Avon 2009 Annual Report Download

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this is the company that puts mascara on lashes
and food on tables, that fights wrinkles with one hand and Breast Cancer
with the other. That knows the value of a perfect lip, but still opens its mouth
and speaks out against Domestic Violence and for women’s financial
independence. This is the company that not only brings beauty to doors,
but also opens them. The company that supports 6 million Representatives
in over 100 countries. This is Avon. The company, that for 125 years, has
stood for beauty, innovation, optimism and above all for women.
annual report 2009
this is the company
for women

Table of contents

  • Page 1
    ... against Domestic Violence and for women's financial independence. This is the company that not only brings beauty to doors, but also opens them. The company that supports 6 million Representatives in over 100 countries. This is Avon. The company, that for 125 years, has stood for beauty, innovation...

  • Page 2

  • Page 3
    ...comprehensive help us aggressively capture market share and emerge challenging years in memory even better positioned for growth. Our recession playbook had four components: mobilized as well. We recession playbook to from one of the most sustainable profitable • Attract new Representatives with...

  • Page 4
    This is the company that puts mascara on lashes and food on tables,

  • Page 5
    ... largest public relations campaign in our history, working with journalists around the world to profile successful Avon Representatives in magazines and newspapers, on television, on the radio and online. All these efforts paid off in attracting a record number of new Representatives to Avon. This...

  • Page 6
    that fights wrinkles with one hand and Breast Cancer with the other.

  • Page 7
    ...world and gaining market share against the competition, we were generating lower sales after translation into dollars. Exchange rates were also negatively impacting our supply chain costs. All told, we faced a potential negative currency impact of almost $1 billion dollars to revenue and nearly $400...

  • Page 8
    That knows the value of a perfect lip, but still opens its mouth and speaks out against Domestic Violence and for women's financial independence.

  • Page 9
    ... Avon. Avon Sales Leadership - through which Representatives earn by both selling and recruiting - has been rolled out to approximately 50 countries worldwide. We have also launched our global Internet platform to help Representatives manage their business online. In 2010 we will continue to add new...

  • Page 10
    This is the company that not only brings beauty to doors, but also opens them.The company that supports 6 million Representatives in over 100 countries.

  • Page 11
    ... Purpose So we enter 2010 well-positioned for sustainable long-term growth. As more and more Representatives discover the power of the Avon Earning Opportunity, our goal is to retain them and increase their productivity by continuing to innovate our business model. We will leverage technology...

  • Page 12
    This is Avon. The company, that for 125 years, has stood for beauty, innovation, optimism and above all for Women.

  • Page 13
    ...but also opens them. The company that supports 6 million Representatives in over one hundred countries. This is Avon. The company, that for 125 years, has stood for beauty, innovation, optimism and above all for women. Andrea Jung Chairman and Chief Executive Officer March 2010 2009 Annual Report

  • Page 14

  • Page 15
    ... (I.R.S. Employer incorporation or organization) Identification No.) 1345 Avenue of the Americas, New York, N.Y. 10105-0196 (Address of principal executive offices) (212) 282-5000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Name of...

  • Page 16

  • Page 17
    ... About Market Risk 40 Item 11 Executive Compensation 41 15 (a) 2 Financial Statement Schedule 14 - 15 Item 2 Properties 15 Item 3 Legal Proceedings 37 Item 8 Financial Statements and Supplementary Data 40 Item 12 Security Ownership of Certain Beneficial Owners and Management and Related...

  • Page 18

  • Page 19
    ... and time schedules we expect) from, our global business strategy, including our multi-year restructuring initiatives, product mix and pricing strategies, enterprise resource planning, customer service initiatives, product line simplification program, sales and operation planning process, strategic...

  • Page 20
    ...through investments in the direct-selling channel, and to compete with other direct-selling organizations to recruit, retain and service Representatives; the impact of the seasonal nature of our business, adverse effect of rising energy, commodity and raw material prices, changes in market trends...

  • Page 21
    ... America; Central & Eastern Europe; Western Europe, Middle East & Africa; Asia Pacific; and China. We have centralized operations for Global Brand Marketing, Global Sales and Supply Chain. Financial information relating to our reportable segments is included in the "Segment Review" section within...

  • Page 22
    ... and grow our business. As part of our multi-year turnaround plan, we have initiatives underway to standardize global processes for prospecting, appointing, training and developing Representatives, as well as training and developing our direct-selling executives. One of our key strategies to recruit...

