x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
New York | 13-0544597 | |
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (do not check if a smaller reporting company) | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
Three Months Ended | |||||||
(In millions, except per share data) | March 31, 2017 | March 31, 2016 | |||||
Net sales | $ | 1,298.1 | $ | 1,280.0 | |||
Other revenue | 35.0 | 26.5 | |||||
Total revenue | 1,333.1 | 1,306.5 | |||||
Costs, expenses and other: | |||||||
Cost of sales | 517.1 | 518.8 | |||||
Selling, general and administrative expenses | 787.3 | 779.9 | |||||
Operating profit | 28.7 | 7.8 | |||||
Interest expense | 35.1 | 32.7 | |||||
Interest income | (4.7 | ) | (4.0 | ) | |||
Other expense, net | 5.0 | 137.2 | |||||
Total other expenses | 35.4 | 165.9 | |||||
Loss before taxes | (6.7 | ) | (158.1 | ) | |||
Income taxes | (29.8 | ) | 2.3 | ||||
Loss from continuing operations, net of tax | (36.5 | ) | (155.8 | ) | |||
Loss from discontinued operations, net of tax | — | (9.6 | ) | ||||
Net loss | (36.5 | ) | (165.4 | ) | |||
Net loss attributable to noncontrolling interests | — | (0.5 | ) | ||||
Net loss attributable to Avon | $ | (36.5 | ) | $ | (165.9 | ) | |
Loss per share: | |||||||
Basic from continuing operations | $ | (0.10 | ) | $ | (0.36 | ) | |
Basic from discontinued operations | — | (0.02 | ) | ||||
Basic attributable to Avon | (0.10 | ) | (0.38 | ) | |||
Diluted from continuing operations | $ | (0.10 | ) | $ | (0.36 | ) | |
Diluted from discontinued operations | — | (0.02 | ) | ||||
Diluted attributable to Avon | (0.10 | ) | (0.38 | ) | |||
Cash dividends per common share | $ | — | $ | — |
Three Months Ended | |||||||
(In millions) | March 31, 2017 | March 31, 2016 | |||||
Net loss | $ | (36.5 | ) | $ | (165.4 | ) | |
Other comprehensive income: | |||||||
Foreign currency translation adjustments | 62.0 | 95.9 | |||||
Change in derivative losses on cash flow hedges, net of taxes of $0.0 and $0.0 | — | 0.4 | |||||
Adjustments of and amortization of net actuarial loss and prior service cost, net of taxes of $0.0 and $10.4 | 3.1 | 264.0 | |||||
Other comprehensive income related to New Avon investment, net of taxes of $0.0 | 1.1 | — | |||||
Total other comprehensive income, net of taxes | 66.2 | 360.3 | |||||
Comprehensive income | 29.7 | 194.9 | |||||
Less: comprehensive income attributable to noncontrolling interests | .1 | 1.1 | |||||
Comprehensive income attributable to Avon | $ | 29.6 | $ | 193.8 |
(In millions) | March 31, 2017 | December 31, 2016 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 560.0 | $ | 654.4 | |||
Accounts receivable, net | 457.0 | 458.9 | |||||
Inventories | 630.4 | 586.4 | |||||
Prepaid expenses and other | 300.2 | 291.3 | |||||
Current assets of discontinued operations | 1.3 | 1.3 | |||||
Total current assets | 1,948.9 | 1,992.3 | |||||
Property, plant and equipment, at cost | 1,488.9 | 1,424.1 | |||||
Less accumulated depreciation | (756.0 | ) | (712.8 | ) | |||
Property, plant and equipment, net | 732.9 | 711.3 | |||||
Goodwill | 97.1 | 93.6 | |||||
Other assets | 647.3 | 621.7 | |||||
Total assets | $ | 3,426.2 | $ | 3,418.9 | |||
Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit | |||||||
Current Liabilities | |||||||
Debt maturing within one year | $ | 20.1 | $ | 18.1 | |||
Accounts payable | 754.3 | 768.1 | |||||
Accrued compensation | 129.4 | 129.2 | |||||
Other accrued liabilities | 362.0 | 401.9 | |||||
Sales and taxes other than income | 158.7 | 147.0 | |||||
Income taxes | 19.1 | 10.7 | |||||
Current liabilities of discontinued operations | 7.3 | 10.7 | |||||
Total current liabilities | 1,450.9 | 1,485.7 | |||||
Long-term debt | 1,874.9 | 1,875.8 | |||||
Employee benefit plans | 167.9 | 164.5 | |||||
Long-term income taxes | 76.9 | 78.6 | |||||
Other liabilities | 213.8 | 205.8 | |||||
Total liabilities | 3,784.4 | 3,810.4 | |||||
Commitments and contingencies (Note 8) | |||||||
Series C convertible preferred stock | 450.4 | 444.7 | |||||
Shareholders’ Deficit | |||||||
Common stock | 189.5 | 188.8 | |||||
Additional paid-in capital | 2,283.0 | 2,273.9 | |||||
Retained earnings | 2,280.0 | 2,322.2 | |||||
Accumulated other comprehensive loss | (967.1 | ) | (1,033.2 | ) | |||
Treasury stock, at cost | (4,605.9 | ) | (4,599.7 | ) | |||
Total Avon shareholders’ deficit | (820.5 | ) | (848.0 | ) | |||
Noncontrolling interests | 11.9 | 11.8 | |||||
Total shareholders’ deficit | (808.6 | ) | (836.2 | ) | |||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | $ | 3,426.2 | $ | 3,418.9 |
Three Months Ended | |||||||
(In millions) | March 31, 2017 | March 31, 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net loss | $ | (36.5 | ) | $ | (165.4 | ) | |
Loss from discontinued operations, net of tax | — | 9.6 | |||||
Loss from continuing operations, net of tax | $ | (36.5 | ) | $ | (155.8 | ) | |
Adjustments to reconcile net loss to net cash used by operating activities: | |||||||
Depreciation | 20.5 | 20.5 | |||||
Amortization | 7.1 | 7.1 | |||||
Provision for doubtful accounts | 60.8 | 37.0 | |||||
Provision for obsolescence | 10.2 | 12.6 | |||||
Share-based compensation | 9.7 | 6.2 | |||||
Foreign exchange (gains) losses | (0.9 | ) | 1.7 | ||||
Deferred income taxes | 12.3 | (13.5 | ) | ||||
Loss on deconsolidation of Venezuela | — | 120.5 | |||||
Other | 6.0 | 2.2 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (42.3 | ) | (21.4 | ) | |||
Inventories | (23.5 | ) | (80.5 | ) | |||
Prepaid expenses and other | 10.0 | (14.2 | ) | ||||
Accounts payable and accrued liabilities | (107.3 | ) | (61.8 | ) | |||
Income and other taxes | 1.7 | 8.0 | |||||
Noncurrent assets and liabilities | (8.0 | ) | (59.9 | ) | |||
Net cash used by operating activities of continuing operations | (80.2 | ) | (191.3 | ) | |||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (23.9 | ) | (23.7 | ) | |||
Disposal of assets | 1.6 | 1.3 | |||||
Reduction of cash due to Venezuela deconsolidation | — | (4.5 | ) | ||||
Other investing activities | — | 1.6 | |||||
Net cash used by investing activities of continuing operations | (22.3 | ) | (25.3 | ) | |||
Cash Flows from Financing Activities | |||||||
Debt, net (maturities of three months or less) | 1.9 | 3.7 | |||||
Proceeds from debt | — | 8.6 | |||||
Repayment of debt | (1.0 | ) | (1.0 | ) | |||
Repurchase of common stock | (6.2 | ) | (3.5 | ) | |||
Net proceeds from the sale of series C convertible preferred stock | — | 428.1 | |||||
Net cash (used) provided by financing activities of continuing operations | (5.3 | ) | 435.9 | ||||
Cash Flows from Discontinued Operations | |||||||
Net cash used by operating activities of discontinued operations | (3.5 | ) | (44.9 | ) | |||
Net cash used by investing activities of discontinued operations | — | (96.7 | ) | ||||
Net cash used by discontinued operations | (3.5 | ) | (141.6 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 16.9 | (8.9 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (94.4 | ) | 68.8 | ||||
Cash and cash equivalents at beginning of year(1) | 654.4 | 684.7 | |||||
Cash and cash equivalents at end of period | $ | 560.0 | $ | 753.5 |
• | the effects of significant, unusual or extraordinary pretax and income tax items, if any; |
• | withholding taxes recognized associated with cash repatriations; and |
• | the impact of loss-making subsidiaries for which we cannot recognize an income tax benefit and subsidiaries that reduce the reliability of the estimated annual consolidated effective tax rate. |
• | consider some of our sales incentive programs as a separate deliverable and allocate a portion of the sales transaction price to this deliverable; |
• | adjust the manner in which we present our allowance for sales returns in our Consolidated Balance Sheets; |
• | reflect fees paid by the Representative to the Company for items such as brochures, sales aids and late payments as revenue, rather than as a reduction to selling, general and administrative expenses ("SG&A"), as these represent separate performance obligations; and |
• | reflect certain of the costs associated with the fees paid by the Representative, as well as the costs associated with shipping and handling and order processing, in cost of sales, rather than SG&A. |
Three Months Ended March 31, | ||||||||
(Shares in millions) | 2017 | 2016 | ||||||
Numerator from continuing operations: | ||||||||
Loss from continuing operations, less amounts attributable to noncontrolling interests | $ | (36.5 | ) | $ | (156.3 | ) | ||
Less: Loss allocated to participating securities | .5 | 1.9 | ||||||
Less: Earnings allocated to convertible preferred stock | (5.7 | ) | (1.8 | ) | ||||
Loss from continuing operations allocated to common shareholders | (41.7 | ) | (156.2 | ) | ||||
Numerator from discontinued operations: | ||||||||
Loss from discontinued operations | $ | — | $ | (9.6 | ) | |||
Less: Loss allocated to participating securities | — | .1 | ||||||
Loss allocated to common shareholders | — | (9.5 | ) | |||||
Numerator attributable to Avon: | ||||||||
Net loss attributable to Avon | $ | (36.5 | ) | $ | (165.9 | ) | ||
Less: Loss allocated to participating securities | .5 | 2.0 | ||||||
Less: Earnings allocated to convertible preferred stock | — | (1.8 | ) | |||||
Loss allocated to common shareholders | (36.0 | ) | (165.7 | ) | ||||
Denominator: | ||||||||
Basic EPS weighted-average shares outstanding | 438.6 | 435.9 | ||||||
Diluted effect of assumed conversion of stock options | — | — | ||||||
Diluted EPS adjusted weighted-average shares outstanding | 438.6 | 435.9 | ||||||
Loss per Common Share from continuing operations: | ||||||||
Basic | $ | (.10 | ) | $ | (.36 | ) | ||
Diluted | (.10 | ) | (.36 | ) | ||||
Loss per Common Share from discontinued operations: | ||||||||
Basic | $ | — | $ | (.02 | ) | |||
Diluted | — | (.02 | ) | |||||
Loss per Common Share attributable to Avon: | ||||||||
Basic | $ | (.10 | ) | $ | (.38 | ) | ||
Diluted | (.10 | ) | (.38 | ) |
Three Months Ended March 31, | ||||
2016 | ||||
Total revenue | $ | 135.2 | ||
Cost of sales | 53.2 | |||
Selling, general and administrative expenses | 87.8 | |||
Operating loss | (5.8 | ) | ||
Other income items | .6 | |||
Loss from discontinued operations, before tax | (5.2 | ) | ||
Loss on sale of discontinued operations, before tax | (14.9 | ) | ||
Income taxes | 10.5 | |||
Loss from discontinued operations, net of tax | $ | (9.6 | ) |
Three Months Ended March 31, 2017 | One Month Ended March 31, 2016 | |||||||
Total revenue | $ | 176.8 | $ | 88.8 | ||||
Gross profit | $ | 110.2 | $ | 53.4 | ||||
Net loss | $ | (20.3 | ) | $ | (19.6 | ) |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Statement of Operations Data | ||||||||
Revenue from sale of product to New Avon(1) | $ | 8.0 | $ | 3.7 | ||||
Gross profit from sale of product to New Avon(1) | $ | .6 | $ | .5 | ||||
Cost of sales for purchases from New Avon(2) | $ | .8 | $ | .9 | ||||
Selling, general and administrative expenses: | ||||||||
Transition services, research and development and subleases(3) | $ | (7.9 | ) | $ | (3.9 | ) | ||
Project management team(4) | .8 | — | ||||||
Net reduction of selling, general and administrative expenses | $ | (7.1 | ) | $ | (3.9 | ) | ||
March 31, 2017 | December 31, 2016 | |||||||
Balance Sheet Data | ||||||||
Inventories(5) | $ | .8 | $ | 1.0 | ||||
Receivables due from New Avon(6) | $ | 6.8 | $ | 11.6 | ||||
Payables due to New Avon(7) | $ | .4 | $ | .7 | ||||
Payables due to an affiliate of Cerberus(8) | $ | .6 | $ | .6 |
Components of Inventories | March 31, 2017 | December 31, 2016 | ||||||
Raw materials | $ | 194.3 | $ | 179.3 | ||||
Finished goods | 436.1 | 407.1 | ||||||
Total | $ | 630.4 | $ | 586.4 |
Three Months Ended March 31, | ||||||||||||||||||||||||
Pension Benefits | ||||||||||||||||||||||||
Net Periodic Benefit Costs | U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Service cost | $ | 1.4 | $ | 2.3 | $ | 1.2 | $ | 1.3 | $ | — | $ | .1 | ||||||||||||
Interest cost | .7 | 4.3 | 4.4 | 6.0 | .4 | .6 | ||||||||||||||||||
Expected return on plan assets | (.8 | ) | (5.2 | ) | (6.7 | ) | (8.8 | ) | — | — | ||||||||||||||
Amortization of prior service credit | — | (.1 | ) | — | — | (.1 | ) | (.9 | ) | |||||||||||||||
Amortization of net actuarial losses | 1.2 | 6.1 | 1.8 | 1.7 | — | .2 | ||||||||||||||||||
Settlements/curtailments | — | .1 | — | — | — | — | ||||||||||||||||||
Net periodic benefit costs(1) | $ | 2.5 | $ | 7.5 | $ | .7 | $ | .2 | $ | .3 | $ | — |
Three Months Ended March 31, 2017: | Foreign Currency Translation Adjustments | Net Investment Hedges | Pension and Postretirement Benefits | Investment in New Avon | Total | |||||||||||||||
Balance at December 31, 2016 | $ | (910.9 | ) | $ | (4.3 | ) | $ | (120.2 | ) | $ | 2.2 | $ | (1,033.2 | ) | ||||||
Other comprehensive income other than reclassifications | 61.9 | — | — | 1.1 | 63.0 | |||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $0.0(2) | — | — | 3.1 | — | 3.1 | |||||||||||||||
Total reclassifications into earnings | — | — | 3.1 | — | 3.1 | |||||||||||||||
Balance at March 31, 2017 | $ | (849.0 | ) | $ | (4.3 | ) | $ | (117.1 | ) | $ | 3.3 | $ | (967.1 | ) |
Three Months Ended March 31, 2016: | Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||
Balance at December 31, 2015 | $ | (950.0 | ) | $ | (1.3 | ) | $ | (4.3 | ) | $ | (410.6 | ) | $ | (1,366.2 | ) | |||||
Other comprehensive income (loss) other than reclassifications | 23.9 | — | — | (12.7 | ) | 11.2 | ||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | — | .4 | — | — | .4 | |||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $.2(2) | — | — | — | 6.7 | 6.7 | |||||||||||||||
Deconsolidation of Venezuela, net of tax of $0.0 | 81.3 | — | — | .8 | 82.1 | |||||||||||||||
Separation of North America, net of tax of $10.2 | (10.0 | ) | — | — | 269.2 | 259.2 | ||||||||||||||
Total reclassifications into earnings | 71.3 | .4 | — | 276.7 | 348.4 | |||||||||||||||
Balance at March 31, 2016 | $ | (854.8 | ) | $ | (.9 | ) | $ | (4.3 | ) | $ | (146.6 | ) | $ | (1,006.6 | ) |
Three Months Ended March 31, | ||||||||
Total Revenue | 2017 | 2016 | ||||||
Europe, Middle East & Africa | $ | 507.5 | $ | 520.4 | ||||
South Latin America | 499.2 | 426.4 | ||||||
North Latin America | 193.2 | 204.7 | ||||||
Asia Pacific | 124.2 | 134.6 | ||||||
Total revenue from reportable segments | 1,324.1 | 1,286.1 | ||||||
Other operating segments and business activities | 9.0 | 20.4 | ||||||
Total revenue | $ | 1,333.1 | $ | 1,306.5 |
Three Months Ended March 31, | ||||||||
Operating Profit | 2017 | 2016 | ||||||
Segment Profit | ||||||||
Europe, Middle East & Africa | $ | 74.6 | $ | 68.7 | ||||
South Latin America | 13.3 | 23.1 | ||||||
North Latin America | 21.0 | 28.5 | ||||||
Asia Pacific | 12.9 | 14.8 | ||||||
Total profit from reportable segments | $ | 121.8 | $ | 135.1 | ||||
Other operating segments and business activities | 1.2 | 4.1 | ||||||
Unallocated global expenses | (84.3 | ) | (84.6 | ) | ||||
CTI restructuring initiatives | (10.0 | ) | (46.8 | ) | ||||
Operating profit | $ | 28.7 | $ | 7.8 |
Components of Prepaid Expenses and Other | March 31, 2017 | December 31, 2016 | ||||||
Prepaid taxes and tax refunds receivable | $ | 114.3 | $ | 99.3 | ||||
Prepaid brochure costs, paper and other literature | 78.1 | 73.2 | ||||||
Receivables other than trade | 55.0 | 68.3 | ||||||
Other | 52.8 | 50.5 | ||||||
Prepaid expenses and other | $ | 300.2 | $ | 291.3 |
Components of Other Assets | March 31, 2017 | December 31, 2016 | ||||||
Deferred tax assets | 162.8 | 162.1 | ||||||
Long-term receivables | 89.6 | 78.9 | ||||||
Judicial deposits other than Brazil IPI tax (see below) | 85.7 | 78.0 | ||||||
Capitalized software | 83.3 | 83.9 | ||||||
Judicial deposit for Brazil IPI tax on cosmetics (Note 8) | 74.4 | 69.0 | ||||||
Net overfunded pension plans | 59.7 | 54.8 | ||||||
Trust assets associated with supplemental benefit plans | 35.9 | 35.2 | ||||||
Investment in New Avon (Note 4) | 29.4 | 32.8 | ||||||
Tooling (plates and molds associated with our beauty products) | 14.5 | 14.7 | ||||||
Other | 12.0 | 12.3 | ||||||
Other assets | $ | 647.3 | $ | 621.7 |
• | net charges of $7.6, primarily for employee-related costs, including severance benefits; |
• | contract termination and other net charge of $1.4; |
• | implementation costs of $.5 primarily related to professional service fees; and |
• | accelerated depreciation of $.5. |
• | net charge of $47.1 primarily for employee-related costs, including severance benefits; and |
• | implementation costs of $.4 primarily related to professional service fees. |
Employee-Related Costs | Contract Terminations/Other | Total | ||||||||||
Balance at December 31, 2016 | $ | 48.6 | $ | 2.8 | $ | 51.4 | ||||||
2017 charges | 9.7 | — | 9.7 | |||||||||
Adjustments | (2.1 | ) | 1.4 | (.7 | ) | |||||||
Cash payments | (9.0 | ) | (.5 | ) | (9.5 | ) | ||||||
Foreign exchange | .5 | — | .5 | |||||||||
Balance at March 31, 2017 | $ | 47.7 | $ | 3.7 | $ | 51.4 |
Employee- Related Costs | Inventory Write-offs | Foreign Currency Translation Adjustment Write-offs | Contract Terminations/Other | Total | ||||||||||||||||
Charges incurred to-date | $ | 91.6 | $ | .4 | $ | 2.7 | $ | 10.1 | $ | 104.8 | ||||||||||
Estimated charges to be incurred on approved initiatives | 6.2 | — | — | 1.2 | 7.4 | |||||||||||||||
