Avon 2009 Annual Report Download - page 93

Long-Lived Assets by Major Country
2009 2008 2007
U.S. $582.0 $649.3 $465.5
Brazil 331.4 187.1 197.7
All other 1,115.2 1,032.7 1,066.9
Total $2,028.6 $1,869.1 $1,730.1
Amajor 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.
Revenue by Product Category
2009 2008 2007
Beauty(1) $7,408.4 $7,603.7 $6,932.5
Fashion(2) 1,768.0 1,863.3 1,753.2
Home(3) 1,108.3 1,121.9 1,159.5
Net sales 10,284.7 10,588.9 9,845.2
Other revenue(4) 98.1 101.2 93.5
Total revenue $10,382.8 $10,690.1 $9,938.7
(1)Beauty includes color cosmetics, fragrances, skin care and personal care.
(2) Fashion includes fashion jewelry, watches, apparel, footwear and
accessories.
(3)Home includes gift and decorative products, housewares, entertainment
and leisure products and 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.
NOTE 13. Leases and Commitments
Minimum rental commitments under noncancellable operating
leases, primarily for equipment and office facilities at Decem-
ber 31, 2009, are included in the following table under leases.
Purchase obligations include commitments to purchase paper,
inventory and other services.
Year Leases
Purchase
Obligations
2010 $96.6 $163.5
2011 68.3 70.0
2012 51.6 59.0
2013 26.3 38.3
2014 19.1 34.8
Later years 43.7 17.5
Sublease rental income (27.3) –
Total $278.3 $383.1
Rent expense was $116.1 in 2009, $120.4 in 2008, and $118.5
in 2007. Plant construction, expansion and modernization projects
with an estimated cost to complete of approximately $489.8
were in progress at December 31, 2009.
NOTE 14. Restructuring Initiatives
2005 Restructuring Program
In November 2005, we announced amulti-year turnaround plan
to restore sustainable growth. As part of our turnaround plan,
we launched arestructuring program in late 2005 (the “2005
Restructuring Program”). Restructuring initiatives under this
program include:
•enhancement of organizational effectiveness, including efforts
to flatten the organization and bring senior management
closer to consumers through asubstantial organization
downsizing;
•implementation of aglobal manufacturing strategy through
facilities realignment;
•implementation of additional supply chain efficiencies in
distribution; and
•streamlining of transactional and other services through out-
sourcing and moves to low-cost countries.
We have approved and announced all of the initiatives that are
part of our 2005 Restructuring Program. We expect to record
total restructuring charges and other costs to implement restruc-
turing initiatives of approximately $530 before taxes. Through
December 31, 2009, we have recorded total costs to implement,
net of adjustments, of $524.3 ($20.1 in 2009, $60.6 in 2008,
$158.3 in 2007, $228.8 in 2006 and $56.5 in 2005) for actions
associated with our restructuring initiatives.
AVON2009 F-29