Avon 2011 Annual Report Download - page 15

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In 2011, our most significant product launches included: SuperShock Max Mascara. Moisture Seduction Lipstick, Outspoken Intense by
Fergie Fragrance, Step Into Fragrance, Anew Genics Treatment Cream, Anew Solar Advance Sunscreen Face Lotion SPF 45, Solutions Youth
Minerals Restorative Night Cream, Skin So Soft Perfecting Oil, Advance Techniques Damage Repair 3D Rescue Leave-in Treatment, Super
Enchant Mascara, and ExtraLasting Makeup.
The amounts incurred on research activities relating to the development of new products and the improvement of existing products were
$77.7 in 2011, $72.6 in 2010 and $65.4 in 2009. 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, 2011, we employed approximately 40,600 employees. Of these, approximately 5,400 were employed in the U.S. and
35,200 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 2011, 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 (212) 282-5320. 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 2011 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 any initiatives arising under the long-range business review as well as achieve any
anticipated savings and benefits from such programs and initiatives;
• increase our beauty sales and market share, and strengthen our brand image;
• realize anticipated cost savings and reinvest such savings effectively in consumer-oriented investments and other aspects of our business;
• implement appropriate product mix and pricing strategies and achieve anticipated benefits from these strategies;
• implement Enterprise Resource Planning (ERP) and realize efficiencies across our supply chain, marketing processes, sales model and
organizational structure;
• implement customer service initiatives and the Sales and Operation Planning process;
• implement and continue to innovate our Internet platform and technology strategies;
• implement our outsourcing strategies;
• effectively manage inventory and implement initiatives to reduce inventory levels, including the potential impact on cash flows and
obsolescence;
A V O N 2011 7