Avon 2013 Annual Report Download - page 26

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PART I
ITEM 2. PROPERTIES
Our principal properties worldwide consist of manufacturing facilities for the production of Beauty products, distribution centers where
offices are located and where finished merchandise is packed and shipped to Representatives in fulfillment of their orders, and one principal
research and development facility.
Our domestic manufacturing facility is located in Morton Grove, IL. Our domestic distribution centers are located in Zanesville, OH and
Pasadena, CA. Our principal research and development facility is located in Suffern, NY. We also lease an office space in New York City for
our executive and administrative offices, and we own property in Rye, NY for Global IT and Global Finance. In October 2012, we
consolidated our New York City offices into one location at 777 Third Avenue. Our previous executive office location at 1345 Avenue of the
Americas has been vacated and we are marketing for a potential sublease.
Other principal properties outside the U.S. measuring 50,000 square feet or more include the following:
• two distribution centers for primary use in North America operations outside the U.S. (Canada and Puerto Rico);
• four manufacturing facilities, eleven distribution centers and two administrative offices in Latin America;
• two manufacturing facilities in Europe, primarily servicing Europe, Middle East & Africa;
• twelve distribution centers and seven administrative offices in Europe, Middle East & Africa; and
• four manufacturing facilities, six distribution centers and one administrative office in Asia Pacific.
We consider all of these properties to be in good repair, to adequately meet our needs and to operate at reasonable levels of productive
capacity.
In January 2007, we announced plans to realign certain North America distribution operations. We have closed our distribution facilities in
Newark, DE and Glenview, IL. The Newark facility is currently listed for sale and the Glenview site has been sold.
In July 2009, we announced plans to realign manufacturing operations in North America and Europe. This initiative included the sale of the
manufacturing facility (and leaseback of the returns and call center) in Springdale, OH in 2013, and the sale and short-term leaseback of the
manufacturing facility in Germany in 2011. These transactions are now closed.
In January 2013, we announced plans to close the Atlanta and Pasadena distribution centers. The Atlanta property was sold in 2013, and
the closure of the Pasadena property has been delayed.
Of all the properties listed above, 33 are owned and the remaining 27 are leased. Many of our properties are used for a combination of
manufacturing, distribution and administration. These properties are included in the above listing based on primary usage.
ITEM 3. LEGAL PROCEEDINGS
Reference is made to Note 16, Contingencies, on pages F-50 through F-52 of our 2013 Annual Report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.