Avon 2013 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2013 Avon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income from continuing operations, before taxes for the years ended December 31 was as follows:
2013 2012 2011
United States $(500.8) $(227.7) $ (156.9)
Foreign 663.4 656.4 1,137.0
Total $ 162.6 $ 428.7 $ 980.1
The U.S. loss from continuing operations, before taxes, for the years ended December 31, 2013, 2012 and 2011, does not include dividend
income from foreign subsidiaries.
The provision for income taxes for the years ended December 31 was as follows:
2013 2012 2011
Federal:
Current $ 76.6 $ 38.8 $ 41.7
Deferred (212.5) (111.5) (95.0)
(135.9) (72.7) (53.3)
Foreign:
Current 216.3 267.5 368.5
Deferred 90.5 143.6 (9.0)
306.8 411.1 359.5
State and other:
Current (.7) 1.2 (1.5)
Deferred (6.6) (4.2) (0.2)
(7.3) (3.0) (1.7)
Total $ 163.6 $ 335.4 $304.5
The foreign provision for income taxes includes the U.S. tax cost on foreign earnings of $9.9, $156.8 and $24.7 for the years ended
December 31, 2013, 2012 and 2011, respectively.
The effective tax rate for the years ended December 31 was as follows:
2013 2012 2011
Statutory federal rate 35.0% 35.0% 35.0%
State and local taxes, net of federal tax benefit (2.1) (.5) .2
Taxes on foreign income, including translation (22.0) (2.0) (3.3)
Audit settlements, statute expirations and amended
returns (6.9) (2.1) (3.3)
Additional tax on unremitted prior year foreign earnings – 39.3 –
Venezuela devaluation and highly inflationary
accounting 28.2 – –
FCPA accrual 19.2 – –
China goodwill impairment 8.4 3.6 –
Reserves for uncertain tax positions 4.5 3.0 1.1
Net change in valuation allowances 31.4 1.5 .1
Blocked income 3.9 1.1 .9
Other 1.0 (.7) .4
Effective tax rate 100.6% 78.2% 31.1%