HERBALIFE LTD. Segments Disclosure
10. Segment Information
The Company is a nutrition company that sells a wide range of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition products. The Company’s products are manufactured by the Company in its Changsha, Hunan, China extraction facility; Suzhou, China facility; Lake Forest, California facility; and Winston-Salem, North Carolina facility, as well as by third-party providers, and then are sold to Members who consume and sell Herbalife products to retail consumers or other Members. Revenues reflect sales of products by the Company to its Members and are categorized based on geographic location.
As of December 31, 2025, the Company sold products in 95 markets throughout the world and was organized and managed by five geographic regions: North America, Latin America, EMEA, Asia Pacific, and China. The Company defines its operating segments as those geographical operations. The Company aggregates its operating segments, excluding China, into a reporting segment, or the Primary Reporting Segment, as management believes that the Company’s operating segments have similar operating characteristics and similar long-term operating performance. In making this determination, management believes that the operating segments are similar in the nature of the products sold, the product acquisition process, the types of customers to whom products are sold, the methods used to distribute the products, the nature of the regulatory environment, and their economic characteristics. China has been identified as a separate reporting segment as it does not meet the criteria for aggregation. The Company determined the Chief Operating Decision Maker (CODM) as its . The CODM reviews financial information, including net sales and contribution margin by operating segment, in order to determine how to allocate the Company’s resources across its operating segments, and reviews its assets and capital expenditures on a consolidated basis and not by operating segment. Therefore, net sales and contribution margin are presented by reportable segment and assets and capital expenditures by segment are not presented.
Operating information for the two reportable segments, sales by product line, and sales by geographic area are as follows:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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(in millions) |
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Net sales: |
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Primary Reporting Segment |
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$ |
4,758.4 |
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$ |
4,695.5 |
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$ |
4,735.0 |
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China |
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279.1 |
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297.6 |
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327.4 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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Significant segment expenses |
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Cost of Sales: |
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Primary Reporting Segment |
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$ |
1,077.0 |
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$ |
1,060.9 |
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$ |
1,141.0 |
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China |
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37.6 |
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43.4 |
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50.0 |
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Total cost of sales |
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$ |
1,114.6 |
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$ |
1,104.3 |
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$ |
1,191.0 |
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Selling expenses: |
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Primary Reporting Segment (2) |
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$ |
1,644.2 |
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$ |
1,630.3 |
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$ |
1,656.2 |
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China (3) |
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138.2 |
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152.5 |
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168.0 |
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Total selling expenses |
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$ |
1,782.4 |
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$ |
1,782.8 |
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$ |
1,824.2 |
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Contribution margin(1): |
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Primary Reporting Segment |
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$ |
2,037.2 |
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$ |
2,004.3 |
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$ |
1,937.8 |
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China |
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103.3 |
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101.7 |
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109.4 |
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Total contribution margin |
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$ |
2,140.5 |
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$ |
2,106.0 |
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$ |
2,047.2 |
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General and administrative expenses |
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1,664.3 |
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1,725.6 |
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1,701.0 |
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Other operating income |
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(4.8 |
) |
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(5.5 |
) |
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(10.2 |
) |
Interest expense |
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214.4 |
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218.3 |
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165.9 |
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Interest income |
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8.5 |
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12.3 |
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11.5 |
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Other expense (income), net |
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— |
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10.5 |
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(1.0 |
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Income before income taxes |
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275.1 |
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169.4 |
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203.0 |
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Income taxes |
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47.3 |
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(84.9 |
) |
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60.8 |
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Net income |
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$ |
227.8 |
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$ |
254.3 |
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$ |
142.2 |
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Net sales by product line: |
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Weight Management |
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$ |
2,746.7 |
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$ |
2,768.1 |
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$ |
2,851.7 |
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Targeted Nutrition |
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1,509.6 |
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1,484.3 |
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1,480.0 |
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Energy, Sports, and Fitness |
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617.1 |
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572.2 |
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560.3 |
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Outer Nutrition |
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85.0 |
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83.6 |
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82.5 |
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Literature, Promotional, and Other |
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79.1 |
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84.9 |
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87.9 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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Net sales by geographic area: |
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United States |
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$ |
1,006.4 |
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$ |
1,026.0 |
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$ |
1,100.5 |
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China |
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279.1 |
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297.6 |
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327.4 |
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India |
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889.6 |
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844.8 |
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796.6 |
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Mexico |
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557.7 |
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538.6 |
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525.0 |
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Vietnam |
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278.2 |
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283.7 |
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279.0 |
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Others |
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2,026.5 |
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2,002.4 |
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2,033.9 |
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Total net sales |
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$ |
5,037.5 |
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$ |
4,993.1 |
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$ |
5,062.4 |
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As of December 31, 2025 and 2024, goodwill allocated to the Company’s reporting units included in the Company’s Primary Reporting Segment was $97.5 million and $84.8 million, respectively, and goodwill allocated to the China segment was $3.0 million and $2.9 million, respectively.
The following table sets forth property, plant, and equipment and deferred income tax assets by geographic area:
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December 31, |
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2025 |
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2024 |
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2023 |
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(in millions) |
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Property, plant, and equipment, net: |
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United States |
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$ |
399.7 |
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$ |
409.9 |
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$ |
437.6 |
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Foreign |
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48.0 |
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50.3 |
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68.9 |
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Total property, plant, and equipment, net |
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$ |
447.7 |
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$ |
460.2 |
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$ |
506.5 |
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Deferred income tax assets: |
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United States |
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$ |
297.5 |
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$ |
273.2 |
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$ |
209.1 |
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Foreign |
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271.3 |
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228.6 |
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78.7 |
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Total deferred income tax assets |
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$ |
568.8 |
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$ |
501.8 |
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$ |
287.8 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.