  • Page 23
    ...that sell fashion jewelry through retail establishments. We believe that the personalized customer service offered by our Representatives; the amount and type of field incentives we offer our Representatives on a market-by-market basis; the high quality, attractive designs and prices of our products...

  • Page 24
    ... to roll-out the ERP system over the next several years. See Item 2, Properties, for additional information regarding the location of our principal manufacturing facilities. Seasonal Nature of Business Our sales and earnings have a marked seasonal pattern characteristic of many companies selling...

  • Page 25
    ... Corporate Governance Guidelines and our Code of Business Conduct and Ethics. Copies of these SEC reports and other documents are also available, without charge, from Investor Relations, Avon Products, Inc., 1345 Avenue of the Americas, New York, NY 10105-0196 or by sending an email to AVON 2009...

  • Page 26
    ...our Sales Leadership program globally, recruit Representatives, enhance the Representative experience and increase their productivity through investments in the direct-selling channel; • increase the number of consumers served per Representative and their engagement online, as well as to reach new...

  • Page 27
    ... in an international market; • the lack of well-established or reliable legal systems in certain areas where we operate; • the possibility that a government authority might impose legal, tax or other financial burdens on our Representatives, as direct sellers, or on Avon, due, for example...

  • Page 28
    ... lines similar to ours, some of which also have worldwide operations and compete with us globally. Unlike most other beauty companies, we compete within a distinct business model where providing a compelling earnings opportunity for our Representatives is as critical as developing and marketing new...

  • Page 29
    ... business. Our principal properties consist of worldwide manufacturing facilities for the production of Beauty products, distribution centers where offices are located and where finished merchandise is packed and shipped to Representatives in fulfillment of their orders, and one principal research...

  • Page 30
    ...and data transfer network. We also employ information technology systems to support Representatives in many of our markets, including electronic order collection and invoicing systems and on-line training. We have Internet sites in many of our markets, including business-to-business sites to support...

  • Page 31
    ... pension obligations, the funded status of pension plans and our pension cost. Our funding policy for pension plans is to accumulate plan assets that, over the long run, will approximate the present value of projected benefit obligations. Our pension cost is materially affected by the discount rate...

  • Page 32
    ... centers are located in Atlanta, GA; Glenview, IL; Zanesville, OH; and Pasadena, CA. Our research and development facility is located in Suffern, NY. We also lease office space in two locations in New York City and own property in Rye, NY, for our executive and administrative offices. In early 2010...

  • Page 33
    ... to be completed by mid-2010. In January 2008, we announced plans to realign certain Latin America distribution and manufacturing operations. We are building a new distribution center in Brazil that is expected to open in 2011. We will phase-out our current distribution center in Sao Paulo, Brazil...

  • Page 34
    ...'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Avon's Common Stock Our common stock is listed on the New York Stock Exchange and trades under the AVP ticker symbol. At December 31, 2009, there were approximately 17,277 holders of record of our...

  • Page 35
    ... by us in connection with employee elections to use shares to pay withholding taxes upon the vesting of their restricted stock units. There were no shares purchased during the fourth quarter of 2009 as part of our $2.0 billion share repurchase program, publicly announced on October 11, 2007...

  • Page 36
    ...Compensation Plans, to this 2009 Annual Report for more information on these items. 2009 Costs to implement restructuring initiatives related to our multi-year restructuring programs Inventory obsolescence expense (benefit) related to our product line simplification program Share-based compensation...

  • Page 37
    ... & Africa; Asia Pacific; and China. We have centralized operations for Global Brand Marketing, Global Sales and Supply Chain. Our product categories are Beauty, Fashion and Home. Beauty consists of color cosmetics, fragrances, skin care and personal care. Fashion consists of fashion jewelry, watches...

  • Page 38
    ... this 2009 Annual Report. Despite the negative impact of the accounting cost from the devaluation of the Venezuelan currency, we anticipate the Company's operating margin to improve in 2010 and to reach mid-teen levels by 2013. We believe that our strong operating cash flow and global cash balances...

  • Page 39
    ... resource planning ("ERP") system, which is expected to improve the efficiency of our supply chain and financial transaction processes. We began our gradual global roll-out in Europe in 2005 and have since implemented ERP in our European manufacturing facilities, our larger European direct-selling...

