NEW YORK, Feb. 12, 2013 /PRNewswire/ -- Avon Products, Inc.
(NYSE: AVP) today reported fourth-quarter and full-year 2012
results. "2012 was a challenging year for Avon, but I'm encouraged to see that the
overall business is showing early signs of stabilization," said
Sheri McCoy, Chief Executive
Officer. "We have a lot of work ahead of us, but I am confident
that in 2013, we will see progress against our three-year financial
goals."
Fourth-Quarter 2012 (compared with fourth-quarter
2011)
For the fourth quarter, total revenue of $3.0 billion decreased 1%, but increased 1% in
constant dollars. Total units grew 2% and price/mix decreased 1%
during the quarter. Active Representatives were up 1%.
Avon Beauty sales declined 2%, or increased 1% in constant
dollars. On a reported basis, fragrance was flat, color and
personal care both declined 1% and skincare declined 5%. On a
constant-dollar basis, fragrance and color both increased 2%,
personal care increased 1% and skincare declined 2%.
Fourth-quarter 2012 gross margin was 59.8%. Adjusted
Non-GAAP gross margin was 59.9%, 130 basis points lower than the
prior-year quarter, primarily due to unfavorable mix reflecting
actions to flow inventory, mainly in Brazil as well as flowing more unit-driving
offers in several key markets.
Operating profit was $11 million
in the fourth quarter of 2012 and operating margin was 0.4%.
Adjusted Non-GAAP operating profit was $277
million and adjusted Non-GAAP operating margin was 9.2%,
down 20 bps from the fourth quarter of 2011. The lower gross
margin was almost fully offset by lower operating expenses,
primarily due to lower net brochure costs, lower overhead and
advertising expenses. Additionally, foreign exchange negatively
impacted operating margin.
Fourth-quarter 2012's effective tax rate was 1845% versus 102%
in the fourth quarter of 2011. On an adjusted Non-GAAP basis, the
effective tax rate was 35.9%, versus 32.2% in the fourth-quarter
2011.
Loss from continuing operations in the fourth quarter of 2012
was $161 million, or $0.37 per share. Adjusted Non-GAAP net income
from continuing operations was $162
million, or $0.37 per
share.
Adjustments to Fourth-Quarter GAAP Results
During the fourth quarter of 2012, the following items had a
significant impact on the financial results:
As a result of the weaker-than-expected performance in the
fourth quarter of 2012 in our Silpada business and the
corresponding lowering of our long-term growth estimates for this
business, our annual impairment assessment of the fair value of
goodwill and intangible assets related to the business resulted in
a Q4 non-cash pre-tax impairment charge, within operating profit,
of $209 million, or $0.31 per share.
In the fourth quarter of 2012, we also recorded costs to
implement ("CTI") restructuring charges, within operating profit,
of $58 million pre-tax, or
$0.09 per share, most of which relate
to our previously announced cost savings initiative.
The fourth-quarter results benefited from a release of a
provision, within other income, of $24
million, or $0.03 per share,
associated with the excess cost of acquiring U.S. dollars in
Venezuela at the regulated market
rate as compared to the official exchange rate. This provision was
released as the Company capitalized the associated intercompany
liabilities.
During the fourth quarter of 2012, we determined that the
Company may repatriate offshore cash to meet certain domestic
funding needs. Accordingly, we are no longer asserting that the
undistributed earnings of certain foreign subsidiaries are
indefinitely reinvested, and therefore, we recorded an additional
provision for income taxes of $168
million or $0.39 per
share.
Full-Year 2012 Results (compared with full-year 2011)
Total revenue of $10.7 billion
decreased 5%, or was flat in constant dollars. Total Beauty
sales declined 5%, or increased 1% on a constant-dollar basis.
Active Representatives declined 1% and units sold were flat.
Operating profit of $315 million
decreased 63% and operating margin was 2.9%, down 470 basis points.
Adjusted Non-GAAP operating profit was $693
million, down 40%, and adjusted Non-GAAP operating margin
was 6.5%, down 380 basis points from a year ago.
Full-year loss from continuing operations was $38 million, or $0.10 per share, compared with income of
$526 million, or $1.20 per share, last year. Adjusted Non-GAAP
income from continuing operations was $373
million, or $0.85 per share,
compared with $719 million, or
$1.64 per share.
Adjustments to Full-Year 2012 GAAP Results:
During 2012, the following items had a significant impact on the
financial results:
- CTI restructuring initiatives related to previously announced
cost savings initiatives of $125
million pre-tax, or $0.19 per
share
- China non-cash impairment
charge of $44 million pre-tax, or
$0.10 per share
- Silpada non-cash impairment charge of $209 million pre-tax, or $0.30 per share
- Benefit from release of a provision of $24 million, or $0.04 per share, associated with the excess cost
of acquiring U.S. dollars in Venezuela at the regulated market rate as
compared to the official exchange rate
- Additional provision for income taxes of $168 million, or $0.39 per share, associated with the potential
repatriation of foreign earnings
Cash flow from operations was $556
million for the twelve months ended December 31, 2012, $100
million lower than in the same period in 2011, due to lower
net income and higher payments associated with CTI restructuring
initiatives, which were partially offset by improvements in working
capital, lower contributions to the U.S. pension plan, and a
payment in 2011 associated with a long-term incentive compensation
plan of $36 million. The overall net
cash used in the twelve months ended December 31, 2012 was $36
million, compared with net cash provided of $65 million for the same period in 2011,
primarily due to lower issuances of commercial paper, partially
offset by the proceeds related to the term loan agreement, the
scheduled repayment of our notes in 2011, lower dividend payments,
lower capital expenditures and the termination of two of our
interest-rate swap agreements.
Avon's net debt (total debt
less cash) as of December 31, 2012
was $2.0 billion, down $77 million from December
31, 2011.
Estimated Impacts from 32% Venezuelan Currency
Devaluation
The Venezuelan government has announced its intention to devalue
its currency by approximately 32%. Although no official rules
have been issued, the official exchange rate is expected to change
from 4.30 Bolivars to the U.S. dollar
to 6.30 Bolivars to the U.S. dollar,
effective February 13, 2013, and the
regulated SITME market will be eliminated. Based on a
preliminary analysis, Avon
anticipates the following impacts, both of which will be excluded
for purposes of calculating adjusted Non-GAAP results during
2013:
- One time after tax loss estimated to be approximately
$50 million in the first quarter of
2013, primarily reflecting the write-down of monetary net assets
and deferred tax benefits;
- Estimated charges of approximately $50
million associated with the historical cost in U.S. dollars
of non-monetary assets, such as inventory, primarily during the
first half of 2013.
In addition, had the devaluation occurred at the beginning of
2012, Avon's revenue and adjusted
Non-GAAP operating profit would have been adversely impacted by
approximately 2% each, assuming no mitigating factors, such as
price increases.
Fourth-Quarter 2012 Regional Highlights (compared with
fourth-quarter 2011)
Latin
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
Fourth-Quarter 2012
|
|
FY
2012
|
|
|
|
|
|
|
% var.
vs
4Q11
|
|
|
|
% var.
vs
12M11
|
Total
revenue
|
|
|
|
$1,330.5
|
|
2%
|
|
$4,993.7
|
|
(3)%
|
C$
|
|
|
|
|
|
7%
|
|
|
|
5%
|
Active
Representatives
|
|
|
|
|
|
6%
|
|
|
|
3%
|
Units
sold
|
|
|
|
|
|
6%
|
|
|
|
2%
|
Operating
profit
|
|
|
|
136.0
|
|
6%
|
|
443.9
|
|
(30)%
|
Adjusted
Non-GAAP operating profit
|
|
|
|
143.7
|
|
7%
|
|
463.5
|
|
(27)%
|
Operating
margin
|
|
|
|
10.2%
|
|
40
bps
|
|
8.9%
|
|
(340)
bps
|
Adjusted
Non-GAAP operating margin
|
|
|
|
10.8%
|
|
50
bps
|
|
9.3%
|
|
(300)
bps
|
|
|
|
Note: Effective in the second quarter of 2012, the
Dominican Republic was included in
Latin America, whereas in prior
periods it had been included in North
America. The impact was not material to either segment.
