Avon 2012 Annual Report Download - page 36

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See Note 17, Goodwill and Intangible Assets, on pages F-48 through F-51 of our 2012 Annual Report for further information on Silpada and
China.
Results Of Continuing Operations - Consolidated
%/Point Change
2012 2011 2010
2012 vs.
2011
2011 vs.
2010
Total revenue $10,717.1 $11,291.6 $10,862.8 (5)% 4%
Cost of sales 4,169.3 4,148.6 4,041.3 –% 3%
Selling, general and administrative expenses 5,980.0 6,025.4 5,748.4 (1)% 5%
Impairment of goodwill and intangible asset 253.0 263.0 – (4)% *
Operating profit 314.8 854.6 1,073.1 (63)% (20)%
Interest expense 104.3 92.9 87.1 12% 7%
Interest income (15.1) (16.5) (14.0) (8)% 18%
Other expense, net 7.0 35.6 54.6 (80)% (35)%
Net (loss) income attributable to Avon (42.5) 513.6 606.3 (108)% (15)%
Diluted (loss) earnings per share attributable to Avon
$ (.10) $ 1.18 $ 1.39 (108)% (15)%
Advertising expenses(1) $ 253.6 $ 311.2 $ 400.4 (19)% (22)%
Gross margin 61.1% 63.3% 62.8% (2.2) .5
CTI restructuring –.1 .1 (.1) –
Venezuelan special items ––.6 –(.6)
Adjusted Non-GAAP gross margin 61.1% 63.4% 63.5% (2.3) (.1)
Selling, general and administrative expenses as a %
of total revenue 55.8% 53.4% 52.9% 2.4 .5
CTI restructuring (1.1) (.3) (.7) (.8) .4
Venezuelan special items – – (.1) – .1
Adjusted Non-GAAP selling, general and
administrative expenses as a % of total revenue 54.7% 53.1% 52.2% 1.6 .9
Operating profit $ 314.8 $ 854.6 $ 1,073.1 (63)% (20)%
CTI restructuring 124.7 40.0 80.7
Impairment charges 253.0 263.0 –
Venezuelan special items – – 79.5
Adjusted Non-GAAP operating profit $ 692.5 $ 1,157.6 $ 1,233.3 (40)% (6)%
Operating margin 2.9% 7.6% 9.9% (4.7) (2.3)
CTI restructuring 1.2 .4 .7 .8 (.3)
Impairment charges 2.4 2.3 – .1 2.3
Venezuelan special items – – .7 – (.7)
Adjusted Non-GAAP operating margin 6.5% 10.3% 11.4% (3.8) (1.1)
Effective tax rate 117.5% 29.1% 37.0% 88.4 (7.9)
CTI restructuring (.3) .1 .3 (.4) (.2)
Impairment charges (5.5) 2.0 – (7.5) 2.0
Venezuelan special items .1 – (5.6) (.1) 5.6
Special tax items (77.0) – – (77.0) –
Adjusted Non-GAAP effective tax rate 34.8% 31.3% 31.8% 3.5 (.5)
Active Representatives (1)% (1)%
Units sold –% (2)%
Amounts in the table above may not necessarily sum due to rounding.
* Calculation not meaningful
(1) Advertising expenses are included within selling, general and administrative expenses.
A V O N 2012 29