

2014	First			Second			Third			Fourth			Year
Total revenue	$	2,183.6		$	2,188.6		$	2,138.2		$	2,341.0		8,851.4
Gross profit	1,228.2			1,377.9			1,324.3			1,421.7			5,352.1
Operating (loss) profit⁽¹⁾	(50.9		)	93.2			187.9			169.9			400.1
(Loss) income from continuing operations, before taxes⁽²⁾	(141.0		)	65.7			144.4			95.1			164.2
(Loss) income from continuing operations, net of tax ⁽³⁾	(167.2		)	19.9			92.0			(329.6		)	(384.9		)
Net income attributable to noncontrolling interests	(1.1		)	(.9		)	(.6		)	(1.1		)	(3.7		)
Net (loss) income attributable to Avon	$	(168.3	)	$	19.0		$	91.4		$	(330.7	)	(388.6		)

(Loss) earnings per share from continuing operations
Basic	$	(.38	)	$	.04		$	.21		$	(.75	)	$	(.88	)	(4)
Diluted	(.38		)	.04			.21			(.75		)	(.88		)	(4)



2013	First			Second			Third			Fourth			Year
Total revenue	$	2,456.0		$	2,508.9		$	2,322.9		$	2,667.2		$	9,955.0
Gross profit	1,530.6			1,573.5			1,451.2			1,627.2			6,182.5
Operating profit (loss)⁽¹⁾	174.0			202.2			68.2			(17.2		)	427.2
Income (loss) from continuing operations, before taxes⁽²⁾	29.3			145.3			31.6			(43.6		)	162.6
(Loss) income from continuing operations, net of tax⁽³⁾	(11.5		)	84.6			(6.4		)	(67.7		)	(1.0		)
(Loss) income from discontinued operations, net of tax	(1.1		)	(50.4		)	.6			—			(50.9		)
Net (income) loss attributable to noncontrolling interests	(1.1		)	(2.3		)	.3			(1.4		)	(4.5		)
Net (loss) income attributable to Avon	$	(13.7	)	$	31.9		$	(5.5	)	$	(69.1	)	$	(56.4	)

(Loss) earnings per share from continuing operations
Basic	$	(.03	)	$	.19		$	(.01	)	$	(.16	)	$	(.01	)	(4)
Diluted	(.03		)	.19			(.01		)	(.16		)	(.01		)	(4)

(1) Operating profit (loss) was impacted by the following:



2014	First			Second			Third			Fourth		Year
Costs to implement restructuring initiatives:
Cost of sales	$	—		$	—		$	—		$	—	$	—
Selling, general and administrative expenses	22.7			51.2			2.5			37.8		114.2
Total costs to implement restructuring initiatives	$	22.7		$	51.2		$	2.5		$	37.8	$	114.2
Venezuelan special items	$	115.7		$	18.0		$	2.0		$	1.4	$	137.1
FCPA accrual	$	46.0		$	—		$	—		$	—	$	46.0
Pension settlement charge	$	—		$	23.5		$	5.4		$	7.5	$	36.4

2013	First			Second			Third			Fourth		Year
Costs to implement restructuring initiatives:
Cost of sales	$	(.6	)	$	(.3	)	$	—		$	—	$	(.9	)
Selling, general and administrative expenses	20.9			8.7			(.2		)	37.4		66.8
Total costs to implement restructuring initiatives	$	20.3		$	8.4		$	(.2	)	$	37.4	$	65.9
Venezuelan special items	$	13.3		$	16.5		$	14.9		$	4.9	$	49.6
FCPA accrual	$	—		$	12.0		$	—		$	77.0	$	89.0
Asset impairment and other charges	$	—		$	—		$	42.1		$	117.2	$	159.3


(2)	In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.

In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing).

(3)

(Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements.

In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013.


(4)	The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently.

See Note 15, Restructuring Initiatives, "Results Of Operations - Consolidated" within MD&A on pages 32 through 39, "Segment Review - Latin America" within MD&A on pages 40 through 44, Note 15, Contingencies, Note 11, Employee Benefit Plans, Note 16, Goodwill and Intangibles, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 5, Debt and Other Financing and Note 7, Income Taxes, for more information on these items.