Accordingly, Latin America amounts
include the results of the Dominican
Republic for all periods presented.
- Fourth-quarter constant-dollar revenue increased, primarily due
to an increase in Active Representatives. Units sold increased 6%,
primarily attributable to Brazil.
- Brazil revenue was down 3%, or
up 10% in constant dollars, primarily due to an increase in Active
Representatives.
- Mexico revenue was up 9%, or
4% in constant dollars, driven primarily by an increase in Active
Representatives partially offset by a decline in average
order.
- Venezuela revenue was up 2% in
both reported and constant dollars, as average order benefited from
the inflationary impact on pricing, but was partially offset by a
decrease in Active Representatives.
- The increase in adjusted Non-GAAP operating margin was due to
lower net brochure costs and improved bad debt and distribution
expenses. This was partially offset by a decline in gross margin,
primarily due to the unfavorable net impact of pricing and mix
partially due to a planned initiative to flow excess inventory,
primarily in Brazil. Foreign
exchange and higher investments in Representative Value
Proposition² ("RVP") also negatively impacted operating
margin.
Europe,
Middle East & Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
Fourth-Quarter 2012
|
|
FY
2012
|
|
|
|
|
|
|
% var.
vs
4Q11
|
|
|
|
% var.
vs
12M11
|
Total revenue
|
|
|
|
$
905.8
|
|
1%
|
|
$2,914.2
|
|
(7)%
|
C$
|
|
|
|
|
|
2%
|
|
|
|
(1)%
|
Active
Representatives
|
|
|
|
|
|
1%
|
|
|
|
-%
|
Units
sold
|
|
|
|
|
|
5%
|
|
|
|
-%
|
Operating
profit
|
|
|
|
131.4
|
|
(4)%
|
|
312.8
|
|
(35)%
|
Adjusted
Non-GAAP operating profit
|
|
|
|
131.5
|
|
(5)%
|
|
324.6
|
|
(33)%
|
Operating
margin
|
|
|
|
14.5%
|
|
(80)
bps
|
|
10.7%
|
|
(460)
bps
|
Adjusted
Non-GAAP operating margin
|
|
|
|
14.5%
|
|
(100)
bps
|
|
11.1%
|
|
(440)
bps
|
|
|
|
Note: Effective in the second quarter of 2012, the results of
Central and Eastern Europe and
Western Europe, Middle East & Africa were managed as a single operating
segment. Accordingly, Europe,
Middle East & Africa amounts include the results of Central
and Eastern Europe and
Western Europe, Middle East & Africa for all periods
presented.
- Fourth-quarter constant-dollar revenue increased primarily due
to an increase in Active Representatives and unit growth.
- Revenue in Russia was up 3% in
both reported and constant dollars, primarily due to higher average
order and an increase in Active Representatives.
- Revenue in the U.K. was flat, or down 2% in constant dollars,
primarily due to a decrease in Active Representatives, partially
offset by higher average order.
- Revenue in Turkey was up 1%,
or down 1% in constant dollars, primarily due to lower average
order, partially offset by growth in Active Representatives.
- Revenue in South Africa was
flat, or up 8% in constant dollars, primarily due to growth in
average order, partially offset by a decrease in Active
Representatives.
- The decline in adjusted Non-GAAP operating margin was due to
lower gross margin, caused by the unfavorable impact of pricing and
mix due to planned investments in unit-driving offers across all
price tiers. This decline was also partially offset by improved bad
debt expense and lower net brochure costs, primarily in
Russia.
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
Fourth-Quarter 2012
|
|
FY
2012
|
|
|
|
|
|
|
% var.
vs
4Q11
|
|
|
|
% var.
vs
12M11
|
Total
revenue
|
|
|
|
$516.2
|
|
(12)%
|
|
$1,906.8
|
|
(8)%
|
C$
|
|
|
|
|
|
(12)%
|
|
|
|
(8)%
|
Active
Representatives
|
|
|
|
|
|
(13)%
|
|
|
|
(12)%
|
Units
sold
|
|
|
|
|
|
(11)%
|
|
|
|
(6)%
|
Operating
loss
|
|
|
|
(201.4)
|
|
17%
|
|
(214.9)
|
|
(14)%
|
Adjusted
Non-GAAP operating profit
|
|
|
|
26.6
|
|
25%
|
|
24.6
|
|
(75)%
|
Operating
margin
|
|
|
|
(39.0)%
|
|
230
bps
|
|
(11.3)%
|
|
(220)
bps
|
Adjusted
Non-GAAP operating margin
|
|
|
|
5.2%
|
|
160
bps
|
|
1.3%
|
|
(350)
bps
|
|
|
|
Note: Effective in the second quarter of 2012, the
Dominican Republic was included in
Latin America, whereas in prior
periods it had been included in North
America. The impact was not material to either segment.
Accordingly, North America amounts
exclude the results of the Dominican
Republic for all periods presented.
- Fourth-quarter North America
revenue declined 12%, primarily due to a decrease in Active
Representatives.
- The North America Avon business revenue declined 11%, primarily
due to a decrease in Active Representatives, partially offset by
higher average order.
- Silpada revenue declined 18%, primarily due to a decline in
average order as well as a decrease in Active Representatives.
- The increase in adjusted Non-GAAP operating margin was due to
lower overhead expenses, which include compensation costs, and
lower advertising costs, which were partially offset by increased
investments in RVP primarily related to the One Simple Sales Model
implementation. The increase in operating margin was also impacted
by higher gross margin at Silpada, which was partially due to the
decrease in silver prices and favorable net impact of pricing and
mix.
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
Fourth-Quarter 2012
|
|
FY
2012
|
|
|
|
|
|
|
% var.
vs
4Q11
|
|
|
|
% var.
vs
12M11
|
Total
revenue
|
|
|
|
$
246.6
|
|
(3)%
|
|
$902.4
|
|
(4)%
|
C$
|
|
|
|
|
|
(6)%
|
|
|
|
(5)%
|
Active
Representatives
|
|
|
|
|
|
(8)%
|
|
|
|
(9)%
|
Units
sold
|
|
|
|
|
|
(9)%
|
|
|
|
(7)%
|
Operating
profit
|
|
|
|
8.8
|
|
(64)%
|
|
5.1
|
|
(94)%
|
Adjusted
Non-GAAP operating profit
|
|
|
|
21.8
|
|
(11)%
|
|
67.3
|
|
(17)%
|
Operating
margin
|
|
|
|
3.6%
|
|
(590)
bps
|
|
0.6%
|
|
(800)
bps
|
Adjusted
Non-GAAP operating margin
|
|
|
|
8.8%
|
|
(80)
bps
|
|
7.5%
|
|
(110)
bps
|
|
|
|
- Fourth-quarter constant-dollar revenue decreased primarily due
to continued weakness in China.
- Revenue in China declined 23%,
or 24% in constant dollars, primarily as a result of a decline in
units sold. We continue to focus on independently owned
retail locations (Beauty Boutiques).
- Revenue in the Philippines
grew 7%, or 2% in constant dollars, primarily due to growth in
Active Representatives and higher average order, due to an increase
in Fashion and Home sales.
