Avon 2009 Annual Report Download - page 25

efforts are significant to developing new products, including
formulating effective beauty treatments relevant to women's
needs, and redesigning or reformulating existing products. To
increase our brand competitiveness, we have increased our focus
on new technology and product innovation to deliver first-to-
market products that deliver visible consumer benefits.
Our global research and development facility is located in
Suffern, NY. Ateam of researchers and technicians apply the
disciplines of science to the practical aspects of bringing products
to market around the world. Relationships with dermatologists
and other specialists enhance our ability to deliver new formulas
and ingredients to market. Additionally, we have satellite
research facilities located in Argentina, Brazil, China, Japan,
Mexico, Poland and South Africa.
In 2009, our most significant product launches included Anew
Reversalist Serum/Cream, Anew Dermafull Helix, Spectra Lash
mascara, SpectraColor Lip, 24-K Gold Lipstick, Supercurlacious
Mascara and Spotlight fragrance.
The amounts incurred on research activities relating to the devel-
opment of new products and the improvement of existing prod-
ucts were $66.7 in 2009, $70.0 in 2008 and $71.8 in 2007. This
research included the activities of product research and develop-
ment and package design and development. Most of these activ-
ities were related to the development of Beauty products.
Environmental Matters
In general, compliance with environmental regulations impacting
our global operations has not had, and is not anticipated to
have, any material adverse effect on our capital expenditures,
financial position or competitive position.
Employees
At December 31, 2009, we employed approximately 41,000
employees. Of these, approximately 6,000 were employed in the
U.S. and 35,000 in other countries.
Website Access to Reports
Our annual report on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and amendments to those reports,
are, and have been throughout 2009, available without charge
on our investor website (www.avoninvestor.com)assoon as
reasonably practicable after they are filed with or furnished to
the Securities and Exchange Commission (the “SEC”). We also
make available on our website the charters of our Board Com-
mittees, our 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
[email protected] or by calling [phone]. Infor-
mation on our website does not constitute part of this report.
Additionally, our filings with the SEC may be read and copied at
the SEC Public Reference Room at 100 FStreet, NE Washington,
DC 20549. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330. These filings
are also available on the SEC’s website at www.sec.gov free of
charge as soon as reasonably practicable after we have filed or
furnished the above referenced reports.
ITEM 1A. RISK FACTORS
You should carefully consider each of the following risks asso-
ciated with an investment in our publicly traded securities and
all of the other information in our 2009 Annual Report. Our
business mayalso be adversely affected by risks and uncertainties
not presently known to us or that we currently believe to be
immaterial. If any of the events contemplated by the following
discussion of risks should occur, our business, prospects,
financial condition and results of operations may suffer.
Our success depends on our ability to
execute fully our global business strategy.
Our ability to implement the key initiatives of our global business
strategy is dependent upon anumber of factors, including our
ability to:
•implement our multi-year restructuring programs and achieve
anticipated savings from the initiatives under these programs;
•increase our beauty sales and market share, and strengthen
our brand image;
•realize anticipated cost savings and reinvest such savings effec-
tively in consumer-oriented investments and other aspects of
our business;
•implement appropriate product mix and pricing strategies,
including our PLS program and achieve anticipated benefits
from these strategies;
•implement enterprise resource planning and SSI and realize
efficiencies across our supply chain, marketing processes, sales
model and organizational structure;
•implement customer service initiatives, theSales and Operation
Planning process and azero overhead growth philosophy;
•implement and continue to innovate our Internet platform and
technology strategies;
•implement our outsourcing strategies;
•implement initiatives to reduce inventory levels;
•maintain appropriate cash flow levels and implement cash
management, tax, foreign currency hedging and risk manage-
ment strategies;
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