Total expected charges on approved initiatives | $ | 97.8 | $ | .4 | $ | 2.7 | $ | 11.3 | $ | 112.2 |
Europe, Middle East & Africa | South Latin America | North Latin America | Asia Pacific | Global & Other Operating Segments | Total | |||||||||||||||||||
2015 | $ | — | $ | — | $ | — | $ | — | $ | 21.4 | $ | 21.4 | ||||||||||||
2016 | 30.9 | 13.2 | 4.4 | 11.7 | 14.2 | 74.4 | ||||||||||||||||||
First quarter 2017 | 3.0 | 2.7 | (.1 | ) | (.5 | ) | 3.9 | 9.0 | ||||||||||||||||
Charges incurred to-date | 33.9 | 15.9 | 4.3 | 11.2 | 39.5 | 104.8 | ||||||||||||||||||
Estimated charges to be incurred on approved initiatives | 1.2 | — | — | — | 6.2 | 7.4 | ||||||||||||||||||
Total expected charges on approved initiatives | $ | 35.1 | $ | 15.9 | $ | 4.3 | $ | 11.2 | $ | 45.7 | $ | 112.2 |
Europe, Middle East & Africa | South Latin America | Asia Pacific | Total | |||||||||||||
Gross balance at December 31, 2016 | $ | 25.6 | $ | 72.3 | $ | 85.0 | $ | 182.9 | ||||||||
Accumulated impairments | (6.9 | ) | — | (82.4 | ) | (89.3 | ) | |||||||||
Net balance at December 31, 2016 | $ | 18.7 | $ | 72.3 | $ | 2.6 | $ | 93.6 | ||||||||
Changes during the period ended March 31, 2017: | ||||||||||||||||
Foreign exchange | .5 | 3.0 | — | 3.5 | ||||||||||||
Gross balance at March 31, 2017 | $ | 26.1 | $ | 75.3 | $ | 85.0 | $ | 186.4 | ||||||||
Accumulated impairments | (6.9 | ) | — | (82.4 | ) | (89.3 | ) | |||||||||
Net balance at March 31, 2017 | $ | 19.2 | $ | 75.3 | $ | 2.6 | $ | 97.1 |
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. |
• | Level 3 - Unobservable inputs based on our own assumptions. |
Level 1 | Level 2 | Total | |||||||||
Assets: | |||||||||||
Available-for-sale securities | $ | 2.8 | $ | — | $ | 2.8 | |||||
Foreign exchange forward contracts | — | .4 | .4 | ||||||||
Total | $ | 2.8 | $ | .4 | $ | 3.2 | |||||
Liabilities: | |||||||||||
Foreign exchange forward contracts | $ | — | $ | .3 | $ | .3 | |||||
Total | $ | — | $ | .3 | $ | .3 |
Level 1 | Level 2 | Total | |||||||||
Assets: | |||||||||||
Available-for-sale securities | $ | 2.8 | $ | — | $ | 2.8 | |||||
Foreign exchange forward contracts | — | .6 | .6 | ||||||||
Total | $ | 2.8 | $ | .6 | $ | 3.4 | |||||
Liabilities: | |||||||||||
Foreign exchange forward contracts | $ | — | $ | 3.0 | $ | 3.0 | |||||
Total | $ | — | $ | 3.0 | $ | 3.0 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Available-for-sale securities | $ | 2.8 | $ | 2.8 | $ | 2.8 | $ | 2.8 | |||||||
Debt maturing within one year(1) | (20.1 | ) | (20.1 | ) | (18.1 | ) | (18.1 | ) | |||||||
Long-term debt(1) | (1,874.9 | ) | (1,880.8 | ) | (1,875.8 | ) | (1,877.5 | ) | |||||||
Foreign exchange forward contracts | .1 | .1 | (2.4 | ) | (2.4 | ) |
Asset | Liability | ||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | .4 | Accounts payable | $ | .3 | |||||
Total derivatives not designated as hedges | $ | .4 | $ | .3 | |||||||
Total derivatives | $ | .4 | $ | .3 |
Asset | Liability | ||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | .6 | Accounts payable | $ | 3.0 | |||||
Total derivatives not designated as hedges | $ | .6 | $ | 3.0 | |||||||
Total derivatives | $ | .6 | $ | 3.0 |
Three Months Ended March 31, | |||||||||||
2017 | 2016 | %/Point Change | |||||||||
Select Consolidated Financial Information | |||||||||||
Total revenue | $ | 1,333.1 | $ | 1,306.5 | 2 | % | |||||
Cost of sales | 517.1 | 518.8 | — | % | |||||||
Selling, general and administrative expenses | 787.3 | 779.9 | 1 | % | |||||||
Operating profit | 28.7 | 7.8 | * | ||||||||
Interest expense | 35.1 | 32.7 | 7 | % | |||||||
Interest income | (4.7 | ) | (4.0 | ) | 18 | % | |||||
Other expense, net | 5.0 | 137.2 | (96 | )% | |||||||
Loss before taxes | (6.7 | ) | (158.1 | ) | 96 | % | |||||
Loss from continuing operations, net of tax | (36.5 | ) | (155.8 | ) | 77 | % | |||||
Net loss attributable to Avon | $ | (36.5 | ) | $ | (165.9 | ) | 78 | % | |||
Diluted loss per share from continuing operations | $ | (.10 | ) | $ | (.36 | ) | 72 | % | |||
Diluted loss per share attributable to Avon | $ | (.10 | ) | $ | (.38 | ) | 74 | % | |||
Advertising expenses(1) | $ | 30.1 | $ | 23.0 | 31 | % | |||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||
Gross margin | 61.2 | % | 60.3 | % | .9 | ||||||
CTI restructuring | — | — | — | ||||||||
Adjusted gross margin | 61.2 | % | 60.3 | % | .9 | ||||||
Selling, general and administrative expenses as a % of total revenue | 59.1 | % | 59.7 | % | (.6 | ) | |||||
CTI restructuring | (.8 | ) | (3.6 | ) | 2.8 | ||||||
Adjusted selling, general and administrative expenses as a % of total revenue | 58.3 | % | 56.1 | % | 2.2 | ||||||
Operating profit | $ | 28.7 | $ | 7.8 | * | ||||||
CTI restructuring | 10.0 | 46.8 | |||||||||
Adjusted operating profit | $ | 38.7 | $ | 54.6 | (29 | )% | |||||
Operating margin | 2.2 | % | .6 | % | 1.6 | ||||||
CTI restructuring | .8 | 3.6 | (2.8 | ) | |||||||
Adjusted operating margin | 2.9 | % | 4.2 | % | (1.3 | ) | |||||
Change in Constant $ Adjusted operating margin(2) | (1.1 | ) | |||||||||
Performance Metrics | |||||||||||
Change in Active Representatives | (4 | )% | |||||||||
Change in units sold | (7 | )% | |||||||||
Change in Ending Representatives | (2 | )% |
(1) | Advertising expenses are recorded in selling, general and administrative expenses. |
(2) | Change in Constant $ Adjusted operating margin for all years presented is calculated using the current-year Constant $ rates. |
Three Months Ended March 31, | %/Point Change | ||||||||||||
2017 | 2016 | US$ | Constant $ | ||||||||||
Beauty: | |||||||||||||
Skincare | $ | 385.1 | $ | 362.0 | 6 | % | 1 | % | |||||
Fragrance | 343.3 | 331.2 | 4 | — | |||||||||
Color | 241.7 | 245.7 | (2 | ) | (6 | ) | |||||||
Total Beauty | 970.1 | 938.9 | 3 | (1 | ) | ||||||||
Fashion & Home: | |||||||||||||
Fashion | 193.8 | 196.3 | (1 | ) | (4 | ) | |||||||
Home | 134.1 | 129.2 | 4 | 1 | |||||||||
Total Fashion & Home | 327.9 | 325.5 | 1 | (2 | ) | ||||||||
Net sales from reportable segments | $ | 1,298.0 | $ | 1,264.4 | 3 | (1 | ) | ||||||
Net sales from Other operating segments and business activities | .1 | 15.6 | * | * | |||||||||
Net sales | $ | 1,298.1 | $ | 1,280.0 | 1 | (2 | ) |
• | an increase of 140 basis points due to the favorable net impact of mix and pricing, primarily due to inflationary and strategic pricing in South Latin America and Europe, Middle East & Africa; and |
• | an increase of approximately 20 basis points due to the net favorable impact of foreign currency transaction gains and foreign currency translation. |
• | a decrease of 40 basis points due to higher supply chain costs, primarily in South Latin America, North Latin America and Asia Pacific due to higher material and overhead costs, which was partially offset by lower material and distribution costs in Europe, Middle East & Africa; and |
• | a decrease of 20 basis points due to sales of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016. |
• | an increase of 140 basis points from higher bad debt expense, driven by Brazil primarily due to the lower than anticipated collection of receivables which was partly as a result of the macroeconomic environment; |
• | an increase of 60 basis points due to the impact of an out-of-period adjustment in Global related to equity compensation which was recorded in the first quarter of 2017 that should have been recorded in the first quarter of 2016; |
• | an increase of 60 basis points from higher transportation costs, primarily in Russia driven by new delivery rates; and |
• | an increase of 40 basis points from higher advertising expense, primarily in Brazil and Russia. |
• | a decrease of 50 basis points primarily due to lower Representative, sales leader and field expense, driven by Brazil; and |
• | a decrease of approximately 40 basis points due to the favorable impact of foreign currency translation and foreign currency transaction gains. |
• | foreign currency transaction gains (classified within cost of sales, and selling, general and administrative expenses), which had a favorable impact to operating profit and Adjusted operating profit of an estimated $5, or approximately 20 basis points to operating margin and Adjusted operating margin; |
• | foreign currency translation, which had a favorable impact to operating profit and Adjusted operating profit of approximately $5, or approximately 40 points to operating margin and Adjusted operating margin; and |
• | foreign exchange net gains on our working capital (classified within other expense, net) as compared to net losses in the prior year, resulting in a year-over-year benefit of approximately $14 before tax on both a reported and Adjusted basis. |
Three Months Ended March 31, | |||||||||||||
%/Point Change | |||||||||||||
2017 | 2016 | US$ | Constant $ | ||||||||||
Total revenue | $ | 507.5 | $ | 520.4 | (2 | )% | (4 | )% | |||||
Segment profit | 74.6 | 68.7 | 9 | % | 5 | % | |||||||
Segment margin | 14.7 | % | 13.2 | % | 1.5 | 1.3 | |||||||
Change in Active Representatives | (3 | )% | |||||||||||
Change in units sold | (13 | )% | |||||||||||
Change in Ending Representatives | (1 | )% |
• | a benefit of 4.5 points due to higher gross margin caused primarily by 2.6 points from the favorable net impact of mix and pricing, 1.2 points due to lower supply chain costs, and an estimated 1 point from the favorable impact of foreign currency transaction net gains. Supply chain costs benefited primarily from lower material and distribution costs, partially due to productivity initiatives; |
• | a decline of 1.2 points from higher transportation costs, primarily in Russia driven by new delivery rates; |
• | a net decline of 1.1 points primarily due to the impact of the Constant $ revenue decline with respect to our fixed expenses; and |
• | a decline of .4 points from higher advertising expense, primarily in Russia. |
Three Months Ended March 31, | |||||||||||||
%/Point Change | |||||||||||||
2017 | 2016 | US$ | Constant $ | ||||||||||
Total revenue | $ | 499.2 | $ | 426.4 | 17 | % | 2 | % | |||||
Segment profit | 13.3 | 23.1 | (42 | )% | (49 | )% | |||||||
Segment margin | 2.7 | % | 5.4 | % | (2.7 | ) | (2.5 | ) | |||||
Change in Active Representatives | (2 | )% | |||||||||||
Change in units sold | (1 | )% | |||||||||||
Change in Ending Representatives | 1 | % |
• | a decline of 3.5 points from higher bad debt expense, driven by Brazil primarily due to the lower than anticipated collection of receivables which was partly as a result of the macroeconomic environment; |
• | a decline of 1.2 points primarily due to higher fixed expenses, which included inflationary pressures in Argentina, partially offset by the impact of the Constant $ revenue growth with respect to our fixed expenses; |
• | a decline of .5 points from higher advertising expense, primarily in Brazil which was driven by product launches; |
• | a benefit of 1.5 points due to higher gross margin caused by 2.9 points from the favorable net impact of mix and pricing, primarily due to inflationary and strategic pricing, partially offset by 1.1 points from higher supply chain costs. Supply chain costs were primarily negatively impacted by higher material costs, which included inflationary pressures in Argentina; and |
• | a benefit of 1.3 points primarily due to lower Representative, sales leader and field expense in Brazil which was driven by lower payouts to the field. |
Three Months Ended March 31, | |||||||||||||
%/Point Change | |||||||||||||
2017 | 2016 | US$ | Constant $ | ||||||||||
Total revenue | $ | 193.2 | $ | 204.7 | (6 | )% | 2 | % | |||||
Segment profit | 21.0 | 28.5 | (26 | )% | (20 | )% | |||||||
Segment margin | 10.9 | % | 13.9 | % | (3.0 | ) | (2.9 | ) | |||||
Change in Active Representatives | — | % | |||||||||||
Change in units sold | (1 | )% | |||||||||||
Change in Ending Representatives | — | % |
• | a decline of 1.2 points due to lower gross margin caused primarily by 1.6 points from higher supply chain costs, partially offset by .7 points from the favorable impact of mix and pricing. Supply chain costs were negatively impacted by higher overhead costs as a result of lower productivity, and higher air freight costs, partially offset by lower obsolescence; |
• | a decline of .8 points from higher bad debt expense, primarily in Mexico driven by the implementation of a new collection process as a result of changes in regulations; and |
• | a decline of .4 points from higher transportation costs driven by increased fuel prices. |
Three Months Ended March 31, | |||||||||||||
%/Point Change | |||||||||||||
2017 | 2016 | US$ | Constant $ | ||||||||||
Total revenue | $ | 124.2 | $ | 134.6 | (8 | )% | (5 | )% | |||||
Segment profit | 12.9 | 14.8 | (13 | )% | (7 | )% | |||||||
Segment margin | 10.4 | % | 11.0 | % | (.6 | ) | (.2 | ) | |||||
Change in Active Representatives | (8 | )% | |||||||||||
Change in units sold | (3 | )% | |||||||||||
Change in Ending Representatives | (8 | )% |
• | a decline of 2.3 points due to lower gross margin caused primarily by 2.1 points from higher supply chain costs and .8 points from the unfavorable impact of mix and pricing, partially offset by .6 points from the favorable impact of foreign currency transaction net gains. Supply chain costs were negatively impacted by higher overhead costs; |
• | a net benefit of 1.3 points from lower fixed expenses, partially offset by the unfavorable impact of the declining revenue with respect to our fixed expenses; |
• | a benefit of .4 points due to lower Representative, sales leader and field expense; and |
• | various other insignificant items that partially offset the decline in segment margin. |
• | our ability to improve our financial and operational performance and execute fully our global business strategy, including our ability to implement the key initiatives of, and/or realize the projected benefits (in the amounts and time schedules we expect) from, our transformation plan, stabilization strategies, cost savings initiatives, restructuring and other initiatives, product mix and pricing strategies, enterprise resource planning, customer service initiatives, sales and operation planning process, outsourcing strategies, Internet platform and technology strategies including e-commerce, marketing and advertising strategies, information technology and related system enhancements and cash management, tax, foreign currency hedging and risk management strategies, and any plans to invest these projected benefits ahead of future growth; |
• | our ability to achieve the anticipated benefits of our strategic partnership with Cerberus Capital Management, L.P. ("Cerberus"); |
• | our broad-based geographic portfolio, which is heavily weighted towards emerging markets, a general economic downturn, a recession globally or in one or more of our geographic regions or markets, such as Brazil, Mexico or Russia, or sudden disruption in business conditions, and the ability to withstand an economic downturn, recession, cost inflation, commodity cost pressures, economic or political instability (including fluctuations in foreign exchange rates), competitive or other market pressures or conditions; |
• | the effect of economic factors, including inflation and fluctuations in interest rates and foreign currency exchange rates; |
• | the possibility of business disruption in connection with our transformation plan, stabilization strategies, cost savings initiatives, or restructuring and other initiatives; |
• | our ability to reverse declining revenue, to improve margins and net income, or to achieve profitable growth, particularly in our largest markets, such as Brazil, and developing and emerging markets, such as Mexico and Russia; |
• | our ability to improve working capital and effectively manage doubtful accounts and inventory and implement initiatives to reduce inventory levels, including the potential impact on cash flows and obsolescence; |
• | our ability to reverse declines in Active Representatives, to enhance our sales Leadership programs, to generate Representative activity, to increase the number of consumers served per Representative and their engagement online, to enhance branding and the Representative and consumer experience and increase Representative productivity through field activation and segmentation programs and technology tools and enablers, to invest in the direct-selling channel, to offer a more social selling experience, and to compete with other direct-selling organizations to recruit, retain and service Representatives and to continue to innovate the direct-selling model; |
• | general economic and business conditions in our markets, including social, economic and political uncertainties, such as in Russia and Ukraine, and any potential sanctions, restrictions or responses to such conditions imposed by other markets in which we operate; |
• | developments in or consequences of any investigations and compliance reviews, and any litigation related thereto, including the investigations and compliance reviews of Foreign Corrupt Practices Act and related United States ("U.S.") |
