] | ||||||
Stockholders Equity [Line Items] | ||||||
Average cost per share of shares repurchased | $ 56.10 | |||||
Repurchase of common stock, shares | 1,100,000 | 0 | ||||
Repurchase of common stock, value | $ 60.7 | |||||
Treasury stock shares, at cost | 1,100,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 196.3 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 16.9 | $ 19.3 | |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | [1] | (1.4) | (5) |
Total other comprehensive Income (loss) | 15.5 | 14.3 | |
Ending balance | 267.4 | ||
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (215.5) | (183) | |
Other comprehensive income (loss) before reclassifications, net of tax | 23 | 20 | |
Total other comprehensive Income (loss) | 23 | 20 | |
Ending balance | (192.5) | (163) | |
Unrealized Gain (Loss) on Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 10.4 | 17.4 | |
Other comprehensive income (loss) before reclassifications, net of tax | (6.1) | (0.7) | |
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | [1] | (1.4) | (4.9) |
Total other comprehensive Income (loss) | (7.5) | (5.6) | |
Ending balance | 2.9 | 11.8 | |
Other [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0.1 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to income, net of tax | [1] | (0.1) | |
Total other comprehensive Income (loss) | (0.1) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (205.1) | (165.5) | |
Ending balance | $ (189.6) | $ (151.2) | |
[1] | See Note 9, Derivative Instruments and Hedging Activities, for information regarding the location in the condensed consolidated statements of income of gains (losses) reclassified from accumulated other comprehensive income (loss) into income during the three months ended March 31, 2017 and 2016. |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Weighted average shares used in basic computations | 83.1 | 82.8 |
Dilutive effect of exercise of equity grants outstanding | 3.6 | 2.8 |
Weighted average shares used in diluted computations | 86.7 | 85.6 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Equity grants with anti-dilutive effect | 5.3 | 4.7 |
Convertible Debt [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Convertible notes initial conversion price | $ 86.28 | $ 86.28 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value derivative assets | $ 3.2 | $ 7.4 |
Fair value derivative liabilities | 6.3 | 3.5 |
Foreign exchange currency contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value derivative assets | 3.2 | 7.4 |
Fair value derivative liabilities | 6.3 | 3.5 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value measurements, assets total | 3.2 | 7.4 |
Fair value measurements, liabilities total | 6.3 | 3.5 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives designated as hedging instruments [Member] | Foreign exchange currency contracts relating to inventory 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 derivative assets | 2.7 | 4.6 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives designated as hedging instruments [Member] | Foreign exchange currency contracts relating to inventory and intercompany management fee hedges [Member] | Other current liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value derivative liabilities | 4.5 | |
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 derivative assets | 0.5 | 2.8 |
Significant Other Observable Inputs (Level 2) [Member] | Derivatives not designated as hedging instruments [Member] | Foreign exchange currency contracts [Member] | Other current liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value derivative liabilities | $ 1.8 | $ 3.5 |
Fair Value Measurements - Offse
Fair Value Measurements - Offsetting of Derivative Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | $ 3.2 | $ 7.4 |
Gross Amounts Offset in the Balance Sheet, Derivative Assets | (2.8) | (3) |
Net Amounts of Assets Presented in the Balance Sheet | 0.4 | 4.4 |
Foreign exchange currency contracts [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Assets | 3.2 | 7.4 |
Gross Amounts Offset in the Balance Sheet, Derivative Assets | (2.8) | (3) |
Net Amounts of Assets Presented in the Balance Sheet | $ 0.4 | $ 4.4 |
Fair Value Measurements - Off57
Fair Value Measurements - Offsetting of Derivative Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 6.3 | $ 3.5 |
Gross Amounts Offset in the Balance Sheet, Derivative Liabilities | (2.8) | (3) |
Net Amounts of Liabilities Presented in the Balance Sheet | 3.5 | 0.5 |
Foreign exchange currency contracts [Member] | ||
Derivative [Line Items] | ||
Gross Amounts of Recognized Liabilities | 6.3 | 3.5 |
Gross Amounts Offset in the Balance Sheet, Derivative Liabilities | (2.8) | (3) |
Net Amounts of Liabilities Presented in the Balance Sheet | $ 3.5 | $ 0.5 |
Detail of Certain Balance She58
Detail of Certain Balance Sheet Accounts - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred compensation plan assets | $ 31.5 | $ 30.6 |
Long-term deferred tax assets | 189.9 | 155.2 |
Deferred compensation plan liabilities | 52.6 | 50 |
Deferred income tax liabilities | $ 15.8 | $ 15.3 |
Detail of Certain Balance She59
Detail of Certain Balance Sheet Accounts - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Current [Abstract] | ||
Accrued compensation | $ 91.8 | $ 125.8 |
Accrued liabilities | 269.8 | 236.9 |
Advance sales deposits | 113.2 | 50.1 |
Income taxes payable | 32.4 | 42 |
Total | $ 507.2 | $ 454.8 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | |
Apr. 30, 2017 | Feb. 21, 2017 | |
Subsequent Event [Line Items] | ||
Share repurchase program authorized amount | $ 1,500 | |
Subsequent Event [Member] | Open market purchases [Member] | ||
Subsequent Event [Line Items] | ||
Repurchase of common stock, shares | 1 | |
Repurchase of common stock, value | $ 57.9 |