Avon 2013 Annual Report Download - page 15

The amounts incurred on research activities relating to the development of new products and the improvement of existing products were
$67.2 in 2013, $73.3 in 2012 and $75.7 in 2011. This research included the activities of product research and development and package
design and development. Most of these activities were related to the design and development of Beauty products.
Environmental Matters
In general, compliance with environmental regulations impacting our global operations has not had, and is not anticipated to have, any
material adverse effect on our financial position, capital expenditures or competitive position.
Employees
At December 31, 2013, we employed approximately 36,700 employees. Of these, approximately 4,300 were employed in the U.S. and
approximately 32,400 were employed in other countries.
Website Access to Reports
Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, are, and
have been throughout 2013, available without charge on our investor website (www.avoninvestor.com) as soon as reasonably practicable
after they are filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). We also make available on our website
the charters of our Board Committees, our Corporate Governance Guidelines and our Code of Conduct. Copies of these SEC reports and
other documents are also available, without charge, by sending a letter to Investor Relations, Avon Products, Inc., 777 Third Avenue, New
York, N.Y. 10017-1307, by sending an email to [email protected] or by calling [phone]. Information on our website does
not constitute part of this report. Additionally, our filings with the SEC may be read and copied at the SEC Public Reference Room at 100 F
Street, NE Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
These filings, including reports, proxy and information statements, and other information regarding the Company are also available on the
SEC’s website at www.sec.gov free of charge as soon as reasonably practicable after we have filed or furnished the above-referenced
reports.
ITEM 1A. RISK FACTORS
You should carefully consider each of the following risks associated with an investment in our publicly traded securities and all of the other
information in our 2013 Annual Report. Our business may also be adversely affected by risks and uncertainties not presently known to us or
that we currently believe to be immaterial. If any of the events contemplated by the following discussion of risks should occur, our business,
prospects, financial condition, liquidity, results of operations and cash flows may be materially adversely affected.
Our success depends on our ability to improve our financial and operational performance and
execute fully our global business strategy.
Our ability to improve our financial and operational performance and implement the key initiatives of our global business strategy is
dependent upon a number of factors, including our ability to:
• implement our stabilization strategies, cost savings initiatives, multi-year restructuring programs and other initiatives, and achieve
anticipated savings and benefits from such programs and initiatives;
• reverse declines in our top line performance and market share, and strengthen our brand image;
• reduce costs, particularly selling, general and administrative (“SG&A”) expenses, and reinvest certain of those savings effectively in
consumer-oriented investments and other aspects of our business, while effectively managing our cost base;
• improve our business in North America, including through improving field health, improving our brochure and creating a sustainable cost
base;
• implement appropriate product mix and pricing strategies that are more aligned with the preferences of local markets and achieve
anticipated benefits from these strategies;
• implement enterprise resource planning (“ERP”) successfully, execute investments in information technology infrastructure and realize
efficiencies across our supply chain, marketing processes, sales model and organizational structure;
• implement customer service initiatives;
• implement and continue to innovate our Internet platform and technology strategies;
• effectively manage our outsourcing activities;
A V O N 2013 7