- The region's adjusted Non-GAAP operating margin decline was
largely driven by lower gross margin, which was caused primarily by
the unfavorable net impact of pricing and mix, primarily due to the
flow of excess inventory as well as the negative impact of foreign
exchange. Sales deleverage was also a factor. Partially offsetting
these items was lower investment in RVP, primarily in China.
Global
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
Fourth-Quarter 2012
|
|
FY
2012
|
|
|
|
|
|
|
% var.
vs
4Q11
|
|
|
|
% var.
vs
12M11
|
Total
global expenses
|
|
|
|
$
191.1
|
|
13%
|
|
$
706.3
|
|
8%
|
Allocated
to segments
|
|
|
|
(127.0)
|
|
(5)%
|
|
(474.2)
|
|
(5)%
|
Net global
expenses
|
|
|
|
64.1
|
|
83%
|
|
232.1
|
|
53%
|
Adjusted
Non-GAAP net global expenses
|
|
|
|
46.3
|
|
34%
|
|
187.5
|
|
30%
|
|
|
|
Avon will conduct a conference
call at 9:00 A.M. today to discuss
the quarterly results. The dial-in number for the call is (800)
843-2086 in the U.S. or (706) 643-1815 from non-U.S. locations
(conference ID number: 89451727). The call will be webcast live at
www.avoninvestor.com and can be accessed or downloaded from
that site for a period of one year.
Avon, the company for women, is
a leading global beauty company, with nearly $11 billion in annual revenue. As the world's
largest direct seller, Avon is
sold through more than 6 million active independent Avon Sales
Representatives. Avon products are
available in over 100 countries, and the product line includes
color cosmetics, skincare, fragrance, fashion and home products,
featuring such well-recognized brand names as Avon Color, ANEW,
Skin-So-Soft, Advance Techniques, and mark. Learn more about
Avon and its products at
www.avoncompany.com.
Footnotes
1 "Adjusted" items refer to financial results
presented in accordance with U.S. GAAP that have been adjusted to
exclude certain costs as described below, under "Non-GAAP Financial
Measures."
2 "RVP" - In the first quarter of 2012, we revised
the definition of Representative Value Proposition to represent the
expenses of activities directly associated with Representatives and
independent leaders including the cost of incentives and sales aids
(net of any fees charged). RVP no longer includes strategic
investments such as the Service Model Transformation and Web
enablement, and it no longer adjusts for the impact of volume.
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
generally accepted accounting principles in the United States ("GAAP"), we disclose
operating results that have been adjusted to exclude the impact of
changes due to the translation of foreign currencies into U.S.
dollars, including revenue growth, operating profit, adjusted
Non-GAAP operating profit, operating margin, and adjusted Non-GAAP
operating margin. We refer to these adjusted financial measures as
Constant $ items, which are Non-GAAP financial measures. We believe
these measures provide investors an additional perspective on
trends. To exclude the impact of changes due to the
translation of foreign currencies into U.S. dollars, we calculate
current year results and prior year results at a constant exchange
rate. Currency impact is determined as the difference between
actual growth rates and constant currency growth rates.
We also present gross margin, selling, general and
administrative expenses as a percentage of revenue, net global
expenses, operating profit, operating margin, income from
continuing operations, earnings per share from continuing
operations and effective tax rate on a Non-GAAP basis. The
discussion of our segments presents operating profit and operating
margin on a Non-GAAP basis. We have provided a quantitative
reconciliation of the difference between the Non-GAAP financial
measure and the financial measure calculated and reported in
accordance with GAAP. The Company uses the Non-GAAP
financial measures to evaluate its operating performance and
believes that it is meaningful for investors to be made aware of,
on a period-to-period basis, the impacts of 1) costs to implement
("CTI") restructuring initiatives, 2) the goodwill and intangible
assets charges related to Silpada and the goodwill charge related
to China (each an "Impairment
charge," and collectively, "Impairment charges"), 3) the benefit
related to the release of a provision associated with the excess
cost of acquiring U.S. dollars in Venezuela ("Venezuelan special items"), and 4)
the additional provision for income taxes as we are no longer
assessing that the undistributed earnings of certain foreign
subsidiaries are indefinitely reinvested ("Special
tax items"). The Company believes investors find the Non-GAAP
information helpful in understanding the ongoing performance of
operations separate from items that may have a disproportionate
positive or negative impact on the Company's financial results in
any particular period.
The Impairment charges include the impact on the Statement of
Income caused by the goodwill and intangible assets impairment
charges related to Silpada in 2012 and 2011 and the goodwill
impairment charge related to China
in 2012. The Venezuelan special items include the impact on the
Statement of Income caused by the release of a provision associated
with the excess cost of acquiring U.S. dollars in Venezuela at the regulated market rate as
compared to the official exchange rate. The Special
tax items include the impact on the Statement of Income in
2012 caused by an additional provision for income taxes as we are
no longer assessing that the undistributed earnings of certain
foreign subsidiaries are indefinitely reinvested. During the fourth
quarter of 2012, we determined that the Company may repatriate
offshore cash to meet certain domestic funding needs.
These Non-GAAP measures should not be considered in isolation,
or as a substitute for, or superior to, financial measures
calculated in accordance with GAAP.
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR"
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
Statements in this release that are not historical facts or
information may be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as
"plan," "planned," "may," "will," "expect," "anticipate,"
"estimate," "would," "potential" and similar expressions, or
the negative of those expressions, may identify forward-looking
statements. Such forward-looking statements are based on
management's reasonable current assumptions and expectations
regarding the Company's current or future results and future
business and economic conditions more generally. Such
forward-looking statements involve risks, uncertainties and other
factors, which may cause the actual results, levels of activity,
performance or achievement of Avon
to be materially different from any future results expressed or
implied by such forward-looking statements, and there can be no
assurance that actual results will not differ materially from
management's expectations. Such factors include, among others, the
following:
- our ability to implement the key initiatives of, and realize
the gross and operating margins and projected benefits (in the
amounts and time schedules we expect, and including any financial
projections concerning, for example, future revenue, profit, cash
flow and operating margin increases) from, our stabilization
strategies, cost savings initiative, multi-year restructuring
programs and other initiatives, product mix and pricing strategies,
Enterprise Resource Planning, customer service initiatives, sales
and operation planning process, outsourcing strategies, Internet
platform and technology strategies, information technology and
related system enhancements and cash management, tax, foreign
currency hedging and risk management strategies, and any plans to
invest these projected benefits ahead of future growth;
- the possibility of business disruption in connection with our
stabilization strategies, cost savings initiative, multi-year
restructuring programs or other initiatives;
- our ability to reverse declining margins and net income;
- our substantial indebtedness and debt service obligations, our
ability to access and generate cash to repay debt and cover debt
service obligations, our access to short- and long-term
financing, our ability to refinance upcoming maturities of our
current indebtedness or to secure such refinancing at attractive
rates and terms, our ability to secure other financing or to secure
such other financing at attractive rates and terms, and our credit
ratings and the impact of any changes on our financing costs and
debt service obligations and access to lending sources;
- our ability to realize sustainable growth from our investments
in our brand and the direct-selling channel;
- our ability to improve our business in North America, including enhancing our
Leadership model;
- a general economic downturn, a recession globally or in one or
more of our geographic regions, or sudden disruption in business
conditions, and the ability of our broad-based geographic portfolio
to withstand an economic downturn, recession, cost inflation,
commodity cost pressures, economic or political instability,
competitive or other market pressures or conditions;
- the effect of political, legal, tax and regulatory risks
imposed on us in the United States
("U.S.") and abroad, our operations or our Representatives,