• | the effect of political, legal, tax, including changes in tax rates, and other regulatory risks imposed on us abroad and in the U.S., our operations or our Representatives, including foreign exchange, pricing, data privacy or other restrictions, the adoption, interpretation and enforcement of foreign laws, including in jurisdictions such as Brazil and Russia, and any changes thereto, as well as reviews and investigations by government regulators that have occurred or may occur from time to time, including, for example, local regulatory scrutiny; |
• | competitive uncertainties in our markets, including competition from companies in the consumer packaged goods industry, some of which are larger than we are and have greater resources; |
• | the impact of the adverse effect of volatile energy, commodity and raw material prices, changes in market trends, purchasing habits of our consumers and changes in consumer preferences, particularly given the global nature of our business and the conduct of our business in primarily one channel; |
• | our ability to attract and retain key personnel; |
• | other sudden disruption in business operations beyond our control as a result of events such as acts of terrorism or war, natural disasters, pandemic situations, large-scale power outages and similar events; |
• | key information technology systems, process or site outages and disruptions, and any cyber security breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of Representative, customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident which could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations, and related costs to address such malicious intentional acts and to implement adequate preventative measures against cyber security breaches; |
• | the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers; |
• | any changes to our credit ratings and the impact of such changes on our financing costs, rates, terms, debt service obligations, access to lending sources and working capital needs; |
• | the impact of our indebtedness, our access to cash and financing, and our ability to secure financing or financing at attractive rates and terms and conditions; |
• | the impact of a continued decline in our business results, which includes the impact of any adverse foreign exchange movements, significant restructuring charges and significant legal settlements or judgments, on our ability to comply with certain covenants in our revolving credit facility; |
• | our ability to successfully identify new business opportunities, strategic alliances and strategic alternatives and identify and analyze alliance candidates, secure financing on favorable terms and negotiate and consummate alliances; |
• | disruption in our supply chain or manufacturing and distribution operations; |
• | the quality, safety and efficacy of our products; |
• | the success of our research and development activities; |
• | our ability to protect our intellectual property rights, including in connection with the separation of the North America business; |
• | our ability to repurchase the Series C Preferred Stock (as defined herein) in connection with a change of control; and |
• | the risk of an adverse outcome in any material pending and future litigation or with respect to the legal status of Representatives. |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||
1/1 - 1/31/17 | 256,870 | (1) | $ | 5.06 | * | * | |||||
2/1 - 2/28/17 | 5,015 | (1) | 5.29 | * | * | ||||||
3/1 - 3/31/17 | 1,154,237 | (1) | 4.31 | * | * | ||||||
Total | 1,416,122 | $ | 4.45 | * | * |
* | These amounts are not applicable as the Company does not have a share repurchase program in effect. |
(1) | All shares were repurchased by the Company in connection with employee elections to use shares to pay withholding taxes upon the vesting of their restricted stock units and performance restricted stock units. |
AVON PRODUCTS, INC. | ||
(Registrant) | ||
Date: | May 4, 2017 | /s/ Robert Loughran |
Robert Loughran | ||
Group Vice President and | ||
Chief Accounting Officer | ||
Signed both on behalf of the | ||
registrant and as chief | ||
accounting officer. |
10.1 | Transition Letter Agreement and General Release of Claims dated as of March 20, 2017, between Avon Products, Inc. and Jeff Benjamin. |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements |
1. | Last Day of Active Employment |
2. | Transition Benefits |
a. | Salary Continuation |
(x) | The first tranche (“Tranche A”) will be equal to the 409A Limit, payable over the Salary Continuation Period in substantially equal, bi-weekly installments (less applicable deductions) on each of Avon’s regular payroll dates. Note that this will be less than your current bi-weekly paycheck. |
(y) | The second tranche (“Tranche B”) will be equal to the remaining amount of salary continuation owed to you under this Agreement in excess of the 409A Limit, payable from the first administratively feasible Avon regular payroll date that occurs in the seventh month following the Separation Date through the end of the Salary Continuation Period, in substantially equal, bi-weekly installments (less applicable deductions) on each of Avon’s regular payroll dates. |
b. | Transportation Allowance |
c. | Executive Health Exam |
d. | Other Transition Benefits |
3. | Retirement Plans |
a. | Avon Products, Inc. Personal Retirement Account Plan (“PRA”) |
b. | Benefit Restoration Plan of Avon Products, Inc. |
c. | Avon Personal Savings Account Plan |
4. | Cash Incentive Award |
5. | Equity Awards |
6. | Health and Welfare Plans & Other Benefits |
7. | Transition Services and Your Other Obligations to Avon |
a. | Cooperation and Transition Services: By signing this Agreement and, if applicable, the Second General Release, you are agreeing that you may be reasonably requested from time to time by Avon: (x) to advise and consult on matters within or related to your expertise and knowledge in connection with the business of Avon; (y) to make yourself available to Avon to respond to requests for information concerning matters involving facts or events relating to Avon; and (z) to assist with pending and future litigation, investigations, arbitrations, and/or other dispute resolution matters. You understand that, with respect to any consultation services or assistance provided by you under this paragraph, you will not be credited with any compensation, service or age credit for purposes of eligibility, vesting, or benefit accrual under any employee benefit plan of Avon, unless such employee benefit plan otherwise expressly and specifically provides for such credit. |
b. | Confidentiality: You agree to keep and hold in strict trust all Confidential Information that you obtained or generated during or as a result of your employment at Avon. You promise not to knowingly use, disclose, copy, distribute or reverse-engineer, directly or through persons interposed, without Avon’s prior written consent (which may only be provided by a Senior Vice President or higher officer), as and from this date, and at any time, Avon’s Confidential Information. For this purpose, “Confidential Information” means any secret, confidential, and/or proprietary information or knowledge relating to Avon or related to any of Avon’s affiliated companies, and/or their respective businesses, agents, employees, customers and independent sales representatives, that is not generally known to the public. Such Confidential Information includes, but is not limited to, financial information and projections, marketing information and plans, product formulations, samples, processes, production methods, intellectual property and trade secrets, data, know-how, sales, market development programs and plans, and other types of |
c. | Use of Confidential Information: You agree that you will not use Avon’s Confidential Information in connection with any publicity, advertising, endorsement or other promotion. You further agree not to use Avon’s trademarks, logos, service marks or other intellectual property in any form of advertising, publicity or release without Avon’s prior written approval. You understand that nothing in this Agreement shall be construed to prevent lawful communications regarding working conditions, or other terms and conditions of employment protected under Section 7 of the National Labor Relations Act or applicable state law. |
d. | Non-solicitation: You will not, without Avon’s prior written consent (which may only be provided by a Senior Vice President or higher officer), during the Salary Continuation Period, directly or indirectly hire, solicit, or aid in the solicitation of, any employee of Avon or an affiliated company, including any solicitation or recruitment of such employee to take him or her away from or to leave his or her Avon employment to work for any other employer or other entity. |
e. | By signing this Agreement and, if applicable, the Second General Release, you acknowledge that you understand that violations of any of the preceding covenants are material and that any violations may result in a forfeiture, at Avon’s sole discretion, of your benefits and payments under this Agreement (including salary continuation, whether or not already paid), but do not relieve you of your continuing obligations under this Agreement. You agree that Avon’s remedies at law for any breach by you of the preceding covenants will be inadequate and that Avon will also have the right to obtain immediate injunctive relief, without a bond, so as to prevent any continued breach of any of these covenants, in addition to any other available legal remedies. It is understood that any remedy available at law or in equity shall be available to Avon should the preceding covenants be breached. |
f. | By signing this Agreement and the Second General Release, if applicable, to the fullest extent allowed by law, you agree not to commence, join, participate in, or assist any lawsuit, action, investigation or proceeding arising from or relating to any act or omission by any of the “Avon Released Parties” (as that term is defined both in this Agreement in Paragraph 13 below and, if applicable in the Second General Release) unless you are compelled by law to do so and you also agree not to recover or seek to recover any damages, backpay or other monetary relief as part of any action or class action brought by any other individual, the EEOC, or any other civil rights or governmental agency. |
8. | Return of Avon Property: On or before the end of the Salary Continuation Period, you agree to promptly deliver to Avon, and not keep in your possession, duplicate, or deliver to any other person or entity, any and all property (whether in hard copy, physical form, or electronic form) that belongs to Avon or any of its affiliated companies, including, without limitation, automobiles, computer hardware and software, cell phones, Blackberrys, iPhones, Androids, other smartphones, iPads, other tablets, thumb drives, other electronic equipment, keys, credit cards, identification cards, records, files, data, and other documents and information, including any and all copies of the foregoing. |
9. | Entire Agreement and Amendments to Agreement: You acknowledge that the only consideration for your execution and non-revocation of this Agreement (which includes a general release of claims) and, if applicable, your execution and non-revocation of the Second General Release are the benefits which are expressly stated in this document. All other promises or agreements of any kind, including, but not limited to, your offer letter agreement with Avon dated September 10, 2012 (other than the provision that expressly excludes you from coverage under the Avon Products, Inc. Severance Pay Plan), that have been made by or between the parties or by any other person or entity whatsoever that are related to the subject matter of this Agreement are superseded, revoked and cancelled by this Agreement, except that any arbitration, nondisclosure, intellectual property protection, non-solicit, or classified information provisions and/or agreements with the Company continue to apply in accordance with their terms (and the greater protection to Avon applies in the event of any conflict between this Agreement and such other agreements) and any plans (such as the PRA), equity award agreements, or policies that are referenced in this Agreement as continuing to be applicable (including, without limitation, the Company’s “Associate Arbitration Policy”) are not superseded and will remain in effect. In addition, any compensation recoupment provisions, practices or policies, will continue to apply, as applicable. You agree that this Agreement and, if applicable, the Second General Release, may not be changed orally, by email, or by any other form of electronic communication, but only by a written agreement, signed by both you and an authorized representative of Avon. |
10. | Severability: You agree that the provisions of this Agreement and, if applicable, the Second General Release are severable. If a provision or any part of a provision is held to be invalid under any law or ruling, all of the remaining provisions of this Agreement and, if applicable, the Second General Release, will remain in full force and effect and be enforceable to the extent allowed by law. If any restriction contained in this Agreement or, if applicable, the Second General Release is held to be excessively broad as to duration, activity, or scope, then you agree that such restriction may be construed, “blue-penciled” or judicially modified so as to be limited or reduced to the extent required to be enforceable under applicable law. |
11. | Voluntary Nature: You are not required to accept this Agreement. Any election to do so by you is completely voluntary. By signing this Agreement and, if applicable, the Second General Release, you warrant and represent that you have read this entire Agreement and, if applicable, the Second General Release, that you have had an opportunity to consult fully with an attorney, and that you fully |
12. | Governing Law: You agree that this Agreement (which includes a general release of claims) and, if applicable, the Second General Release will be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws principles, and federal law where applicable. Any legal action to enforce this Agreement, and, if applicable the Second General Release, by either party, shall be subject to arbitration in accordance with Avon’s “Associate Arbitration Policy”. To the extent that Avon is seeking equitable relief to enforce your obligations under this Agreement, Avon may seek such relief as provided in the Paragraph above entitled Your Obligations to Avon in any federal, state or local court in any jurisdiction. |
13. | General Release of Claims |
• | All Claims arising from your employment relationship with Avon and the termination of such relationship; |
• | All Claims arising under any federal, state, or local constitution, statute, rule, or regulation, or principle of contract law or common law; |
• | All Claims for breach of contract, wrongful discharge, tort, breach of common-law duty, or breach of fiduciary duty; |
• | All Claims for benefits under the Avon Products, Inc. Severance Pay Plan or severance under any other Avon plan, policy or program; |
• | All Claims for violation of laws prohibiting any form of employment discrimination or other unlawful employment practice, including without limitation, as applicable: |
◦ | The Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq.; |
◦ | Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e et seq.; |
◦ | The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”); |
◦ | The Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et seq.; |
◦ | The Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.; |
◦ | The Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 et seq.; |
◦ | The Genetic Information Nondiscrimination Act of 2008, as amended, 42 U.S.C. §§ 2000ff et seq.; |
◦ | The National Labor Relations Act of 1935, as amended, 29 U.S.C. §§ 151 et seq. (the “NLRA”); |
◦ | the Fair Credit Reporting Act, as amended, 15 U.S.C. §§ 1681 et seq.; |
◦ | “Whistleblower” laws (other than as provided for in Paragraph 14 herein) and laws protecting “whistleblowers” from retaliation; |
◦ | The New York State Human Rights Law, as amended, N.Y. Exec. Law §§ 290 et seq.; the New York State Worker Adjustment and Retraining Notification Act, as amended, N.Y. Labor Law §§ 860 |
◦ | Any other state’s and local government’s human rights laws, anti-discrimination laws, and “plant closing”/mini-WARN Act laws; |
◦ | Anti-retaliation laws, including without limitation retaliation claims under the New York State Workers' Compensation Law, as amended, N.Y. Workers' Comp. Law § 120, and the New York State Disability Benefits Law, as amended, N.Y. Workers' Comp. Law § 241; and |
◦ | Any other federal, state, or local constitution, statute, rule, or regulation; |
14. | Reservation of Certain Rights |
15. | Compliance with Laws/Tax Treatment: Avon will comply with all payroll/tax withholding requirements and will include in income these benefits as required by law. Avon cannot guarantee the tax treatment of any of these benefits and makes no representation regarding the tax treatment. |
