![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Avon Products Inc | NYSE:AVP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.60 | 0 | 01:00:00 |
|
x
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
New York
|
|
13-0544597
|
(State or other jurisdiction of
Incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
x
|
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
|
Smaller reporting company
|
¨
|
|
|
|
Emerging growth company
|
¨
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, par value $0.25 per share
|
AVP
|
NYSE
|
|
|
|
Page
Numbers
|
|
|
|
Item 1.
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 and March 31, 2018
|
|
|
|
|
|
Three Months Ended March 31, 2019 and March 31, 2018
|
|
|
|
|
|
March 31, 2019 and December 31, 2018
|
|
|
|
|
|
Three Months Ended March 31, 2019 and March 31, 2018
|
|
|
|
|
|
Three Months Ended March 31, 2019 and March 31, 2018
|
|
|
|
|
|
9
- 33
|
|
|
|
|
Item 2.
|
32
- 48
|
|
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
Three Months Ended
|
||||||
(In millions, except per share data)
|
March 31, 2019
|
|
March 31, 2018
|
||||
Net sales
|
$
|
1,116.2
|
|
|
$
|
1,309.6
|
|
Other revenue
|
70.7
|
|
|
83.9
|
|
||
Total revenue
|
1,186.9
|
|
|
1,393.5
|
|
||
Costs, expenses and other:
|
|
|
|
||||
Cost of sales
|
517.0
|
|
|
579.7
|
|
||
Selling, general and administrative expenses
|
673.8
|
|
|
768.9
|
|
||
Operating (loss) profit
|
(3.9
|
)
|
|
44.9
|
|
||
|
|
|
|
||||
Interest expense
|
33.2
|
|
|
36.2
|
|
||
Loss on extinguishment of debt and credit facilities
|
2.0
|
|
|
—
|
|
||
Interest income
|
(1.7
|
)
|
|
(4.2
|
)
|
||
Other (income) expense, net
|
(22.6
|
)
|
|
2.5
|
|
||
Gain on sale of business
|
(10.3
|
)
|
|
—
|
|
||
Total other expenses
|
0.6
|
|
|
34.5
|
|
||
|
|
|
|
||||
(Loss) income from continuing operations, before income taxes
|
(4.5
|
)
|
|
10.4
|
|
||
Income taxes
|
(19.5
|
)
|
|
(31.5
|
)
|
||
Loss from continuing operations, net of tax
|
(24.0
|
)
|
|
(21.1
|
)
|
||
Loss from discontinued operations, net of tax
|
(9.5
|
)
|
|
—
|
|
||
Net loss
|
(33.5
|
)
|
|
(21.1
|
)
|
||
Net loss attributable to noncontrolling interests
|
0.8
|
|
|
0.8
|
|
||
Net loss attributable to Avon
|
$
|
(32.7
|
)
|
|
$
|
(20.3
|
)
|
|
|
|
|
||||
Loss per share
|
|
|
|
||||
Basic
|
|
|
|
||||
Basic from continuing operations
|
$
|
(0.07
|
)
|
|
$
|
(0.06
|
)
|
Basic from discontinued operations
|
(0.02
|
)
|
|
—
|
|
||
Basic attributable to Avon
|
$
|
(0.09
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
||||
Diluted
|
|
|
|
||||
Diluted from continuing operations
|
$
|
(0.07
|
)
|
|
$
|
(0.06
|
)
|
Diluted from discontinued operations
|
(0.02
|
)
|
|
—
|
|
||
Diluted attributable to Avon
|
$
|
(0.09
|
)
|
|
$
|
(0.06
|
)
|
|
Three Months Ended
|
||||||
(In millions)
|
March 31, 2019
|
|
March 31, 2018
|
||||
Net loss
|
$
|
(33.5
|
)
|
|
$
|
(21.1
|
)
|
Other comprehensive income:
|
|
|
|
||||
Foreign currency translation adjustments
|
(2.7
|
)
|
|
(4.2
|
)
|
||
Unrealized (losses) gains on revaluation of long-term intercompany balances, net of taxes of $0.0 and $0.0
|
(0.6
|
)
|
|
36.9
|
|
||
Change in unrealized gains/losses on cash flow hedges, net of taxes of $0.0 and $0.0
|
(1.9
|
)
|
|
—
|
|
||
Adjustments of and amortization of net actuarial loss and prior service cost, net of taxes of $0.2 and $0.2
|
1.3
|
|
|
2.9
|
|
||
Total other comprehensive (loss) income, net of income taxes
|
(3.9
|
)
|
|
35.6
|
|
||
Comprehensive (loss) income
|
(37.4
|
)
|
|
14.5
|
|
||
Less: comprehensive loss attributable to noncontrolling interests
|
(0.6
|
)
|
|
(0.6
|
)
|
||
Comprehensive (loss) income attributable to Avon
|
$
|
(36.8
|
)
|
|
$
|
15.1
|
|
(In millions)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
406.4
|
|
|
$
|
532.7
|
|
Restricted cash
|
17.0
|
|
|
—
|
|
||
Accounts receivable, net
|
340.9
|
|
|
349.7
|
|
||
Inventories
|
532.3
|
|
|
542.0
|
|
||
Prepaid expenses and other
|
255.2
|
|
|
272.0
|
|
||
Assets held for sale
|
15.7
|
|
|
65.6
|
|
||
Total current assets
|
$
|
1,567.5
|
|
|
1,762.0
|
|
|
Property, plant and equipment, at cost
|
1,200.5
|
|
|
1,207.8
|
|
||
Less accumulated depreciation
|
(657.3
|
)
|
|
(650.2
|
)
|
||
Property, plant and equipment, net
|
543.2
|
|
|
557.6
|
|
||
Right-of-use assets
|
180.3
|
|
|
—
|
|
||
Goodwill
|
88.6
|
|
|
87.4
|
|
||
Deferred tax asset
|
204.2
|
|
|
212.6
|
|
||
Other assets
|
413.7
|
|
|
390.4
|
|
||
Total assets
|
$
|
2,997.5
|
|
|
$
|
3,010.0
|
|
Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Debt maturing within one year
|
$
|
425.4
|
|
|
$
|
12.0
|
|
Accounts payable
|
706.0
|
|
|
816.5
|
|
||
Accrued compensation
|
103.9
|
|
|
85.5
|
|
||
Other accrued liabilities
|
425.2
|
|
|
451.3
|
|
||
Sales taxes and taxes other than income
|
94.1
|
|
|
103.9
|
|
||
Income taxes
|
11.0
|
|
|
15.9
|
|
||
Held for sale liabilities
|
.1
|
|
|
11.4
|
|
||
Current liabilities of discontinued operations
|
9.5
|
|
|
—
|
|
||
Total current liabilities
|
1,775.2
|
|
|
1,496.5
|
|
||
Long-term debt
|
1,196.4
|
|
|
1,581.6
|
|
||
Long-term operating lease liability
|
150.4
|
|
|
—
|
|
||
Employee benefit plans
|
128.2
|
|
|
128.3
|
|
||
Long-term income taxes
|
135.3
|
|
|
136.2
|
|
||
Other liabilities
|
55.2
|
|
|
72.1
|
|
||
Total liabilities
|
3,440.7
|
|
|
3,414.7
|
|
||
|
|
|
|
||||
Series C convertible preferred stock
|
498.3
|
|
|
492.1
|
|
||
|
|
|
|
||||
Shareholders’ Deficit
|
|
|
|
||||
Common stock
|
190.6
|
|
|
190.3
|
|
||
Additional paid-in capital
|
2,302.1
|
|
|
2,303.6
|
|
||
Retained earnings
|
2,195.4
|
|
|
2,234.3
|
|
||
Accumulated other comprehensive loss
|
(1,034.4
|
)
|
|
(1,030.4
|
)
|
||
Treasury stock, at cost
|
(4,602.3
|
)
|
|
(4,602.3
|
)
|
||
Total Avon shareholders’ deficit
|
(948.6
|
)
|
|
(904.5
