10-Q Filing

HERBALIFE LTD. CIK: 1180262 Q1 2019

Filing Information

Form Type	10-Q
Accession Number	`0001564590-19-015356`
Period End Date	20190331
Filing Date	20190502
Fiscal Year	2019
Fiscal Period	Q1
XBRL Instance	hlf-20190331.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 65 Income Statement 32 Cash Flow Statement 61 Comprehensive Income 12

Balance Sheet 65 line items

Line Item	Tag	Value	Unit	Period
Common shares, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common shares, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common shares, shares authorized	`CommonStockSharesAuthorized`	2.00B	shares	Point-in-time
Common shares, shares authorized	`CommonStockSharesAuthorized`	2.00B	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$1.20B	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$1.21B	USD	Point-in-time
Common shares, shares outstanding	`CommonStockSharesOutstanding`	142.80M	shares	Point-in-time
Common shares, shares outstanding	`CommonStockSharesOutstanding`	141.10M	shares	Point-in-time
Treasury stock shares, at cost	`TreasuryStockCommonShares`	10.00M	shares	Point-in-time
Receivables, net of allowance for doubtful accounts	`ReceivablesNetCurrent`	$70.50M	USD	Point-in-time
Receivables, net of allowance for doubtful accounts	`ReceivablesNetCurrent`	$92.60M	USD	Point-in-time
Treasury stock shares, at cost	`TreasuryStockCommonShares`	10.00M	shares	Point-in-time
Inventories	`InventoryNet`	$381.80M	USD	Point-in-time
Inventories	`InventoryNet`	$407.50M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$153.80M	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$126.00M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$1.80B	USD	Point-in-time
Total current assets	`AssetsCurrent`	$1.84B	USD	Point-in-time
Property, plant, and equipment, at cost, net of accumulated depreciation and amortization	`PropertyPlantAndEquipmentNet`	$360.00M	USD	Point-in-time
Property, plant, and equipment, at cost, net of accumulated depreciation and amortization	`PropertyPlantAndEquipmentNet`	$359.40M	USD	Point-in-time
Operating lease right-of-use assets	`OperatingLeaseRightOfUseAsset`	$172.50M	USD	Point-in-time
Marketing-related intangibles and other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$310.10M	USD	Point-in-time
Marketing-related intangibles and other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$310.10M	USD	Point-in-time
Goodwill	`Goodwill`	$92.00M	USD	Point-in-time
Goodwill	`Goodwill`	$92.90M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$213.70M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$221.80M	USD	Point-in-time
Total assets	`Assets`	$2.98B	USD	Point-in-time
Total assets	`Assets`	$2.79B	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$81.10M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$82.80M	USD	Point-in-time
Royalty overrides	`AccruedRoyaltyOverrides`	$281.40M	USD	Point-in-time
Royalty overrides	`AccruedRoyaltyOverrides`	$260.40M	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	$686.20M	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	$678.90M	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	$501.70M	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	$547.40M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$1.59B	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$1.53B	USD	Point-in-time
Long-term debt, net of current portion	`LongTermDebtNoncurrent`	$1.78B	USD	Point-in-time
Long-term debt, net of current portion	`LongTermDebtNoncurrent`	$1.77B	USD	Point-in-time
Non-current operating lease liabilities	`OperatingLeaseLiabilityNoncurrent`	$151.10M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$149.50M	USD	Point-in-time
Other non-current liabilities	`OtherLiabilitiesNoncurrent`	$142.90M	USD	Point-in-time
Total liabilities	`Liabilities`	$3.60B	USD	Point-in-time
Total liabilities	`Liabilities`	$3.51B	USD	Point-in-time
Commitments and contingencies	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies	`CommitmentsAndContingencies`	-	USD	Point-in-time
Temporary equity	`TemporaryEquityCarryingAmountAttributableToParent`	$11.30M	USD	Point-in-time
Common shares, $0.0005 par value; 2.0 billion shares authorized; 141.1 million (2019) and 142.8 million (2018) shares outstanding	`CommonStockValue`	$100.00K	USD	Point-in-time
Common shares, $0.0005 par value; 2.0 billion shares authorized; 141.1 million (2019) and 142.8 million (2018) shares outstanding	`CommonStockValue`	$100.00K	USD	Point-in-time
Paid-in capital in excess of par value	`AdditionalPaidInCapitalCommonStock`	$341.50M	USD	Point-in-time
Paid-in capital in excess of par value	`AdditionalPaidInCapitalCommonStock`	$333.80M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-204.10M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-209.80M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-430.00M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-526.30M	USD	Point-in-time
Treasury stock, at cost, 10.0 million (2019) and 10.0 million (2018) shares	`TreasuryStockValue`	$328.90M	USD	Point-in-time
Treasury stock, at cost, 10.0 million (2019) and 10.0 million (2018) shares	`TreasuryStockValue`	$328.90M	USD	Point-in-time
Total shareholders deficit	`StockholdersEquity`	$-334.70M	USD	Point-in-time
Total shareholders deficit	`StockholdersEquity`	$-629.10M	USD	Point-in-time
Total shareholders deficit	`StockholdersEquity`	$-219.00M	USD	Point-in-time
Total shareholders deficit	`StockholdersEquity`	$-723.40M	USD	Point-in-time
Total liabilities, temporary equity, and shareholders deficit	`LiabilitiesAndStockholdersEquity`	$2.79B	USD	Point-in-time
Total liabilities, temporary equity, and shareholders deficit	`LiabilitiesAndStockholdersEquity`	$2.98B	USD	Point-in-time