16. | Internal Revenue Code Section 409A: The parties hereto have made a good faith effort to comply with current guidance under Section 409A. The intent of the parties hereto is that payments and benefits under this Agreement comply with or be exempt from Section 409A and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith, including, without limitation, that references to “termination of employment” and like terms, with respect to payments and benefits that are provided under a “nonqualified deferred compensation plan” (as defined in Section 409A) that is not exempt from Section 409A, will be interpreted to mean “separation from service” (as defined in Section 409A). In the event that amendments to this Agreement are necessary in order to comply with Section 409A or to minimize or eliminate any income inclusion and penalties under Section 409A (e.g., under any document or operational correction program), Avon and you agree to negotiate in good faith the applicable terms of such amendments and to implement such negotiated amendments, on a prospective and/or retroactive basis, as needed. To the extent that any amount payable or benefit to be provided under this |
17. | Challenge to the Validity of the Agreement and Communication with Government Agency: Nothing in this Agreement: (y) limits or affects your right to challenge the validity of the General Release of Claims under the ADEA or the Older Workers Benefit Protection Act; or (z) precludes you from filing an administrative charge or otherwise communicating with any federal, state or local government office, official or agency. However, you promise and agree never to seek or accept any damages, or other legal remedies, or any equitable remedies or relief (including, without limitation, relief that would provide you with reinstatement to employment with Avon), and hereby waive any right to recovery of any such damages, remedies or other relief for you personally with respect to any claim released by Paragraph 13, regardless of whether another person or entity or you initiate the underlying action related to the Claim. You also promise and agree not to voluntarily offer to be a witness and/or voluntarily provide evidence in support of any lawsuit brought by a third party (excluding governmental agencies) against Avon or the Avon Released Parties (as defined in the General Release of Claims above). |
18. | Permissible Time to Sign Agreement and Possible Second General Release. If you do not sign this Agreement and return it to Avon within twenty-one (21) days after the date on which you receive this Agreement and, if applicable, if you do not sign the Second General Release and return it within twenty-one (21) days following the Separation Date, then the offer of Transition Benefits described herein will expire. As long as you sign and return this Agreement within this time period, you will have seven (7) days immediately after the date of your signature to revoke your decision by delivering, within the seven (7) day period, written notice of revocation to the Senior Vice President, Human Resources. If you do |
A. | General Release of Any Claims That May Have Arisen During the Period From the Date of “Transition Letter Agreement and General Release of Claims” Through the Date of This Second General Release: |
• | All Claims arising from my employment relationship with Avon and the termination of such relationship; |
• | All Claims arising under any federal, state, or local constitution, statute, rule, or regulation, or principle of contract law or common law; |
• | All Claims for breach of contract, wrongful discharge, tort, breach of common-law duty, or breach of fiduciary duty; |
• | All Claims for benefits under the Avon Products, Inc. Severance Pay Plan or severance under any other Avon plan, policy or program; |
• | All Claims for violation of laws prohibiting any form of employment discrimination or other unlawful employment practice, including without limitation, as applicable: |
◦ | The Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq.; |
◦ | Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000e et seq.; |
◦ | The Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 et seq. (the “ADEA”); |
◦ | The Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 et seq.; |
◦ | The Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.; |
◦ | The Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 et seq.; |
◦ | The Genetic Information Nondiscrimination Act of 2008, as amended, 42 U.S.C. §§ 2000ff et seq.; |
◦ | The National Labor Relations Act of 1935, as amended, 29 U.S.C. §§ 151 et seq. (the “NLRA”); |
◦ | the Fair Credit Reporting Act, as amended, 15 U.S.C. §§ 1681 et seq.; |
◦ | “Whistleblower” laws (other than as provided for in Paragraph C(vi) below) and laws protecting “whistleblowers” from retaliation; |
◦ | The New York State Human Rights Law, as amended, N.Y. Exec. Law §§ 290 et seq.; the New York State Worker Adjustment and Retraining Notification Act, as amended, N.Y. Labor Law §§ 860 et seq.; Article 6 of the New York Labor Law, as amended, N.Y. Labor Law §§ 190 et seq.; the New York Nondiscrimination for Legal Actions Law, as amended, N.Y. Labor Law § 201-d; the New York State Fair Credit Reporting Act, as amended, N.Y. Gen. Bus. Law §§ 380 et seq.; Article 23-A of the New York State Corrections Law, as amended, N.Y. Correc. Law §§ 750 et seq.; the New York City Human Rights Law, as amended, N.Y.C. Admin. Code §§ 8-101 et seq.; the New York City Earned Sick Time Act, as amended, N.Y.C. Admin. Code §§ 20-911 et seq.; the |
◦ | Any other state’s and local government’s human rights laws, anti-discrimination laws, and “plant closing”/mini-WARN Act laws; |
◦ | Anti-retaliation laws, including without limitation retaliation claims under the New York State Workers' Compensation Law, as amended, N.Y. Workers' Comp. Law § 120, and the New York State Disability Benefits Law, as amended, N.Y. Workers' Comp. Law § 241; and |
◦ | Any other federal, state, or local constitution, statute, rule, or regulation; |
B. | Challenge to the Validity of the Agreement and Communication with Government Agency: |
i. | Nothing in this Second General Release is to be construed as an admission on behalf of the Avon Released Parties of any wrongdoing with respect to me, any such wrongdoing being expressly denied. |
ii. | I represent and warrant that as of today’s date, I have not filed any complaint, charge, claim, or proceeding against any of the Avon Released Parties before any federal, state, or local agency, court, or other body relating to my employment and the cessation thereof or to any claim released in the Agreement or this Second General Release, and that I am not currently aware of any facts or basis for filing such a complaint, charge, claim, or proceeding against any of the Avon Released Parties. Except as otherwise provided in the Agreement and this Second General Release, I agree that, if I or any other person or entity files an action, complaint, charge, claim, or proceeding against any of the Avon Released Parties, I agree that, to the maximum extent permitted by law, I will not seek or accept any monetary, equitable, or other relief in such action, complaint, charge, claim, or proceeding (including without limitation relief that would provide me with reinstatement to employment with Avon), and that I will take all available steps/procedures to withdraw and/or dismiss the complaint, charge, claim or proceeding, regardless of who filed or initiated such complaint, charge, claim or proceeding, whether pursued solely on my behalf or on behalf of a greater class of individuals. |
iii. | If I am employed in, or was formerly employed in the State of California, I acknowledge that I am aware of and familiar with the provisions of Section 1542 of the California Civil Code, which provides as follows: |
iv. | I represent and warrant that I have the authority to enter into this Second General Release on my behalf individually and to bind all persons and entities claiming through me. |
v. | I understand that nothing in the Agreement or this Second General Release will limit or interfere with any rights that I may have under Section 7 of the NLRA. |
vi. | Protection of Whistleblower Rights: I understand that this Second General Release is not intended to, and shall be interpreted in a manner that does not, limit or restrict me from exercising any legally protected rights that I may have under any applicable statutes, regulations and rules intended to protect whistleblowers (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended). |
vii. | I acknowledge that Avon has advised me, and hereby advises me, to consult with legal counsel prior to signing the Agreement and the Second General Release. I represent and warrant that I fully understand the terms of the Agreement and the Second General Release, that I have been encouraged to seek the benefit of advice of counsel and either have done so or have knowingly and voluntarily waived my right to do so, and that and I knowingly and voluntarily, of my own free will, without any duress, being fully informed, and after due deliberation, accept its terms and sign below as my own free act. I understand that as a result of signing the Agreement and the Second General Release (subject to Paragraph B above), I will not have the right to assert that Avon or any other Avon Released Party unlawfully terminated my employment or violated any of my rights in connection with my employment with Avon or the cessation thereof. |
/s/ Sherilyn S. McCoy |
Sherilyn S. McCoy |
Chief Executive Officer |
/s/ James Wilson |
James Wilson |
Executive Vice President and |
Chief Financial Officer |
/s/ Sherilyn S. McCoy |
Sherilyn S. McCoy |
Chief Executive Officer |
May 4, 2017 |
/s/ James Wilson |
James Wilson |
Executive Vice President and |
Chief Financial Officer |
May 4, 2017 |
Document And Entity Information |
3 Months Ended |
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Mar. 31, 2017
shares
| |
DEI [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | AVON PRODUCTS INC |
Entity Central Index Key | 0000008868 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 439,847,678 |
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (36.5) | $ (165.4) |
Other comprehensive income: | ||
Foreign currency translation adjustments | 62.0 | 95.9 |
Change in derivative losses on cash flow hedges, net of taxes of $0.0 and $0.0 | 0.0 | 0.4 |
Adjustments of and amortization of net actuarial loss and prior service cost, net of taxes of $0.0 and $10.4 | 3.1 | 264.0 |
Other comprehensive income related to New Avon investment, net of taxes of $0.0 | 1.1 | 0.0 |
Total other comprehensive income, net of taxes | 66.2 | 360.3 |
Comprehensive income | 29.7 | 194.9 |
Less: comprehensive income attributable to noncontrolling interests | 0.1 | 1.1 |
Comprehensive income attributable to Avon | $ 29.6 | $ 193.8 |
Consolidated Statements Of Comprehensive Income (Loss) Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Statement of Comprehensive Income [Abstract] | ||
Change in derivative losses on cash flow hedges, tax | $ 0.0 | $ 0.0 |
Adjustment of and amortization of net actuarial loss and prior service cost, taxes | 0.0 | $ (10.4) |
Other comprehensive income, equity method investment, tax | $ 0.0 |
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions |
Dec. 31, 2015
USD ($)
|
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Statement of Cash Flows [Abstract] | |
Cash and cash equivalents of discontinued operations and held for sale | $ (2.2) |
ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of Presentation We prepare our unaudited interim Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States ("GAAP"). We consistently applied the accounting policies described in our 2016 Annual Report on Form 10-K ("2016 Form 10-K") in preparing these unaudited Consolidated Financial Statements. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. You should read these unaudited interim Consolidated Financial Statements in conjunction with our consolidated financial statements contained in our 2016 Form 10-K. When used in this report, the terms "Avon," "Company," "we" or "us" mean Avon Products, Inc. For interim Consolidated Financial Statements purposes we provide for accruals under our various employee benefit plans for each quarter based on one quarter of the estimated annual expense. In addition, our income tax provision is determined using an estimate of our consolidated annual effective tax rate, adjusted in the current period for discrete income tax items including:
Venezuela As of March 31, 2016, we deconsolidated our Venezuelan operations, and since then, we account for this business using the cost method of accounting. The decision to deconsolidate our Venezuelan operations was due to the lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This was caused by Venezuela's restrictive foreign exchange control regulations and our Venezuelan operations' increasingly limited access to U.S. dollars, which restricted our Venezuelan operations' ability to pay dividends and settle intercompany obligations. As a result of the change to the cost method of accounting, in the first quarter of 2016, we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within accumulated other comprehensive loss ("AOCI") (shareholders' deficit) associated with foreign currency changes before Venezuela was accounted for as a highly inflationary economy. The net assets of the Venezuelan business were comprised of inventories of $23.7, property, plant and equipment, net of $15.0, other assets of $11.4, accounts receivable of $4.6, cash of $4.5, and accounts payable and accrued liabilities of $20.0. Our Consolidated Balance Sheets no longer include the assets and liabilities of our Venezuelan operations. We no longer include the results of our Venezuelan operations in our Consolidated Financial Statements, and will include income relating to our Venezuelan operations only to the extent that we receive cash for dividends or royalties remitted by Avon Venezuela. Revisions In our 2016 Form 10-K, our Consolidated Statements of Cash Flows presented supplemental information of the cash paid for interest of $87.1 for the year ended December 31, 2016; however, this amount should have been disclosed as $142.8. We determined that the effect of this revision was not material to our 2016 Form 10-K. New Accounting Standards Implemented In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, which is intended to simplify the accounting for share-based payment transactions. This new guidance changes several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures and employer-tax withholding requirements. ASU 2016-09 also clarifies the Statements of Cash Flows presentation for certain components of share-based payment awards. We have adopted this new accounting guidance in the first quarter of 2017, which did not have a material impact on our Consolidated Financial Statements. Accounting Standards to be Implemented In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic ("ASC") 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We intend to adopt this new accounting guidance effective January 1, 2018. This new accounting guidance can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption, but we have not yet determined our method of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our Consolidated Financial Statements. Based on the evaluation completed to-date, we believe that we will need to:
In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits. This new guidance requires entities to (1) disaggregate the service cost component from the other components of net periodic benefit costs and present it with other current employee compensation costs in the Consolidated Statements of Operations and (2) present the other components of net periodic benefit costs below operating profit. We intend to adopt this new accounting guidance effective January 1, 2018. The new accounting guidance is applied retrospectively and will increase our operating profit for the first quarter of 2017 and the full year 2016 by $.9 and $2.1, respectively, but will have no impact on net income (loss). In February 2016, the FASB issued ASU 2016-02, Leases, which requires all assets and liabilities arising from leases to be recognized in the statement of financial position. We intend to adopt this new accounting guidance effective January 1, 2019. We are currently evaluating the effect that adopting this new accounting guidance will have on our Consolidated Financial Statements. |
EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES |
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Earnings Per Share Reconciliation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES | EARNINGS (LOSS) 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 earnings (loss) allocated to convertible preferred stock and participating securities, as appropriate. The earnings allocated to convertible preferred stock are the larger of 1) the preferred dividends accrued in the period or 2) the percentage of earnings from continuing operations allocable to the preferred stock as if they had been converted to common stock. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents to the extent any dividends are declared and paid on our common stock. 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.