|
)
|
||
Noncontrolling interests
|
7.1
|
|
|
7.7
|
|
||
Total shareholders’ deficit
|
(941.5
|
)
|
|
(896.8
|
)
|
||
Total liabilities, series C convertible preferred stock and shareholders’ deficit
|
$
|
2,997.5
|
|
|
$
|
3,010.0
|
|
|
Three Months Ended
|
||||||
(In millions)
|
March 31, 2019
|
|
March 31, 2018
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net loss
|
$
|
(33.5
|
)
|
|
$
|
(21.1
|
)
|
Loss from discontinued operations, net of tax
|
(9.5
|
)
|
|
—
|
|
||
Loss from continuing operations, net of tax
|
(24.0
|
)
|
|
(21.1
|
)
|
||
Adjustments to reconcile net loss to net cash used by operating activities:
|
|
|
|
||||
Depreciation
|
20.6
|
|
|
20.8
|
|
||
Amortization
|
6.6
|
|
|
7.1
|
|
||
Provision for doubtful accounts
|
29.9
|
|
|
43.1
|
|
||
Provision for obsolescence
|
6.7
|
|
|
9.7
|
|
||
Share-based compensation
|
(0.5
|
)
|
|
3.8
|
|
||
Foreign exchange (losses) gains
|
(19.2
|
)
|
|
4.6
|
|
||
Deferred income taxes
|
8.2
|
|
|
1.8
|
|
||
Other
|
(8.6
|
)
|
|
3.2
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(24.3
|
)
|
|
(4.4
|
)
|
||
Inventories
|
4.8
|
|
|
(58.4
|
)
|
||
Prepaid expenses and other
|
38.4
|
|
|
0.1
|
|
||
Accounts payable and accrued liabilities
|
(164.2
|
)
|
|
(106.3
|
)
|
||
Income and other taxes
|
(12.0
|
)
|
|
(0.9
|
)
|
||
Noncurrent assets and liabilities
|
(5.1
|
)
|
|
0.6
|
|
||
Net cash used by operating activities of continuing operations
|
(142.7
|
)
|
|
(96.3
|
)
|
||
Cash Flows from Investing Activities
|
|
|
|
||||
Capital expenditures
|
(21.2
|
)
|
|
(27.8
|
)
|
||
Disposal of assets
|
0.4
|
|
|
0.8
|
|
||
Net proceeds from sale of business
|
46.4
|
|
|
—
|
|
||
Net cash provided (used) by investing activities of continuing operations
|
25.6
|
|
|
(27.0
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
||||
Debt, net (maturities of three months or less)
|
27.2
|
|
|
3.6
|
|
||
Repurchase of common stock
|
—
|
|
|
(2.7
|
)
|
||
Other financing activities
|
(9.2
|
)
|
|
(0.5
|
)
|
||
Net cash provided by financing activities of continuing operations
|
18.0
|
|
|
0.4
|
|
||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash
|
(6.3
|
)
|
|
13.9
|
|
||
Net decrease in cash and cash equivalents, and restricted cash
|
(105.4
|
)
|
|
(109.0
|
)
|
||
Cash and cash equivalents, and restricted cash at beginning of year
(1)
|
536.4
|
|
|
881.5
|
|
||
Cash and cash equivalents, and restricted cash at end of period
(2)
|
$
|
431.0
|
|
|
$
|
772.5
|
|
(1)
|
Includes cash and cash equivalents of
$3.7
classified as Held for sale assets in our Consolidated Balance Sheets at the end of the year in 2018
|
(2)
|
Includes restricted cash related to the sale of Avon Manufacturing (Guangzhou), Ltd. at March 31, 2019
|
(In millions, except per
|
|
Common Stock
|
|
Additional
|
|
Retained
|
|
Accumulated Other
|
|
Treasury Stock
|
|
Noncontrolling
|
|
|
||||||||||||||||||||
share data)
|
|
Shares
|
|
Amount
|
|
Paid-In Capital
|
|
Earnings
|
|
Comprehensive Loss
|
|
Shares
|
|
Amount
|
|
Interests
|
|
Total
|
||||||||||||||||
Balances at December 31, 2018
|
|
761.8
|
|
|
$
|
190.3
|
|
|
$
|
2,303.6
|
|
|
$
|
2,234.3
|
|
|
$
|
(1,030.4
|
)
|
|
319.4
|
|
|
$
|
(4,602.3
|
)
|
|
$
|
7.7
|
|
|
$
|
(896.8
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(33.5
|
)
|
|||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(3.9
|
)
|
||||||||
Dividends accrued - Series C convertible preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.2
|
)
|
|||||||
Exercise/ vesting/ expense of share-based compensation
|
|
1.3
|
|
|
0.3
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|||||||
Purchases and sales of noncontrolling interests, net of dividends paid of $0.0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|||||||
Balances at March 31, 2019
|
|
763.1
|
|
|
$
|
190.6
|
|
|
$
|
2,302.1
|
|
|
$
|
2,195.4
|
|
|
$
|
(1,034.4
|
)
|
|
319.4
|
|
|
$
|
(4,602.3
|
)
|
|
$
|
7.1
|
|
|
$
|
(941.5
|
)
|
(In millions, except per
|
|
Common Stock
|
|
Additional
|
|
Retained
|
|
Accumulated Other
|
|
Treasury Stock
|
|
Noncontrolling
|
|
|
||||||||||||||||||||
share data)
|
|
Shares
|
|
Amount
|
|
Paid-In Capital
|
|
Earnings
|
|
Comprehensive Loss
|
|
Shares
|
|
Amount
|
|
Interests
|
|
Total
|
||||||||||||||||
Balances at December 31, 2017
|
|
758.7
|
|
|
$
|
189.7
|
|
|
$
|
2,291.2
|
|
|
$
|
2,320.3
|
|
|
$
|
(926.2
|
)
|
|
318.4
|
|
|
$
|
(4,600.0
|
)
|
|
$
|
10.3
|
|
|
$
|
(714.7
|
)
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
(21.1
|
)
|
|||||||
Revenue Recognition Cumulative catch up
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41.1
|
)
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
35.2
|
|
|
|
|
|
|
0.4
|
|
|
35.6
|
|
||||||||||
Dividends accrued - Series C convertible preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.0
|
)
|
|||||||
Exercise/ vesting/ expense of share-based compensation
|
|
2.2
|
|
|
0.6
|
|
|
2.5
|
|
|
(0.4
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
0.9
|
|
|
—
|
|
|
3.6
|
|
|||||||
Repurchase of common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
(2.7
|
)
|
|
—
|
|
|
(2.7
|
)
|
|||||||
Purchases and sales of noncontrolling interests, net of dividends paid of $0.0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||||||
Balances at March 31, 2018
|
|
760.9
|
|
|
$
|
190.3
|
|
|
$
|
2,293.7
|
|
|
$
|
2,252.5
|
|
|
$
|
(891.0
|
)
|
|
319.2
|
|
|
$
|
(4,601.8
|
)
|
|
$
|
9.7
|
|
|
$
|
(746.6
|
)
|
•
|
the effects of significant, unusual or extraordinary pretax and income tax items, if any;
|
•
|
withholding taxes recognized associated with cash repatriations; and
|
•
|
the impact of loss-making subsidiaries for which we cannot recognize an income tax benefit and subsidiaries for which an effective tax rate cannot be reliably estimated.
