RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2019

The following tables present the related party transactions with New Avon, affiliates of Cerberus and the Instituto Avon in Brazil. There are no other related party transactions. New Avon is majority-owned and managed by Cerberus. See Note 5, Investment in New Avon for further details.



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Statement of Operations Data
Revenue from sale of product to New Avon⁽¹⁾	$	3.7		$	7.1		$	8.5		$	13.0
Gross profit from sale of product to New Avon⁽¹⁾	$	—		$	.4		$	.1		$	.7

Cost of sales for purchases from New Avon⁽²⁾	$	.8		$	.7		$	1.5		$	1.2

Selling, general and administrative expenses related to New Avon:
Transition services, intellectual property, technical support and innovation and subleases⁽³⁾	$	(.1	)	$	(.5	)	$	(.2	)	$	(3.7	)
Project management team⁽⁴⁾	2.1			.2			$	3.4		$	.8
Net reduction of selling, general and administrative expenses	$	2.0		$	(.3	)	$	3.2		$	(2.9	)

Interest income from Instituto Avon⁽⁵⁾	$	.1		$	—		$	.1		$	—



	June 30, 2019		December 31, 2018
Balance Sheet Data
Inventories⁽⁶⁾	$	.2	$	.3
Receivables due from New Avon⁽⁷⁾	$	3.0	$	7.0
Receivables due from Instituto Avon⁽⁵⁾	$	3.3	$	3.2
Payables due to New Avon⁽⁸⁾	$	1.0	$	.2
Payables due to an affiliate of Cerberus⁽⁹⁾	$	4.1	$	.6

(1) The Company supplies product to New Avon as part of a manufacturing and supply agreement.

(2) New Avon supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $.6 and $.5 from New Avon associated with this agreement during the three months ended June 30, 2019 and 2018, respectively, and recorded $.8 and $.7 associated with these purchases within cost of sales in our Consolidated Statement of Operations during the three months ended June 30, 2019 and 2018, respectively. The Company purchased $1.4 and $1.2 from New Avon associated with this agreement during the six months ended June 30, 2019 and 2018, respectively, and recorded $1.5 and $1.2 associated with these purchases within cost of sales in our Consolidated Statement of Operations during the six months ended June 30, 2019 and 2018, respectively.

(3) The Company also entered into a transition services agreement to provide certain services to New Avon, which expired on October 31, 2018, as well as an intellectual property ("IP") license agreement, an agreement for technical support and innovation and sublease for office space. The net amounts recorded within selling, general and administrative expenses generally represent 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 implementation of the Company’s strategic initiatives. The Company recorded net cost of $2.1 and $.2 in selling, general and administrative expenses associated with these agreements during the three months ended June 30, 2019 and 2018, respectively, and recorded $3.4 and $.8 in selling, general and administrative expenses associated with these agreements during the six months ended June 30, 2019 and 2018, respectively. See Note 15, Restructuring Initiatives for additional information related to the Company's strategic initiatives.

(5) During the second quarter of 2018, the Company entered into an agreement to loan the Instituto Avon, an independent non-government charitable organization in Brazil, R$12 million (Brazilian real) for an unsecured 5-year term at a fixed interest rate of 7% per annum, to be paid back in 5 equal annual installments. The Instituto Avon was created by an Avon subsidiary in Brazil,

with the board and executive team comprised of Avon Brazil management. The purpose of the loan is to provide the Instituto Avon with the means to donate funds to Fundação Pio XII (a leading cancer prevention and treatment organization in Brazil and owner of the Hospital do Câncer de Barretos), in order to invest in equipment with the objective of expanding breast cancer prevention and treatment.

(6) 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 our Consolidated Balance Sheets.

(7) The receivables due from New Avon relate to the agreements for transition services, the IP license agreement, technical support and innovation and subleases for office space, as well as the manufacturing and supply agreement, and were classified within prepaid expenses and other in our Consolidated Balance Sheets.

(8) The payables due to New Avon relate to the manufacturing and supply agreement and were classified within other accrued liabilities in our Consolidated Balance Sheets.

(9) 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 our Consolidated Balance Sheets.