Avon 2005 Annual Report Download - page 51

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During the fourth quarter of 2004, we recorded a write-down of
$13.7 ($12.2 after tax) resulting from declines in the fair values of
investments in equity securities below their cost bases that were
judged to be other-than-temporary. These equity securities are
available to fund select benefit plan obligations.
19฀
SUBSEQUENT฀EVENTS
On January 26, 2006, we announced an increase in our quarterly
cash dividend to $.175 per share from $.165 per share. The first
dividend at the new rate will be paid on March 1, 2006, to share-
holders of record on February 14, 2006. With this increase, the
indicated annual dividend rate is $.70 per share.
In January 2006, we issued in a public offering $500.0 principal
amount of notes payable that mature on January 15, 2011, and
bear interest, payable semi-annually, at a per annum rate equal
to 5.125%. The net proceeds from the offering were used for
general corporate purposes, including the repayment of short-
term debt.
In January 2006, we entered into a five-year $1,000.0 revolving
credit and competitive advance facility (the “new credit facility”),
and simultaneously terminated the old credit facility. The new credit
facility may be used for general corporate purposes. The interest
rate on borrowings under the new credit facility is based on LIBOR
or on the higher of prime or ½% plus the federal funds rate.
On January 26, 2006, we
announced an increase in our
quarterly cash dividend to
$.175 per share from $.165
per share. With this increase,
the indicated annual dividend
rate is $.70 per share.
2005฀ANNUAL฀REPORT฀฀71