|
|
|
Three Months Ended March 31,
|
||||||
(Shares in millions)
|
|
2019
|
|
2018
|
||||
Numerator from continuing operations:
|
|
|
|
|
||||
Loss from continuing operations, less amounts attributable to noncontrolling interests
|
|
$
|
(23.2
|
)
|
|
$
|
(20.3
|
)
|
Less: Loss allocated to participating securities
|
|
(.2
|
)
|
|
(.2
|
)
|
||
Less: Cumulative dividends on preferred stock
|
|
6.3
|
|
|
5.9
|
|
||
Loss from continuing operations allocated to common shareholders
|
|
(29.3
|
)
|
|
(26.0
|
)
|
||
Numerator from discontinued operations:
|
|
|
|
|
||||
Loss from discontinued operations
|
|
$
|
(9.5
|
)
|
|
$
|
—
|
|
Less: Loss allocated to participating securities
|
|
(.1
|
)
|
|
—
|
|
||
Loss allocated to common shareholders
|
|
(9.4
|
)
|
|
—
|
|
||
Numerator attributable to Avon:
|
|
|
|
|
||||
Net loss attributable to Avon
|
|
$
|
(32.7
|
)
|
|
$
|
(20.3
|
)
|
Less: Loss allocated to participating securities
|
|
(.3
|
)
|
|
(.2
|
)
|
||
Less: Cumulative dividends on preferred stock
|
|
6.3
|
|
|
5.9
|
|
||
Loss allocated to common shareholders
|
|
(38.7
|
)
|
|
(26.0
|
)
|
||
Denominator:
|
|
|
|
|
||||
Basic EPS weighted-average shares outstanding
|
|
442.2
|
|
|
440.9
|
|
||
Diluted effect of assumed conversion of stock options
|
|
—
|
|
|
—
|
|
||
Diluted effect of assumed conversion of preferred stock
|
|
—
|
|
|
—
|
|
||
Diluted EPS adjusted weighted-average shares outstanding
|
|
442.2
|
|
|
440.9
|
|
||
Loss per Common Share from continuing operations:
|
|
|
|
|
||||
Basic
|
|
$
|
(.07
|
)
|
|
$
|
(.06
|
)
|
Diluted
|
|
(.07
|
)
|
|
(.06
|
)
|
||
Loss per Common Share from discontinued operations:
|
|
|
|
|
||||
Basic
|
|
$
|
(.02
|
)
|
|
$
|
—
|
|
Diluted
|
|
(.02
|
)
|
|
—
|
|
||
Loss per Common Share attributable to Avon:
|
|
|
|
|
||||
Basic
|
|
$
|
(.09
|
)
|
|
$
|
(.06
|
)
|
Diluted
|
|
(.09
|
)
|
|
(.06
|
)
|
|
|
Three Months Ended March 31, 2019
|
|
Selling, general and administrative expenses
|
|
9.5
|
|
Operating loss
|
|
(9.5
|
)
|
Loss from discontinued operations, net of tax
|
|
(9.5
|
)
|
|
|
March 31, 2019
|
||||||||||
|
|
Rye Office
|
|
Malaysia Maximin
|
|
Total
|
||||||
Current Held for sale assets
|
|
|
|
|
|
|
||||||
Property, Plant & Equipment (net)
|
|
$
|
12.5
|
|
|
$
|
3.1
|
|
|
$
|
15.6
|
|
Other assets
|
|
—
|
|
|
.1
|
|
|
.1
|
|
|||
|
|
$
|
12.5
|
|
|
$
|
3.2
|
|
|
$
|
15.7
|
|
|
|
|
|
|
|
|
||||||
Current Held for sale liabilities
|
|
|
|
|
|
|
||||||
Other liabilities
|
|
$
|
—
|
|
|
$
|
.1
|
|
|
$
|
.1
|
|
|
|
$
|
—
|
|
|
$
|
.1
|
|
|
$
|
.1
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Avon Manufacturing (Guangzhou)
|
|
Rye Office
|
|
Malaysia Maximin
|
|
Total
|
||||||||
Current held for sale assets
|
|
|
|
|
|
|
|
|
||||||||
Inventories
|
|
$
|
8.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8.7
|
|
Property, Plant & Equipment (net)
|
|
36.7
|
|
|
12.3
|
|
|
3.0
|
|
|
52.0
|
|
||||
Cash and cash equivalents
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
||||
Other assets
|
|
1.1
|
|
|
—
|
|
|
.1
|
|
|
1.2
|
|
||||
|
|
$
|
50.2
|
|
|
$
|
12.3
|
|
|
$
|
3.1
|
|
|
$
|
65.6
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current held for sale liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
|
8.6
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
||||
Other liabilities
|
|
2.6
|
|
|
—
|
|
|
.2
|
|
|
2.8
|
|
||||
|
|
$
|
11.2
|
|
|
$
|
—
|
|
|
$
|
.2
|
|
|
$
|
11.4
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
|
$
|
406.4
|
|
|
$
|
532.7
|
|
Restricted Cash
(1)
|
|
17.0
|
|
|
—
|
|
||
Long-term restricted cash
(2)
|
|
7.6
|
|
|
—
|
|
||
Held for sale cash and cash equivalents
|
|
—
|
|
|
3.7
|
|
||
Cash and cash equivalents, and restricted cash at end of period per the statement of cash flows
|
|
$
|
431.0
|
|
|
$
|
536.4
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Statement of Operations Data
|
|
|
|
|
||||
Revenue from sale of product to New Avon
(1)
|
|
$
|
4.8
|
|
|
$
|
5.9
|
|
Gross profit from sale of product to New Avon
(1)
|
|
$
|
.1
|
|
|
$
|
.4
|
|
|
|
|
|
|
||||
Cost of sales for purchases from New Avon
(2)
|
|
$
|
.6
|
|
|
$
|
.5
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses related to New Avon:
|
|
|
|
|
||||
Transition services, intellectual property, technical support and innovation and subleases
(3)
|
|
$
|
—
|
|
|
$
|
(3.2
|
)
|
Project management team
(4)
|
|
$
|
1.4
|
|
|
.5
|
|
|
Net reduction of selling, general and administrative expenses
|
|
$
|
1.4
|
|
|
$
|
(2.7
|
)
|
|
|
|
|
|
||||
Interest income from Instituto Avon
(5)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Balance Sheet Data
|
|
|
|
|
||||
Inventories
(6)
|
|
$
|
.3
|
|
|
$
|
.3
|
|
Receivables due from New Avon
(7)
|
|
$
|
4.3
|
|
|
$
|
7.0
|
|
Receivables due from Instituto Avon
(5)
|
|
$
|
3.2
|
|
|
$
|
3.2
|
|
Payables due to New Avon
(8)
|
|
$
|
1.0
|
|
|
$
|
.2
|
|
Payables due to an affiliate of Cerberus
(9)
|
|
$
|
.6
|
|
|
$
|
.6
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||
|
|
Reportable segments
|
|
|
|
|
||||||||||||||||||||||
|
|
Europe, Middle East & Africa
|
|
South Latin America
|
|
North Latin America
|
|
Asia Pacific
|
|
Total reportable segments
|
|
Other operating segments and business activities
|
|
Total
|
||||||||||||||
Beauty:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Skincare
|
|
$
|
139.1
|
|
|
$
|
126.7
|
|
|
$
|
50.3
|
|
|
$
|
33.2
|
|
|
$
|
349.3
|
|
|
$
|
—
|
|
|
$
|
349.3
|
|
Fragrance
|
|
133.9
|
|
|
98.3
|
|
|
48.0
|
|
|
17.8
|
|
|
298.0
|
|
|
—
|
|
|
298.0
|
|
|||||||
Color
|
|
93.9
|
|
|
60.2
|
|
|
21.9
|
|
|
13.2
|
|
|
189.2
|
|
|
—
|
|
|
189.2
|
|
|||||||
Total Beauty
|
|
366.9
|
|
|
285.2
|
|
|
120.2
|
|
|
64.2
|
|
|
836.5
|
|
|
—
|
|
|
836.5
|
|
|||||||
Fashion & Home:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fashion
|
|
60.5
|
|
|
38.8
|
|
|
22.1
|
|
|
42.9
|
|
|
164.3
|
|
|
—
|
|
|
164.3
|
|
|||||||
Home
|
|
8.5
|
|
|
60.2
|
|
|
40.3
|
|
|
6.4
|
|
|
115.4
|
|
|
—
|
|
|
115.4
|
|
|||||||
Total Fashion & Home
|
|
