Avon 2011 Annual Report Download - page 34

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PART II
RESULTS OF CONTINUING OPERATIONS - CONSOLIDATED
%/Point Change
2011 2010 2009
2011 vs.
2010
2010 vs.
2009
Total revenue $11,291.6 $10,862.8 $10,205.2 4% 6%
Cost of sales 4,148.6 4,041.3 3,825.5 3% 6%
Selling, general and administrative expenses 6,025.4 5,748.4 5,374.1 5% 7%
Impairment of goodwill and intangible asset 263.0 – – * –%
Operating profit 854.6 1,073.1 1,005.6 (20)% 7%
Interest expense 92.9 87.1 104.8 7% (17)%
Interest income (16.5) (14.0) (20.2) 18% (31)%
Other expense, net 35.6 54.6 7.3 (35)% *
Net income attributable to Avon $ 513.6 $ 606.3 $ 625.8 (15)% (3)%
Diluted earnings per share attributable to Avon $ 1.18 $ 1.39 $ 1.45 (15)% (4)%
Advertising expenses(1) $ 311.2 $ 400.4 $ 352.7 (22)% 14%
Gross margin 63.3% 62.8% 62.5% .5 .3
CTI restructuring .1 .1 .1 – –
Venezuelan special items – .6 – (.6) .6
Adjusted Non-GAAP gross margin 63.4% 63.5% 62.6% (.1) .9
Selling, general and administrative expenses as a
% of total revenue 53.4% 52.9% 52.7% .5 .2
CTI restructuring (.3) (.7) (1.6) .4 .9
Venezuelan special items – (.1) – .1 (.1)
Adjusted Non-GAAP selling, general and
administrative expenses as a % of total revenue 53.1% 52.2% 51.0% .9 1.2
Operating profit $ 854.6 $ 1,073.1 $ 1,005.6 (20)% 7%
CTI restructuring 40.0 80.7 171.0
Impairment charge 263.0 – –
Venezuelan special items – 79.5 –
Adjusted Non-GAAP operating profit $ 1,157.6 $ 1,233.3 $ 1,176.6 (6)% 5%
Operating margin 7.6% 9.9% 9.9% (2.3) –
CTI restructuring .4 .7 1.7 (.3) (1.0)
Impairment charge 2.3 – – 2.3 –
Venezuelan special items – .7 – (.7) .7
Adjusted Non-GAAP operating margin 10.3% 11.4% 11.5% (1.1) (.1)
Effective tax rate 29.1% 37.0% 32.2% (7.9) 4.8
CTI restructuring .1 .3 (2.2) (.2) 2.5
Impairment charge 2.0 – – 2.0 –
Venezuelan special items – (5.6) – 5.6 (5.6)
Adjusted Non-GAAP effective tax rate 31.3% 31.8% 30.0% (.5) 1.8
Units sold (2)% 1%
Active Representatives (1)% 4%
Amounts in the table above may not necessarily sum because the computations are made independently.
* Calculation not meaningful
(1) Advertising expenses are included within selling, general and administrative expenses.