

2012	First⁽¹⁾			Second			Third			Fourth⁽¹⁾			Year
Total revenue	$	2,575.4		$	2,591.7		$	2,550.9		$	2,999.1		$	10,717.1
Gross profit	1,565.6			1,627.2			1,560.4			1,794.6			6,547.8
Operating profit⁽²⁾	71.5			126.6			106.0			10.7			314.8
Income from continuing operations, before tax⁽³⁾	40.8			90.7			77.9			9.2			218.6
Income (loss) from continuing operations, net of tax⁽⁴⁾	27.6			62.7			32.6			(161.1		)	(38.2		)
Net income attributable to noncontrolling interest	(1.1		)	(1.1		)	(1.0		)	(1.1		)	(4.3		)
Net income (loss) attributable to Avon	26.5			61.6			31.6			(162.2		)	(42.5		)

Earnings (loss) per share from continuing operations
Basic	$	.06		$	.14		$	.07		$	(.37	)	$	(.10	)	(5)
Diluted	$	.06		$	.14		$	.07		$	(.37	)	$	(.10	)	(5)



2011	First			Second			Third			Fourth⁽¹⁾			Year
Total revenue	$	2,629.1		$	2,856.4		$	2,762.4		$	3,043.7		$	11,291.6
Gross profit	1,679.3			1,838.4			1,764.1			1,861.2			7,143.0
Operating profit⁽²⁾	246.5			316.6			278.6			12.9			854.6
Income (loss) from continuing operations, before tax	224.9			293.7			241.3			(17.3		)	742.6
Income from continuing operations, net of tax	152.2			208.7			165.2			.3			526.4
Discontinued operations, net of tax	(8.6		)	—			—			—			(8.6		)
Net income attributable to noncontrolling interest	—			(2.5		)	(1.0		)	(.7		)	(4.2		)
Net income (loss) attributable to Avon	143.6			206.2			164.2			(.4		)	513.6

Earnings per share from continuing operations
Basic	$	.35		$	.48		$	.38		$	—		$	1.20		(5)
Diluted	$	.35		$	.47		$	.38		$	—		$	1.20		(5)

(1) As discussed in Note 1, Description of the Business and Summary of Significant Accounting Policies, we recorded out-of-period adjustments in 2012 and 2011 that related to prior periods.

2012

During the first quarter of 2012, we recorded an out-of-period adjustment which decreased earnings by approximately $14 before tax ($10 after tax) which related to 2011 and was associated with bad debt expense in our South Africa operations.

During the second quarter of 2012, we recorded an out-of-period adjustment which increased earnings by approximately $5 before tax ($3 after tax) which related to prior years and was associated with vendor liabilities in North America. During the second quarter of 2012, we recorded an out-of-period adjustment which decreased earnings by approximately $4 before tax ($4 after tax) which related to prior years and was associated with brochure costs in Poland.

In addition to the adjustments previously mentioned, in 2012, we also recorded out-of-period adjustments in the aggregate of approximately $1 before tax ($5 after tax) that related to prior years.

2011

During the first quarter of 2011, we recorded out-of-period adjustments associated with Discontinued operations, net of tax for prior periods resulting in a charge of approximately $9, which would have decreased Discontinued operations, net of tax during the fourth quarter of 2010 by approximately $13 and increased a prior period by approximately $4.

During the fourth quarter of 2011, we recorded adjustments of approximately $25 before tax ($17 after tax) of which approximately $14 before tax ($10 after tax) related to prior quarters of 2011 and was primarily associated with inventory in our Brazil operations. The remaining fourth quarter out-of-period adjustments of approximately $11 before tax ($7 after tax) related to prior years.

During the other quarters of 2011, we also recorded out-of-period adjustments in the aggregate of approximately $10 before tax ($7 after tax) that related to prior years.

We evaluated the out-of-period adjustments in 2012 and 2011, both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to the consolidated annual financial statements for all impacted periods.

(2) Operating profit was impacted by the following:



2012	First		Second		Third			Fourth		Year
Costs to implement restructuring initiatives:
Cost of sales	$	2.7	$	.7	$	(.2	)	$	1.3	$	4.5
Selling, general and administrative expenses	24.6		37.5		1.8			56.3		120.2
Total costs to implement restructuring initiatives	$	27.3	$	38.2	$	1.6		$	57.6	$	124.7
Impairment of China goodwill	$	—	$	—	$	44.0		$	—	$	44.0
Impairment of Silpada goodwill and intangible assets	$	—	$	—	$	—		$	209.0	$	209.0

2011	First		Second		Third			Fourth		Year
Costs to implement restructuring initiatives:
Cost of sales	$	1.2	$	3.5	$	3.5		$	3.0	$	11.2
Selling, general and administrative expenses	13.5		8.5		1.1			5.7		28.8
Total costs to implement restructuring initiatives	$	14.7	$	12.0	$	4.6		$	8.7	$	40.0
Impairment of Silpada goodwill and intangible asset	$	—	$	—	$	—		$	263.0	$	263.0

(3) In addition to the items impacting operating profit above, income (loss) from continuing operations 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 to the official exchange rate. This provision was released as the Company capitalized the associated intercompany liabilities.

(4) Income (loss) from continuing operations, net of tax 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.