  • Page 40
    ... finance, information technology, human resource and customer service processes, and the move of certain services from markets to lower cost shared service centers; • the restructure of certain international direct-selling operations; • the realignment of certain distribution and manufacturing...

  • Page 41
    ... accumulating detailed estimates of costs for such plans. These expenses include Allowances for Doubtful Accounts Receivable Representatives contact their customers, selling primarily through the use of brochures for each sales campaign. Sales campaigns are generally for a two-week duration in the...

  • Page 42
    ...supplemental pension benefit plans for some current and retired executives and provide retiree health care and life insurance benefits subject to certain limitations to the majority of employees in the U.S. and in some foreign countries. See Note 11, Employee Benefit Plans, to our 2009 Annual Report...

  • Page 43
    ... discount rates and expected return on plan assets discussed above, rate of compensation increase of plan participants, interest cost, health care cost trend rates, benefits earned, mortality rates, the number of associate retirements, the number of associates electing to take lump-sum payments...

  • Page 44
    ... profit Interest expense Interest income Other expense, net Net income attributable to Avon Diluted earnings per share Advertising expenses (1) Gross margin Selling, general and administrative expenses as a % of total revenue Operating margin Effective tax rate Units sold Active Representatives...

  • Page 45
    ... exchange on product cost in Europe. 2007 included incremental inventory obsolescence charges of $167.3 related to our PLS program. Obsolescence expense for 2008 also benefited by approximately $13 from changes in estimates to our disposition plan under our PLS program. See the "Segment Review...

  • Page 46
    ...among other things, costs related to our executive and administrative offices, information technology, research and development, and marketing. Certain planned global expenses are allocated to our business segments primarily based on planned revenue. The unallocated costs remain as global and other...

  • Page 47
    ... and deferred income taxes resulting from changes in the exchange rate are recorded in income. Nonmonetary assets, which include inventories and property, plant and equipment, are carried forward at their historical dollar cost. Effective January 11, 2010, the Venezuelan government devalued its...

  • Page 48
    ... initiatives. These benefits to margin were partially offset by higher investments in RVP. Operating margin for 2007 benefited from the recognition of unclaimed sales-related tax credits. costs impacted 2009 operating margin by 1.8 points as compared to 0.5 points in 2008. Lower revenues with fixed...

  • Page 49
    ... unfavorable foreign exchange on product cost. Western Europe, Middle East & Africa - 2009 Compared to 2008 %/Point Change 2009 2008 US$ Constant $ Total revenue $1,277.8 $1,351.7 (5)% Operating profit 84.2 121.0 (30)% Operating margin 6.6% 8.9% (2.3) Units sold Active Representatives 6% (22...

  • Page 50
    ... foreign exchange. Revenue in the United Kingdom in Constant $ increased, driven by an increase in Active Representatives, benefiting from investments in representative recruiting. Revenue in the United Kingdom also benefited from the continued roll-out of PLS and strong merchandising. Revenue...

  • Page 51
    ... impact of favorable foreign exchange and an increase in Active Representatives, partially offset by a lower average order. Revenue from Beauty Boutiques decreased by over 40% for 2009, reflecting the continued complex evolution towards direct selling in this hybrid business model, which is unique...

  • Page 52
    ... on economic conditions, employee demographics, mortality rates, the number of associates electing to take lump-sum distributions, investment performance and funding decisions. Based on current assumptions, we expect to make contributions in the range of $15 to $20 to our U.S. pension plans and in...

  • Page 53
    ... for 2010 to our funded pension benefit plans. The amount of debt and contractual financial obligations and commitments excludes amounts due under derivative transactions. The table also excludes information on recurring purchases of inventory as these purchase orders are non-binding, are generally...

  • Page 54
    ... Debt and Other Financing, to our 2009 Annual Report). Such indentures do not contain any rating downgrade triggers that would accelerate the maturity of our debt. However, we would be required to make an offer to repurchase the 2013 Notes, 2014 Notes, 2018 Notes, and 2019 Notes at a price equal to...

  • Page 55
    ..., sustained for one year, would not represent a material potential change in fair value, earnings or cash flows. This potential change was calculated based on discounted cash flow analyses using interest rates comparable to our current cost of debt. Credit Risk of Financial Instruments We attempt...

  • Page 56
    ... 2009, at the reasonable assurance level. Disclosure controls and procedures are designed to ensure that information relating to Avon (including our consolidated subsidiaries) required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized and reported...