Income Statement 32 line items

Line Item	Tag	Value	Unit	Period
Net sales	`RevenueFromContractWithCustomerExcludingAssessedTax`	$1.17B	USD	1 Quarter
Net sales	`RevenueFromContractWithCustomerExcludingAssessedTax`	$1.18B	USD	1 Quarter
Cost of sales	`CostOfGoodsAndServicesSold`	$241.60M	USD	1 Quarter
Cost of sales	`CostOfGoodsAndServicesSold`	$239.90M	USD	1 Quarter
Gross profit	`GrossProfit`	$937.00M	USD	1 Quarter
Gross profit	`GrossProfit`	$930.60M	USD	1 Quarter
Royalty overrides	`RoyaltyOverrides`	$337.30M	USD	1 Quarter
Royalty overrides	`RoyaltyOverrides`	$359.50M	USD	1 Quarter
Selling, general, and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$460.10M	USD	1 Quarter
Selling, general, and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$435.40M	USD	1 Quarter
Other operating income	`OtherOperatingIncome`	$16.20M	USD	1 Quarter
Other operating income	`OtherOperatingIncome`	$27.30M	USD	1 Quarter
Operating income	`OperatingIncomeLoss`	$155.80M	USD	1 Quarter
Operating income	`OperatingIncomeLoss`	$163.00M	USD	1 Quarter
Interest expense, net	`InterestIncomeExpenseNonoperatingNet`	$-36.10M	USD	1 Quarter
Interest expense, net	`InterestIncomeExpenseNonoperatingNet`	$-39.90M	USD	1 Quarter
Other (income) expense, net	`OtherNonoperatingIncomeExpense`	$8.50M	USD	1 Quarter
Other (income) expense, net	`OtherNonoperatingIncomeExpense`	$-24.40M	USD	1 Quarter
Income before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$135.40M	USD	1 Quarter
Income before income taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$91.50M	USD	1 Quarter
Income taxes	`IncomeTaxExpenseBenefit`	$9.40M	USD	1 Quarter
Income taxes	`IncomeTaxExpenseBenefit`	$39.10M	USD	1 Quarter
Net income	`NetIncomeLoss`	$96.30M	USD	1 Quarter
Net income	`NetIncomeLoss`	$82.10M	USD	1 Quarter
Basic	`EarningsPerShareBasic`	$0.57	USD	1 Quarter
Basic	`EarningsPerShareBasic`	$0.70	USD	1 Quarter
Diluted	`EarningsPerShareDiluted`	$0.54	USD	1 Quarter
Diluted	`EarningsPerShareDiluted`	$0.66	USD	1 Quarter
Basic	`WeightedAverageNumberOfSharesOutstandingBasic`	145.30M	shares	1 Quarter
Basic	`WeightedAverageNumberOfSharesOutstandingBasic`	137.10M	shares	1 Quarter
Diluted	`WeightedAverageNumberOfDilutedSharesOutstanding`	152.70M	shares	1 Quarter
Diluted	`WeightedAverageNumberOfDilutedSharesOutstanding`	145.50M	shares	1 Quarter

