INVESTMENT IN NEW AVON (Notes)

9 Months Ended

Sep. 30, 2017

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 has accounted for its ownership interest in New Avon using the equity method of accounting, which resulted in the Company recognizing its proportionate share of New Avon's income or loss and other comprehensive income or loss. Our recorded investment balance in New Avon at September 30, 2017 was zero.

During the three and nine months ended September 30, 2017, the Company's proportionate share of the losses of New Avon was $6.2 and $16.0 respectively, of which $1.7 and $11.5, respectively, of these amounts was recorded within other expense, net. In addition, during the third quarter of 2017, the Company received a cash distribution of $22.0 from New Avon, which reduced our recorded investment balance in New Avon. During the third quarter of 2017, we recorded only $1.7 of the Company's proportionate share of the losses in New Avon, as this reduced our recorded investment balance in New Avon to zero. If New Avon experiences future losses while our recorded investment balance is zero, we would not record our proportionate share of such loss. The Company's proportionate share of the losses of New Avon was $4.5 and $9.0 during the three and seven months ended September 30, 2016, respectively, which was recorded within other expense, net. In addition, the Company's proportionate share of the post-separation other comprehensive income of New Avon was a benefit of an immaterial amount and $.1 during the three and nine months ended September 30, 2017, respectively, and was recorded within other comprehensive income (loss).

The Company also recorded an additional loss of $.5 within other expense, net and a benefit of $1.1 within other comprehensive income (loss), during the nine months ended September 30, 2017, primarily associated with purchase accounting adjustments reported by New Avon.

Summarized financial information related to New Avon is shown below:

	Nine Months Ended September 30, 2017			Seven Months Ended September 30, 2016
Total revenue	$	527.7		$	523.0
Gross profit	$	322.9		$	317.4
Net loss	$	(80.5	)	$	(45.2	)