  • Page 57
    ... in certain significant markets and will continue to roll-out the ERP system over the next several years. As with any new information technology application we implement, this application, along with the internal controls over financial reporting included in this process, were appropriately tested...

  • Page 58
    ..., free of charge, on our investor website, www.avoninvestor.com. Our Code of Business Conduct and Ethics is also available, without charge, from Investor Relations, Avon Products, Inc., 1345 Avenue of the Americas, New York, NY 10105-0196 or by sending an email to [email protected]...

  • Page 59
    ...). Avon Products, Inc. Year 2000 Stock Incentive Plan (incorporated by reference to Appendix A to the Company's Proxy Statement as filed with the Commission on March 27, 2000 in connection with Avon's 2000 Annual Meeting of Shareholders). 4.2 4.3 4.4 4.5 4.6 10.1* 10.2* 10.3* 10.4* AVON 2009...

  • Page 60
    ....22 to Avon's Annual Report on Form 10-K for the year ended December 31, 2007). Avon Products, Inc. 2008-2012 Executive Incentive Plan (incorporated by reference to Exhibit 10.1 to Avon's Current Report on Form 8-K filed on March 11, 2008). Benefit Restoration Pension Plan of Avon Products, Inc., as...

  • Page 61
    ... Exhibit 10.1 to Avon's Current Report on Form 8-K filed on September 6, 2005). Revolving Credit and Competitive Advance Facility Agreement, dated as of January 13, 2006, among Avon Products, Inc., Avon Capital Corporation, Citibank, N.A., as Administrative Agent, Citigroup Global Markets Inc., Banc...

  • Page 62
    ... Valuation and Qualifying Accounts, tagged as block text. 32.1 32.2 101** * The Exhibits identified above with an asterisk (*) are management contracts or compensatory plans or arrangements. ** Furnished, not filed. Avon's Annual Report on Form 10-K for the year ended December 31, 2009, at the...

  • Page 63
    ... registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 25th day of February 2010. Avon Products, Inc. /s/ Stephen Ibbotson Stephen Ibbotson Group Vice President and Corporate Controller - Principal Accounting Officer AVON 2009 45

  • Page 64
    .../s/ Andrea Jung Andrea Jung Chairman of the Board and Chief Executive Officer - Principal Executive Officer February 25, 2010 Vice Chairman, Chief Finance and Strategy Officer - Principal Financial Officer February 25, 2010 Group Vice President and Corporate Controller - Principal Accounting Officer...

  • Page 65
    ...Statements: Financial Statement Schedule: F-2 Report of Independent Registered Public Accounting Firm F-3 Consolidated Statements of Income for each of the years in the three-year period ended December 31, 2009 F-37 Schedule II - Valuation and Qualifying Accounts F-4 Consolidated Balance Sheets...

  • Page 66
    ... is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United...

  • Page 67
    CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) Years ended December 31 Net sales Other revenue Total revenue Costs, expenses and other: Cost of sales Selling, general and administrative expenses Operating profit Interest expense Interest income Other expense, net Total other...

  • Page 68
    ... and Shareholders' Equity Current liabilities Debt maturing within one year Accounts payable Accrued compensation Other accrued liabilities Sales and taxes other than income Income taxes Total current liabilities Long-term debt Employee benefit plans Long-term income taxes Other liabilities Total...

  • Page 69
    ... obsolescence Share-based compensation Foreign exchange losses (gains) Deferred income taxes Other Changes in assets and liabilities: Accounts receivable Inventories Prepaid expenses and other Accounts payable and accrued liabilities Income and other taxes Noncurrent assets and liabilities Net cash...

  • Page 70
    ... service cost arising during 2007, net of taxes of $22.3 Net derivative losses on cash flow hedges, net of taxes of $9.5 Total comprehensive income Cumulative effect of accounting changes relating to taxes (Note 6) Dividends - $.74 per share Exercise/vesting and expense of share-based compensation...

  • Page 71
    ... & Africa; Asia Pacific; and China. We have centralized operations for Global Brand Marketing, Global Sales and Supply Chain. Our product categories are Beauty, Fashion and Home. Beauty consists of color cosmetics, fragrances, skin care and personal care. Fashion consists of fashion jewelry, watches...

  • Page 72
    ... as available-for-sale and carried at fair value. Unrealized holding gains and losses, net of applicable taxes, are recorded as a separate component of shareholders' equity, net of deferred taxes. Uncertain Tax Positions We recognize the benefit of a tax position, if that position is more likely...

