Avon 2003 Annual Report Download - page 81

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Eleven-Year Review continued
eleven-year review
In millions, except per share and employee data
2003 2002 2001 2000
Cash dividends per share
Common $ .84 $ .80 $ .76 $ .74
Preferred ————
Balance sheet data
Working capital $ 638.4 $ 72.7 $ 428.1 $ 186.4
Capital expenditures 162.6 126.5 155.3 193.5
Property, plant and equipment, net 855.6 769.1 771.7 765.7
Total assets 3,562.3 3,327.5 3,181.0 2,811.3
Debt maturing within one year 244.1 605.2 88.8 105.4
Long-term debt 877.7 767.0 1,236.3 1,108.2
Total debt 1,121.8 1,372.2 1,325.1 1,213.6
Shareholders’ equity (deficit) 371.3 (127.7) (75.1) (230.9)
Number of employees
United States 9,400 9,200 9,600 9,800
International 36,500 36,100 34,200 33,200
Total employees(13) 45,900 45,300 43,800 43,000
(1) For the year ended December 31, 2000, the Company adopted the provisions of
Emerging Issues Task Force (“EITF”) 00-10, “Accounting for Shipping and Handling
Fees and Costs,” which requires that amounts billed to customers for shipping and
handling fees be classified as revenues. 1999 and 1998 have been restated to reflect
shipping and handling fees, previously reported in Marketing, distribution and admin-
istrative expenses, in Other revenue in the Consolidated Statements of Income.
(2) Certain reclassifications have been made to conform to the current full year presentation.
(3) In 2003, Avon reversed $2.1 pretax ($1.3 after tax, or $.006 per diluted share) related to
the Special charges recorded in 2001 and $1.8 pretax ($1.3 after tax, or $.005 per diluted
share) related to the Special charges recorded in 2002 against the Special charges line.
The net effect of the adjustments is a benefit of $3.9 pretax ($2.7 after tax, or $.01 per
diluted share).
(4) In 2002, Avon recorded Special charges of $43.6 pretax ($30.4 after tax, or $.12 per
diluted share), primarily related to workforce reductions and facility rationalizations.
Avon also reversed $7.3 pretax ($5.2 after tax, or $.02 per diluted share) against the
Special charges line related to the Special charges recorded in 2001.
(5) In 2001, Avon recorded Special charges of $97.4 pretax ($68.3 after tax, or $.28 per
diluted share), primarily related to workforce reductions and facility rationalizations. In
2001, Avon also received a cash settlement, net of related expenses, of $25.9 pretax
($15.7 after tax, or $.06 per diluted share) to compensate Avon for lost profits and
incremental expenses as a result of the cancellation of a retail agreement with Sears.
(6) In 1998, Avon began a worldwide business process redesign program in order to
streamline operations and recorded Special charges of $154.4 pretax ($122.8 after
tax, or $.46 per diluted share). In 1999, Special charges related to this program
totaled $136.4 pretax ($111.9 after tax, or $.43 per diluted share). In 1999, Avon
recorded an Asset impairment charge of $38.1 pretax ($24.0 after tax, or $.09 per
diluted share) related to the write-off of an order management software system that
had been under development.
(7) Effective January 1, 2001, Avon adopted FAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities,” as amended by FAS No. 138, “Accounting for
Certain Derivatives and Hedging Activities,” which establishes accounting and report-
ing standards for derivative instruments and hedging activities. To reflect the adoption
of FAS 133, Avon recorded a charge of $.3, net of a tax benefit of $.2. This charge
is reflected as a cumulative effect of an accounting change in the Consolidated
Statements of Income.
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