Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

Our reportable segments are based on geographic operations and include commercial business units in Latin America; Europe, Middle East & Africa; North America; and Asia Pacific. The segments have similar business characteristics and each offers similar products through similar customer access methods.

In conjunction with organizational changes, effective in the second quarter of 2012, the results of Central & Eastern Europe and Western Europe, Middle East & Africa were managed as a single operating segment. Accordingly, Europe, Middle East & Africa amounts include the results of Central & Eastern Europe and Western Europe, Middle East & Africa for all periods presented. 

In conjunction with organizational changes, effective in the second quarter of 2012, the Dominican Republic was included in Latin America whereas in prior periods it had been included in North America. The impact was not material to either segment. Accordingly, the Dominican Republic is included in Latin America and excluded from North America for all periods presented.

Global and other expenses include, among other things, costs related to our executive and administrative offices, information technology, research and development, marketing and professional and related fees associated with the Foreign Corrupt Practices Act ("FCPA") investigations and compliance reviews. We allocate certain planned global expenses to our business segments primarily based on planned revenue. The unallocated costs remain as Global and other expenses. We do not allocate to our segments costs of implementing restructuring initiatives related to our global functions or professional and related fees associated with the FCPA investigations and compliance reviews. Costs of implementing restructuring initiatives related to a specific segment are recorded within that segment.

The accounting policies of the segments are the same as those described in Note 1, Description of the Business and Summary of Significant Accounting Policies. We evaluate the performance of our segments based on revenues and operating profits or losses. Segment revenues primarily reflect direct sales of products to Representatives based on the Representative’s geographic location. Intersegment sales and transfers are not significant. Each segment records direct expenses related to its employees and its operations.

Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables:

Total Revenue & Operating Profit (Loss)
	2012					2011					2010
	Total Revenue		Operating Profit  (Loss)			Total Revenue		Operating Profit (Loss)			Total Revenue		Operating Profit
Latin America	$	4,993.7	$	443.9		$	5,161.8	$	634.0		$	4,640.0	$	613.3
Europe, Middle East & Africa	2,914.2		312.8			3,122.8		478.9			3,047.9		474.3
North America	1,906.8		(214.9		)	2,064.6		(188.0		)	2,193.5		147.3
Asia Pacific	902.4		5.1			942.4		81.4			981.4		82.6
Total from operations	10,717.1		546.9			11,291.6		1,006.3			10,862.8		1,317.5
Global and other	—		(232.1		)	—		(151.7		)	—		(244.4		)
Total	$	10,717.1	$	314.8		$	11,291.6	$	854.6		$	10,862.8	$	1,073.1

Total Assets
	2012		2011		2010
Latin America	$	2,713.3	$	2,766.4	$	2,778.6
Europe, Middle East & Africa	1,380.2		1,516.2		1,601.2
North America	969.4		1,185.7		1,457.0
Asia Pacific	537.7		628.8		630.6
Total from operations	5,600.6		6,097.1		6,467.4
Global and other	1,781.9		1,637.9		1,406.3
Total assets	$	7,382.5	$	7,735.0	$	7,873.7

Capital Expenditures
	2012		2011		2010
Latin America	$	99.0	$	117.1	$	200.5
Europe, Middle East & Africa	27.1		51.2		54.6
North America	8.9		12.5		18.5
Asia Pacific	4.6		16.0		18.9
Total from operations	139.6		196.8		292.5
Global and other	89.2		79.9		38.7
Total capital expenditures	$	228.8	$	276.7	$	331.2

Depreciation and Amortization
	2012		2011		2010
Latin America	$	74.3	$	72.8	$	54.2
Europe, Middle East & Africa	47.0		60.3		52.1
North America	50.8		60.4		51.4
Asia Pacific	21.2		18.6		16.5
Total from operations	193.3		212.1		174.2
Global and other	36.3		27.5		20.6
Total depreciation and amortization	$	229.6	$	239.6	$	194.8

Total Revenue by Major Country
	2012		2011		2010
Brazil	$	2,041.7	$	2,316.3	$	2,182.8
U.S.	1,588.8		1,719.7		1,828.6
All other	7,086.6		7,255.6		6,851.4
Total	$	10,717.1	$	11,291.6	$	10,862.8

A major country is defined as one with total revenues greater than 10% of consolidated total revenues.

Long-Lived Assets by Major Country
	2012		2011		2010
U.S.	$	840.7	$	1,088.7	$	1,297.8
Brazil	409.1		418.8		450.2
All other	1,330.2		1,322.0		1,307.5
Total	$	2,580.0	$	2,829.5	$	3,055.5

A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets. Long-lived assets primarily include property, plant and equipment and intangible assets. The U.S. and Brazil’s long-lived assets consist primarily of property, plant and equipment related to manufacturing and distribution facilities.

Revenue by Product Category
	2012		2011		2010
Beauty(1)	$	7,642.7	$	8,067.8	$	7,671.3
Fashion(2)	1,891.7		1,995.5		2,016.5
Home(3)	1,011.7		1,048.7		1,043.5
Net sales	10,546.1		11,112.0		10,731.3
Other revenue(4)	171.0		179.6		131.5
Total revenue	$	10,717.1	$	11,291.6	$	10,862.8

(1) Beauty includes color cosmetics, fragrances, skin care and personal care.

(2) Fashion includes fashion jewelry, watches, apparel, footwear, accessories, and children’s products.

(3) Home includes gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products.

(4) Other revenue primarily includes shipping and handling and order processing fees billed to Representatives.