Amounts in the table above may not necessarily sum due to rounding. During the three months ended March 31, 2017 and 2016, we did not include stock options to purchase 13.1 million shares and 11.0 million shares, respectively, of Avon common stock in the calculation of diluted EPS as we had a loss from continuing operations, net of tax, and the inclusion of these shares would decrease the net loss per share, and therefore, their inclusion would be anti-dilutive. For the three months ended March 31, 2017 and 2016, it is more dilutive to assume the Series C Convertible Preferred Stock is not converted into common stock; therefore, the weighted-average outstanding shares outstanding was not adjusted by the as-if converted Series C Convertible Preferred Stock because the effect would be anti-dilutive as it would decrease the net loss per share. If the as-if converted Series C Convertible Preferred Stock had been dilutive, approximately 87.1 million additional shares would have been included in the diluted weighted average number of shares outstanding for the three months ended March 31, 2017 and 2016. See Note 5, Related Party Transactions. We purchased approximately 1.4 million shares of Avon common stock for $6.2 during the first three months of 2017, as compared to approximately .9 million shares of Avon common stock for $3.5 during the first three months of 2016, through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units and performance restricted stock units. |
DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On December 17, 2015, the Company entered into definitive agreements with affiliates controlled by Cerberus Capital Management, L.P. ("Cerberus"). The agreements include an investment agreement providing for a $435.0 investment by Cleveland Apple Investor L.P. (“Cerberus Investor”) (an affiliate of Cerberus) in the Company through the purchase of perpetual convertible preferred stock (see Note 5, Related Party Transactions) and a separation and investment agreement providing for the separation of the Company's North America business, which represented the Company's operations in the United States, Canada and Puerto Rico, from the Company into New Avon LLC ("New Avon"), a privately-held company that is majority-owned and managed by Cerberus NA Investor LLC (“Cerberus NA”) (an affiliate of Cerberus). These transactions closed on March 1, 2016. The major classes of financial statement components comprising the loss on discontinued operations, net of tax for North America are shown below:
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INVESTMENT IN NEW AVON (Notes) |
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENT IN NEW AVON In connection with the separation of the Company's North America business (as discussed in Note 3, Discontinued Operations), which closed on March 1, 2016, the Company retained a 19.9% ownership interest in New Avon. The Company accounts for its ownership interests in New Avon using the equity method of accounting, which results in the Company recognizing its proportionate share of New Avon's income or loss and other comprehensive income or loss. The Company's proportionate share of the losses of New Avon was $4.0 and $3.9 during the three months ended March 31, 2017 and one month ended March 31, 2016, respectively, and was recorded within other expense, net. The Company also recorded an additional loss of $.5 within other expense, net and a benefit of $1.1 within other comprehensive income, during the three months ended March 31, 2017, primarily associated with purchase accounting adjustments reported by New Avon. At March 31, 2017, our investment in New Avon was $29.4 and was classified within other assets in our Consolidated Balance Sheets. Summarized financial information related to New Avon is shown below:
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RELATED PARTY TRANSACTIONS |
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RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The following tables present the related party transactions with New Avon and affiliates of Cerberus. New Avon is majority owned and managed by Cerberus NA. See Note 3, Discontinued Operations and Note 4, Investment in Avon for further details.
(1) The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $8.0 and $3.7, within other revenue, and gross profit of $.6 and $.5 associated with this agreement during the three months ended March 31, 2017 and 2016, respectively. (2) New Avon also supplies product to the Company as part of this manufacturing and supply agreement. The Company purchased $1.0 and $1.2 from New Avon associated with this agreement during the three months ended March 31, 2017 and 2016, respectively, and recorded $.8 and $.9 associated with these purchases within cost of sales during the three months ended March 31, 2017 and 2016, respectively. (3) The Company also entered into a transition services agreement to provide certain services to New Avon, as well as an agreement for research and development and subleases for office space. In addition, New Avon is performing certain services for the Company under a similar transition services agreement. The Company recorded a net $7.9 and $3.9 reduction of selling, general and administrative expenses associated with these agreements during the three months ended March 31, 2017 and 2016, respectively, which generally represents a recovery of the related costs. (4) The Company also entered into agreements with an affiliate of Cerberus, which provide for the secondment of Cerberus affiliate personnel to the Company's project management team responsible for assisting with the execution of the transformation plan (the "Transformation Plan") announced in January 2016. The Company recorded $.8 in selling, general and administrative expenses associated with these agreements during the three months ended March 31, 2017. See Note 12, Restructuring Initiatives for additional information related to the Transformation Plan. (5) Inventories relate to purchases from New Avon, associated with the manufacturing and supply agreement, which have not yet been sold, and were classified within inventories in the Consolidated Balance Sheets. (6) The receivables due from New Avon relate to the agreements for transition services, research and development and subleases for office space, as well as the manufacturing and supply agreement, and were classified within prepaid expenses and other in the Consolidated Balance Sheets. (7) The payables due to New Avon relate to the manufacturing and supply agreement, and were classified within other accrued liabilities in the Consolidated Balance Sheets. (8) The payables due to an affiliate of Cerberus relate to the agreement for the project management team, and were classified within other accrued liabilities in the Consolidated Balance Sheets. In addition, the Company also issued standby letters of credit to the lessors of certain equipment, a lease for which was transferred to New Avon in connection with the separation of the Company's North America business. As of March 31, 2017, the Company has a liability of $1.6 for the estimated value of such standby letters of credit. The recognition of the initial liability of $2.1 was included in the estimated loss on sale of the North America business in loss from discontinued operations, net of tax during the three months ended March 31, 2016. Series C Preferred Stock On March 1, 2016, the Company issued and sold to Cerberus Investor 435,000 shares of newly issued Series C Preferred Stock for an aggregate purchase price of $435.0. Cumulative preferred dividends accrue daily on the Series C Preferred Stock at a rate of 1.25% per quarter. The Series C Preferred Stock had accrued unpaid dividends of $24.1 as of March 31, 2017. There were no dividends declared in the three months ended March 31, 2017 and 2016. |
INVENTORIES |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES
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EMPLOYEE BENEFIT PLANS |
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EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS
(1) Includes $4.4 of U.S. pension and immaterial amounts of the postretirement benefit plans (related to the U.S.) for the three months ended March 31, 2016, which are included in discontinued operations. 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 table above. See Note 3, Discontinued Operations for discussion of the separation of the Company's North America business. During the three months ended March 31, 2017, we made less than $1 and approximately $5 of contributions to the U.S. and non-U.S. defined benefit pension and postretirement benefit plans, respectively. During the remainder of 2017, we anticipate contributing approximately $10 to $15 and approximately $15 to $20 to fund our U.S. and non-U.S. defined benefit pension and postretirement benefit plans, respectively. |
CONTINGENCIES |
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Loss Contingency [Abstract] | |
Contingencies | CONTINGENCIES Settlements of FCPA Investigations As previously reported, we engaged outside counsel to conduct an internal investigation and compliance reviews focused on compliance with the FCPA and related U.S. and foreign laws in China and additional countries. The internal investigation, which was conducted under the oversight of our Audit Committee, began in June 2008 and along with the compliance reviews, was completed in 2014. Following our voluntary reporting of the internal investigation to both the DOJ and the SEC and our subsequent cooperation with those agencies, the United States District Court for the Southern District of New York (the "USDC") approved in December 2014 a deferred prosecution agreement (“DPA”) entered into between the Company and the DOJ related to charges of violations of the books and records and internal controls provisions of the FCPA. In addition, Avon Products (China) Co. Ltd., a subsidiary of the Company operating in China, pleaded guilty to conspiring to violate the books and records provision of the FCPA and was sentenced by the USDC to pay a $68 fine. The SEC also filed a complaint against the Company charging violations of the books and records and internal controls provisions of the FCPA and the Consent which was approved in a judgment entered by the USDC in January 2015, and included $67 in disgorgement and prejudgment interest. The DPA, the above-mentioned guilty plea and the Consent resolved the SEC’s and the DOJ’s investigations of the Company’s compliance with the FCPA and related U.S. laws in China and additional countries. The fine was paid in December 2014 and the payment to the SEC was made in January 2015. Under the DPA, the DOJ will defer criminal prosecution of the Company for a term of three years. If the Company remains in compliance with the DPA during its term, the charges against the Company will be dismissed with prejudice. Under the DPA, the Company also represented that it has implemented and agreed that it will continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other applicable anti-corruption laws throughout its operations. Under the DPA and the Consent, among other things, the Company agreed to have a compliance monitor (the "monitor"). During July 2015, the Company engaged a monitor, who had been approved by the DOJ and SEC. With the approval of the DOJ and the SEC, the monitor can be replaced by the Company, if the Company agrees to undertake self-reporting obligations for the remainder of the monitoring period. The monitoring period is scheduled to expire in July 2018. There can be no assurance as to whether or when the DOJ and the SEC will approve replacing the monitor with the Company’s self-reporting. If the DOJ determines that the Company has knowingly violated the DPA, the DOJ may commence prosecution or extend the term of the DPA, including the monitoring provisions described above, for up to one year. The monitor is assessing and monitoring the Company's compliance with the terms of the DPA and the Consent by evaluating, among other things, the Company's internal accounting controls, recordkeeping and financial reporting policies and procedures. The monitor has recommended some changes to our policies and procedures that we are in the process of adopting, and may make additional recommendations that we must adopt unless they are unduly burdensome or otherwise inadvisable, in which case we may propose alternatives, which the DOJ and the SEC may or may not accept. In addition, operating under the oversight of the monitor may result in additional time and attention on these matters by members of our management, which may divert their time from the operation of our business. Assuming the monitor is replaced by a self-reporting period, the Company’s self-reporting obligations may be costly or time-consuming. The third-party costs incurred in connection with ongoing compliance with the DPA and the Consent, including the monitorship, have not been material to date and we do not anticipate material costs going forward. We currently cannot estimate the costs that we are likely to incur in connection with self-reporting, if applicable, and any additional costs of implementing the changes, if any, to our policies and procedures required by the monitor. Litigation Matters Between December 23, 2014 and March 12, 2015, two purported class actions were filed in the United States District Court for the Southern District of New York -- Poovathur v. Avon Products, Inc., et al. (No. 14-CV-10083) and McCoy et al. v. Avon Products, Inc., et al. (No. 15-CV-01828) asserting claims under the Employee Retirement Income Security Act ("ERISA") against the Company, the Plan's administrator, benefits board and investment committee, and certain individuals alleged to have served as Plan fiduciaries. On April 8, 2015, the Court consolidated the two actions and recaptioned the consolidated case as In re 2014 Avon Products, Inc. ERISA Litigation, (No. 14-CV-10083). On May 8, 2015, plaintiffs filed a consolidated complaint, asserting claims for alleged breach of fiduciary duty and failure to monitor under ERISA on behalf of a purported class of participants in and beneficiaries of the Plan who invested in and/or held shares of the Avon Common Stock Fund between July 31, 2006 and May 1, 2014 and between December 14, 2011 and the present. Plaintiffs seek, inter alia, certain monetary relief, damages, and declaratory, injunctive and other equitable relief. On July 9, 2015, Defendants moved to dismiss the consolidated complaint. The parties reached an agreement on a settlement of this class action. The terms of settlement include releases by members of the class of claims against the Company and the individual defendants and payment of approximately $6. Approximately $5 of the settlement was paid by the Company’s insurer and approximately $1 was paid by the Company (which represented the remaining deductible under the Company’s applicable insurance policy). On June 7, 2016, the court granted preliminary approval of the settlement and scheduled a hearing to consider final approval for October 11, 2016. On January 3, 2017, the Court issued a Final Approval Order approving the settlement. Brazilian Tax Assessments In 2002, our Brazilian subsidiary received an excise tax (IPI) assessment from the Brazilian tax authorities for alleged tax deficiencies during the years 1997-1998. In December 2012, additional assessments were received for the year 2008 with respect to excise tax (IPI) and taxes charged on gross receipts (PIS and COFINS). In the second quarter of 2014, the PIS and COFINS assessments were officially closed in favor of Avon Brazil. The 2002 and the 2012 IPI assessments assert that the establishment in 1995 of separate manufacturing and distribution companies in Brazil was done without a valid business purpose and that Avon Brazil did not observe minimum pricing rules to define the taxable basis of excise tax. The structure adopted in 1995 is comparable to that used by many other companies in Brazil. We believe that our Brazilian corporate structure is appropriate, both operationally and legally, and that the 2002 and 2012 IPI assessments are unfounded. These matters are being vigorously contested. In January 2013, we filed a protest seeking a first administrative level review with respect to the 2012 IPI assessment. In July 2013, the 2012 IPI assessment was upheld at the first administrative level and we have appealed this decision to the second administrative level. The 2012 IPI assessment totals approximately $352, including penalties and accrued interest. In October 2010, the 2002 IPI assessment was upheld at the first administrative level at an amount reduced to approximately $30 from approximately $71, including penalties and accrued interest. We appealed this decision to the second administrative level, which ruled in favor of Avon in March 2015 and canceled the 2002 IPI assessment. The Brazilian tax authorities' appeal to this favorable decision regarding the 2002 IPI assessment was decided in Avon’s favor in February 2017. This favorable decision remains subject to further appeal by the Brazilian tax authorities. In the event that the 2002 or 2012 IPI assessments are upheld, it may be necessary for us to provide security to pursue further appeals, which, depending on the circumstances, may result in a charge to earnings. It is not possible to reasonably estimate the likelihood or potential amount of assessments that may be issued for subsequent periods (tax years up through 2010 are closed by statute). However, other similar IPI assessments involving different periods (1998-2001) have been canceled and officially closed in our favor by the second administrative level. We believe that the likelihood that the 2002 IPI assessment will be upheld on any further appeal is remote and the likelihood that the 2012 IPI assessment will be upheld is reasonably possible. As stated above, we believe that the 2002 and 2012 IPI assessments are unfounded. Brazil IPI Tax on Cosmetics In May 2015, an Executive Decree on certain cosmetics went into effect in Brazil which increased the amount of IPI taxes that are to be remitted by Avon Brazil to the taxing authority on the sales of cosmetic products subject to IPI. Avon Brazil filed an objection to this IPI tax increase on the basis that it is not constitutional. In December 2016, Avon Brazil received a favorable decision from the Federal District Court regarding this objection. This decision has been appealed by the tax authorities. From May 2015 through April 2016, Avon Brazil remitted the taxes associated with this IPI tax increase into a judicial deposit which would be remitted to the taxing authorities in the event that we are not successful in our objection to the tax increase. In May 2016, Avon Brazil received a favorable preliminary decision on its objection to the tax and was granted a preliminary injunction. As a result, beginning in May 2016, Avon Brazil is no longer required to remit the taxes associated with IPI into a judicial deposit. As the IPI tax increase remains in effect, Avon Brazil is continuing to recognize the IPI taxes associated with the May 2015 Executive Decree as a liability. At March 31, 2017, the liability to the taxing authorities for this IPI tax increase was approximately $148 and was classified within other liabilities in our Consolidated Balance Sheets, and the judicial deposit was approximately $74 and was classified within other assets in our Consolidated Balance Sheets. The net liability that does not have a corresponding judicial deposit was $74 at March 31, 2017, and the interest associated with this net liability will be recognized in other expense, net. Our cash flow from operations has benefited as compared to our earnings as we have recognized the expense and associated interest related to this IPI tax in our Consolidated Statements of Operations; however, since May 2016, we have not made a corresponding cash payment into a judicial deposit. An unfavorable ruling to our objection of this IPI tax increase would have an adverse effect on the consolidated cash flows as Avon Brazil would have to remit the liability owed to the taxing authorities. This amount would be partially offset by the amount of the judicial deposit held by Avon Brazil. We are not able to reliably predict the timing of the outcome of our objection to this tax increase. Other Matters Various other lawsuits and claims, arising in the ordinary course of business or related to businesses previously sold, are pending or threatened against Avon. In management's opinion, based on its review of the information available at this time, the total cost of resolving such other contingencies at March 31, 2017, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The tables below present the changes in AOCI by component and the reclassifications out of AOCI for the three months ended March 31, 2017 and 2016:
(1) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. (2) Gross amount reclassified to pension and postretirement expense, within selling, general & administrative expenses, and related taxes reclassified to income taxes. A foreign exchange net gain of $3.4 and net loss of $1.2 for the three months ended March 31, 2017 and 2016, respectively, resulting from the translation of actuarial losses and prior service cost recorded in AOCI are included in changes in foreign currency translation adjustments in our Consolidated Statements of Comprehensive Income. |
SEGMENT INFORMATION |
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Segment Reporting, Measurement Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION We determine segment profit by deducting the related costs and expenses from segment revenue. In order to ensure comparability between periods, segment profit includes an allocation of global marketing expenses based on actual revenues. Segment profit excludes global expenses other than the allocation of marketing, costs to implement ("CTI") restructuring initiatives (see Note 12, Restructuring Initiatives), certain significant asset impairment charges, and other items, which are not allocated to a particular segment, if applicable. This is consistent with the manner in which we assess our performance and allocate resources. Summarized financial information concerning our reportable segments was as follows:
Other operating segments and business activities include the first quarter of 2016 results of Venezuela, as it was deconsolidated effective March 31, 2016, as well as markets that have been exited. Effective in the first quarter of 2017, given that we have exited Thailand during 2016, the results of Thailand are now reported in Other operating segments and business activities for all periods presented, while previously the results had been reported in Asia Pacific. Other operating segments and business activities also include revenue from the sale of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016 and ongoing royalties from the licensing of our name and products. |
SUPPLEMENTAL BALANCE SHEET INFORMATION |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION At March 31, 2017 and December 31, 2016, prepaid expenses and other included the following:
At March 31, 2017 and December 31, 2016, other assets included the following:
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RESTRUCTURING INITIATIVES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING INITIATIVES | RESTRUCTURING INITIATIVES Transformation Plan In January 2016, we announced the Transformation Plan, which includes cost reduction efforts to continue to improve our cost structure and to enable us to reinvest in growth. As a result of this plan, we have targeted pre-tax annualized cost savings of approximately $350 after three years, with an estimated $200 from supply chain reductions and an estimated $150 from other cost reductions, which are expected to be achieved through restructuring actions, as well as other cost-savings strategies that will not result in restructuring charges. We plan to reinvest a portion of these cost savings in growth initiatives, including media, social selling and information technology systems that will help us modernize our business. We initiated the Transformation Plan in order to enable us to achieve our long-term goals of double-digit operating margin and mid single-digit constant-dollar revenue growth. As part of the Transformation Plan, we identified certain actions, that we believe will reduce ongoing costs, primarily consisting of global headcount reductions relating to operating model changes, as well as the closure of Thailand, a smaller, under-performing market. These operating model changes include the streamlining of our corporate functions to align with the current and future needs of the business and an information technology infrastructure outsourcing initiative. As a result of these restructuring actions approved-to-date, we have recorded total costs to implement these restructuring initiatives of $116.1 before taxes, of which $10.0 was recorded during the three months ended March 31, 2017, in our Consolidated Statements of Operations. The additional charges not yet incurred associated with the restructuring actions approved to-date of approximately $10 to $15 before taxes are expected to be recorded primarily in 2018. At this time we are unable to quantify the total costs to implement the restructuring initiatives that will be incurred through the time the Transformation Plan is fully implemented as we have not yet identified all actions to be taken. Restructuring Charges - Three Months Ended March 31, 2017 During the three months ended March 31, 2017, we recorded costs to implement of $10.0 related to the Transformation Plan, in our Consolidated Statements of Operations. The costs consisted of the following:
Of the total costs to implement during the three months ended March 31, 2017, $10.1 was recorded in selling, general and administrative expenses and a benefit of $.1 was recorded in cost of sales. Restructuring Charges - Three Months Ended March 31, 2016 During the three months ended March 31, 2016, we recorded costs to implement of $47.5 related to the Transformation Plan, in selling, general and administrative expenses, in our Consolidated Statements of Operations. The costs consisted of the following:
The liability balance for the Transformation Plan as of March 31, 2017 is as follows:
The majority of cash payments, if applicable, associated with these charges are expected to be made during 2017. The following table presents the restructuring charges incurred to date, under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan:
The charges, net of adjustments, of initiatives under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan, by reportable segment are as follows:
We expect our total costs to implement restructuring on approved initiatives to be an estimated $125 to $130 before taxes under the Transformation Plan. The amounts shown in the tables above as charges recorded to-date relate to initiatives that have been approved and recorded in the financial statements as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met. In addition to the charges included in the tables above, we have incurred and will continue to incur other costs to implement restructuring initiatives such as professional services fees and accelerated depreciation. Other Restructuring Initiatives During the three months ended March 31, 2017 and 2016, we recorded an immaterial amount and a net benefit of $.7, respectively, in selling, general and administrative expenses, in the Consolidated Statements of Operations, associated with the restructuring programs launched in 2005 and 2009, the restructuring initiatives launched in 2012 (including the cost savings initiative known as the "$400M Cost Savings Initiative"), and the restructuring actions identified during 2015 (collectively, the "Other Restructuring Initiatives"), which are substantially complete. The liability balance associated with the Other Restructuring Initiatives, which primarily consists of employee-related costs, as of March 31, 2017 is not material. |
GOODWILL |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL Goodwill
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FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE Assets and Liabilities Recorded at Fair Value The fair value measurement provisions required by GAAP establish a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:
Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2017:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:
Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, accounts receivable, loans receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forward contracts. The carrying value for cash and cash equivalents, accounts receivable, accounts payable and short-term investments approximate fair value because of the short-term nature of these instruments. The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at March 31, 2017 and December 31, 2016, respectively, consisted of the following:
(1) The carrying value of debt maturing within one year and long-term debt is presented net of debt issuance costs and includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. The methods and assumptions used to estimate fair value are as follows: Available-for-sale securities - The fair values of these investments were the quoted market prices for issues listed on securities exchanges. Debt maturing within one year and long-term debt - The fair values of our debt and other financing were determined using Level 2 inputs based on indicative market prices. Foreign exchange forward contracts - The fair values of forward contracts were estimated based on quoted forward foreign exchange prices at the reporting date. |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We operate globally, with manufacturing and distribution facilities in various countries around the world. We may reduce our exposure to fluctuations in the fair value and cash flows associated with changes in interest rates and foreign exchange rates by creating offsetting positions, including through the use of derivative financial instruments. If we use foreign currency-rate sensitive and interest-rate sensitive instruments to hedge a certain portion of our existing and forecasted transactions, we would expect that any gain or loss in value of the hedge instruments generally would be offset by decreases or increases in the value of the underlying forecasted transactions. We do not enter into derivative financial instruments for trading or speculative purposes, nor are we a party to leveraged derivatives. The master agreements governing our derivative contracts generally contain standard provisions that could trigger early termination of the contracts in certain circumstances, including if we were to merge with another entity and the creditworthiness of the surviving entity were to be "materially weaker" than that of Avon prior to the merger. Derivatives are recognized in the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments outstanding at March 31, 2017:
The following table presents the fair value of derivative instruments outstanding at December 31, 2016:
Interest Rate Risk A portion of our borrowings is subject to interest rate risk. In the past we have used interest-rate swap agreements, which effectively converted the fixed rate on long-term debt to a floating interest rate, to manage our interest rate exposure. The agreements were designated as fair value hedges. As of March 31, 2017, we do not have any interest-rate swap agreements. Approximately 1% of our debt portfolio at March 31, 2017 and December 31, 2016 was exposed to floating interest rates. In January 2013, we terminated eight of our interest-rate swap agreements previously designated as fair value hedges, with notional amounts totaling $1,000. As of the interest-rate swap agreements’ termination date, the aggregate favorable adjustment to the carrying value (deferred gain) of our debt was $90.4, which was amortized as a reduction to interest expense over the remaining term of the underlying debt obligations. The net impact of the gain amortization was $3.7 for the three months ended March 31, 2016. At March 31, 2017, there is no unamortized deferred gain associated with the January 2013 interest-rate swap termination, as the underlying debt obligations have been paid. In March 2012, we terminated two of our interest-rate swap agreements previously designated as fair value hedges, with notional amounts totaling $350. As of the interest-rate swap agreements’ termination date, the aggregate favorable adjustment to the carrying value (deferred gain) of our debt was $46.1, which is being amortized as a reduction to interest expense over the remaining term of the underlying debt obligations through March 2019. The net impact of the gain amortization was $1.2 and $1.7, respectively, for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the unamortized deferred gain associated with the March 2012 interest-rate swap termination was $9.7, and was classified within long-term debt in our Consolidated Balance Sheets. Foreign Currency Risk We may use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At March 31, 2017, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $65 for various currencies. We may use foreign exchange forward contracts to manage foreign currency exposure of certain intercompany loans. These contracts are not designated as hedges. The change in fair value of these contracts is immediately recognized in earnings and substantially offsets the foreign currency impact recognized in earnings relating to the associated intercompany loans. During the three months ended March 31, 2017 and 2016, we recorded a gain of $.5 and a loss of $2.3, respectively, in other expense, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. Also during the three months ended March 31, 2017 and 2016, we recorded a loss of $1.2 and a gain of $.8, respectively, related to the associated intercompany loans, caused by changes in foreign currency exchange rates. |
Debt |
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Debt Disclosure [Abstract] | |
Debt | DEBT Revolving Credit Facility In June 2015, the Company and Avon International Operations, Inc. ("AIO"), a wholly-owned domestic subsidiary of the Company, entered into a five-year $400.0 senior secured revolving credit facility (the “2015 facility”). Borrowings under the 2015 facility bear interest, at our option, at a rate per annum equal to LIBOR plus 250 basis points or a floating base rate plus 150 basis points, in each case subject to adjustment based upon a leverage-based pricing grid. As of March 31, 2017, there were no amounts outstanding under the 2015 facility. All obligations of AIO under the 2015 facility are (i) unconditionally guaranteed by each material domestic restricted subsidiary of the Company (other than AIO, the borrower), in each case, subject to certain exceptions and (ii) fully guaranteed on an unsecured basis by the Company. The obligations of AIO and the subsidiary guarantors are secured by first priority liens on and security interest in substantially all of the assets of AIO and the subsidiary guarantors, in each case, subject to certain exceptions. The 2015 facility will terminate in June 2020; provided, however, that it shall terminate on the 91st day prior to the maturity of the 6.50% Notes (as defined below) and the 4.60% Notes (as defined below), if on such 91st day, the applicable notes are not redeemed, repaid, discharged, defeased or otherwise refinanced in full. The 2015 facility contains affirmative and negative covenants, which are customary for secured financings of this type, as well as financial covenants (interest coverage and total leverage ratios). As of March 31, 2017, we were in compliance with our interest coverage and total leverage ratios under the 2015 facility. The amount of the facility available to be drawn down is reduced by any standby letters of credit granted by AIO, which, as of March 31, 2017, was approximately $44. As of March 31, 2017, based on then applicable interest rates, the entire amount of the remaining 2015 facility, which is approximately $356, could have been drawn down without violating any covenant. Public Notes In March 2013, we issued, in a public offering, $250.0 principal amount of 2.375% Notes due March 15, 2016 (the "2.375% Notes"), $500.0 principal amount of 4.60% Notes due March 15, 2020 (the "4.60% Notes"), $500.0 principal amount of 5.00% Notes due March 15, 2023 (the "5.00% Notes") and $250.0 principal amount of 6.95% Notes due March 15, 2043 (the "6.95% Notes") (collectively, the "2013 Notes"). In March 2008, we issued $350.0 principal amount of 6.50% Notes due March 1, 2019 (the "6.50% Notes"). Interest on the 2013 Notes is payable semi-annually on March 15 and September 15 of each year, and interest on the 6.50% Notes are payable semi-annually on March 1 and September 1 of each year. In August 2015, we prepaid the entire principal amount of our 2.375% Notes plus accrued interest and a make-whole premium. In 2016, we completed cash tender offers totaling to a $300.6 reduction for certain of our outstanding public notes, repurchased $180.5 of certain of our outstanding public notes, and prepaid the remaining principal amounts totaling $238.4 of our 4.20% Notes due July 15, 2018 and our 5.75% Notes due March 1, 2018, plus accrued interest and a make-whole premium (the "2016 debt transactions"). The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the long-term credit ratings assigned to the 2013 Notes with S&P and Moody's. As described in the indenture, the interest rates on the 2013 Notes increase by .25% for each one-notch downgrade below investment grade on each of our long-term credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes. As a result of the long-term credit rating downgrades by S&P and Moody's since issuance of the 2013 Notes, the interest rates on these notes have increased by the maximum allowable increase. The indentures governing our outstanding notes described above contain certain customary covenants and customary events of default and cross-default provisions. Further, we would be required to make an offer to repurchase all of our outstanding notes described above at a price equal to 101% of their aggregate principal amount plus accrued and unpaid interest in the event of a change in control involving Avon and, at such time, the outstanding notes are rated below investment grade. Senior Secured Notes In August 2016, AIO issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $500.0 in aggregate principal amount of 7.875% Senior Secured Notes, which will mature on August 15, 2022 (the "Senior Secured Notes"). Interest on the Senior Secured Notes is payable semi-annually on February 15 and August 15 of each year. All obligations of AIO under the Senior Secured Notes are unconditionally guaranteed by each current and future wholly-owned domestic restricted subsidiary of the Company that is a guarantor under the 2015 facility and fully guaranteed on an unsecured basis by the Company. The obligations of AIO and the subsidiary guarantors are secured by first priority liens on and security interest in substantially all of the assets of AIO and the subsidiary guarantors, in each case, subject to certain exceptions. The indenture governing our Senior Secured Notes contains certain customary covenants and restrictions as well as customary events of default and cross-default provisions. The indenture also contains a covenant requiring AIO and its restricted subsidiaries to, at the end of each year, own at least a certain percentage of the total assets of API and its restricted subsidiaries, subject to certain qualifications. Further, we would be required to make an offer to repurchase all of our Senior Secured Notes, at a price equal to 101% of their aggregate principal amount plus accrued and unpaid interest, in the event of a change in control involving Avon. Long-Term Credit Ratings Our long-term credit ratings are: Moody’s ratings of Stable Outlook with B1 for corporate family debt, B3 for senior unsecured debt, and Ba1 for the Senior Secured Notes; S&P ratings of Positive Outlook with B for corporate family debt and senior unsecured debt and BB- for the Senior Secured Notes; and Fitch rating of Negative Outlook with B+, each of which are below investment grade. We do not believe these long-term credit ratings will have a material impact on our near-term liquidity. However, any rating agency reviews could result in a change in outlook or downgrade, which could further limit our access to new financing, particularly short-term financing, reduce our flexibility with respect to working capital needs, affect the market price of some or all of our outstanding debt securities, and likely result in an increase in financing costs, and less favorable covenants and financial terms under our financing arrangements. |
ACCOUNTING POLICIES (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation | Basis of Presentation We prepare our unaudited interim Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States ("GAAP"). We consistently applied the accounting policies described in our 2016 Annual Report on Form 10-K ("2016 Form 10-K") in preparing these unaudited Consolidated Financial Statements. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. You should read these unaudited interim Consolidated Financial Statements in conjunction with our consolidated financial statements contained in our 2016 Form 10-K. When used in this report, the terms "Avon," "Company," "we" or "us" mean Avon Products, Inc. For interim Consolidated Financial Statements purposes we provide for accruals under our various employee benefit plans for each quarter based on one quarter of the estimated annual expense. In addition, our income tax provision is determined using an estimate of our consolidated annual effective tax rate, adjusted in the current period for discrete income tax items including:
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Venezuela | Venezuela As of March 31, 2016, we deconsolidated our Venezuelan operations, and since then, we account for this business using the cost method of accounting. The decision to deconsolidate our Venezuelan operations was due to the lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. This was caused by Venezuela's restrictive foreign exchange control regulations and our Venezuelan operations' increasingly limited access to U.S. dollars, which restricted our Venezuelan operations' ability to pay dividends and settle intercompany obligations. As a result of the change to the cost method of accounting, in the first quarter of 2016, we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within accumulated other comprehensive loss ("AOCI") (shareholders' deficit) associated with foreign currency changes before Venezuela was accounted for as a highly inflationary economy. The net assets of the Venezuelan business were comprised of inventories of $23.7, property, plant and equipment, net of $15.0, other assets of $11.4, accounts receivable of $4.6, cash of $4.5, and accounts payable and accrued liabilities of $20.0. Our Consolidated Balance Sheets no longer include the assets and liabilities of our Venezuelan operations. We no longer include the results of our Venezuelan operations in our Consolidated Financial Statements, and will include income relating to our Venezuelan operations only to the extent that we receive cash for dividends or royalties remitted by Avon Venezuela. |
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Revisions | Revisions In our 2016 Form 10-K, our Consolidated Statements of Cash Flows presented supplemental information of the cash paid for interest of $87.1 for the year ended December 31, 2016; however, this amount should have been disclosed as $142.8. We determined that the effect of this revision was not material to our 2016 Form 10-K. |
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New Accounting Standards | New Accounting Standards Implemented In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, which is intended to simplify the accounting for share-based payment transactions. This new guidance changes several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures and employer-tax withholding requirements. ASU 2016-09 also clarifies the Statements of Cash Flows presentation for certain components of share-based payment awards. We have adopted this new accounting guidance in the first quarter of 2017, which did not have a material impact on our Consolidated Financial Statements. Accounting Standards to be Implemented In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification Topic ("ASC") 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We intend to adopt this new accounting guidance effective January 1, 2018. This new accounting guidance can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption, but we have not yet determined our method of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our Consolidated Financial Statements. Based on the evaluation completed to-date, we believe that we will need to:
In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits. This new guidance requires entities to (1) disaggregate the service cost component from the other components of net periodic benefit costs and present it with other current employee compensation costs in the Consolidated Statements of Operations and (2) present the other components of net periodic benefit costs below operating profit. We intend to adopt this new accounting guidance effective January 1, 2018. The new accounting guidance is applied retrospectively and will increase our operating profit for the first quarter of 2017 and the full year 2016 by $.9 and $2.1, respectively, but will have no impact on net income (loss). In February 2016, the FASB issued ASU 2016-02, Leases, which requires all assets and liabilities arising from leases to be recognized in the statement of financial position. We intend to adopt this new accounting guidance effective January 1, 2019. We are currently evaluating the effect that adopting this new accounting guidance will have on our Consolidated Financial Statements. |
EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES (Tables) |
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Basic and Diluted Earnings per Share |
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DISCONTINUED OPERATIONS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classes of Financial Statement Components Comprising the Loss on Discontinued Operations | The major classes of financial statement components comprising the loss on discontinued operations, net of tax for North America are shown below:
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INVESTMENT IN NEW AVON (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] | Summarized financial information related to New Avon is shown below:
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RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | The following tables present the related party transactions with New Avon and affiliates of Cerberus. New Avon is majority owned and managed by Cerberus NA. See Note 3, Discontinued Operations and Note 4, Investment in Avon for further details.
