Avon 2008 Annual Report Download - page 79

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Depreciation and Amortization
2008 2007 2006
Latin America $ 55.5 $ 49.6 $ 48.7
North America 37.6 35.0 30.0
Central & Eastern Europe 25.8 19.7 19.8
Western Europe, Middle
East & Africa 31.8 26.4 23.1
Asia Pacific 13.3 16.0 10.6
China 5.9 5.8 5.2
Total from operations 169.9 152.5 137.4
Global and other 17.3 19.6 22.2
Total depreciation and
amortization $187.2 $172.1 $159.6
Total Revenue by Major Country
2008 2007 2006
U.S. $ 2,061.8 $2,194.9 $2,157.1
Brazil 1,674.3 1,352.0 1,039.2
All other 6,954.0 6,391.8 5,567.6
Total $10,690.1 $9,938.7 $8,763.9
A major country is defined as one with total revenues greater
than 10% of consolidated total revenues.
Long-Lived Assets by Major Country
2008 2007 2006
U.S. $ 649.3 $ 465.5 $ 418.2
Brazil 187.1 197.7 115.5
Colombia 122.5 131.6 145.1
All other 910.2 935.3 800.4
Total $1,869.1 $1,730.1 $1,479.2
A major country is defined as one with long-lived assets greater
than 10% of consolidated long-lived assets. Long-lived assets
primarily include property, plant and equipment and intangible
assets. The U.S. and Brazil’s long-lived assets consist primarily of
property, plant and equipment related to manufacturing and
distribution facilities. Colombia’s long-lived assets consist
primarily of goodwill and intangible assets associated with the
2005 acquisition of this business.
Revenue by Product Category
2008 2007 2006
Beauty(1) $ 7,603.7 $6,932.5 $6,019.6
Fashion(2) 1,863.3 1,753.2 1,562.7
Home(3) 1,121.9 1,159.5 1,095.0
Net sales 10,588.9 9,845.2 8,677.3
Other revenue(4) 101.2 93.5 86.6
Total revenue $10,690.1 $9,938.7 $8,763.9
(1) Beauty includes cosmetics, fragrances, skin care and toiletries.
(2) Fashion includes fashion jewelry, watches, apparel, footwear and
accessories.
(3) Home includes gift and decorative products, housewares,
entertainment and leisure, children’s and nutritional products.
(4) Other revenue primarily includes shipping and handling fees billed to
Representatives.
Sales from Health and Wellness products and mark. are included
among these categories based on product type.
Beginning in the fourth quarter of 2008, we changed our
product categories from Beauty, Beauty Plus and Beyond Beauty
to Beauty, Fashion and Home.
NOTE 13. Leases and Commitments
Minimum rental commitments under noncancellable operating
leases, primarily for equipment and office facilities at Decem-
ber 31, 2008, are included in the following table under leases.
Purchase obligations include commitments to purchase paper,
inventory and other services.
Year Leases
Purchase
Obligations
2009 $ 92.3 $106.3
2010 65.9 55.3
2011 47.0 25.8
2012 26.3 17.7
2013 21.5 16.1
Later years 54.8 49.9
Sublease rental income (31.2) –
Total $276.6 $271.1
Rent expense in 2008 was $120.4 (2007 – $118.5; 2006 –
$114.7). Plant construction, expansion and modernization proj-
ects with an estimated cost to complete of $430.2 were in
progress at December 31, 2008.
A V O N 2008 F-27