including foreign exchange or other restrictions, adoption,
interpretation and enforcement of foreign laws, including in
non-U.S. jurisdictions such as Brazil, Russia, Venezuela and Argentina, and any changes thereto, as well as
reviews and investigations by government regulators that have
occurred or may occur from time to time, including, for example,
local regulatory scrutiny in China;
- our ability to improve working capital and effectively manage
doubtful accounts and inventory and implement initiatives to reduce
inventory levels, including the potential impact on cash flows and
obsolescence;
- our ability to achieve growth objectives, particularly in our
largest markets, such as Brazil
and the U.S., and developing and emerging markets, such as
Mexico or Russia;
- our ability to successfully identify new business opportunities
and strategic alternatives and identify and analyze acquisition
candidates, secure financing on favorable terms and negotiate and
consummate acquisitions, as well as to successfully integrate or
manage any acquired business;
- the challenges to our businesses, such as Silpada and
China, including the effects of
rising costs, macro-economic pressures, competition, any potential
strategic decisions, including the review of strategic alternatives
for Silpada, and the impact of declines in expected future cash
flows and growth rates, and a change in the discount rate used to
determine the fair value of expected future cash flows, which have
impacted, and may continue to impact, the estimated fair value of
the recorded goodwill and intangible assets;
- the effect of economic factors, including inflation and
fluctuations in interest rates and currency exchange rates, as well
as the designation of Venezuela as
a highly inflationary economy, foreign exchange restrictions and
the potential effect of such factors on our business, results of
operations and financial condition;
- general economic and business conditions in our markets,
including social, economic and political uncertainties in the
international markets in our portfolio;
- any developments in or consequences of investigations and
compliance reviews, and any litigation related thereto, including
the ongoing investigations and compliance reviews of Foreign
Corrupt Practices Act and related U.S. and foreign law matters in
China and additional countries, as
well as any disruption or adverse consequences resulting from such
investigations, reviews, related actions or litigation;
- key information technology systems, process or site outages and
disruptions;
- disruption in our supply chain or manufacturing and
distribution operations;
- other sudden disruption in business operations beyond our
control as a result of events such as acts of terrorism or war,
natural disasters, pandemic situations, large-scale power outages
and similar events;
- the risk of product or ingredient shortages resulting from our
concentration of sourcing in fewer suppliers;
- the quality, safety and efficacy of our products;
- the success of our research and development activities;
- our ability to attract and retain key personnel;
- competitive uncertainties in our markets, including competition
from companies in the cosmetics, fragrances, skincare and
toiletries industry, some of which are larger than we are and have
greater resources;
- our ability to reverse declines in Active Representatives, to
implement our Leadership program globally, to generate
Representative activity, to increase the number of consumers served
per Representative and their engagement online, to enhance the
Representative and consumer experience and increase Representative
productivity through field activation programs and technology tools
and enablers, execution of Service Model Transformation and other
investments in the direct-selling channel, and to compete with
other direct-selling organizations to recruit, retain and service
Representatives and to continue to innovate the direct-selling
model;
- the impact of the typically seasonal nature of our business,
adverse effect of rising energy, commodity and raw material prices,
changes in market trends, purchasing habits of our consumers and
changes in consumer preferences, particularly given the global
nature of our business and the conduct of our business in primarily
one channel;
- our ability to protect our intellectual property rights;
- the risk of an adverse outcome in any material pending and
future litigations or with respect to the legal status of
Representatives;
- our ability to comply with certain covenants in our debt
instruments, including the impact of any significant non-cash
impairments, significant currency devaluations, or significant
legal or regulatory settlements, or obtain necessary waivers from
compliance with, or necessary amendments to, such covenants, and
the impact any non-compliance may have on our ability to secure
financing;
- the impact of possible pension funding obligations, increased
pension expense and any changes in pension regulations or
interpretations thereof on our cash flow and results of operations;
and
- the impact of changes in tax rates on the value of our deferred
tax assets and declining earnings on our ability to realize foreign
tax credits in the U.S.
Additional information identifying such factors is contained in
Item 1A of our Form 10-Q for the quarterly period ended
September 30, 2012 and our Form 10-K
for the year ended December 31, 2011. We undertake no
obligation to update any such forward-looking statements.
AVON
PRODUCTS, INC.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
(In
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Percent
|
|
Twelve
Months Ended
|
|
Percent
|
|
December 31
|
|
Change
|
|
December 31
|
|
Change
|
|
2012
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
2,955.7
|
|
$
|
2,997.9
|
|
(1)%
|
|
$
|
10,546.1
|
|
$
|
11,112.0
|
|
(5)%
|
Other
revenue
|
|
43.4
|
|
|
45.8
|
|
|
|
|
171.0
|
|
|
179.6
|
|
|
Total
revenue
|
|
2,999.1
|
|
|
3,043.7
|
|
(1)%
|
|
|
10,717.1
|
|
|
11,291.6
|
|
(5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
1,204.5
|
|
|
1,182.5
|
|
|
|
|
4,169.3
|
|
|
4,148.6
|
|
|
Selling,
general and administrative expenses
|
|
1,574.9
|
|
|
1,585.3
|
|
|
|
|
5,980.0
|
|
|
6,025.4
|
|
|
Impairment
of goodwill and intangible asset
|
|
209.0
|
|
|
263.0
|
|
|
|
|
253.0
|
|
|
263.0
|
|
|
Operating
profit
|
|
10.7
|
|
|
12.9
|
|
(17)%
|
|
|
314.8
|
|
|
854.6
|
|
(63)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
27.5
|
|
|
23.4
|
|
|
|
|
104.3
|
|
|
92.9
|
|
|
Interest
income
|
|
(4.6)
|
|
|
(3.2)
|
|
|
|
|
(15.1)
|
|
|
(16.5)
|
|
|
Other
(income) expense, net
|
|
(21.4)
|
|
|
10.0
|
|
|
|
|
7.0
|
|
|
35.6
|
|
|
Total
other expenses
|
|
1.5
|
|
|
30.2
|
|
|
|
|
96.2
|
|
|
112.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from continuing operations, before tax
|
|
9.2
|
|
|
(17.3)
|
|
(153)%
|
|
|
218.6
|
|
|
742.6
|
|
(71)%
|
Income
taxes
|
|
(170.3)
|
|
|
17.6
|
|
|
|
|
(256.8)
|
|
|
(216.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from continuing operations, net of tax
|
|
(161.1)
|
|
|
0.3
|
|
*
|
|
|
(38.2)
|
|
|
526.4
|
|
(107)%
|
Discontinued operations, net of tax
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(8.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income
|
|
(161.1)
|
|
|
0.3
|
|
|
|
|
(38.2)
|
|
|
517.8
|
|
|
Net income
attributable to noncontrolling interests
|
|
(1.1)
|
|
|
(0.7)
|
|
|
|
|
(4.3)
|
|
|
(4.2)
|
|
|
Net
(loss) income attributable to Avon
|
$
|
(162.2)
|
|
$
|
(0.4)
|
|
*
|
|
$
|
(42.5)
|
|
$
|
513.6
|
|
(108)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
earnings per share:(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
from continuing operations
|
$
|
(.37)
|
|
$
|
-
|
|
*
|
|
$
|
(.10)
|
|
$
|
1.20
|
|
(108)%
|
Basic EPS
from discontinued operations
|
$
|
-
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
(.02)
|
|
|
Basic EPS
attributable to Avon
|
$
|
(.37)
|
|
$
|
-
|
|
*
|
|
$
|
(.10)
|
|
$
|
1.18
|
|
(108)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS from continuing operations
|
$
|
(.37)
|
|
$
|
-
|
|
*
|
|
$
|
(.10)
|
|
$
|
1.20
|
|
(108)%
|
Diluted
EPS from discontinued operations
|
$
|
-
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
(.02)
|
|
|
Diluted
EPS attributable to Avon
|
$
|
(.37)
|
|
$
|
-
|
|
*
|
|
$
|
(.10)
|
|
$
|
1.18
|
|
(108)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
432.1
|
|
|
430.9
|
|
|
|
|
431.9
|
|
|
430.5
|
|
|
Diluted
|
|
432.1
|
|
|
431.8
|
|
|
|
|
431.9
|
|
|
432.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Calculation not meaningful
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Under the
two-class method, (loss) earnings per share is calculated using net
(loss) earnings allocable to common shares, which is derived by
reducing net (loss) earnings by the (loss) earnings allocable to
participating securities. Net (loss) earnings allocable to common
shares used in the basic and diluted (loss) earnings per share
calculation were ($159.2) and ($0.1) for the three months ended
December 31, 2012 and 2011, respectively. Net (loss) earnings
allocable to common shares used in the basic and diluted (loss)
earnings per share calculation were ($42.2) and $508.1 for the
twelve months ended December 31, 2012 and 2011,
respectively.
