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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities      
Net income (loss) $ 20.0 $ (107.4) $ (1,145.6)
Loss from discontinued operations, net of tax 0.0 14.0 349.1
Income (loss) from continuing operations, net of tax 20.0 [1] (93.4) [1],[2] (796.5)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation 84.3 83.3 94.0
Amortization 29.7 30.6 32.1
Provision for doubtful accounts 221.9 190.5 144.1
Provision for obsolescence 36.7 36.5 45.4
Share-based compensation 24.2 24.0 51.2
Foreign exchange losses 18.1 6.1 44.3
Deferred income taxes (30.2) (8.5) 644.6
Charge for Venezuelan monetary assets and liabilities 0.0 0.0 (4.2)
Charge for Venezuelan non-monetary assets 0.0 0.0 101.7
Loss on deconsolidation of Venezuela 0.0 120.5 0.0
Pre-tax gain on sale of business 0.0 0.0 (44.9)
Impairment of goodwill 0.0 0.0 6.9
Other 39.6 (3.3) 11.6
Changes in assets and liabilities:      
Accounts receivable (214.6) (216.6) (184.7)
Inventories (19.2) (28.6) (106.6)
Prepaid expenses and other 14.8 16.8 8.7
Accounts payable and accrued liabilities 12.3 (17.6) 80.4
Income and other taxes 4.1 (4.7) 50.7
Noncurrent assets and liabilities 29.5 (7.6) (87.4)
Net cash provided by operating activities of continuing operations 271.2 128.0 91.4
Cash Flows from Investing Activities      
Capital expenditures (97.3) (93.0) (92.4)
Disposal of assets 5.9 13.3 8.2
Distribution from New Avon LLC 22.0 0.0 0.0
Net proceeds from sale of business 0.0 0.0 208.3
Purchases of investments 0.0 0.0 (35.3)
Net proceeds from sale of investments 0.0 0.0 53.7
Reduction of cash due to Venezuela deconsolidation 0.0 (4.5) 0.0
Other investing activities (0.2) 1.5 0.0
Net cash (used) provided by investing activities of continuing operations (69.6) (82.7) 142.5
Cash Flows from Financing Activities      
Cash dividends 0.0 0.0 (108.8)
Debt, net (maturities of three months or less) 10.3 (36.4) (59.1)
Proceeds from debt 0.0 508.7 7.6
Repayment of debt (2.9) (733.0) (261.2)
Repurchase of common stock (7.2) (5.6) (3.1)
Net proceeds from the sale of series C convertible preferred stock 0.0 426.3 0.0
Other financing activities (0.2) (23.0) (5.9)
Net cash provided (used) by financing activities of continuing operations 0.0 137.0 (430.5)
Cash Flows from Discontinued Operations      
Net cash (used) provided by operating activities of discontinued operations (8.6) (67.6) 20.7
Net cash used by investing activities of discontinued operations 0.0 (94.6) (4.2)
Net cash used by financing activities of discontinued operations 0.0 0.0 (15.0)
Net cash (used) provided by discontinued operations (8.6) (162.2) 1.5
Effect of exchange rate changes on cash and cash equivalents 34.1 (50.4) (80.7)
Net increase (decrease) in cash and cash equivalents 227.1 (30.3) (275.8)
Cash and equivalents at beginning of year [3] 654.4 [4] 684.7 [4] 960.5
Cash and equivalents at end of year [4] 881.5 654.4 [3] 684.7 [3]
Cash paid for:      
Interest 141.7 142.8 128.6
Income taxes, net of refunds received $ 132.2 $ 143.3 $ 162.5
[1] (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter.
[2] (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. 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 AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016.
[3] Includes cash and cash equivalents of discontinued operations of $(2.2) and $24.1 at the beginning of the year in 2016 and 2015, respectively.
[4] Includes cash and cash equivalents of discontinued operations of $(2.2) at the end of the year in 2015.