Avon 2013 Annual Report Download - page 126

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and
discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of
the 2014 Notes (as defined in Note 5, Debt and Other Financing).
In addition, income (loss) from continuing operations, before taxes during 2012 was impacted by a benefit of $23.8 to other expense, net in 2012 due to
the release of a provision in the fourth quarter associated with the excess cost of acquiring U.S. dollars in Venezuela at the regulated market rate as
compared with the official exchange rate. This provision was released as the Company capitalized the associated intercompany liabilities.
(4) (Loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to
Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013, and during 2012 was impacted by an
additional provision for income taxes of $168.3. During the fourth quarter of 2012, we determined that the Company may repatriate offshore cash to meet
certain domestic funding needs. Accordingly, we are no longer asserting that the undistributed earnings of foreign subsidiaries are indefinitely reinvested.
(5) The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently.
See Note 15, Restructuring Initiatives, “Results Of Continuing Operations – Consolidated” within MD&A on pages 31 through 36, “Segment
Review – Latin America” within MD&A on pages 38 through 41, Note 16, Contingencies, Note 17, Goodwill and Intangibles, Note 1,
Description of the Business and Summary of Significant Accounting Policies, Note 5, Debt and Other Financing and Note 7, Income Taxes,
for more information on these items.