Avon 2006 Annual Report Download - page 20

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PART I
• four distribution centers and two administrative offices in
Western Europe, Middle East & Africa;
• one distribution center and two administrative offices in Cen-
tral & Eastern Europe;
• two manufacturing facilities, four distribution centers, and
three administrative offices in Asia Pacific; and
• one manufacturing facility and twelve distribution centers in
China.
Of all the properties listed above, 30 are owned and the remain-
ing 33 are leased. Many of our properties are used for a
combination of manufacturing, distribution and administration.
These properties are included in the above listing based on pri-
mary usage.
We consider all of these properties to be in good repair, to
adequately meet our needs and to operate at reasonable levels
of productive capacity. In January 2007, we announced plans to
restructure our North America distribution operations. This ini-
tiative includes the building of a state-of-the-art distribution
center in the U.S. Midwest, a location to be determined, that will
open in 2009. We will phase-out our current distribution
branches in Newark, DE and Glenview, IL with the closures
expected to be completed by mid-2009 and mid-2010,
respectively.
ITEM 3. LEGAL PROCEEDINGS
Reference is made to Note 14, Contingencies, on pages F-28
through F-30 of this 2006 Annual Report on Form 10-K.
ITEM 4. SUBMISSION OF MATTERS TO
A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during
the quarter ended December 31, 2006.