|
AVON
PRODUCTS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
December 31
|
|
December 31
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
1,209.6
|
|
$
|
1,245.1
|
Accounts
receivable, net
|
|
|
751.9
|
|
|
761.5
|
Inventories
|
|
|
1,135.4
|
|
|
1,161.3
|
Prepaid
expenses and other
|
|
|
832.0
|
|
|
930.9
|
Total
current assets
|
|
|
3,928.9
|
|
|
4,098.8
|
|
|
|
|
|
|
|
Property,
plant and equipment, at cost
|
|
|
2,711.8
|
|
|
2,708.8
|
Less
accumulated depreciation
|
|
|
(1,161.6)
|
|
|
(1,137.3)
|
Property,
plant and equipment, net
|
|
|
1,550.2
|
|
|
1,571.5
|
|
|
|
|
|
|
|
Goodwill
|
|
|
374.9
|
|
|
473.1
|
Other
intangible assets, net
|
|
|
120.3
|
|
|
279.9
|
Other
assets
|
|
|
1,408.2
|
|
|
1,311.7
|
Total
assets
|
|
$
|
7,382.5
|
|
$
|
7,735.0
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Debt
maturing within one year
|
|
$
|
572.0
|
|
$
|
849.3
|
Accounts
payable
|
|
|
920.0
|
|
|
850.2
|
Accrued
compensation
|
|
|
266.6
|
|
|
217.1
|
Other
accrued liabilities
|
|
|
661.0
|
|
|
663.6
|
Sales and
taxes other than income
|
|
|
211.4
|
|
|
212.4
|
Income
taxes
|
|
|
73.6
|
|
|
98.4
|
Total
current liabilities
|
|
|
2,704.6
|
|
|
2,891.0
|
Long-term
debt
|
|
|
2,623.9
|
|
|
2,459.1
|
Employee
benefit plans
|
|
|
637.6
|
|
|
603.0
|
Long-term
income taxes
|
|
|
52.0
|
|
|
67.0
|
Other
liabilities
|
|
|
131.1
|
|
|
129.7
|
Total
liabilities
|
|
$
|
6,149.2
|
|
$
|
6,149.8
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
Common
stock
|
|
$
|
188.3
|
|
$
|
187.3
|
Additional
paid-in-capital
|
|
|
2,119.6
|
|
|
2,077.7
|
Retained
earnings
|
|
|
4,357.8
|
|
|
4,726.1
|
Accumulated other comprehensive loss
|
|
|
(876.7)
|
|
|
(854.4)
|
Treasury
stock, at cost
|
|
|
(4,571.9)
|
|
|
(4,566.3)
|
Total Avon
shareholders' equity
|
|
|
1,217.1
|
|
|
1,570.4
|
Noncontrolling interests
|
|
|
16.2
|
|
|
14.8
|
Total
shareholders' equity
|
|
$
|
1,233.3
|
|
$
|
1,585.2
|
Total
liabilities and shareholders' equity
|
$
|
7,382.5
|
|
$
|
7,735.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
Twelve
Months Ended
|
|
December 31
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Cash
Flows from Operating Activities
|
|
|
|
|
|
(Loss)
income from continuing operations, net of tax
|
$
|
(38.2)
|
|
$
|
526.4
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
229.6
|
|
|
239.6
|
Provision
for doubtful accounts
|
|
251.1
|
|
|
247.2
|
Provision
for obsolescence
|
|
122.1
|
|
|
128.1
|
Share-based compensation
|
|
41.1
|
|
|
36.6
|
Deferred
income taxes
|
|
(49.2)
|
|
|
(196.6)
|
Impairment
of goodwill and intangible asset
|
|
253.0
|
|
|
263.0
|
Other
|
|
35.5
|
|
|
52.7
|
|
|
|
|
|
|
Changes in
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
(241.1)
|
|
|
(241.5)
|
Inventories
|
|
(89.7)
|
|
|
(210.3)
|
Prepaid
expenses and other
|
|
58.5
|
|
|
24.6
|
Accounts
payable and accrued liabilities
|
|
84.5
|
|
|
(55.7)
|
Income and
other taxes
|
|
(28.7)
|
|
|
(50.7)
|
Noncurrent
assets and liabilities
|
|
(72.4)
|
|
|
(107.6)
|
Net
cash provided by operating activities of continuing
operations
|
|
556.1
|
|
|
655.8
|
|
|
|
|
|
|
Cash
Flows from Investing Activities
|
|
|
|
|
|
Capital
expenditures
|
|
(228.8)
|
|
|
(276.7)
|
Disposal
of assets
|
|
15.4
|
|
|
17.1
|
Purchases
of investments
|
|
(1.5)
|
|
|
(28.8)
|
Proceeds
from sale of investments
|
|
1.2
|
|
|
33.7
|
Acquisitions and other investing
activities
|
|
-
|
|
|
(13.0)
|
Net
cash used by investing activities of continuing
operations
|
|
(213.7)
|
|
|
(267.7)
|
|
|
|
|
|
|
Cash
Flows from Financing Activities
|
|
|
|
|
|
Cash
dividends
|
|
(329.3)
|
|
|
(403.4)
|
Debt, net
(maturities of three months or less)
|
|
(710.5)
|
|
|
635.7
|
Proceeds
from debt
|
|
735.8
|
|
|
88.9
|
Repayment
of debt
|
|
(138.3)
|
|
|
(614.6)
|
Interest
rate swap termination
|
|
43.6
|
|
|
-
|
Proceeds
from exercise of stock options
|
|
8.6
|
|
|
16.8
|
Excess tax
benefit realized from share-based compensation
|
|
(2.4)
|
|
|
(0.2)
|
Repurchase
of common stock
|
|
(8.8)
|
|
|
(7.7)
|
Net
cash used by financing activities of continuing
operations
|
|
(401.3)
|
|
|
(284.5)
|
|
|
|
|
|
|
Net
cash used by investing activities of discontinued
operations
|
|
-
|
|
|
(1.2)
|
Net
cash used by discontinued operations
|
|
-
|
|
|
(1.2)
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and equivalents
|
|
23.4
|
|
|
(37.2)
|
Net
change in cash and equivalents
|
|
(35.5)
|
|
|
65.2
|
Cash and
equivalents at beginning of year
|
$
|
1,245.1
|
|
$
|
1,179.9
|
Cash and
equivalents at end of period
|
$
|
1,209.6
|
|
$
|
1,245.1
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS ENDED 12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGIONAL RESULTS
|
$ in Millions
|
Total
Revenue US$
|
|
C$
|
|
Units
Sold
|
|
Price/Mix C$
|
|
Active Reps (1)
|
|
Average
Order C$ (1)
|
|
|
|
|
% var. vs 4Q11
|
|
% var.
vs 4Q11
|
|
% var.
vs 4Q11
|
|
% var.
vs 4Q11
|
|
% var.
vs 4Q11
|
|
% var.
