Avon 2003 Annual Report Download - page 32

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Various other lawsuits and claims, arising in the ordinary course of business
or related to businesses previously sold, are pending or threatened against
Avon. In the opinion of Avon’s management, based on its review of the infor-
mation available at this time, the total cost of resolving such other contingen-
cies at December 31, 2003, should not have a material adverse effect on the
Consolidated Financial Statements.
Other Information
On February 3, 2004, Avon announced a two-for-one stock split in the form
of a dividend of one share of common stock in respect of each share of com-
mon stock issued and outstanding or held in treasury, subject to shareholder
approval at the May 6, 2004 annual meeting of shareholders of an amendment
to the Company’s Restated Certificate of Incorporation to increase the number
of authorized shares. If the stock split is approved, the new annual dividend
rate will be $.56 per share (quarterly rate of $.14 per share).
Disclosure Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, the Company’s Chief
Executive Officer and Chief Financial Officer carried out an evaluation of
the effectiveness of the design and operation of the Company’s disclosure
controls and procedures pursuant to Rule 13a-15 of the Securities Exchange
Act of 1934 (the “Exchange Act”). Based upon their evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the Company’s
disclosure controls and procedures were adequate and effective and
designed to ensure that material information relating to the Company
(including its consolidated subsidiaries) required to be disclosed by the
Company in the reports it files under the Exchange Act is recorded,
processed, summarized and reported within the required time periods.
Changes in Internal Controls Over Financial Reporting
In connection with the evaluation by the Company’s Chief Executive Officer
and Chief Financial Officer of changes in internal control over financial
reporting that occurred during the Company’s last fiscal quarter, no change in
the Company’s internal control over financial reporting was identified that has
materially affected, or is reasonably likely to materially affect the Company’s
internal control over financial reporting.
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