Avon 2012 Annual Report Download - page 14

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 R&D operations 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. To date, Shanghai R&D has grown into a fully functional development center across
product categories.
In 2012, our most significant product launches included: Anew Clinical Pro Line Eraser Treatment, Anew Genics Eye Treatment, Anew
Ultimate 7S (Night Cream, Elixir, Day Cream), Solutions Cellu-Defy Intensive Anti-Cellulite Lotion, Advance Techniques 360 Nourish
Moroccan Argan Oil Leave-In Treatment, Skin So Soft Soft Indulgences Collection, Moisture Therapy Calming Relief Balm, Shine Attract
Lipstick, Super Drama Mascara, NailWear Pro+ Nail Enamel, MagiX Cashmere Advanced Liquid Foundation, Infinite Moment Fragrance, Viva
by Fergie Fragrance, and City Rush (Unplugged) Fragrance.
The amounts incurred on research activities relating to the development of new products and the improvement of existing products were
$75.2 in 2012, $77.7 in 2011 and $72.6 in 2010. This research included the activities of product research and development and package
design and development. Most of these activities were related to the design and 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 financial position, capital expenditures or competitive position.
Employees
At December 31, 2012, we employed approximately 39,100 employees. Of these, approximately 4,800 were employed in the U.S. and
approximately 34,300 were employed 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 2012, available without charge on our investor website (www.avoninvestor.com) as soon as reasonably practicable
after they are filed with or furnished to the U.S. 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, by sending a letter to Investor Relations, Avon Products, Inc., 777 Third
Avenue, New York, N.Y. 10017-1307, 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 2012 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, liquidity, results of operations and cash flows may be materially adversely affected.
Our success depends on our ability to improve our financial and operational performance and
execute fully our global business strategy.
Our ability to improve our financial and operational performance and implement the key initiatives of our global business strategy is
dependent upon a number of factors, including our ability to:
• implement our stabilization strategies, cost savings initiative, multi-year restructuring programs and other initiatives, including Service
Model Transformation, and achieve anticipated savings and benefits from such programs and initiatives;
• reverse declines in our top line performance and market share, and strengthen our brand image;
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