Cash Flow Statement 61 line items

Line Item	Tag	Value	Unit	Period
Net income	`ProfitLoss`	$82.10M	USD	1 Quarter
Net income	`ProfitLoss`	$96.30M	USD	1 Quarter
Depreciation and amortization	`DepreciationAndAmortization`	$24.40M	USD	1 Quarter
Depreciation and amortization	`DepreciationAndAmortization`	$25.60M	USD	1 Quarter
Share-based compensation expenses	`ShareBasedCompensation`	$10.60M	USD	1 Quarter
Share-based compensation expenses	`ShareBasedCompensation`	$9.80M	USD	1 Quarter
Non-cash interest expense	`AmortizationOfFinancingCostsAndDiscounts`	$15.70M	USD	1 Quarter
Non-cash interest expense	`AmortizationOfFinancingCostsAndDiscounts`	$13.90M	USD	1 Quarter
Deferred income taxes	`DeferredIncomeTaxExpenseBenefit`	$3.30M	USD	1 Quarter
Deferred income taxes	`DeferredIncomeTaxExpenseBenefit`	$400.00K	USD	1 Quarter
Inventory write-downs	`InventoryWriteDown`	$12.10M	USD	1 Quarter
Inventory write-downs	`InventoryWriteDown`	$5.30M	USD	1 Quarter
Foreign exchange transaction loss	`ForeignCurrencyTransactionGainLossBeforeTax`	$-500.00K	USD	1 Quarter
Foreign exchange transaction loss	`ForeignCurrencyTransactionGainLossBeforeTax`	$-4.50M	USD	1 Quarter
Loss on extinguishment of debt	`GainsLossesOnExtinguishmentOfDebt`	$-13.10M	USD	1 Quarter
Other	`OtherNoncashIncomeExpense`	$6.80M	USD	1 Quarter
Other	`OtherNoncashIncomeExpense`	$-12.40M	USD	1 Quarter
Receivables	`IncreaseDecreaseInReceivables`	$23.10M	USD	1 Quarter
Receivables	`IncreaseDecreaseInReceivables`	$16.10M	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$27.90M	USD	1 Quarter
Inventories	`IncreaseDecreaseInInventories`	$-8.40M	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-26.90M	USD	1 Quarter
Prepaid expenses and other current assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$11.90M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$16.40M	USD	1 Quarter
Accounts payable	`IncreaseDecreaseInAccountsPayable`	$2.00M	USD	1 Quarter
Royalty overrides	`RoyaltyOverridesIncreaseDecrease`	$-21.50M	USD	1 Quarter
Royalty overrides	`RoyaltyOverridesIncreaseDecrease`	$-12.60M	USD	1 Quarter
Other current liabilities	`IncreaseDecreaseInOtherCurrentLiabilities`	$-72.20M	USD	1 Quarter
Other current liabilities	`IncreaseDecreaseInOtherCurrentLiabilities`	$-3.70M	USD	1 Quarter
Other	`IncreaseDecreaseInOtherOperatingCapitalNet`	$-1.10M	USD	1 Quarter
Other	`IncreaseDecreaseInOtherOperatingCapitalNet`	$-5.70M	USD	1 Quarter
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivities`	$38.50M	USD	1 Quarter
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivities`	$156.20M	USD	1 Quarter
Purchases of property, plant, and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$15.60M	USD	1 Quarter
Purchases of property, plant, and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$27.00M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-27.00M	USD	1 Quarter
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-15.60M	USD	1 Quarter
Principal payments on senior secured credit facility and other debt	`RepaymentsOfSeniorDebt`	$5.10M	USD	1 Quarter
Principal payments on senior secured credit facility and other debt	`RepaymentsOfSeniorDebt`	$24.50M	USD	1 Quarter
Proceeds from convertible senior notes	`ProceedsFromConvertibleDebt`	$550.00M	USD	1 Quarter
Repurchase of convertible senior notes	`RepaymentsOfConvertibleDebt`	$582.50M	USD	1 Quarter
Debt issuance costs	`PaymentsOfDebtIssuanceCosts`	$11.70M	USD	1 Quarter
Share repurchases	`PaymentsForRepurchaseOfCommonStock`	$54.20M	USD	1 Quarter
Share repurchases	`PaymentsForRepurchaseOfCommonStock`	$7.60M	USD	1 Quarter
Proceeds from settlement of capped call transactions	`ProceedsFromDerivativeInstrumentFinancingActivities`	$27.10M	USD	1 Quarter
Other	`ProceedsFromPaymentsForOtherFinancingActivities`	$800.00K	USD	1 Quarter
Other	`ProceedsFromPaymentsForOtherFinancingActivities`	$600.00K	USD	1 Quarter
Net cash used in financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-11.90M	USD	1 Quarter
Net cash used in financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-95.20M	USD	1 Quarter
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	`EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$4.40M	USD	1 Quarter
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	`EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$6.10M	USD	1 Quarter
Net change in cash, cash equivalents, and restricted cash	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$51.50M	USD	1 Quarter
Net change in cash, cash equivalents, and restricted cash	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect`	$4.00M	USD	1 Quarter
Cash, cash equivalents, and restricted cash, beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.22B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.22B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.35B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, beginning of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.30B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, end of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.22B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, end of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.22B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, end of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.35B	USD	Point-in-time
Cash, cash equivalents, and restricted cash, end of period	`CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents`	$1.30B	USD	Point-in-time

