EMPLOYEE BENEFIT PLANS



	Three Months Ended September 30,
	Pension Benefits
Net Periodic Benefit Costs	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
	2016			2015			2016			2015			2016			2015
Service cost	$	1.3		$	3.3		$	1.2		$	1.2		$	—		$	.2
Interest cost	.8			6.2			4.9			5.9			.3			.9
Expected return on plan assets	(1.0		)	(8.3		)	(7.5		)	(9.2		)	—			—
Amortization of prior service credit	—			(.2		)	—			—			(.2		)	(1.0		)
Amortization of net actuarial losses	1.5			11.6			1.5			2.1			.1			.4
Settlements/curtailments	—			23.8			—			—			—			—
Net periodic benefit costs⁽¹⁾	$	2.6		$	36.4		$	.1		$	—		$	.2		$	.5



	Nine Months Ended September 30,
	Pension Benefits
Net Periodic Benefit Costs	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
	2016			2015			2016			2015			2016			2015
Service cost	$	4.9		$	9.8		$	3.8		$	4.1		$	.1		$	.5
Interest cost	5.9			18.7			16.6			17.5			1.2			2.7
Expected return on plan assets	(7.2		)	(24.9		)	(25.0		)	(27.4		)	—			—
Amortization of prior service credit	(.1		)	(.6		)	—			—			(1.1		)	(3.0		)
Amortization of net actuarial losses	9.2			34.7			4.9			6.3			.2			1.4
Settlements/curtailments	.1			23.8			—			—			—			—
Net periodic benefit costs⁽¹⁾	$	12.8		$	61.5		$	.3		$	.5		$	.4		$	1.6

⁽¹⁾ Includes $26.3 of U.S. pension for the three months ended September 30, 2015 and $4.4 and $43.5 of U.S. pension for the nine months ended September 30, 2016 and 2015, respectively. Immaterial amounts of the postretirement benefit plans (related to the U.S.) are included in discontinued operations for the three months ended September 30, 2015 and for the nine months ended September 30, 2016 and 2015. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the tables above.

As part of the separation of the North America business, we transferred $499.6 of pension liabilities under the U.S. defined benefit pension plan associated with current and former employees of the North America business and certain other former Avon employees, along with $355.9 of assets held by the U.S. defined benefit pension plan, to a defined benefit pension plan sponsored by New Avon. We also transferred $60.4 of other postretirement liabilities (namely, retiree medical and supplemental pension liabilities) in respect of such employees and former employees. See Note 3, Discontinued Operations and Divestitures. We continue to retain certain U.S. pension and other postretirement liabilities primarily associated with employees who are actively employed by Avon outside of the North America business.

As a result of lump-sum payments made to former employees that were vested and participated in the U.S. defined benefit pension plan, in the third quarter of 2015, we recorded a settlement charge of $23.8. These lump sum payments were made from our plan assets and were not the result of a specific offer to participants of the U.S. defined benefit pension plan. Such payments fully settled our pension plan obligation to those participants who elected to receive such payment. This settlement charge was allocated between Global and Discontinued Operations.

During the nine months ended September 30, 2016, we made approximately $26 and approximately $14 of contributions to the U.S. and non-U.S. defined benefit pension and postretirement benefit plans, respectively. During the remainder of 2016, we anticipate contributing approximately $1 and approximately $6 to $11 to fund our U.S. and non-U.S. defined benefit pension and postretirement benefit plans, respectively.