Earnings per Share and Share Repurchases

3 Months Ended

Mar. 31, 2015

Earnings Per Share Reconciliation [Abstract]

Earnings per Share and Share Repurchases

EARNINGS PER SHARE AND SHARE REPURCHASES

We compute earnings (loss) per share ("EPS") using the two-class method, which is an earnings (loss) allocation formula that determines earnings (loss) 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 (loss) allocated to common shareholders by the weighted-average number of shares outstanding during the period. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the period.

	Three Months Ended
	March 31
(Shares in millions)	2015			2014
Numerator:
Net loss attributable to Avon	$	(147.3	)	$	(168.3	)
Less: Loss allocated to participating securities	2.0			2.0
Loss allocated to common shareholders	(145.3		)	(166.3		)
Denominator:
Basic EPS weighted-average shares outstanding	434.9			434.1
Diluted effect of assumed conversion of stock options	—			—
Diluted EPS adjusted weighted-average shares outstanding	434.9			434.1
Loss per Common Share:
Basic	$	(.33	)	$	(.38	)
Diluted	(.33		)	(.38		)

Amounts in the table above may not necessarily sum due to rounding.

During the three months ended March 31, 2015 and 2014, we did not include stock options to purchase 15.5 million shares and 20.3 million shares, respectively, of Avon common stock in the calculation of diluted EPS as we had net losses attributable to Avon. The inclusion of these shares would decrease the net loss per share, and therefore, their inclusion would be anti-dilutive.

We purchased approximately .2 million shares of Avon common stock for $1.9 during the first three months of 2015, as compared to approximately .5 million shares of Avon common stock for $6.9 during the first three months of 2014, primarily through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units, and in 2014, also through private transactions with a broker in connection with stock based obligations under our Deferred Compensation Plan.