Comprehensive Income 12 line items

Line Item	Tag	Value	Unit	Period
Net income	`NetIncomeLoss`	$96.30M	USD	1 Quarter
Foreign currency translation adjustment, tax	`OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTaxPortionAttributableToParent`	$500.00K	USD	1 Quarter
Foreign currency translation adjustment, tax	`OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTaxPortionAttributableToParent`	$1.10M	USD	1 Quarter
Net income	`NetIncomeLoss`	$82.10M	USD	1 Quarter
Foreign currency translation adjustment, net of income taxes of $0.5 and $1.1 for the three months ended March 31, 2019 and 2018, respectively	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent`	$21.20M	USD	1 Quarter
Foreign currency translation adjustment, net of income taxes of $0.5 and $1.1 for the three months ended March 31, 2019 and 2018, respectively	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent`	$7.10M	USD	1 Quarter
Unrealized loss on derivatives, net of income taxes of $ for both the three months ended March 31, 2019 and 2018	`OtherComprehensiveIncomeDerivativesQualifyingAsHedgesNetOfTaxPortionAttributableToParent`	$-1.40M	USD	1 Quarter
Unrealized loss on derivatives, net of income taxes of $ for both the three months ended March 31, 2019 and 2018	`OtherComprehensiveIncomeDerivativesQualifyingAsHedgesNetOfTaxPortionAttributableToParent`	$-3.10M	USD	1 Quarter
Total other comprehensive (loss) income	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$18.10M	USD	1 Quarter
Total other comprehensive (loss) income	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$5.70M	USD	1 Quarter
Total comprehensive income	`ComprehensiveIncomeNetOfTax`	$100.20M	USD	1 Quarter
Total comprehensive income	`ComprehensiveIncomeNetOfTax`	$102.00M	USD	1 Quarter

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.