  • Page 73
    ...in 2007. Research and development costs include all costs related to the design and development of new products such as salaries and benefits, supplies and materials and facilities costs. Share-based Compensation All share-based payments to employees are recognized in the financial statements based...

  • Page 74
    ... as disclosure of fair value levels. See Note 11, Employee Benefit Plans. NOTE 2. New Accounting Standards In June 2009, the Financial Accounting Standards Board ("FASB") issued the FASB Accounting Standards Codification (the "Codification"), which established the Codification as the authoritative...

  • Page 75
    ...were used to repay outstanding indebtedness under our commercial paper program and for general corporate purposes. The carrying value of the 2013 Notes represents the $250.0 principal amount, net of the unamortized discount to face value of $.2 at December 31, 2009, and $.3 at December 31, 2008. The...

  • Page 76
    ... funds rate. The credit facility has an annual fee of $.7, payable quarterly, based on our current credit ratings. The credit facility contains various covenants, including a financial covenant which requires our interest coverage ratio (determined in relation to our consolidated pretax income...

  • Page 77
    ... Net deferred tax assets 2009 2008 $(198.6) $(406.2) - (475.2) (18.8) (.3) (532.2) (27.2) $(692.6) $(965.9) Foreign exchange gains (losses) of $(14.5) for 2009 and $25.4 for 2008 resulting from the translation of actuarial losses, prior service credit and translation obligation recorded in...

  • Page 78
    ... CONSOLIDATED FINANCIAL STATEMENTS The valuation allowance primarily represents amounts for foreign tax loss carryforwards. The basis used for recognition of deferred tax assets included the profitability of the operations, related deferred tax liabilities and the likelihood of utilizing tax credit...

  • Page 79
    ... and Risk Management We operate globally, with manufacturing and distribution facilities in various locations around the world. We may reduce our exposure to fluctuations in cash flows associated with changes in interest rates and foreign exchange rates by creating offsetting positions through the...

  • Page 80
    ...other expense, net on the Consolidated Statements of Income. 2009, we recorded a net loss of $52.4 in interest expense for these interest-rate swap agreements designated as fair value hedges. The impact on interest expense of these interest-rate swap agreements was offset by an equal and offsetting...

  • Page 81
    .... Our foreign currency and interest rate derivatives are comprised of over-the-counter forward contracts, swaps or options with major international financial institutions. Although our theoretical credit risk is the replacement cost at the then estimated fair value of these instruments, AVON 2009...

  • Page 82
    ... plan assets. The available-for-sale securities include securities held in a trust in order to fund future benefit payments for non-qualified retirement plans (see Note 11, Employee Benefit Plans). The foreign exchange forward contracts and interest-rate swap agreements are hedges of either recorded...

  • Page 83
    ... of interest-rate swap agreements were estimated based LIBOR yield curves at the reporting date. For the years ended December 31: 2009 Compensation cost for stock options, restricted stock, restricted stock units, and stock appreciation rights Total income tax benefit recognized for share-based...

  • Page 84
    ... cost related to restricted stock and restricted stock unit compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.8 years. NOTE 10. Shareholders' Equity Stock Repurchase Program In February 2005, our Board approved a five-year, $1,000.0 share...

  • Page 85
    ... retirement. Plans are funded based on legal requirements and cash flow. We provide health care and life insurance benefits for the majority of employees who retire under our retirement plans in the U.S. and certain foreign countries. In the U.S., the cost of such health care benefits is shared by...

  • Page 86
    ... company contribution to fund termination benefits Federal subsidy Plan participant contributions Benefits paid Settlements Foreign currency changes and other Ending balance Funded Status: Funded status at end of year Amount Recognized in Balance Sheet: Other assets Accrued compensation Employee...

  • Page 87
    ... loss that are expected to be recognized as components of net periodic benefit cost during 2010 are as follows: Pension Benefits U.S. Plans Net actuarial loss Prior service credit Transition obligation $39.5 (.3) - Non-U.S. Plans $15.6 (1.0) .1 Postretirement Benefits $4.2 (17.0) - AVON 2009...

  • Page 88
    ... net benefit cost recorded in the Consolidated Statements of Income for the years ended December 31 were as follows: Pension Benefits U.S. Plans Non-U.S. Plans 2007 5.90% 5.00 8.00 Postretirement Benefits 2007 4.93% 2.99 6.85 2009 Discount rate Rate of compensation increase Rate of return on...

