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Global and other expenses include, among other things, costs related to our executive and administrative offices, information technology,
research and development, marketing, professional and related fees associated with the Foreign Corrupt Practices Act (“FCPA”)
investigations and compliance reviews, a non-cash impairment charge for the capitalized software associated with SMT and the accrual for
the potential settlements related to the FCPA investigations. We allocate certain planned global expenses to our business segments primarily
based on planned revenue. The unallocated costs remain as Global and other expenses. We do not allocate to our segments costs of
implementing restructuring initiatives related to our global functions, professional and related fees associated with the FCPA investigations
and compliance reviews, a non-cash impairment charge for the capitalized software associated with SMT or the accrual for the potential
settlements related to the FCPA investigations. Costs of implementing restructuring initiatives related to a specific segment are recorded
within that segment.
The accounting policies of the segments are the same as those described in Note 1, Description of the Business and Summary of Significant
Accounting Policies. We evaluate the performance of our segments based on revenues and operating profits or losses. Segment revenues
primarily reflect direct sales of products to Representatives based on the Representative’s geographic location. Intersegment sales and
transfers are not significant. Each segment records direct expenses related to its employees and its operations.
Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables:
Total Revenue &Operating Profit (Loss)
2013 2012 2011
Total
Revenue
Operating
Profit (Loss)
Total
Revenue
Operating
Profit (Loss)
Total
Revenue
Operating
Profit
Latin America $ 4,840.5 $ 478.6 $ 4,993.7 $ 443.9 $ 5,161.8 $ 634.0
Europe, Middle East & Africa 2,898.4 406.7 2,914.2 312.8 3,122.8 478.9
North America 1,458.2 (60.1) 1,751.1 (4.7) 1,872.5 49.4
Asia Pacific 757.9 (12.1) 902.4 5.1 942.4 81.4
Total from operations 9,955.0 813.1 10,561.4 757.1 11,099.5 1,243.7
Global and other – (385.9) – (232.1) – (151.7)
Total $ 9,955.0 $ 427.2 $10,561.4 $ 525.0 $11,099.5 $1,092.0
Total Assets
2013 2012 2011
Latin America $ 2,432.7 $ 2,713.3 $ 2,766.4
Europe, Middle East & Africa 1,370.9 1,380.2 1,516.2
North America 519.5 635.9 701.5
Asia Pacific 441.7 537.7 628.8
Total from continuing operations 4,764.8 5,267.1 5,612.9
Total from discontinued operations – 190.6 418.4
Global and other 1,727.5 1,924.8 1,703.7
Total assets $ 6,492.3 $ 7,382.5 $ 7,735.0
A V O N 2013 F-43