Avon 2009 Annual Report Download - page 101

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SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Years ended December 31, 2009, 2008 and 2007
Additions
(in millions)
Description
Balance at
Beginning
of Period
Charged
to Costs
and
Expenses
Charged
to
Revenue Deductions
Balance at
End
of Period
2009
Allowance for doubtful accounts receivable $102.0 $221.7 –$191.1(1) $132.6
Allowance for sales returns 25.8 –374.1 367.0(2) 32.9
Allowance for inventory obsolescence 98.2 122.9 –105.1(3) 116.0
Deferred tax asset valuation allowance 284.1 110.0(4) ––394.1
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) ––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
(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
realized in the future.
(5) Release of valuation allowance on deferred tax assets that are more likely than not to be realized in the future.
AVON2009 F-37