Avon 2010 Annual Report Download - page 19

Research and Product Development Activities
New products are essential to growth in the highly competitive cosmetics industry. Our research and development department’s 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 sustained our focus on new technology and product
innovation to deliver first-to-market products that provide visible consumer benefits.
Our global research and development facility is located in Suffern, NY. A team 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, Mexico, Poland and South Africa. In 2010, we invested in our R&D facility in Shanghai, China to increase our ability to develop
products to better meet Asian consumers’ needs.
In 2010, our most significant product launches included: UCR Mega Impact Lipstick, Super Extend Mascara, Eternal Magic Fragrance,
Outspoken by Fergie Fragrance, Anew Platinum Night Cream and Serum, Anew Luminosity-Pro Serum, and Advance Technique Lotus Shield.
The amounts incurred on research activities relating to the development of new products and the improvement of existing products were
$72.6 in 2010, $65.4 in 2009 and $69.7 in 2008. This research included the activities of product research and development and package
design and development. Most of these activities 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, 2010, we employed approximately 42,000 employees. Of these, approximately 6,200 were employed in the U.S. and
35,800 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 2010, available without charge on our investor website (www.avoninvestor.com) as soon 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 Committees, 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]. Information 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 F Street, NE Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330. These filings including reports, proxy and information statements, and other information regarding the Company 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 associated with an investment in our publicly traded securities and all of the other
information in our 2010 Annual Report. Our business may also 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 a number 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;
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