Earnings per Share and Share Repurchases

6 Months Ended

Jun. 30, 2012

Earnings Per Share Reconciliation [Abstract]

Earnings per Share and Share Repurchases

EARNINGS PER SHARE AND SHARE REPURCHASES

We compute earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net income allocated to common shareholders by the weighted-average number of shares outstanding during the year. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the period.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Shares in millions)	2012			2011			2012			2011
Numerator from continuing operations
Income from continuing operations less amounts attributable to noncontrolling interests	$	61.6		$	206.2		$	88.1		$	358.4
Less: Earnings allocated to participating securities	(1.1		)	(1.7		)	(1.9		)	(3.0		)
Income from continuing operations allocated to common shareholders	60.5			204.5			86.2			355.4
Numerator from discontinued operations
Loss from discontinued operations plus/less amounts attributable to noncontrolling interests	$	—		$	—		$	—		$	(8.6	)
Less: Earnings allocated to participating securities	—			—			—			—
Loss allocated to common shareholders	—			—			—			(8.6		)
Numerator attributable to Avon
Income attributable to Avon less amounts attributable to noncontrolling interests	$	61.6		$	206.2		$	88.1		$	349.8
Less: Earnings allocated to participating securities	(1.1		)	(1.7		)	(1.9		)	(3.0		)
Income allocated to common shareholders	60.5			204.5			86.2			346.8
Denominator:
Basic EPS weighted-average shares outstanding	432.0			430.5			431.6			430.2
Diluted effect of assumed conversion of stock options	0.8			2.1			0.8			2.1
Diluted EPS adjusted weighted-average shares outstanding	432.8			432.6			432.4			432.3
Earnings per Common Share from continuing operations:
Basic	$	0.14		$	0.48		$	0.20		$	0.83
Diluted	$	0.14		$	0.47		$	0.20		$	0.82
Loss per Common Share from discontinued operations:
Basic	$	—		$	—		$	—		$	(0.02	)
Diluted	$	—		$	—		$	—		$	(0.02	)
Earnings per Common Share attributable to Avon:
Basic	$	0.14		$	0.48		$	0.20		$	0.81
Diluted	$	0.14		$	0.47		$	0.20		$	0.80

At June 30, 2012 and 2011, we did not include stock options to purchase 22.2 million shares and 19.1 million shares of Avon common stock, respectively, in the calculations of diluted EPS because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would have been anti-dilutive.

We purchased approximately 0.4 million shares of Avon common stock for $8.1 during the first six months of 2012, as compared to approximately 0.3 million shares of Avon common stock for $7.0 during the first six months of 2011 through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units and under our previously announced share repurchase program.