vs 4Q11
|
Latin
America
|
$
|
1,330.5
|
2%
|
|
7%
|
|
|
6%
|
|
|
1%
|
|
6%
|
|
1%
|
Europe,
Middle East & Africa
|
|
905.8
|
1
|
|
2
|
|
|
5
|
|
|
(3)
|
|
1
|
|
1
|
North
America
|
|
516.2
|
(12)
|
|
(12)
|
|
|
(11)
|
|
|
(1)
|
|
(13)
|
|
1
|
Asia
Pacific (1)
|
|
246.6
|
(3)
|
|
(6)
|
|
|
(9)
|
|
|
3
|
|
(8)
|
|
2
|
Total from
operations
|
|
2,999.1
|
(1)
|
|
1
|
|
|
2
|
|
|
(1)
|
|
1
|
|
-
|
Global and
other
|
|
-
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
Total
|
$
|
2,999.1
|
(1)%
|
|
1%
|
|
|
2%
|
|
|
(1)%
|
|
1%
|
|
-%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
GAAP
Operating
Profit (Loss) US$
|
% var.
vs 4Q11
|
|
2012 GAAP
Operating
Margin US$
|
|
2012
Non-GAAP
Operating
Profit US$ (2)
|
|
2011
Non-GAAP
Operating
Profit US$ (2)
|
|
2012
Non-GAAP
Operating
Margin (2)
|
|
2011
Non-GAAP
Operating
Margin (2)
|
Latin
America
|
$
|
136.0
|
6%
|
|
10.2%
|
|
$
|
143.7
|
|
$
|
134.8
|
|
10.8%
|
|
10.3%
|
Europe,
Middle East & Africa
|
|
131.4
|
(4)
|
|
14.5
|
|
|
131.5
|
|
|
138.7
|
|
14.5
|
|
15.5
|
North
America
|
|
(201.4)
|
17
|
|
(39.0)
|
|
|
26.6
|
|
|
21.3
|
|
5.2
|
|
3.6
|
Asia
Pacific
|
|
8.8
|
(64)
|
|
3.6
|
|
|
21.8
|
|
|
24.4
|
|
8.8
|
|
9.6
|
Total from
operations
|
|
74.8
|
57
|
|
2.5
|
|
|
323.6
|
|
|
319.2
|
|
10.8
|
|
10.5
|
Global and
other
|
|
(64.1)
|
(83)
|
|
-
|
|
|
(46.3)
|
|
|
(34.6)
|
|
-
|
|
-
|
Total
|
$
|
10.7
|
(17)%
|
|
0.4%
|
|
$
|
277.3
|
|
$
|
284.6
|
|
9.2%
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CATEGORY SALES (US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
|
C$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% var.
vs 4Q11
|
|
% var.
vs 4Q11
|
Beauty
(color cosmetics/fragrances/skincare/personal care)
|
|
|
|
|
|
$
|
2,109.2
|
|
(2)%
|
|
1%
|
Fashion
(jewelry/watches/apparel/footwear/accessories/children's)
|
|
|
|
|
|
538.3
|
|
(1)
|
|
-
|
Home (gift
& decorative products/housewares/entertainment &
leisure/children's/nutrition)
|
|
|
308.2
|
|
-
|
|
2
|
Net
sales
|
|
|
|
|
|
|
|
|
|
$
|
2,955.7
|
|
(1)%
|
|
1%
|
Other
revenue
|
|
|
|
|
|
|
|
|
|
|
43.4
|
|
(5)
|
|
(6)
|
Total
revenue
|
|
|
|
|
|
|
|
|
|
$
|
2,999.1
|
|
(1)%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beauty
Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fragrance
|
|
|
|
|
|
|
|
|
|
|
|
|
-%
|
|
2%
|
|
Color
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
2
|
|
Skincare
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
(2)
|
|
Personal
care
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
1
|
|
|
|
|
|
(1)
|
Asia
Pacific's decline in Active Representatives and increase in average
order are impacted by the transition to a retail compensation model
in
China. Due to this transition, the Active Representatives and
average order performance metrics are not a relevant indicator of
the underlying
business trends.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
For a
further discussion on our Non-GAAP financial measures, please refer
to our discussion of Non-GAAP financial measures in this
release
and reconciliations of our Non-GAAP financial measures to the
related GAAP financial measure in the following supplemental
schedules.
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE
MONTHS ENDED 12/31/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGIONAL RESULTS
|
|
$ in
Millions
|
Total
Revenue US$
|
|
C$
|
|
Units
Sold
|
|
Price/Mix C$
|
|
Active Reps (1)
|
|
Average
Order C$ (1)
|
|
|
|
|
% var. vs 12M11
|
|
% var.
vs 12M11
|
|
% var.
vs 12M11
|
|
% var.
vs 12M11
|
|
% var.
vs 12M11
|
|
% var.
vs 12M11
|
Latin
America
|
$
|
4,993.7
|
(3)%
|
|
5%
|
|
|
2%
|
|
|
3%
|
|
3%
|
|
2%
|
Europe,
Middle East & Africa
|
|
2,914.2
|
(7)
|
|
(1)
|
|
|
-
|
|
|
(1)
|
|
-
|
|
(1)
|
North
America
|
|
1,906.8
|
(8)
|
|
(8)
|
|
|
(6)
|
|
|
(2)
|
|
(12)
|
|
4
|
Asia
Pacific (1)
|
|
902.4
|
(4)
|
|
(5)
|
|
|
(7)
|
|
|
2
|
|
(9)
|
|
4
|
Total from
operations
|
|
10,717.1
|
(5)
|
|
-
|
|
|
-
|
|
|
-
|
|
(1)
|
|
1
|
Global and
other
|
|
-
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
-
|
Total
|
$
|
10,717.1
|
(5)%
|
|
-%
|
|
|
-%
|
|
|
-%
|
|
(1)%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
GAAP
Operating
Profit (Loss) US$
|
% var.
vs 12M11
|
|
2012 GAAP Operating
Margin US$
|
|
2012
Non-GAAP
Operating
Profit US$ (2)
|
|
2011
Non-GAAP
Operating
Profit US$ (2)
|
|
2012
Non-GAAP
Operating
Margin (2)
|
|
2011
Non-GAAP
Operating
Margin (2)
|
Latin
America
|
$
|
443.9
|
(30)%
|
|
8.9%
|
|
$
|
463.5
|
|
$
|
637.1
|
|
9.3%
|
|
12.3%
|
Europe,
Middle East & Africa
|
|
312.8
|
(35)
|
|
10.7
|
|
|
324.6
|
|
|
484.2
|
|
11.1
|
|
15.5
|
North
America
|
|
(214.9)
|
(14)
|
|
(11.3)
|
|
|
24.6
|
|
|
99.7
|
|
1.3
|
|
4.8
|
Asia
Pacific
|
|
5.1
|
(94)
|
|
0.6
|
|
|
67.3
|
|
|
81.1
|
|
7.5
|
|
8.6
|
Total from
operations
|
|
546.9
|
(46)
|
|
5.1
|
|
|
880.0
|
|
|
1,302.1
|
|
8.2
|
|
11.5
|
Global and
other
|
|
(232.1)
|
(53)
|
|
-
|
|
|
(187.5)
|
|
|
(144.5)
|
|
-
|
|
-
|
Total
|
$
|
314.8
|
(63)%
|
|
2.9%
|
|
$
|
692.5
|
|
$
|
1,157.6
|
|
6.5%
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CATEGORY SALES (US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
|
C$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% var.
vs 12M11
|
|
% var.