69.0
|
|
|
99.0
|
|
|
62.4
|
|
|
49.3
|
|
|
279.7
|
|
|
—
|
|
|
279.7
|
|
|||||||
Net sales
|
|
435.9
|
|
|
384.2
|
|
|
182.6
|
|
|
113.5
|
|
|
1,116.2
|
|
|
—
|
|
|
1,116.2
|
|
|||||||
Representative fees
|
|
22.5
|
|
|
29.5
|
|
|
10.1
|
|
|
1.8
|
|
|
63.9
|
|
|
—
|
|
|
63.9
|
|
|||||||
Other
|
|
.3
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
5.5
|
|
|
6.8
|
|
|||||||
Other revenue
|
|
22.8
|
|
|
30.5
|
|
|
10.1
|
|
|
1.8
|
|
|
65.2
|
|
|
5.5
|
|
|
70.7
|
|
|||||||
Total revenue
|
|
$
|
458.7
|
|
|
$
|
414.7
|
|
|
$
|
192.7
|
|
|
$
|
115.3
|
|
|
$
|
1,181.4
|
|
|
$
|
5.5
|
|
|
$
|
1,186.9
|
|
|
|
Three months ended March 31, 2018
|
||||||||||||||||||||||||||
|
|
Reportable segments
|
|
|
|
|
||||||||||||||||||||||
|
|
Europe, Middle East & Africa
|
|
South Latin America
|
|
North Latin America
|
|
Asia Pacific
|
|
Total reportable segments
|
|
Other operating segments and business activities
|
|
Total
|
||||||||||||||
Beauty:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Skincare
|
|
$
|
169.2
|
|
|
$
|
141.8
|
|
|
$
|
46.7
|
|
|
$
|
31.4
|
|
|
$
|
389.1
|
|
|
$
|
4.7
|
|
|
$
|
393.8
|
|
Fragrance
|
|
163.2
|
|
|
118.6
|
|
|
53.6
|
|
|
18.6
|
|
|
354.0
|
|
|
2.2
|
|
|
356.2
|
|
|||||||
Color
|
|
120.8
|
|
|
80.9
|
|
|
20.9
|
|
|
13.1
|
|
|
235.7
|
|
|
3.3
|
|
|
239.0
|
|
|||||||
Total Beauty
|
|
453.2
|
|
|
341.3
|
|
|
121.2
|
|
|
63.1
|
|
|
978.8
|
|
|
10.2
|
|
|
989.0
|
|
|||||||
Fashion & Home:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fashion
|
|
79.8
|
|
|
46.5
|
|
|
22.6
|
|
|
39.7
|
|
|
188.6
|
|
|
1.9
|
|
|
190.5
|
|
|||||||
Home
|
|
9.3
|
|
|
71.9
|
|
|
41.2
|
|
|
7.0
|
|
|
129.4
|
|
|
.7
|
|
|
130.1
|
|
|||||||
Total Fashion & Home
|
|
89.1
|
|
|
118.4
|
|
|
63.8
|
|
|
46.7
|
|
|
318.0
|
|
|
2.6
|
|
|
320.6
|
|
|||||||
Net sales
|
|
542.3
|
|
|
459.7
|
|
|
185.0
|
|
|
109.8
|
|
|
1,296.8
|
|
|
12.8
|
|
|
1,309.6
|
|
|||||||
Representative fees
|
|
25.9
|
|
|
36.4
|
|
|
10.6
|
|
|
1.6
|
|
|
74.5
|
|
|
1.4
|
|
|
75.9
|
|
|||||||
Other
|
|
.2
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
6.8
|
|
|
8.0
|
|
|||||||
Other revenue
|
|
26.1
|
|
|
37.4
|
|
|
10.6
|
|
|
1.6
|
|
|
75.7
|
|
|
8.2
|
|
|
83.9
|
|
|||||||
Total revenue
|
|
$
|
568.4
|
|
|
$
|
497.1
|
|
|
$
|
195.6
|
|
|
$
|
111.4
|
|
|
$
|
1,372.5
|
|
|
$
|
21.0
|
|
|
$
|
1,393.5
|
|
|
|
2019
|
|
2018
|
||||||||||||
|
|
31 March
|
|
1 January
|
|
31 March
|
|
1 January
|
||||||||
Accounts receivable, net of allowances of $79, $93, $128 and $139
|
|
$
|
340.9
|
|
|
$
|
349.7
|
|
|
$
|
429.0
|
|
|
$
|
457.2
|
|
Contract liabilities
|
|
$
|
58.3
|
|
|
83.5
|
|
|
$
|
75.5
|
|
|
$
|
91.8
|
|
Components of Inventories
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Raw materials
|
|
$
|
143.4
|
|
|
$
|
157.8
|
|
Finished goods
|
|
388.9
|
|
|
384.2
|
|
||
Total
|
|
$
|
532.3
|
|
|
$
|
542.0
|
|
|
|
Classification
|
|
January 1, 2019
|
|
March 31, 2019
|
||||
Assets
|
|
|
|
|
|
|
||||
Operating right-of-use assets
|
|
Right-of-use asset
|
|
$
|
187.5
|
|
|
$
|
180.3
|
|
Finance right-of-use assets
|
|
Property, Plant and Equipment
|
|
3.2
|
|
|
3.2
|
|
||
Total right-of-use assets
|
|
|
|
190.7
|
|
|
183.5
|
|
||
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
|
||||
Current
|
|
|
|
|
|
|
||||
Operating lease liabilities
|
|
Other accrued liabilities
|
|
$
|
45.4
|
|
|
$
|
43.9
|
|
Finance lease liabilities
|
|
Other accrued liabilities
|
|
1.1
|
|
|
1.2
|
|
||
Total current lease liabilities
|
|
|
|
46.5
|
|
|
45.1
|
|
||
|
|
|
|
|
|
|
||||
Noncurrent
|
|
|
|
|
|
|
||||
Operating lease liabilities
|
|
Long-term operating lease liability
|
|
$
|
155.9
|
|
|
$
|
150.4
|
|
Finance lease liabilities
|
|
Long-term debt
|
|
1.9
|
|
|
2.0
|
|
||
Total noncurrent lease liabilities
|
|
|
|
$
|
157.8
|
|
|
$
|
152.4
|
|
|
|
|
|
|
|
|
||||
Total lease liability
|
|
|
|
$
|
204.3
|
|
|
$
|
197.5
|
|
Lease Cost
|
|
Classification
|
|
Three months ended March 31, 2019
|
||
Operating lease cost
(1)
|
|
Selling, general and administrative expenses
|
|
$
|
16.8
|
|
Finance lease cost
|
|
|
|
|
||
Amortization of right-of-use assets
|
|
Selling, general and administrative expenses
|
|
0.4
|
|
|
Interest on lease liabilities
|
|
Interest Expense
|
|
0.1
|
|
|
Short-term leases costs
|
|
Selling, general and administrative expenses
|
|
1.1
|
|
|
Sublease income
(2)
|
|
Selling, general and administrative expenses
|
|
(3.2
|
)
|
|
Net lease cost
|
|
|
|
$
|
15.2
|
|
Maturity of Lease Liabilities
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2019
|
|
$
|
44.8
|
|
|
$
|
1.1
|
|
|
$
|
45.9
|
|
2020
|
|
49.6
|
|
|
1.2
|
|
|
50.8
|
|
|||
2021
|
|
40.4
|
|
|
0.8
|
|
|
41.2
|
|
|||
2022
|
|
34.7
|
|
|
0.6
|
|
|
35.3
|
|
|||
2023
|
|
24.6
|
|
|
0.1
|
|
|
24.7
|
|
|||
2024
|
|
17.7
|
|
|
—
|
|
|
17.7
|
|
|||
Thereafter
|
|
29.3
|
|
|
—
|
|
|
29.3
|
|
|||
Total lease payments
|
|
$
|
241.1
|
|
|
$
|
3.8
|
|
|
$
|
244.9
|
|
Less: Interest
|
|
46.8
|
|
|
0.6
|
|
|
47.4
|
|
|||
Present value of lease liabilities
|
|
$
|
194.3
|
|
|
$
|
3.2
|
|
|
$
|
197.5
|
|
Maturity of Lease Liabilities
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2019
|
|
$
|
56.4
|
|
|
$
|
1.1
|
|
|
$
|
57.5
|
|
2020
|
|
42.0
|
|
|
0.6
|
|
|
42.6
|
|
|||
2021
|
|
35.3
|
|
|
0.4
|
|
|
35.7
|
|
|||
2022
|
|
31.1
|
|
|
0.2
|
|
|
31.3
|
|
|||
2023
|
|
22.4
|
|
|
0.1
|
|
|
22.5
|
|
|||
Thereafter
|
|
46.9
|
|
|
0.1
|
|
|
47.0
|
|
|||
Total lease payments
(1)
|
|
$
|
234.1
|
|
|
$
|
2.5
|
|
|
$
|
236.6
|
|
Lease Term and Discount Rate
|
|
March 31, 2019
|
|
Weighted-average remaining lease term (years)
|
|
|
|
Operating leases
|
|
5.3
|
|
Finance leases
|
|
3.0
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
8.3
|
%
|
Finance leases
|
|
11.6
|
%
|
Other Information
|
|
Three Months Ended March 31, 2019
|
||
- Operating Cash Flows From Operating Leases
|
|
16.4
|
|
|
- Financing Cash Flows From Finance Leases
|
|
0.3
|
|
|
Cash Paid For Amounts Included In Measurement of Liabilities
|
|
$
|
16.7
|
|
|
|
|
||