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories |
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EMPLOYEE BENEFIT PLANS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) | The tables below present the changes in AOCI by component and the reclassifications out of AOCI for the three months ended March 31, 2017 and 2016:
(1) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. (2) Gross amount reclassified to pension and postretirement expense, within selling, general & administrative expenses, and related taxes reclassified to income taxes. |
SEGMENT INFORMATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue and Operating Profit by Reporting Segment | Summarized financial information concerning our reportable segments was as follows:
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SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Prepaid Expenses and Other | At March 31, 2017 and December 31, 2016, prepaid expenses and other included the following:
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Components of Other Assets | At March 31, 2017 and December 31, 2016, other assets included the following:
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RESTRUCTURING INITIATIVES (Tables) - Transformation Plan [Member] |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The liability balance for the Transformation Plan as of March 31, 2017 is as follows:
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Restructuring and Related Costs | The following table presents the restructuring charges incurred to date, under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan:
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Schedule of Restructuring Charges Reportable by Business Segment | The charges, net of adjustments, of initiatives under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan, by reportable segment are as follows:
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GOODWILL (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill
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FAIR VALUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2017:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:
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Fair Value of Financial Instruments | The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at March 31, 2017 and December 31, 2016, respectively, consisted of the following:
(1) The carrying value of debt maturing within one year and long-term debt is presented net of debt issuance costs and includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments Outstanding | Derivatives are recognized in the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments outstanding at March 31, 2017:
The following table presents the fair value of derivative instruments outstanding at December 31, 2016:
|
ACCOUNTING POLICIES (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Accounting Policies [Line Items] | |||
Loss from deconsolidation of Venezuela | $ 0.0 | $ 120.5 | |
Operating Income (Loss) [Member] | |||
Accounting Policies [Line Items] | |||
Impact of new pension guidance | $ 2.1 | ||
Operating Income (Loss) [Member] | Accounting Standards Update 2017-07 [Member] | |||
Accounting Policies [Line Items] | |||
Impact of new pension guidance | $ 0.9 | ||
Avon Venezuela [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 39.2 | ||
Loss from foreign currency translation adjustments | 81.3 | ||
Avon Venezuela [Member] | Inventories [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 23.7 | ||
Avon Venezuela [Member] | Property, Plant and Equipment, Type [Domain] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 15.0 | ||
Avon Venezuela [Member] | Other Noncurrent Assets [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 11.4 | ||
Avon Venezuela [Member] | Cash [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 4.5 | ||
Avon Venezuela [Member] | Accounts Receivable [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 4.6 | ||
Avon Venezuela [Member] | Accrued Liabilities [Member] | |||
Accounting Policies [Line Items] | |||
Net assets of the Venezuelan business | 20.0 | ||
Avon Venezuela [Member] | Other Expense, Net [Member] | |||
Accounting Policies [Line Items] | |||
Loss from deconsolidation of Venezuela | $ 120.5 | ||
Scenario, Previously Reported [Member] | |||
Accounting Policies [Line Items] | |||
Cash paid for interest, prior to reclassification | 87.1 | ||
Scenario, after revision [Member] | |||
Accounting Policies [Line Items] | |||
Cash paid for interest, prior to reclassification | $ 142.8 |
EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES (Narrative) (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Earnings Per Share Reconciliation [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 13.1 | 11.0 |
Converted Series C Convertible Preferred Stock (in shares) | 87.1 | 87.1 |
Stock repurchased during the period, shares | 1.4 | 0.9 |
Stock repurchased during the period, value | $ 6.2 | $ 3.5 |
EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES (Components of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Numerator from continuing operations: [Abstract] | ||
Loss from continuing operations, less amounts attributable to noncontrolling interests | $ (36.5) | $ (156.3) |
Less: Loss allocated to participating securities | 0.5 | 1.9 |
Less: Earnings allocated to convertible preferred stock | 5.7 | 1.8 |
Loss from continuing operations allocated to common shareholders | (41.7) | (156.2) |
Numerator from discontinued operations: | ||
Loss from discontinued operations | 0.0 | (9.6) |
Less: Loss allocated to participating securities | 0.0 | 0.1 |
Loss allocated to common shareholders | 0.0 | (9.5) |
Numerator attributable to Avon: | ||
Net loss attributable to Avon | (36.5) | (165.9) |
Less: Loss allocated to participating securities | 0.5 | 2.0 |
Less: Earnings allocated to convertible preferred stock | 5.7 | 1.8 |
Loss allocated to common shareholders | $ (36.0) | $ (165.7) |
Denominator: | ||
Basic EPS weighted-average shares outstanding | 438.6 | 435.9 |
Diluted effect of assumed conversion of stock options (in shares) | 0.0 | 0.0 |
Diluted effect of assumed conversion of preferred stock (in shares) | 0.0 | |
Diluted EPS adjusted weighted-average shares outstanding | 438.6 | 435.9 |
Loss per Common Share from continuing operations: | ||
Basic (in usd per share) | $ (0.10) | $ (0.36) |
Diluted (in usd per share) | (0.10) | (0.36) |
Loss per Common Share from discontinued operations: | ||
Basic (in usd per share) | 0.00 | (0.02) |
Diluted (in usd per share) | 0.00 | (0.02) |
Loss per Common Share attributable to Avon: | ||
Basic (in usd per share) | (0.10) | (0.36) |
Diluted (in usd per share) | $ (0.10) | $ (0.36) |
DISCONTINUED OPERATIONS - Additional Information (Details) $ in Millions |
Dec. 17, 2015
USD ($)
|
---|---|
North America Segment [Member] | Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from issuance of convertible preferred stock | $ 435.0 |
DISCONTINUED OPERATIONS - Major Classes of Financial Statement Components Comprising the Loss on Discontinued Operations, Net of Tax in North America (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of tax | $ 0.0 | $ (9.6) |
North America Segment [Member] | Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total revenue | 135.2 | |
Cost of sales | 53.2 | |
Selling, general and administrative expenses | 87.8 | |
Operating loss | (5.8) | |
Other income items | 0.6 | |
Loss on sale of discontinued operations, before tax | (5.2) | |
Loss on sale of discontinued operations, before tax | (14.9) | |
Income taxes | 10.5 | |
Loss from discontinued operations, net of tax | $ (9.6) |
INVESTMENT IN NEW AVON (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Dec. 17, 2015 |
Mar. 31, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Other comprehensive income related to New Avon investment, net of taxes of $0.0 | $ 1.1 | $ 0.0 | |||
Investment in New Avon | 29.4 | $ 32.8 | |||
Equity Method Investment, Summarized Financial Information, Revenue | $ 88.8 | 176.8 | |||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 53.4 | 110.2 | |||
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ (19.6) | (20.3) | |||
New Avon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other comprehensive income related to New Avon investment, net of taxes of $0.0 | 1.1 | ||||
North America Segment [Member] | Discontinued Operations [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest retained | 19.90% | ||||
Other Expense, Net [Member] | New Avon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | (4.0) | $ (3.9) | |||
Equity method investment, income (loss) from purchase accounting | $ (0.5) |
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 01, 2016 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Dividend rate | 1.25% | ||||||||||||||||||||
Dividends, Preferred Stock | $ 0.0 | ||||||||||||||||||||
Related Party, Inventory | [1] | 0.8 | $ 1.0 | ||||||||||||||||||
Receivables due from New Avon(6) | [2] | 6.8 | 11.6 | ||||||||||||||||||
Equity Method Investee [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | 7.1 | $ 3.9 | |||||||||||||||||||
Standby letters of credit, recorded liability | 1.6 | 2.1 | |||||||||||||||||||
Equity Method Investee [Member] | Transition Services Agreement [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Revenue from sale of product to New Avon(1) | 8.0 | 3.7 | |||||||||||||||||||
Selling, general and administrative expenses | [3] | 7.9 | 3.9 | ||||||||||||||||||
Equity Method Investee [Member] | Manufacturing and Supply Agreement [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Revenue from sale of product to New Avon(1) | [4] | 8.0 | 3.7 | ||||||||||||||||||
Gross profit from sale of product to New Avon(1) | [4] | 0.6 | 0.5 | ||||||||||||||||||
Cost of sales for purchases from New Avon(2) | [5] | 0.8 | 0.9 | ||||||||||||||||||
Purchases from related party supply agreement | 1.0 | 1.2 | |||||||||||||||||||
Equity Method Investee [Member] | Project Management Agreement [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | [6] | (0.8) | $ 0.0 | ||||||||||||||||||
New Avon [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Payable to discontinued operations | [7] | 0.4 | 0.7 | ||||||||||||||||||
Affiliate of Cerberus [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Payable to discontinued operations | [8] | 0.6 | $ 0.6 | ||||||||||||||||||
Transformation Plan [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Selling, general and administrative expenses | $ (0.8) | ||||||||||||||||||||
Series C Preferred Stock [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Shares issued | 435,000 | ||||||||||||||||||||
Shares issued, value | $ 435.0 | ||||||||||||||||||||
|
INVENTORIES (Components of Inventories) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory [Line Items] | ||
Raw materials | $ 194.3 | $ 179.3 |
Finished goods | 436.1 | 407.1 |
Total | $ 630.4 | $ 586.4 |
EMPLOYEE BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Pension Benefits U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 1.4 | $ 2.3 | |||
Interest cost | 0.7 | 4.3 | |||
Expected return on plan assets | (0.8) | (5.2) | |||
Amortization of prior service credit | 0.0 | (0.1) | |||
Amortization of net actuarial losses | 1.2 | 6.1 | |||
Settlements/curtailments | 0.0 | 0.1 | |||
Net periodic benefit costs | [1] | 2.5 | 7.5 | ||
Pension Benefits Non-U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1.2 | 1.3 | |||
Interest cost | 4.4 | 6.0 | |||
Expected return on plan assets | (6.7) | (8.8) | |||
Amortization of prior service credit | 0.0 | 0.0 | |||
Amortization of net actuarial losses | 1.8 | 1.7 | |||
Settlements/curtailments | 0.0 | 0.0 | |||
Net periodic benefit costs | [1] | 0.7 | 0.2 | ||
Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0.0 | 0.1 | |||
Interest cost | 0.4 | 0.6 | |||
Expected return on plan assets | 0.0 | 0.0 | |||
Amortization of prior service credit | (0.1) | (0.9) | |||
Amortization of net actuarial losses | 0.0 | 0.2 | |||
Settlements/curtailments | 0.0 | 0.0 | |||
Net periodic benefit costs | [1] | $ 0.3 | 0.0 | ||
Discontinued Operations [Member] | Pension Benefits U.S. Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit costs | $ 4.4 | ||||
|
EMPLOYEE BENEFIT PLANS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
United States Pension Plan of US Entity, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit costs | [1] | $ 2.5 | $ 7.5 | ||
Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit costs | [1] | 0.3 | 0.0 | ||
Discontinued Operations [Member] | United States Pension Plan of US Entity, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit costs | $ 4.4 | ||||
UNITED STATES | Minimum [Member] | Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated contributions for the remainder of fiscal year | 10.0 | ||||
UNITED STATES | Maximum [Member] | Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated contributions for the remainder of fiscal year | 15.0 | ||||
Non-US [Member] | Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | 5.0 | ||||
Non-US [Member] | Minimum [Member] | Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated contributions for the remainder of fiscal year | 15.0 | ||||
Non-US [Member] | Maximum [Member] | Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated contributions for the remainder of fiscal year | $ 20.0 | ||||
|
CONTINGENCIES (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2017 |
|
Loss Contingencies [Line Items] | ||||
Judicial Deposit | $ 69.0 | $ 74.4 | ||
Assessment for 2012 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Assessment of contingencies, including penalties and accruing interest | 352.0 | |||
Assessment for 2002 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Assessment of contingencies, including penalties and accruing interest, reduced | 30.0 | |||
Assessment of contingencies, prior to reductions | 71.0 | |||
IPI Tax on Cosmetics [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimated Litigation Liability | 148.0 | |||
Judicial Deposit | 74.0 | |||
Net IPI liability | $ 74.0 | |||
ERISA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation Settlement, Amount | 6.0 | |||
Insurance Settlements Receivable, Current | 5.0 | |||
Payments for legal settlements | $ 1.0 | |||
DOJ [Member] | FCPA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation Settlement, Amount | $ 68.0 | |||
SEC [Member] | FCPA [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation Settlement, Amount | $ 67.0 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Tables (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | $ 63.0 | $ 11.2 | |||||
Reclassifications into earnings: | |||||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 3.1 | |||||
Deconsolidation of Venezuela, net of tax of $0.0 | 0.0 | 120.5 | |||||
Total reclassifications into earnings | 3.1 | ||||||
Balance at Period Start | (1,033.2) | (1,366.2) | |||||
Balance at Period End | (967.1) | (1,006.6) | |||||
Change in derivative losses on cash flow hedges, tax | 0.0 | 0.0 | |||||
Amortization of net actuarial loss and prior service cost, tax | 0.0 | 0.2 | |||||
Other comprehensive income, equity method investment, tax | 0.0 | ||||||
Foreign Currency Gain (Loss) [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | 61.9 | 23.9 | |||||
Reclassifications into earnings: | |||||||
Balance at Period Start | (910.9) | (950.0) | |||||
Balance at Period End | (849.0) | (854.8) | |||||
Cash Flow Hedging [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | 0.0 | ||||||
Reclassifications into earnings: | |||||||
Balance at Period Start | (1.3) | ||||||
Balance at Period End | (0.9) | ||||||
Net Investment Hedging [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | 0.0 | 0.0 | |||||
Reclassifications into earnings: | |||||||
Balance at Period Start | (4.3) | (4.3) | |||||
Balance at Period End | (4.3) | (4.3) | |||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | 0.0 | (12.7) | |||||
Reclassifications into earnings: | |||||||
Balance at Period Start | (120.2) | (410.6) | |||||
Balance at Period End | (117.1) | (146.6) | |||||
Equity Method Investments [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive (loss) income other than reclassifications | 1.1 | ||||||
Reclassifications into earnings: | |||||||
Balance at Period Start | 2.2 | ||||||
Balance at Period End | 3.3 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||
Reclassifications into earnings: | |||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | [2] | 0.4 | |||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 6.7 | |||||
Deconsolidation of Venezuela, net of tax of $0.0 | 82.1 | ||||||
Separation of North America, net of tax of $10.2 | 259.2 | ||||||
Total reclassifications into earnings | 348.4 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Gain (Loss) [Member] | |||||||
Reclassifications into earnings: | |||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | [2] | 0.0 | |||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 0.0 | 0.0 | ||||
Deconsolidation of Venezuela, net of tax of $0.0 | 81.3 | ||||||
Separation of North America, net of tax of $10.2 | (10.0) | ||||||