vs 12M11
|
Beauty
(color cosmetics/fragrances/skincare/personal care)
|
|
|
|
|
|
$
|
7,642.7
|
|
(5)%
|
|
1%
|
Fashion
(jewelry/watches/apparel/footwear/accessories/children's)
|
|
|
|
|
|
1,891.7
|
|
(5)
|
|
(2)
|
Home (gift
& decorative products/housewares/entertainment &
leisure/children's/nutrition)
|
|
|
1,011.7
|
|
(4)
|
|
2
|
Net
sales
|
|
|
|
|
|
|
|
|
|
$
|
10,546.1
|
|
(5)%
|
|
-%
|
Other
revenue
|
|
|
|
|
|
|
|
|
|
|
171.0
|
|
(5)
|
|
(3)
|
Total
revenue
|
|
|
|
|
|
|
|
|
|
$
|
10,717.1
|
|
(5)%
|
|
-%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beauty
Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fragrance
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)%
|
|
2%
|
|
Color
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
1
|
|
Skincare
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
(1)
|
|
Personal
care
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Asia
Pacific's decline in Active Representatives and increase in average
order are impacted by the transition to a retail compensation model
in
China during the latter half of 2012. Due to this transition, the
Active Representative and average order performance metrics are not
a relevant
indicator of the underlying business trends.
|
|
|
(2)
|
For a
further discussion on our Non-GAAP financial measures, please refer
to our discussion of Non-GAAP financial measures in this
release
and reconciliations of our non-GAAP financial measures to the
related GAAP financial measure in the following supplemental
schedules.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This
supplemental schedule provides adjusted Non-GAAP financial
information and a quantitative reconciliation
of the difference between the Non-GAAP financial
measure and the financial measure calculated and reported in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
Millions (except per share data)
|
|
THREE
MONTHS ENDED 12/31/12
|
|
|
|
|
|
CTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
restructuring
|
|
Impairment
|
|
Venezuelan
|
|
Special
|
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
initiatives
|
|
charge
|
|
special
items
|
|
tax
items
|
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
$
|
1,204.5
|
|
$
|
1.3
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,203.2
|
Selling,
general and administrative expenses
|
|
1,574.9
|
|
|
56.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,518.6
|
Operating
profit
|
|
|
|
10.7
|
|
|
57.6
|
|
|
209.0
|
|
|
-
|
|
|
-
|
|
|
277.3
|
Income
from continuing operations before taxes
|
|
9.2
|
|
|
57.6
|
|
|
209.0
|
|
|
(23.8)
|
|
|
-
|
|
|
252.0
|
Income
taxes
|
|
|
|
(170.3)
|
|
|
(19.9)
|
|
|
(76.7)
|
|
|
8.1
|
|
|
168.3
|
|
|
(90.5)
|
(Loss)
income from continuing operations
|
$
|
(161.1)
|
|
$
|
37.7
|
|
$
|
132.3
|
|
$
|
(15.7)
|
|
$
|
168.3
|
|
$
|
161.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS from continuing operations
|
|
(0.37)
|
|
|
0.09
|
|
|
0.31
|
|
|
(0.03)
|
|
|
0.39
|
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
59.8%
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
59.9%
|
SG&A
as a % of revenues
|
|
|
52.5%
|
|
|
(1.9)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
50.6%
|
Operating
margin
|
|
0.4%
|
|
|
1.9
|
|
|
7.0
|
|
|
-
|
|
|
-
|
|
|
9.2%
|
Effective
tax rate
|
|
|
|
1845.3%
|
|
|
(0.4)
|
|
|
14.1
|
|
|
0.3
|
|
|
(1823.3)
|
|
|
35.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
136.0
|
|
$
|
7.7
|
|
$
|
-
|
|
|
|
|
|
|
|
$
|
143.7
|
Europe,
Middle East & Africa
|
|
|
131.4
|
|
|
0.1
|
|
|
-
|
|
|
|
|
|
|
|
|
131.5
|
North
America
|
|
(201.4)
|
|
|
19.0
|
|
|
209.0
|
|
|
|
|
|
|
|
|
26.6
|
Asia
Pacific
|
|
8.8
|
|
|
13.0
|
|
|
-
|
|
|
|
|
|
|
|
|
21.8
|
Global and
other
|
|
(64.1)
|
|
|
17.8
|
|
|
-
|
|
|
|
|
|
|
|
|
(46.3)
|
Total
|
|
|
$
|
10.7
|
|
$
|
57.6
|
|
$
|
209.0
|
|
|
|
|
|
|
|
$
|
277.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
10.2%
|
|
|
0.6
|
|
|
-
|
|
|
|
|
|
|
|
|
10.8%
|
Europe,
Middle East & Africa
|
|
|
14.5%
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
14.5%
|
North
America
|
|
(39.0)%
|
|
|
3.7
|
|
|
40.5
|
|
|
|
|
|
|
|
|
5.2%
|
Asia
Pacific
|
|
3.6%
|
|
|
5.3
|
|
|
-
|
|
|
|
|
|
|
|
|
8.8%
|
Global and
other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
Total
|
|
|
|
0.4%
|
|
|
1.9
|
|
|
7.0
|
|
|
|
|
|
|
|
|
9.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in
the table above may not necessarily sum because the computations
are made independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This
supplemental schedule provides adjusted Non-GAAP financial
information and a quantitative reconciliation
of the difference between the Non-GAAP financial
measure and the financial measure calculated and reported in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
Millions (except per share data)
|
|
TWELVE
MONTHS ENDED 12/31/12
|
|
|
|
|
|
CTI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
|
|
restructuring
|
|
Impairment
|
|
Venezuelan
|
|
Special
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
initiatives
|
|
charges
|
|
special
items
|
|
tax
items
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
$
|
4,169.3
|
|
$
|
4.5
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4,164.8
|
Selling,
general and administrative expenses
|
|
5,980.0
|
|
|
120.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5,859.8
|
Operating
profit
|
|
|
|
314.8
|
|
|
124.7
|
|
|
253.0
|
|
|
-
|
|
|
-
|
|
|
692.5
|
Income
from continuing operations before taxes
|
|
218.6
|
|
|
124.7
|
|
|
253.0
|
|
|
(23.8)
|
|
|
-
|
|
|
572.5
|
Income
taxes
|
|
|
|
(256.8)
|
|
|
(42.0)
|
|
|
(76.7)
|
|
|
8.1
|
|
|
168.3
|
|
|
(199.1)
|
(Loss)
income from continuing operations
|
$
|
(38.2)
|
|
$
|
82.7
|
|
$
|
176.3
|
|
$
|
(15.7)
|
|
$
|
168.3
|
|
$
|
373.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS from continuing operations
|
|
(0.10)
|
|
|
0.19
|
|
|
0.40
|
|
|
(0.04)
|
|
|
0.39
|
|
|
0.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
61.1%
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
61.1%
|
SG&A
as a % of revenues
|
|
|
55.8%
|
|
|
(1.1)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
54.7%
|
Operating
margin
|
|
2.9%
|
|
|
1.2
|
|
|
2.4
|
|
|
-
|
|
|
-
|
|
|