Right-of-use Assets Obtained In Exchange For New Finance Liabilities
|
|
$
|
0.7
|
|
Right-of-use Assets Obtained In Exchange For New Operating Liabilities
|
|
$
|
12.8
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||
|
|
Pension Benefits
|
|
|
|
|
||||||||||||||||||
Net Periodic Benefit Costs
|
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
Postretirement Benefits
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
|
$
|
.5
|
|
|
$
|
.9
|
|
|
$
|
1.0
|
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
.1
|
|
Interest cost
|
|
.6
|
|
|
.6
|
|
|
3.9
|
|
|
4.2
|
|
|
.3
|
|
|
.3
|
|
||||||
Expected return on plan assets
|
|
(.8
|
)
|
|
(.8
|
)
|
|
(7.9
|
)
|
|
(8.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
||||||
Amortization of net actuarial losses
|
|
.7
|
|
|
1.3
|
|
|
1.3
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
||||||
Settlements/curtailments
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit costs
(1)
|
|
$
|
1.0
|
|
|
$
|
2.0
|
|
|
$
|
(1.6
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
.3
|
|
|
$
|
.3
|
|
Three Months Ended March 31, 2019
|
|
Foreign Currency Translation Adjustments
|
|
Cash Flow Hedges
|
|
Net Investment Hedges
|
|
Pension and Postretirement Benefits
|
|
Investment in New Avon
|
|
Total
|
||||||||||||
Balance at December 31, 2018
|
|
$
|
(936.2
|
)
|
|
$
|
0.5
|
|
|
$
|
(4.3
|
)
|
|
$
|
(93.8
|
)
|
|
$
|
3.4
|
|
|
$
|
(1,030.4
|
)
|
Other comprehensive loss other than reclassifications
|
|
(3.4
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.8
|
)
|
||||||
Reclassifications into earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative losses on cash flow hedges, net of tax of $0.0
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
0.5
|
|
||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $.2
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
||||||
Total reclassifications into earnings
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.8
|
|
||||||
Balance at March 31, 2019
|
|
$
|
(939.6
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(92.5
|
)
|
|
$
|
3.4
|
|
|
$
|
(1,034.4
|
)
|
Three Months Ended March 31, 2018
|
|
Foreign Currency Translation Adjustments
|
|
Net Investment Hedges
|
|
Pension and Postretirement Benefits
|
|
Investment in New Avon
|
|
Total
|
||||||||||
Balance at December 31, 2017
|
|
$
|
(829.6
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(95.7
|
)
|
|
$
|
3.4
|
|
|
$
|
(926.2
|
)
|
Other comprehensive income other than reclassifications
|
|
32.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.3
|
|
|||||
Reclassifications into earnings:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $.2
(1)
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||||
Total reclassifications into earnings
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||||
Balance at March 31, 2018
|
|
$
|
(797.3
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(92.8
|
)
|
|
$
|
3.4
|
|
|
$
|
(891.0
|
)
|
|
|
Three Months Ended March 31,
|
||||||
Total Revenue
|
|
2019
|
|
2018
|
||||
Europe, Middle East & Africa
|
|
$
|
458.7
|
|
|
$
|
568.4
|
|
South Latin America
|
|
414.7
|
|
|
497.1
|
|
||
North Latin America
|
|
192.7
|
|
|
195.6
|
|
||
Asia Pacific
|
|
115.3
|
|
|
111.4
|
|
||
Total revenue from reportable segments
|
|
1,181.4
|
|
|
1,372.5
|
|
||
Other operating segments and business activities
|
|
5.5
|
|
|
21.0
|
|
||
Total revenue
|
|
$
|
1,186.9
|
|
|
$
|
1,393.5
|
|
|
|
Three Months Ended March 31,
|
||||||
Operating Profit
|
|
2019
|
|
2018
|
||||
Segment Profit
|
|
|
|
|
||||
Europe, Middle East & Africa
|
|
$
|
59.2
|
|
|
$
|
74.4
|
|
South Latin America
|
|
23.8
|
|
|
27.2
|
|
||
North Latin America
|
|
16.5
|
|
|
20.8
|
|
||
Asia Pacific
|
|
16.7
|
|
|
10.4
|
|
||
Total profit from reportable segments
|
|
$
|
116.2
|
|
|
$
|
132.8
|
|
Other operating segments and business activities
|
|
.6
|
|
|
2.2
|
|
||
Unallocated global expenses
|
|
(63.1
|
)
|
|
(79.2
|
)
|
||
CTI restructuring initiatives
|
|
(53.5
|
)
|
|
(10.9
|
)
|
||
Other items
|
|
(4.1
|
)
|
|
—
|
|
||
Operating (loss) profit
|
|
$
|
(3.9
|
)
|
|
$
|
44.9
|
|
Components of Prepaid Expenses and Other
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Prepaid taxes and tax refunds receivable
|
|
$
|
126.6
|
|
|
$
|
145.0
|
|
Receivables other than trade
|
|
56.2
|
|
|
69.2
|
|
||
Prepaid brochure costs, paper and other literature
|
|
14.4
|
|
|
14.9
|
|
||
Other
|
|
58.0
|
|
|
42.9
|
|
||
Prepaid expenses and other
|
|
$
|
255.2
|
|
|
$
|
272.0
|
|
Components of Other Assets
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Net overfunded pension plans
|
|
$
|
95.8
|
|
|
$
|
88.1
|
|
Capitalized software
|
|
88.8
|
|
|
89.3
|
|
||
Judicial deposits
|
|
72.2
|
|
|
74.1
|
|
||
Long-term receivables
|
|
79.4
|
|
|
73.2
|
|
||
Trust assets associated with supplemental benefit plans
|
|
37.4
|
|
|
37.0
|
|
||
Tooling (plates and molds associated with our beauty products)
|
|
12.0
|
|
|
12.6
|
|
||
Other
|
|
28.1
|
|
|
16.1
|
|
||
Other assets
|
|
$
|
413.7
|
|
|
$
|
390.4
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
CTI recorded in operating profit - COGS
|
|
|
|
|
||||
Manufacturing asset write-offs
|
|
$
|
3.8
|
|
|
$
|
—
|
|
Inventory write-off
|
|
0.5
|
|
|
0.6
|
|
||
|
|
4.3
|
|
|
0.6
|
|
||
|
|
|
|
|
||||
CTI recorded in operating profit - SG&A
|
|
|
|
|
||||
Net charges for employee-related costs, including severance benefits
|
|
35.3
|
|
|
8.3
|
|
||
Implementation costs, primarily related to professional service fees
|
|
8.7
|
|
|
1.1
|
|
||
Dual running costs
|
|
1.8
|
|
|
—
|
|
||
Contract termination and other net benefits
|
|
3.3
|
|
|
0.2
|
|
||
Accelerated depreciation
|
|
0.1
|
|
|
0.7
|
|
||
|
|
49.2
|
|
|
10.3
|
|
||
|
|
|
|
|
||||
CTI recorded in operating profit
|
|
53.5
|
|
|
10.9
|
|
||
|
|
|
|
|
||||
CTI recorded in other expenses
|
|
|
|
|
||||
Gain on sale of China business (relating mainly to foreign currency translation adjustment gain)
|
|
(10.3
|
)
|
|
—
|
|
||
|
|
|
|
|
||||
