Avon 2007 Annual Report Download - page 89

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SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Years ended December 31, 2007, 2006 and 2005
(In millions)
Description
Balance
at
Beginning
of Period
Additions
Deductions
Balance
at End
of
Period
Charged
to Costs
and
Expenses
Charged
to
Revenue
2007
Allowance for doubtful accounts receivable $ 91.1 $164.1 $ – $146.2(1) $109.0
Allowance for sales returns 28.0 – 338.1 334.0(2) 32.1
Allowance for inventory obsolescence 125.0 280.6 – 188.7(3) 216.9
Deferred tax asset valuation allowance 234.1 62.9(4) – 18.7(5) 278.3
2006
Allowance for doubtful accounts receivable $ 85.8 $144.7 $ – $139.4(1) $ 91.1
Allowance for sales returns 24.3 – 295.0 291.3(2) 28.0
Allowance for inventory obsolescence 82.4 179.7 – 137.1(3) 125.0
Deferred tax asset valuation allowance 145.2 88.9(4) – – 234.1
2005
Allowance for doubtful accounts receivable $ 77.6 $135.6 $ – $127.4(1) $ 85.8
Allowance for sales returns 23.4 – 288.5 287.6(2) 24.3
Allowance for inventory obsolescence 57.0 93.3 – 67.9(3) 82.4
Deferred tax asset valuation allowance 70.2 75.0(4) – – 145.2
(1) Accounts written off, net of recoveries and foreign currency translation adjustment.
(2) Returned product destroyed and foreign currency translation adjustment.
(3) Obsolete inventory destroyed and foreign currency translation adjustment.
(4) Increase in valuation allowance for tax loss carry forward benefits is because it is more likely than not that some or all of the deferred tax assets will not be
utilized in the future.
(5) Release of valuation allowance on deferred tax assets that are more likely than not to be utilized in the future.
A V O N 2007 F-37