Avon 2008 Annual Report Download - page 89

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SCHEDULE II
AVON PRODUCTS, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
Years ended December 31, 2008, 2007 and 2006
Additions
(In millions)
Description
Balance
at
Beginning
of Period
Charged
to Costs
and
Expenses
Charged
to
Revenue Deductions
Balance
at End
of
Period
2008
Allowance for doubtful accounts receivable $109.0 $195.5 $ – $202.5(1) $102.0
Allowance for sales returns 32.1 – 369.3 375.6(2) 25.8
Allowance for inventory obsolescence 216.9 80.8 – 199.5(3) 98.2
Deferred tax asset valuation allowance 278.3 5.8(4) ––
(5) $284.1
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
(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 carryforward 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 2008 F-37