6.5%
|
Effective
tax rate
|
|
|
|
117.5%
|
|
|
(0.3)
|
|
|
(5.5)
|
|
|
0.1
|
|
|
(77.0)
|
|
|
34.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
443.9
|
|
$
|
19.6
|
|
$
|
-
|
|
|
|
|
|
|
|
$
|
463.5
|
Europe,
Middle East & Africa
|
|
|
312.8
|
|
|
11.8
|
|
|
-
|
|
|
|
|
|
|
|
|
324.6
|
North
America
|
|
(214.9)
|
|
|
30.5
|
|
|
209.0
|
|
|
|
|
|
|
|
|
24.6
|
Asia
Pacific
|
|
5.1
|
|
|
18.2
|
|
|
44.0
|
|
|
|
|
|
|
|
|
67.3
|
Global and
other
|
|
(232.1)
|
|
|
44.6
|
|
|
-
|
|
|
|
|
|
|
|
|
(187.5)
|
Total
|
|
|
$
|
314.8
|
|
$
|
124.7
|
|
$
|
253.0
|
|
|
|
|
|
|
|
$
|
692.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
8.9%
|
|
|
0.4
|
|
|
-
|
|
|
|
|
|
|
|
|
9.3%
|
Europe,
Middle East & Africa
|
|
|
10.7%
|
|
|
0.4
|
|
|
-
|
|
|
|
|
|
|
|
|
11.1%
|
North
America
|
|
(11.3)%
|
|
|
1.6
|
|
|
11.0
|
|
|
|
|
|
|
|
|
1.3%
|
Asia
Pacific
|
|
0.6%
|
|
|
2.0
|
|
|
4.9
|
|
|
|
|
|
|
|
|
7.5%
|
Global and
other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
Total
|
|
|
|
2.9%
|
|
|
1.2
|
|
|
2.4
|
|
|
|
|
|
|
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in
the table above may not necessarily sum because the computations
are made independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This
supplemental schedule provides adjusted Non-GAAP financial
information and a quantitative reconciliation
of the difference between the Non-GAAP financial
measure and the financial measure calculated and reported
in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
Millions (except per share data)
|
|
THREE
MONTHS ENDED 12/31/11
|
|
|
|
|
|
CTI
|
|
|
|
|
|
|
|
|
Reported
|
|
restructuring
|
|
Impairment
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
initiatives
|
|
charge
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
$
|
1,182.5
|
|
$
|
3.0
|
|
$
|
-
|
|
$
|
1,179.5
|
Selling,
general and administrative expenses
|
|
1,585.3
|
|
|
5.7
|
|
|
-
|
|
|
1,579.6
|
Operating
profit
|
|
|
|
12.9
|
|
|
8.7
|
|
|
263.0
|
|
|
284.6
|
Income
from continuing operations before taxes
|
(17.3)
|
|
|
8.7
|
|
|
263.0
|
|
|
254.4
|
Income
taxes
|
|
|
|
17.6
|
|
|
(2.8)
|
|
|
(96.8)
|
|
|
(82.0)
|
Income
from continuing operations
|
|
$
|
0.3
|
|
$
|
5.9
|
|
$
|
$166.2
|
|
$
|
172.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS from continuing operations
|
|
-
|
|
|
0.01
|
|
|
0.38
|
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
61.1%
|
|
|
0.1
|
|
|
-
|
|
|
61.2%
|
SG&A
as a % of revenues
|
|
|
52.1%
|
|
|
(0.2)
|
|
|
-
|
|
|
51.9%
|
Operating
margin
|
|
0.4%
|
|
|
0.3
|
|
|
8.6
|
|
|
9.4%
|
Effective
tax rate
|
|
|
|
101.7%
|
|
|
-
|
|
|
(69.9)
|
|
|
32.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
128.4
|
|
$
|
6.4
|
|
$
|
-
|
|
$
|
134.8
|
Europe,
Middle East & Africa
|
|
|
137.1
|
|
|
1.6
|
|
|
-
|
|
|
138.7
|
North
America
|
|
(241.7)
|
|
|
-
|
|
|
263.0
|
|
|
21.3
|
Asia
Pacific
|
|
24.1
|
|
|
0.3
|
|
|
-
|
|
|
24.4
|
Global and
other
|
|
(35.0)
|
|
|
0.4
|
|
|
-
|
|
|
(34.6)
|
Total
|
|
|
$
|
12.9
|
|
$
|
8.7
|
|
$
|
263.0
|
|
$
|
284.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
9.8%
|
|
|
0.5
|
|
|
-
|
|
|
10.3%
|
Europe,
Middle East & Africa
|
|
|
15.3%
|
|
|
0.2
|
|
|
-
|
|
|
15.5%
|
North
America
|
|
(41.3)%
|
|
|
-
|
|
|
45.0
|
|
|
3.6%
|
Asia
Pacific
|
|
9.5%
|
|
|
0.1
|
|
|
-
|
|
|
9.6%
|
Global and
other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
|
|
|
|
0.4%
|
|
|
0.3
|
|
|
8.6
|
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in
the table above may not necessarily sum because the computations
are made independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVON
PRODUCTS, INC.
|
SUPPLEMENTAL SCHEDULE
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This
supplemental schedule provides adjusted Non-GAAP financial
information and a quantitative reconciliation
of the difference between the Non-GAAP financial
measure and the financial measure calculated and reported in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ in
Millions (except per share data)
|
|
TWELVE
MONTHS ENDED 12/31/11
|
|
|
|
|
|
CTI
|
|
|
|
|
|
|
|
|
Reported
|
|
restructuring
|
|
Impairment
|
|
Adjusted
|
|
|
|
(GAAP)
|
|
initiatives
|
|
charge
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
$
|
4,148.6
|
|
$
|
11.2
|
|
$
|
-
|
|
$
|
4,137.4
|
Selling,
general and administrative expenses
|
|
6,025.4
|
|
|
28.8
|
|
|
-
|
|
|
5,996.6
|
Operating
profit
|
|
|
|
854.6
|
|
|
40.0
|
|
|
263.0
|
|
|
1,157.6
|
Income
from continuing operations before taxes
|
|
742.6
|
|
|
40.0
|
|
|
263.0
|
|
|
1,045.6
|
Income
taxes
|
|
|
|
(216.2)
|
|
|
(13.9)
|
|
|
(96.8)
|
|
|
(326.9)
|
Income
from continuing operations
|
|
$
|
526.4
|
|
$
|
26.1
|
|
$
|
$166.2
|
|
$
|
718.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
EPS from continuing operations
|
|
1.20
|
|
|
0.06
|
|
|
0.38
|
|
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
63.3%
|
|
|
0.1
|
|
|
-
|
|
|
63.4%
|
SG&A
as a % of revenues
|
|
|
53.4%
|
|
|
(0.3)
|
|
|
-
|
|
|
53.1%
|
Operating
margin
|
|
7.6%
|
|
|
0.4
|
|
|
2.3
|
|
|
10.3%
|
Effective
tax rate
|
|
|
|
29.1%
|
|
|
0.1
|
|
|
2.0
|
|
|
31.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING PROFIT (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
$
|
634.0
|
|
$
|
3.1
|
|
$
|
-
|
|
$
|
637.1
|
Europe,
Middle East & Africa
|
|
|
478.9
|
|
|
5.3
|
|
|
-
|
|
|
484.2
|
North
America
|
|
(188.0)
|
|
|
24.7
|
|
|
263.0
|
|
|
99.7
|
Asia
Pacific
|
|
81.4
|
|
|
(0.3)
|
|
|
-
|
|
|
81.1
|
Global and
other
|
|
(151.7)
|
|
|
7.2
|
|
|
-
|
|
|
(144.5)
|
Total
|
|
|
$
|
854.6
|
|
$
|
40.0
|
|
$
|
263.0
|
|
$
|
1,157.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
OPERATING MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
12.3%
|
|
|
0.1
|
|
|
-
|
|
|
12.3%
|
Europe,
Middle East & Africa
|
|
|
15.3%
|
|
|
0.2
|
|
|
-
|
|
|
15.5%
|
North
America
|
|
(9.1)%
|
|
|
1.2
|
|
|
12.7
|
|
|
4.8%
|
Asia
Pacific
|
|
8.6%
|
|
|
-
|
|
|
-
|
|
|
8.6%
|
Global and
other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
|
|
|
|
7.6%
|
|
|
0.4
|
|
|
2.3
|
|
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in
the table above may not necessarily sum because the computations
are made independently.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Avon Products, Inc.