Total CTI
|
|
$
|
43.2
|
|
|
$
|
10.9
|
|
|
|
|
|
|
||||
Open Up Avon
|
|
$
|
45.1
|
|
|
$
|
—
|
|
Transformation Plan
|
|
$
|
(2.0
|
)
|
|
$
|
10.9
|
|
Other
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
|
Employee-Related Costs
|
|
Inventory/Assets Write-offs
|
|
Foreign Currency Translation Adjustment Write-offs
|
|
Contract Terminations/Other
|
|
Total
|
||||||||||
Balance at December 31, 2018
|
|
$
|
19.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
|
$
|
20.7
|
|
2019 charges
|
|
$
|
37.6
|
|
|
$
|
4.3
|
|
|
$
|
(10.3
|
)
|
|
$
|
3.0
|
|
|
34.6
|
|
|
Adjustments
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
|||||
Cash payments
|
|
(9.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(10.3
|
)
|
|||||
Non-cash write-offs
|
|
—
|
|
|
(4.3
|
)
|
|
10.3
|
|
|
—
|
|
|
6.0
|
|
|||||
Foreign exchange
|
|
(.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(.8
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
45.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.4
|
|
|
$
|
48.9
|
|
|
|
Employee-Related Costs
|
|
Contract Terminations/Other
|
|
Total
|
||||||
Balance at December 31, 2018
|
|
$
|
34.4
|
|
|
$
|
3.6
|
|
|
$
|
38.0
|
|
2019 charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Adjustments
|
|
(1.1
|
)
|
|
.2
|
|
|
(.9
|
)
|
|||
Cash payments
|
|
(10.8
|
)
|
|
(2.5
|
)
|
|
(13.3
|
)
|
|||
Non-cash write-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign exchange
|
|
.1
|
|
|
—
|
|
|
.1
|
|
|||
Balance at March 31, 2019
|
|
$
|
22.6
|
|
|
$
|
1.3
|
|
|
$
|
23.9
|
|
|
|
Employee- Related Costs
|
|
Inventory/ Asset Write-offs
|
|
Contract
Terminations/Other
|
|
Foreign Currency Translation Adjustment Write-offs
|
|
Total
|
||||||||||
Open Up Avon
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charges incurred to-date
|
|
$
|
62.7
|
|
|
$
|
92.6
|
|
|
$
|
5.3
|
|
|
$
|
(10.3
|
)
|
|
$
|
150.3
|
|
Estimated charges to be incurred on approved initiatives
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||
Total expected charges on approved initiatives
|
|
$
|
63.7
|
|
|
$
|
92.6
|
|
|
$
|
5.3
|
|
|
$
|
(10.3
|
)
|
|
$
|
151.3
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transformation Plan
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charges incurred to-date
|
|
$
|
126.9
|
|
|
$
|
2.3
|
|
|
$
|
40.9
|
|
|
$
|
3.4
|
|
|
$
|
173.5
|
|
Estimated charges to be incurred on approved initiatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total expected charges on approved initiatives
|
|
$
|
126.9
|
|
|
$
|
2.3
|
|
|
$
|
40.9
|
|
|
$
|
3.4
|
|
|
$
|
173.5
|
|
|
|
Europe, Middle East & Africa
|
|
South Latin America
|
|
North Latin America
|
|
Asia
Pacific
|
|
Global & Other Operating Segments
|
|
Total
|
||||||||||||
Open Up Avon
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2018
|
|
$
|
32.2
|
|
|
$
|
36.4
|
|
|
$
|
27.9
|
|
|
$
|
14.4
|
|
|
$
|
6.2
|
|
|
$
|
117.1
|
|
First quarter 2019
|
|
13.5
|
|
|
12.7
|
|
|
2.9
|
|
|
(3.2
|
)
|
|
7.3
|
|
|
33.2
|
|
||||||
Charges incurred to-date
|
|
45.7
|
|
|
49.1
|
|
|
30.8
|
|
|
11.2
|
|
|
13.5
|
|
|
150.3
|
|
||||||
Estimated charges to be incurred on approved initiatives
|
|
.1
|
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
.5
|
|
|
1.0
|
|
||||||
Total expected charges on approved initiatives
|
|
$
|
45.8
|
|
|
$
|
49.1
|
|
|
$
|
31.2
|
|
|
$
|
11.2
|
|
|
$
|
14.0
|
|
|
$
|
151.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transformation Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21.4
|
|
|
$
|
21.4
|
|
2016
|
|
30.9
|
|
|
13.2
|
|
|
4.4
|
|
|
9.1
|
|
|
16.8
|
|
|
74.4
|
|
||||||
2017
|
|
.9
|
|
|
5.6
|
|
|
(.6
|
)
|
|
(.5
|
)
|
|
49.4
|
|
|
54.8
|
|
||||||
2018
|
|
5.0
|
|
|
4.1
|
|
|
.6
|
|
|
.6
|
|
|
13.4
|
|
|
23.7
|
|
||||||
First quarter 2019
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
(.8
|
)
|
||||||
Charges incurred to-date
|
|
35.7
|
|
|
22.9
|
|
|
4.4
|
|
|
9.2
|
|
|
101.3
|
|
|
173.5
|
|
||||||
Estimated charges to be incurred on approved initiatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total expected charges on approved initiatives
|
|
$
|
35.7
|
|
|
$
|
22.9
|
|
|
$
|
4.4
|
|
|
$
|
9.2
|
|
|
$
|
101.3
|
|
|
$
|
173.5
|
|
|
|
Europe, Middle East & Africa
|
|
South Latin
America
|
|
Asia
Pacific
|
|
Total
|
||||||||
Net balance at December 31, 2018
|
|
$
|
18.0
|
|
|
$
|
66.8
|
|
|
$
|
2.6
|
|
|
$
|
87.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
Changes during the period ended March 31, 2019:
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange
|
|
(.3
|
)
|
|
1.5
|
|
|
—
|
|
|
1.2
|
|
||||
Net balance at March 31, 2019
|
|
$
|
17.7
|
|
|
$
|
68.3
|
|
|
$
|
2.6
|
|
|
$
|
88.6
|
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Assets:
|
|
|
|
|
|
|
|||||
Available-for-sale securities
|
$
|
3.9
|
|
|
$
|
—
|
|
|
$
|
3.9
|
|
Foreign exchange forward contracts
|
$
|
—
|
|
|
$
|
17.1
|
|
|
$
|
17.1
|
|
Total
|
$
|
3.9
|
|
|
$
|
17.1
|
|
|
$
|
21.0
|
|
Liabilities:
|
|
|
|
|
|
$
|
—
|
|
|||
Foreign exchange forward contracts
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
Total
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
1.9
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
$
|
3.9
|
|
|
$
|
3.9
|
|
|
$
|
3.8
|
|
|
$
|
3.8
|
|
Debt maturing within one year
(1)
|
(425.4
|
)
|
|
(433.4
|
)
|
|
(12.0
|
)
|
|
(12.0
|
)
|
||||
Long-term debt
(1)
|
(1,196.4
|
)
|
|
(1,207.1
|
)
|
|
(1,581.6
|
)
|
|
(1,460.2
|
)
|
||||
Foreign exchange forward contracts
|
15.2
|
|
|
15.2
|
|
|
(5.1
|
)
|
|
(5.1
|
)
|
•
|
Available-for-sale securities - The fair values of these investments were the quoted market prices for issues listed on securities exchanges.
|
•
|
Debt maturing within one year and long-term debt - The fair values of our debt and other financing were determined using Level 2 inputs based on indicative market prices.
|
•
|
Foreign exchange forward contracts - The fair values of forward contracts were estimated based on quoted forward foreign exchange prices at the reporting date.
