Avon 2007 Annual Report Download - page 21

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• six distribution centers and four administrative offices in West-
ern Europe, Middle East & Africa;
• two distribution centers and two administrative offices in
Central & Eastern Europe;
• three manufacturing facilities, four distribution centers, and
two administrative offices in Asia Pacific; and
• two manufacturing facilities and five distribution centers in
China.
Of all the properties listed above, 32 are owned and the remain-
ing 32 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 realign certain North
America distribution operations. This initiative includes the build-
ing of a new distribution center in Zanesville, Ohio, that is
expected to open in 2009. We will phase-out our current dis-
tribution branches in Newark, DE and Glenview, IL with the clo-
sures expected to be completed by mid-2009 and mid-2010,
respectively.
In January 2008, we announced plans to realign certain Latin
America distribution and manufacturing operations. We plan to
build a new distribution center in Brazil that is expected to open
in 2010. We will phase-out our current distribution center in Sao
Paulo, Brazil during 2011. We also plan to close our manufactur-
ing facility in Guatemala in late 2008 and transfer production to
our existing facility in Mexico.
ITEM 3. LEGAL PROCEEDINGS
Reference is made to Note 14, Contingencies, on pages F-31
through F-33 of this 2007 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, 2007.
A V O N 2007 15