  • Page 89
    ... on a recurring basis as of December 31, 2009: U.S. Pension and Postretirement Plans Asset Category Equity Securities: Domestic equity International equity Emerging markets Fixed Income Securities: Corporate bonds Government securities Mutual funds Cash Total Level 1 $175.9 44.2 35.4 255.5 - - 43...

  • Page 90
    ...securities. Mutual funds are valued at quoted market prices. Real estate is valued by reference to investment and letting transactions at similar types of property and are supplemented by third party surveyors. The overall objective of our U.S. pension plan is to provide the means to pay benefits to...

  • Page 91
    ... Europe; Western Europe, Middle East & Africa; Asia Pacific; and China. Global expenses include, among other things, costs related to our executive and administrative offices, information technology, research and development, and marketing. We allocate certain planned global expenses to our business...

  • Page 92
    ... STATEMENTS Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables. Total Revenue & Operating Profit 2009 Total Revenue Latin America North America Central & Eastern Europe Western Europe, Middle East & Africa Asia Pacific China...

  • Page 93
    ...entertainment and leisure products and children's and nutritional products. Other revenue primarily includes shipping and handling fees billed to Representatives. (3) (4) Sales from Health and Wellness products and mark. are included among these categories based on product type. AVON 2009 F-29

  • Page 94
    ... Program, and the costs consisted of the following: • net charges of $4.7 primarily for employee-related costs, including severance and pension benefits; • implementation costs of $9.6 for professional service fees, primarily associated with our initiatives to outsource certain finance processes...

  • Page 95
    ....9) 1.8 $ 42.8 Non-cash write-offs associated with employee-related costs are the result of settlement, curtailment and special termination benefit charges for pension plans and postretirement due to the initiatives implemented. Inventory write-offs relate to exited businesses. The following table...

  • Page 96
    ... distribution operations and close some manufacturing operations. Of the total costs to implement, $144.9 was recorded in selling, general and administrative expenses and $6.4 was recorded in cost of sales for 2009. Most of these costs to implement are expected to result in future cash expenditure...

  • Page 97
    ... with employee-related costs are the result of settlement, curtailment and special termination benefit charges for pension plans and postretirement due to the initiatives implemented. The charges, net of adjustments, of initiatives approved to date under the 2009 Restructuring Program by reportable...

  • Page 98
    ... financial position, results of operations or cash flows. price allocation resulted in goodwill of $9.3 and customer relationships of $1.0 with a seven-year useful life. In August 2006, we purchased all of the remaining 6.155% outstanding shares in our two joint-venture subsidiaries in China...

  • Page 99
    ... $46 of corporate-owned life insurance policies that had been recorded in other assets. In accordance with accounting guidance issued by the International Practices Task Force, when a subsidiary in Venezuela purchases U.S. dollar denominated cash at the parallel market exchange rate, the Venezuelan...

  • Page 100
    ...: Cost of sales Selling, general and administrative expenses Total costs to implement restructuring initiatives Benefits related to our PLS program $25.5 $ - $ 13.3 $(13.0) $ 7.4 $ - $ 60.6 $ (13.0) NOTE 19. Subsequent Events Management evaluated subsequent events through February 25, 2010...

  • Page 101
    ... Years ended December 31, 2009, 2008 and 2007 Additions Balance at Beginning of Period Charged to Costs and Expenses Charged to Revenue Balance at End of Period (in millions) Description Deductions 2009 Allowance for doubtful accounts receivable Allowance for sales returns Allowance for inventory...

  • Page 102

  • Page 103
    ... company's 2009 Annual Report (Form 10-K) can be viewed on the Internet at www.avoninvestor.com For information about becoming an Avon Representative or purchasing Avon products, please call 1-800-FOR-AVON or visit www.avon.com Annual Report design by Avon Corporate Identity Department New York, NY...

  • Page 104
    1 2 Board of Directors 1. Andrea Jung Chairman and Chief Executive Officer 2. W. Don Cornwell Former Chairman and Chief Executive Officer, Granite Broadcasting Corporation 3. Edward T. Fogarty 3 4 Former Chairman, President and Chief Executive Officer, Tambrands, Inc. 4. V. Ann Hailey Former...

  • Page 105

  • Page 106
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