|
|
Asset
|
|
Liability
|
||||||||
|
Balance Sheet
Classification
|
|
Fair
Value
|
|
Balance Sheet
Classification
|
|
Fair
Value
|
||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||
Foreign exchange forward contracts
|
Prepaid expenses and other
|
|
$
|
—
|
|
|
Accounts payable
|
|
$
|
1.6
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
||||
Foreign exchange forward contracts
|
Prepaid expenses and other
|
|
$
|
17.1
|
|
|
Accounts payable
|
|
$
|
.3
|
|
Total derivatives
|
|
|
$
|
17.1
|
|
|
|
|
$
|
1.9
|
|
|
|
Three Months Ended March 31,
|
|||||||||
|
|
2019
|
|
2018
|
|
%/Basis Point
Change
|
|||||
Select Consolidated Financial Information
|
|
|
|
|
|
|
|||||
Total revenue
|
|
$
|
1,186.9
|
|
|
$
|
1,393.5
|
|
|
(15
|
)%
|
Cost of sales
|
|
517.0
|
|
|
579.7
|
|
|
(11
|
)%
|
||
Selling, general and administrative expenses
|
|
673.8
|
|
|
768.9
|
|
|
(12
|
)%
|
||
Operating (loss) profit
|
|
(3.9
|
)
|
|
44.9
|
|
|
*
|
|
||
Interest expense
|
|
33.2
|
|
|
36.2
|
|
|
(8
|
)%
|
||
Interest income
|
|
(1.7
|
)
|
|
(4.2
|
)
|
|
(60
|
)%
|
||
Other (income) expense, net
|
|
(22.6
|
)
|
|
2.5
|
|
|
*
|
|
||
Loss on extinguishment of debt and credit facilities
|
|
2.0
|
|
|
—
|
|
|
*
|
|
||
(Loss) income from continuing operations, before income taxes
|
|
(4.5
|
)
|
|
10.4
|
|
|
*
|
|
||
Loss from continuing operations, net of tax
|
|
(24.0
|
)
|
|
(21.1
|
)
|
|
*
|
|
||
Net loss attributable to Avon
|
|
$
|
(32.7
|
)
|
|
$
|
(20.3
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|||||
Diluted loss per share attributable to Avon
|
|
$
|
(.09
|
)
|
|
$
|
(.06
|
)
|
|
*
|
|
|
|
|
|
|
|
|
|||||
Advertising expenses
(1)
|
|
$
|
(16.1
|
)
|
|
$
|
(29.1
|
)
|
|
(45
|
)%
|
|
|
|
|
|
|
|
|||||
Reconciliation of Non-GAAP Financial Measures
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||
Gross margin
|
|
56.4
|
%
|
|
58.4
|
%
|
|
(200
|
)
|
||
CTI restructuring
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||
Adjusted gross margin
|
|
56.8
|
%
|
|
58.4
|
%
|
|
(160
|
)
|
||
|
|
|
|
|
|
|
|||||
Selling, general and administrative expenses as a % of total revenue
|
|
56.8
|
%
|
|
55.2
|
%
|
|
160
|
|
||
CTI restructuring
|
|
(4.1
|
)
|
|
(.8
|
)
|
|
(330
|
)
|
||
Other items
|
|
(.3
|
)
|
|
—
|
|
|
(.3
|
)
|
||
Adjusted selling, general and administrative expenses as a % of total revenue
|
|
52.4
|
%
|
|
54.4
|
%
|
|
(200
|
)
|
||
|
|
|
|
|
|
|
|||||
Operating (loss) profit
|
|
$
|
(3.9
|
)
|
|
$
|
44.9
|
|
|
*
|
|
CTI restructuring
|
|
53.5
|
|
|
10.9
|
|
|
|
|
||
Other items
|
|
4.1
|
|
|
—
|
|
|
|
|||
Adjusted operating profit
|
|
$
|
53.7
|
|
|
$
|
55.8
|
|
|
(4
|
)%
|
|
|
|
|
|
|
|
|||||
Operating margin
|
|
(.3
|
)%
|
|
3.2
|
%
|
|
(350
|
)
|
||
CTI restructuring
|
|
4.5
|
|
|
.8
|
|
|
370
|
|
||
Other items
|
|
.3
|
|
|
—
|
|
|
.3
|
|
||
Adjusted operating margin
|
|
4.5
|
%
|
|
4.0
|
%
|
|
50
|
|
||
|
|
|
|
|
|
|
|||||
Change in Constant $ Adjusted operating margin
(2)
|
|
|
|
|
|
150
|
|
||||
|
|
|
|
|
|
|
|||||
Loss (income) before taxes
|
|
$
|
(4.5
|
)
|
|
$
|
10.4
|
|
|
*
|
|
CTI restructuring
|
|
43.2
|
|
|
10.9
|
|
|
|
|
||
Other items
|
|
4.1
|
|
|
—
|
|
|
|
|||
Adjusted income before taxes
|
|
$
|
42.8
|
|
|
$
|
21.3
|
|
|
101
|
%
|
|
|
|
|
|
|
|
|
||||
Income taxes
|
|
$
|
(19.5
|
)
|
|
$
|
(31.5
|
)
|
|
(38
|
)%
|
CTI restructuring
|
|
(3.7
|
)
|
|
(2.1
|
)
|
|
|
|
||
Special tax items
|
|
—
|
|
|
9.2
|
|
|
|
|
||
Adjusted income taxes
|
|
$
|
(23.2
|
)
|
|
$
|
(24.4
|
)
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
||||
Effective tax rate
|
|
(433.3
|
)%
|
|
302.9
|
%
|
|
|
|
|
|
Three Months Ended March 31,
|
|||||||||
|
|
2019
|
|
2018
|
|
%/Basis Point
Change
|
|||||
Adjusted effective tax rate
|
|
54.2
|
%
|
|
114.6
|
%
|
|
|
|
||
|
|
|
|
|
|
|
|||||
Net cash (used) by operating activities of continuing operations
|
|
$
|
(142.7
|
)
|
|
$
|
(96.3
|
)
|
|
48
|
%
|
Net cash provided by investing activities of continuing operations
|
|
25.6
|
|
|
(27.0
|
)
|
|
*
|
|
||
Free cash flow (used) by continuing operations
|
|
$
|
(117.1
|
)
|
|
$
|
(123.3
|
)
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|||||
Performance Metrics
|
|
|
|
|
|
|
|||||
Change in Active Representatives
|
|
|
|
|
|
(9
|
)%
|
||||
Change in units sold
|
|
|
|
|
|
(12
|
)%
|
||||
Change in Ending Representatives
|
|
|
|
|
|
(10
|
)%
|
(1)
|
Advertising expenses are recorded in SG&A.
|
(2)
|
Change in Constant $ Adjusted operating margin for all years presented is calculated using the current-year Constant $ rates.
|
|
Three Months Ended March 31,
|
|
% Change
|
||||||||||
|
2019
|
|
2018
|
|
US$
|
|
Constant $
|
||||||
Beauty:
|
|
|
|
|
|
|
|
||||||
Skincare
|
$
|
349.3
|
|
|
$
|
389.1
|
|
|
(10
|
)%
|
|
1
|
%
|
Fragrance
|
298.0
|
|
|
354.0
|
|
|
(16
|
)
|
|
(4
|
)
|
||
Color
|
189.2
|
|
|
235.7
|
|
|
(20
|
)
|
|
(9
|
)
|
||
Total Beauty
|
836.5
|
|
|
978.8
|
|
|
(15
|
)
|
|
(3
|
)
|
||
Fashion & Home:
|
|
|
|
|
|
|
|
||||||
Fashion
|
164.3
|
|
|
188.6
|
|
|
(13
|
)
|
|
(5
|
)
|
||
Home
|
115.4
|
|
|
129.4
|
|
|
(11
|
)
|
|
1
|
|
||
Total Fashion & Home
|
279.7
|
|
|
318.0
|
|
|
(12
|
)
|
|
(2
|
)
|
||
Net sales from reportable segments
|
$
|
1,116.2
|
|
|
$
|
1,296.8
|
|
|
(14
|
)
|
|
(3
|
)
|
Net sales from Other operating segments and business activities
|
—
|
|
|
12.8
|
|
|
(100
|
)
|
|
(100
|
)
|
||
Net sales
|
$
|
1,116.2
|
|
|
$
|
1,309.6
|
|
|
(15
|
)
|
|
(4
|
)
|
•
|
a decrease of 220 basis points due to the net unfavorable impact of foreign currency transaction losses and foreign currency translation largely due to currency devaluations in Brazil, Argentina and Turkey, partially offset by an increase of 150 basis points due to the favorable net impact of mix and pricing. Mix and pricing improvements were driven by inflationary pricing, lower promotional discounts, more effective incentives and more favorable product mix in most markets; and
|
•
|
a decrease of 90 basis points from the higher cost of incentives.
|
•
|
foreign currency transaction losses (classified within cost of sales, and SG&A in our Consolidated Statements of Operations), which had an unfavorable impact to operating profit and Adjusted operating profit of approximately $25, or approximately 170 basis points to operating margin and Adjusted operating margin;
|
•
|
foreign currency translation, which had an immaterial and unfavorable impact of approximately $15 to operating profit and Adjusted operating profit, respectively, or a favorable impact of approximately 20 basis points and an unfavorable impact of approximately 40 basis points, respectively, to operating margin and Adjusted operating margin; and
|
•
|
higher foreign exchange net gains on our working capital (classified within other expense, net in our Consolidated Statements of Operations) as compared to the prior year, resulting in a favorable impact of approximately
$20
before tax on both a reported and Adjusted basis.