Total reclassifications into earnings | 0.0 | 71.3 | |||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | |||||||
Reclassifications into earnings: | |||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | [2] | 0.4 | |||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 0.0 | |||||
Deconsolidation of Venezuela, net of tax of $0.0 | 0.0 | ||||||
Separation of North America, net of tax of $10.2 | 0.0 | ||||||
Total reclassifications into earnings | 0.4 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Investment Hedging [Member] | |||||||
Reclassifications into earnings: | |||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | [2] | 0.0 | |||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 0.0 | 0.0 | ||||
Deconsolidation of Venezuela, net of tax of $0.0 | 0.0 | ||||||
Separation of North America, net of tax of $10.2 | 0.0 | ||||||
Total reclassifications into earnings | 0.0 | 0.0 | |||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||
Reclassifications into earnings: | |||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | [2] | 0.0 | |||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 3.1 | 6.7 | ||||
Deconsolidation of Venezuela, net of tax of $0.0 | 0.8 | ||||||
Separation of North America, net of tax of $10.2 | 269.2 | ||||||
Total reclassifications into earnings | 3.1 | 276.7 | |||||
Separation of North America, tax | $ 10.2 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Equity Method Investments [Member] | |||||||
Reclassifications into earnings: | |||||||
Amortization of net actuarial loss and prior service cost, net of tax | [1] | 0.0 | |||||
Total reclassifications into earnings | $ 0.0 | ||||||
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign Exchange Gains (Losses) From Translation Of Actuarial Losses Prior Service Credit And Transition Obligation | $ 3.4 | $ (1.2) |
SEGMENT INFORMATION (Total Revenue and Operating Profit by Reporting Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,333.1 | $ 1,306.5 |
Operating Profit | 28.7 | 7.8 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,324.1 | 1,286.1 |
Operating Profit | 121.8 | 135.1 |
Other Operating Segments and Business Activities [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 9.0 | 20.4 |
Operating Profit | 1.2 | 4.1 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Unallocated global expenses | (84.3) | (84.6) |
CTI restructuring initiatives | (10.0) | (46.8) |
Europe Middle East & Africa [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 507.5 | 520.4 |
Operating Profit | 74.6 | 68.7 |
South Latin America [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 499.2 | 426.4 |
Operating Profit | 13.3 | 23.1 |
North Latin America [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 193.2 | 204.7 |
Operating Profit | 21.0 | 28.5 |
Asia Pacific [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 124.2 | 134.6 |
Operating Profit | $ 12.9 | $ 14.8 |
SUPPLEMENTAL BALANCE SHEET INFORMATION (Components of Prepaid Expenses and Other) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 114.3 | $ 99.3 |
Prepaid brochure costs, paper and other literature | 78.1 | 73.2 |
Receivables other than trade | 55.0 | 68.3 |
Other | 52.8 | 50.5 |
Prepaid expenses and other | $ 300.2 | $ 291.3 |
SUPPLEMENTAL BALANCE SHEET INFORMATION (Components of Other Assets) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Assets, Noncurrent [Abstract] | ||
Deferred tax assets | $ 162.8 | $ 162.1 |
Long-term receivables | 89.6 | 78.9 |
Judicial deposits other than Brazil IPI tax (see below) | 85.7 | 78.0 |
Capitalized software | 83.3 | 83.9 |
Judicial deposit for Brazil IPI tax on cosmetics (Note 8) | 74.4 | 69.0 |
Net overfunded pension plans | 59.7 | 54.8 |
Trust assets associated with supplemental benefit plans | 35.9 | 35.2 |
Investment in New Avon (Note 4) | 29.4 | 32.8 |
Tooling (plates and molds associated with our beauty products) | 14.5 | 14.7 |
Other | 12.0 | 12.3 |
Other assets | $ 647.3 | $ 621.7 |
RESTRUCTURING INITIATIVES (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Transformation Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected annualized savings before taxes | $ 350.0 | |
Number of years to realized cost savings | 3 years | |
Recorded total costs to implement restructuring initiatives | $ 116.1 | |
Restructuring charges and other costs | 10.0 | $ 47.5 |
Accelerated depreciation | 0.5 | |
Transformation Plan [Member] | Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | 7.6 | 47.1 |
Transformation Plan [Member] | Contract Terminations/ Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | 1.4 | |
Transformation Plan [Member] | Professional Service Fees [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | 0.5 | 0.4 |
Transformation Plan [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional charges not yet incurred associated with the restructuring actions approved to-date | 10.0 | |
Total expected costs to implement restructuring on approved initiatives | 125.0 | |
Transformation Plan [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Additional charges not yet incurred associated with the restructuring actions approved to-date | 15.0 | |
Total expected costs to implement restructuring on approved initiatives | 130.0 | |
Transformation Plan [Member] | Supply Chain [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected annualized savings before taxes | 200.0 | |
Transformation Plan [Member] | Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected annualized savings before taxes | 150.0 | |
Other Restructuring Initiatives [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | $ (0.7) | |
Selling, General and Administrative Expenses [Member] | Transformation Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | 10.1 | |
Cost of Sales [Member] | Transformation Plan [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and other costs | $ (0.1) |
RESTRUCTURING INITIATIVES RESTRUCTURING INITIATIVES (Liability Balances) (Details) - Transformation Plan [Member] $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | $ 51.4 |
2017 charges | 9.7 |
Adjustments | (0.7) |
Cash payments | (9.5) |
Foreign exchange | 0.5 |
Balance at March 31, 2017 | 51.4 |
Employee-Related Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | 48.6 |
2017 charges | 9.7 |
Adjustments | (2.1) |
Cash payments | (9.0) |
Foreign exchange | 0.5 |
Balance at March 31, 2017 | 47.7 |
Contract Terminations/ Other [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance at December 31, 2016 | 2.8 |
2017 charges | 0.0 |
Adjustments | 1.4 |
Cash payments | (0.5) |
Foreign exchange | 0.0 |
Balance at March 31, 2017 | $ 3.7 |
RESTRUCTURING INITIATIVES Restructuring Initiatives by Charge Type (Details) - Transformation Plan [Member] $ in Millions |
Mar. 31, 2017
USD ($)
|
---|---|
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | $ 104.8 |
Estimated charges to be incurred on approved initiatives | 7.4 |
Total expected charges on approved initiatives | 112.2 |
Employee-Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 91.6 |
Estimated charges to be incurred on approved initiatives | 6.2 |
Total expected charges on approved initiatives | 97.8 |
Inventory Write Offs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0.4 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.4 |
Contract Terminations/ Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 10.1 |
Estimated charges to be incurred on approved initiatives | 1.2 |
Total expected charges on approved initiatives | 11.3 |
Accumulated Foreign Currency Adjustment Write-offs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 2.7 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | $ 2.7 |
RESTRUCTURING INITIATIVES RESTRUCTURING INITIATIVES (Charges Reportable by Business Segment) (Details) - Transformation Plan [Member] - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | $ 9.0 | $ 74.4 | $ 21.4 |
Charges incurred to-date | 104.8 | ||
Estimated charges to be incurred on approved initiatives | 7.4 | ||
Total expected charges on approved initiatives | 112.2 | ||
Europe Middle East & Africa [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | 3.0 | 30.9 | 0.0 |
Charges incurred to-date | 33.9 | ||
Estimated charges to be incurred on approved initiatives | 1.2 | ||
Total expected charges on approved initiatives | 35.1 | ||
South Latin America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | 2.7 | 13.2 | 0.0 |
Charges incurred to-date | 15.9 | ||
Estimated charges to be incurred on approved initiatives | 0.0 | ||
Total expected charges on approved initiatives | 15.9 | ||
North Latin America [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | (0.1) | 4.4 | 0.0 |
Charges incurred to-date | 4.3 | ||
Estimated charges to be incurred on approved initiatives | 0.0 | ||
Total expected charges on approved initiatives | 4.3 | ||
Asia Pacific [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | (0.5) | 11.7 | 0.0 |
Charges incurred to-date | 11.2 | ||
Estimated charges to be incurred on approved initiatives | 0.0 | ||
Total expected charges on approved initiatives | 11.2 | ||
Global and Other Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges incurred | 3.9 | $ 14.2 | $ 21.4 |
Charges incurred to-date | 39.5 | ||
Estimated charges to be incurred on approved initiatives | 6.2 | ||
Total expected charges on approved initiatives | $ 45.7 |
GOODWILL (Schedule of Goodwill) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Goodwill [Line Items] | |
Gross balance at Period Start | $ 182.9 |
Accumulated impairments | (89.3) |
Net balance at Period Start | 93.6 |
Foreign exchange | 3.5 |
Gross balance at Period End | 186.4 |
Accumulated impairments | (89.3) |
Net balance at Period End | 97.1 |
Europe Middle East & Africa [Member] | |
Goodwill [Line Items] | |
Gross balance at Period Start | 25.6 |
Accumulated impairments | (6.9) |
Net balance at Period Start | 18.7 |
Foreign exchange | 0.5 |
Gross balance at Period End | 26.1 |
Accumulated impairments | (6.9) |
Net balance at Period End | 19.2 |
South Latin America [Member] | |
Goodwill [Line Items] | |
Gross balance at Period Start | 72.3 |
Accumulated impairments | 0.0 |
Net balance at Period Start | 72.3 |
Foreign exchange | 3.0 |
Gross balance at Period End | 75.3 |
Accumulated impairments | 0.0 |
Net balance at Period End | 75.3 |
Asia Pacific [Member] | |
Goodwill [Line Items] | |
Gross balance at Period Start | 85.0 |
Accumulated impairments | (82.4) |
Net balance at Period Start | 2.6 |
Foreign exchange | 0.0 |
Gross balance at Period End | 85.0 |
Accumulated impairments | (82.4) |
Net balance at Period End | $ 2.6 |
FAIR VALUE (Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 2.8 | $ 2.8 |
Total Assets | 3.2 | 3.4 |
Total Liabilities | 0.3 | 3.0 |
Foreign Exchange Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange forward contracts, asset | 0.4 | 0.6 |
Foreign exchange forward contracts, liability | 0.3 | 3.0 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2.8 | 2.8 |
Total Assets | 2.8 | 2.8 |
Total Liabilities | 0.0 | 0.0 |
Level 1 [Member] | Foreign Exchange Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange forward contracts, asset | 0.0 | 0.0 |
Foreign exchange forward contracts, liability | 0.0 | 0.0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.0 | 0.0 |
Total Assets | 0.4 | 0.6 |
Total Liabilities | 0.3 | 3.0 |
Level 2 [Member] | Foreign Exchange Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange forward contracts, asset | 0.4 | 0.6 |
Foreign exchange forward contracts, liability | $ 0.3 | $ 3.0 |
FAIR VALUE (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Available-for-sale securities | $ 2.8 | $ 2.8 | |||
Carrying Amount [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Available-for-sale securities | 2.8 | 2.8 | |||
Debt maturing within one year | [1] | (20.1) | (18.1) | ||
Long-term debt | [1] | (1,874.9) | (1,875.8) | ||
Fair Value [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Available-for-sale securities | 2.8 | 2.8 | |||
Debt maturing within one year | [1] | (20.1) | (18.1) | ||
Long-term debt | [1] | (1,880.8) | (1,877.5) | ||
Foreign Exchange Forward [Member] | Carrying Amount [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, net asset (liability) | 0.1 | (2.4) | |||
Foreign Exchange Forward [Member] | Fair Value [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value, net asset (liability) | $ 0.1 | $ (2.4) | |||
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016 |
Jan. 31, 2013
USD ($)
derivative_instrument
|
Mar. 31, 2012
USD ($)
derivative_instrument
|
|
Derivative [Line Items] | |||||
Total exposure to floating rate interest rates | 1.00% | 1.00% | |||
Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Notional amounts of foreign currency exchange contracts | $ 65,000,000 | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 500,000 | $ (2,300,000) | |||
Intercompany Loans [Member] | |||||
Derivative [Line Items] | |||||
Gain (loss) due to the effect of foreign currency exchange rates on intercompany loans | (1,200,000) | 800,000 | |||
January 2013 Interest-Rate Swap Termination [Member] | |||||
Derivative [Line Items] | |||||
Number of interest-rate swap agreements terminated | derivative_instrument | 8 | ||||
Notional Amount Related to Discontinuation of Interest Rate Fair Value Hedge | $ 1,000,000,000 | ||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 0 | $ 90,400,000 | |||
Amortization of Interest Rate Swap Gains | 3,700,000 | ||||
March 2012 Interest-Rate Swap Termination [Member] | |||||
Derivative [Line Items] | |||||
Number of interest-rate swap agreements terminated | derivative_instrument | 2 | ||||
Notional Amount Related to Discontinuation of Interest Rate Fair Value Hedge | $ 350,000,000 | ||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 9,700,000 | $ 46,100,000 | |||
Amortization of Interest Rate Swap Gains | $ 1,200,000 | $ 1,700,000 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Fair Value of Derivative Instruments Outstanding) (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivatives not designated as hedges, asset | $ 0.4 | $ 0.6 |
Derivatives not designated as hedges, liability | 0.3 | 3.0 |
Total derivatives, asset | 0.4 | 0.6 |
Total derivatives, liability | 0.3 | 3.0 |
Foreign Exchange Forward Contracts [Member] | Prepaid expenses and other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives not designated as hedges, asset | 0.4 | 0.6 |
Foreign Exchange Forward Contracts [Member] | Accounts payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives not designated as hedges, liability | $ 0.3 | $ 3.0 |
Debt (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Aug. 01, 2016 |
Mar. 31, 2013 |
Mar. 31, 2008 |
Mar. 31, 2003 |
|
Debt Instrument [Line Items] | |||||||||
Amount outstanding under revolving credit facility | $ 0.0 | ||||||||
Revolving credit facility draw down amount without violating covenant | $ 356.0 | ||||||||
Repayments of Debt | $ 238.4 | $ 300.6 | |||||||
Debt Instrument, Repurchase Amount | $ 180.5 | ||||||||
Credit ratings | Our long-term credit ratings are: Moody’s ratings of Stable Outlook with B1 for corporate family debt, B3 for senior unsecured debt, and Ba1 for the Senior Secured Notes; S&P ratings of Positive Outlook with B for corporate family debt and senior unsecured debt and BB- for the Senior Secured Notes; and Fitch rating of Negative Outlook with B+, each of which are below investment grade. | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility | $ 400.0 | ||||||||
Debt Instrument, Interest Rate Terms | Borrowings under the 2015 facility bear interest, at our option, at a rate per annum equal to LIBOR plus 250 basis points or a floating base rate plus 150 basis points, in each case subject to adjustment based upon a leverage-based pricing grid. | ||||||||
2013 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate Terms | The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the long-term credit ratings assigned to the 2013 Notes with S&P and Moody's. As described in the indenture, the interest rates on the 2013 Notes increase by .25% for each one-notch downgrade below investment grade on each of our long-term credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes. | ||||||||
Six Point Five Percent Notes Due March Two Thousand Nineteen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 350.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||||||
Notes Payable, Other Payables [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Covenant, Minimum Required Offer To Repurchase, Percentage Of Aggregate Principal Amount | 101.00% | ||||||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 250.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.375% | ||||||||
Repayments of Debt | $ 250.0 | ||||||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | ||||||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 250.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.95% | ||||||||
Seven Point Eight Seven Five Percent Notes, Due August Two Thousand Twenty Two [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500.0 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | ||||||||
AIO [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Standby letters of credit, recorded liability | $ 44.0 |
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