2018 Form 10-K Financial Statement

#000156459019003287 Filed on February 19, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017 Q3
Revenue $4.892B $1.093B $1.085B
YoY Change 10.48% 4.62% -3.26%
Cost Of Revenue $919.3M $209.8M $215.4M
YoY Change 8.33% 6.99% 3.01%
Gross Profit $3.973B $883.5M $870.0M
YoY Change 10.99% 4.08% -4.7%
Gross Profit Margin 81.21% 80.81% 80.15%
Selling, General & Admin $1.955B $724.6M $445.2M
YoY Change 11.18% 0.81% 0.88%
% of Gross Profit 49.22% 82.01% 51.17%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $80.80M $26.00M $25.20M
YoY Change 0.87% 1.17% 2.02%
% of Gross Profit 2.03% 2.94% 2.9%
Operating Expenses $1.955B $717.3M $445.2M
YoY Change 11.18% 4.85% 0.88%
Operating Profit $2.017B $166.2M $119.3M
YoY Change 226.9% 0.85% -21.25%
Interest Expense $181.0M -$56.90M -$38.40M
YoY Change 12.56% 90.3% 73.76%
% of Operating Profit 8.97% -34.24% -32.19%
Other Income/Expense, Net -$57.30M $400.0K $0.00
YoY Change -14425.0%
Pretax Income $464.2M $109.7M $80.90M
YoY Change -1.49% -18.68% -37.48%
Income Tax $167.6M $19.80M $26.40M
% Of Pretax Income 36.11% 18.05% 32.63%
Net Earnings $296.6M -$63.40M $54.50M
YoY Change 38.66% -163.78% -37.86%
Net Earnings / Revenue 6.06% -5.8% 5.02%
Basic Earnings Per Share $2.12 -$0.43 $0.34
Diluted Earnings Per Share $1.98 -$0.43 $0.33
COMMON SHARES
Basic Shares Outstanding 140.2M 159.1M
Diluted Shares Outstanding 149.5M 165.9M

Balance Sheet

Concept 2018 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.199B $1.279B $1.636B
YoY Change -6.25% 51.52% 107.57%
Cash & Equivalents $1.199B $1.279B $1.653B
Short-Term Investments
Other Short-Term Assets $153.8M $147.0M $188.4M
YoY Change 4.63% -16.9% -39.52%
Inventory $381.8M $341.2M $354.2M
Prepaid Expenses
Receivables $70.50M $93.30M $95.20M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.805B $1.860B $2.274B
YoY Change -2.97% 27.2% 45.83%
LONG-TERM ASSETS
Property, Plant & Equipment $360.0M $377.5M $375.1M
YoY Change -4.64% -0.13% -0.29%
Goodwill $96.90M
YoY Change 7.79%
Intangibles $310.1M
YoY Change 0.0%
Long-Term Investments
YoY Change
Other Assets $221.8M $250.3M $367.4M
YoY Change -11.39% -22.96% 90.96%
Total Long-Term Assets $984.8M $1.035B $1.148B
YoY Change -4.83% -6.17% 18.0%
TOTAL ASSETS
Total Short-Term Assets $1.805B $1.860B $2.274B
Total Long-Term Assets $984.8M $1.035B $1.148B
Total Assets $2.790B $2.895B $3.423B
YoY Change -3.64% 12.85% 35.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $81.10M $67.80M $60.60M
YoY Change 19.62% 2.73% -29.86%
Accrued Expenses $441.8M $117.3M $243.1M
YoY Change 20.05% -50.49% -33.2%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $678.9M $102.4M $104.1M
YoY Change 562.99% 977.89% -75.52%
Total Short-Term Liabilities $1.589B $906.8M $858.8M
YoY Change 75.21% 14.57% -32.02%
LONG-TERM LIABILITIES
Long-Term Debt $1.775B $2.166B $2.177B
YoY Change -18.04% 50.56% 113.9%
Other Long-Term Liabilities $149.5M $157.3M $168.1M
YoY Change -4.96% 13.0% 34.05%
Total Long-Term Liabilities $1.924B $2.323B $2.345B
YoY Change -17.16% 47.25% 105.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.589B $906.8M $858.8M
Total Long-Term Liabilities $1.924B $2.323B $2.345B
Total Liabilities $3.513B $3.230B $3.204B
YoY Change 8.77% 36.33% 32.99%
SHAREHOLDERS EQUITY
Retained Earnings -$248.1M $240.7M
YoY Change 274.21%
Common Stock $407.4M $452.1M
YoY Change -12.89%
Preferred Stock
YoY Change
Treasury Stock (at cost) $328.6M $299.2M
YoY Change
Treasury Stock Shares
Shareholders Equity -$723.4M -$334.7M $219.0M
YoY Change
Total Liabilities & Shareholders Equity $2.790B $2.895B $3.423B
YoY Change -3.64% 12.85% 35.14%

Cashflow Statement

Concept 2018 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $296.6M -$63.40M $54.50M
YoY Change 38.66% -163.78% -37.86%
Depreciation, Depletion And Amortization $80.80M $26.00M $25.20M
YoY Change 0.87% 1.17% 2.02%
Cash From Operating Activities $648.4M $186.4M $127.3M
YoY Change 9.75% 58.77% -207.79%
INVESTING ACTIVITIES
Capital Expenditures $84.00M -$27.60M -$22.00M
YoY Change -12.04% -12.38% -12.0%
Acquisitions
YoY Change
Other Investing Activities -$100.0K $500.0K -$1.200M
YoY Change -66.67% -121.74% 1100.0%
Cash From Investing Activities -$83.90M -$27.10M -$23.20M
YoY Change -11.87% -19.82% -7.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $750.3M
YoY Change -11.12%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -593.1M -523.8M -98.90M
YoY Change 596.13% 4661.82% 1167.95%
NET CHANGE
Cash From Operating Activities 648.4M 186.4M 127.3M
Cash From Investing Activities -83.90M -27.10M -23.20M
Cash From Financing Activities -593.1M -523.8M -98.90M
Net Change In Cash -80.50M -364.5M 5.200M
YoY Change -118.35% -602.07% -103.44%
FREE CASH FLOW
Cash From Operating Activities $648.4M $186.4M $127.3M
Capital Expenditures $84.00M -$27.60M -$22.00M
Free Cash Flow $564.4M $214.0M $149.3M
YoY Change 13.95% 43.72% -260.37%

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28200000
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CY2018 us-gaap Nature Of Operations
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<p style="text-align:justify;margin-bottom:0pt;margin-top:18pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">1.&#160;Organization</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Herbalife Nutrition Ltd. (formerly Herbalife Ltd.), a Cayman Islands exempted company with limited liability, was incorporated on April&#160;4, 2002. Herbalife Nutrition Ltd. (and together with its subsidiaries, the &#8220;Company&#8221; or &#8220;Herbalife&#8221;) is a global nutrition company that sells weight management; targeted nutrition; energy, sports, and 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 platforms when necessary. The Company sells its products 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.</p>
CY2018 us-gaap Use Of Estimates
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<p style="text-align:justify;margin-bottom:0pt;margin-top:18pt;margin-left:2.27%;text-indent:0%;font-style:italic;font-size:10pt;font-family:Times New Roman;font-weight:normal;text-transform:none;font-variant: normal;">Use of Estimates</p> <p style="text-align:justify;margin-bottom:0pt;margin-top:6pt;text-indent:4.54%;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which the Company believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, and foreign currency have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.</p>
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6
CY2018 us-gaap Stockholders Equity Note Stock Split
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On April 24, 2018, the Company’s shareholders approved a two-for-one stock split of the Company’s common shares. On May 14, 2018, shareholders of record received one additional share for each share held as of May 7, 2018.
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43.75
CY2018 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
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NetIncomeLoss
71200000
CY2018Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.52
CY2018Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.49
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1186600000
CY2018Q4 us-gaap Gross Profit
GrossProfit
960700000
CY2018Q4 us-gaap Net Income Loss
NetIncomeLoss
48900000
CY2018Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.36
CY2018Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.34
CY2017Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1102100000
CY2017Q1 us-gaap Gross Profit
GrossProfit
897500000
CY2017Q1 us-gaap Net Income Loss
NetIncomeLoss
85200000
CY2017Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.51
CY2017Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.49
CY2017Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1146900000
CY2017Q2 us-gaap Gross Profit
GrossProfit
928100000
CY2017Q2 us-gaap Net Income Loss
NetIncomeLoss
137600000
CY2017Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.84
CY2017Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.81
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1085400000
CY2017Q3 us-gaap Gross Profit
GrossProfit
870000000
CY2017Q3 us-gaap Net Income Loss
NetIncomeLoss
54500000
CY2017Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.34
CY2017Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.33
CY2017Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1093300000
CY2017Q4 us-gaap Gross Profit
GrossProfit
883500000
CY2017Q4 us-gaap Net Income Loss
NetIncomeLoss
-63400000
CY2017Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.43
CY2017Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.43

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