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
|
|
|
%/Basis Point Change
|
||||||||
|
2019
|
|
2018
|
|
US$
|
|
Constant $
|
||||||
Total revenue
|
$
|
458.7
|
|
|
$
|
568.4
|
|
|
(19
|
)%
|
|
(9
|
)%
|
Segment profit
|
59.2
|
|
|
74.4
|
|
|
(20
|
)%
|
|
(8
|
)%
|
||
|
|
|
|
|
|
|
|
||||||
Segment margin
|
12.9
|
%
|
|
13.1
|
%
|
|
(20
|
)
|
|
20
|
|
||
|
|
|
|
|
|
|
|
||||||
Change in Active Representatives
|
|
|
|
|
|
|
(12
|
)%
|
|||||
Change in units sold
|
|
|
|
|
|
|
(15
|
)%
|
|||||
Change in Ending Representatives
|
|
|
|
|
|
|
(12
|
)%
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
|
|
|
%/Basis Point Change
|
||||||||
|
2019
|
|
2018
|
|
US$
|
|
Constant $
|
||||||
Total revenue
|
$
|
414.7
|
|
|
$
|
497.1
|
|
|
(17
|
)%
|
|
1
|
%
|
Segment profit
|
23.8
|
|
|
27.2
|
|
|
(13
|
)%
|
|
33
|
%
|
||
|
|
|
|
|
|
|
|
||||||
Segment margin
|
5.7
|
%
|
|
5.5
|
%
|
|
20
|
|
|
150
|
|
||
|
|
|
|
|
|
|
|
||||||
Change in Active Representatives
|
|
|
|
|
|
|
(6
|
)%
|
|||||
Change in units sold
|
|
|
|
|
|
|
(11
|
)%
|
|||||
Change in Ending Representatives
|
|
|
|
|
|
|
(7
|
)%
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
|
|
|
%/Basis Point Change
|
||||||||
|
2019
|
|
2018
|
|
US$
|
|
Constant $
|
||||||
Total revenue
|
$
|
192.7
|
|
|
$
|
195.6
|
|
|
(1
|
)%
|
|
1
|
%
|
Segment profit
|
16.5
|
|
|
20.8
|
|
|
(21
|
)%
|
|
(18
|
)%
|
||
|
|
|
|
|
|
|
|
||||||
Segment margin
|
8.6
|
%
|
|
10.6
|
%
|
|
(200
|
)
|
|
(200
|
)
|
||
|
|
|
|
|
|
|
|
||||||
Change in Active Representatives
|
|
|
|
|
|
|
(8
|
)%
|
|||||
Change in units sold
|
|
|
|
|
|
|
(3
|
)%
|
|||||
Change in Ending Representatives
|
|
|
|
|
|
|
(12
|
)%
|
|
Three Months Ended March 31,
|
||||||||||||
|
|
|
|
|
%/Basis Point Change
|
||||||||
|
2019
|
|
2018
|
|
US$
|
|
Constant $
|
||||||
Total revenue
|
$
|
115.3
|
|
|
$
|
111.4
|
|
|
3
|
%
|
|
7
|
%
|
Segment profit
|
16.7
|
|
|
10.4
|
|
|
61
|
%
|
|
64
|
%
|
||
|
|
|
|
|
|
|
|
||||||
Segment margin
|
14.5
|
%
|
|
9.3
|
%
|
|
520
|
|
|
500
|
|
||
|
|
|
|
|
|
|
|
||||||
Change in Active Representatives
|
|
|
|
|
|
|
(12
|
)%
|
|||||
Change in units sold
|
|
|
|
|
|
|
(1
|
)%
|
|||||
Change in Ending Representatives
|
|
|
|
|
|
|
(6
|
)%
|
•
|
our ability to improve our financial and operational performance and execute fully our global business strategy, including our ability to implement the key initiatives of, and/or realize the projected benefits (in the amounts and time schedules we expect) from, our Transformation Plan, Open Up Avon, stabilization strategies, cost savings initiatives, restructuring 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 including e-commerce, marketing and advertising 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;
|
•
|
our ability to achieve the anticipated benefits of our strategic partnership with Cerberus Capital Management, L.P.;
|
•
|
our broad-based geographic portfolio, which is heavily weighted towards emerging markets, a general economic downturn, a recession globally or in one or more of our geographic regions or markets, such as Brazil, Mexico or Russia, or sudden disruption in business conditions, and the ability to withstand an economic downturn, recession, cost inflation, commodity cost pressures, economic or political instability (including fluctuations in foreign exchange rates), competitive or other market pressures or conditions;
|
•
|
the effect of economic factors, including inflation and fluctuations in interest rates and foreign currency exchange rates; as well as the designation of Argentina as a highly inflationary economy, and the potential effect of such factors on our business, results of operations and financial condition;
|
•
|
the possibility of business disruption in connection with our Transformation Plan, Open Up Avon, stabilization strategies, cost savings initiatives, or restructuring and other initiatives;
|
•
|
our ability to reverse declining revenue, to improve margins and net income, or to achieve profitable growth, particularly in our largest markets and developing and emerging markets, such as Brazil, Mexico and Russia;
|
•
|
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 reverse declines in Active Representatives, to enhance our sales leadership programs, to generate Representative activity, to increase the number of consumers served per Representative and their engagement online, to enhance branding and the Representative and consumer experience and increase Representative productivity through field activation and segmentation programs and technology tools and enablers, to invest in the direct-selling channel, to offer a more social selling experience, and to compete with other direct-selling organizations to recruit, retain and service Representatives and to continue to innovate the direct-selling model;
|
•
|
general economic and business conditions in our markets, including social, economic and political uncertainties, such as in Russia and Ukraine or elsewhere, and any potential sanctions, restrictions or responses to such conditions imposed by other markets in which we operate;
|
•
|
the effect of political, legal, tax, including changes in tax rates, and other regulatory risks imposed on us abroad and in the U.S., our operations or the Representatives, including foreign exchange, pricing, data privacy or other restrictions, the adoption, interpretation and enforcement of foreign laws, including in jurisdictions such as Brazil and Russia, 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;
|
•
|
competitive uncertainties in our markets, including competition from companies in the consumer packaged goods industry, some of which are larger than we are and have greater resources;
|
•
|
the impact of the adverse effect of volatile 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 attract and retain key personnel;
|
•
|
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;
|
•
|
key information technology systems, process or site outages and disruptions, and any cyber security breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of Representative, customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident which could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations, and related costs to address such malicious intentional acts and to implement adequate preventative measures against cyber security breaches;
|
•
|
our ability to comply with various data privacy laws affecting the markets in which we do business;
|
•
|
the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;
|
•
|
any changes to our credit ratings and the impact of such changes on our financing costs, rates, terms, debt service obligations, access to lending sources and working capital needs;
|
•
|
the impact of our indebtedness, our access to cash and financing, and our ability to secure financing or financing at attractive rates and terms and conditions;
|
•
|
the impact of our business results (including the impact of any adverse foreign exchange movements and significant restructuring charges), on our ability to comply with certain covenants in our revolving credit facility;
|
•
|
our ability to successfully identify new business opportunities, strategic alliances and strategic alternatives and identify and analyze alliance candidates, secure financing on favorable terms and negotiate and consummate alliances;
|
•
|
disruption in our supply chain or manufacturing and distribution operations;
|
•
|
the quality, safety and efficacy of our products;
|
•
|
the success of our research and development activities;
|
•
|
our ability to protect our intellectual property rights, including in connection with the separation of the North America business;
|
•
|
our ability to repurchase the series C preferred stock in connection with a change of control; and
|
•
|
the risk of an adverse outcome in any material pending and future litigation or with respect to the legal status of Representatives.
|
|
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Programs
|
|
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Program
|
|||
1/1 - 1/31/19
|
|
—
|
|
|
$
|
—
|
|
|
*
|
|
*
|
2/1 - 2/28/19
|
|
—
|
|
|
—
|
|
|
*
|
|
*
|
|
3/1 - 3/31/19
|
|
—
|
|
|
—
|
|
|
*
|
|
*
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
*
|
|
*
|
*
|
These amounts are not applicable as the Company does not have a share repurchase program in effect.
|
|
|
3.1
|
|
|
|
10.1
|
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101
|
The following materials formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Loss, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements
|
|
|
AVON PRODUCTS, INC.
|
|
|
(Registrant)
|
|
|
|
Date:
|
May 3, 2019
|
/s/ Laura Barbrook
|
|
|
Laura Barbrook
|
|
|
Vice President and Corporate
|
|
|
Controller - Principal Accounting Officer
|
|
|
|
|
|
Signed both on behalf of the
|
|
|
registrant and as chief
|
|
|
accounting officer.
|
1 Year Avon Products Chart |
1 Month Avon Products Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions