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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "William Ackman",
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  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "The slide highlights how a 'packaging and handling' fee was historically used to fund internal company bonuses, suggesting a potential mischaracterization of the fee's purpose.",
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      "text": "All Herbalife distributors must pay a 7% packaging and handling charge (“Surcharge”) on the Suggested Retail Price for products ordered directly from the Company",
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      "text": "All Herbalife distributors must pay a 7% packaging and handling charge (“Surcharge”) on the Suggested Retail Price for products ordered directly from the Company",
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      "text": "In order for distributors to sell Herbalife products and receive their full markup (“Retail Profit”), they must pass through surcharges and other expenses to Retail Customers",
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      "text": "Until 2001, Herbalife accounted for the revenue from the Surcharge as an offset to royalty override expenses",
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      "text": "The Surcharge was instituted in the early 1990s at 5% as a way for the Company to fund the roll out of the Production Bonus. Over time, it has increased to 7%",
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      "text": "(1) In most markets the surcharge is 7%, but in some countries it is in excess of 20%.",
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