XML 50 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information Segment Information
Our reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. The segments have similar business characteristics, and each offers similar products through similar customer access methods.
The accounting policies of the segments are the same as those described in Note 1, Description of the Business and Summary of Significant Accounting Policies. We evaluate the performance of our segments based on revenues and segment profits or losses. Segment revenues primarily reflect direct sales of products to Representatives based on the Representative’s geographic location.
We determine segment profit by deducting the related costs and expenses from segment revenue. Segment profit excludes certain unallocated global expenses, costs to implement ("CTI") restructuring initiatives (see Note 17, Restructuring Initiatives), a loss contingency related to a non-U.S. pension plan (see Note 14, Employee Benefit Plans), certain significant asset impairment charges (see Note 20, Goodwill), and other items, which are not allocated to a particular segment. This is consistent with the manner in which we assess our performance and allocate resources.
Effective in the first quarter of 2017, given that we 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. Effective in the first quarter of 2018, given that we have exited Australia and New Zealand during 2018, the results of Australia and New Zealand 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.
Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables:
Total Revenue201920182017
Europe, Middle East & Africa
$1,794.1  $2,093.8  $2,126.5  
South Latin America (1)
1,762.7  2,146.9  2,222.4  
North Latin America
751.3  809.3  811.8  
Asia Pacific
436.9  470.8  471.9  
Total segment revenue4,745.0  5,520.8  5,632.6  
Other operating segments and business activities(3)
18.2  50.5  83.0  
Total revenue$4,763.2  $5,571.3  $5,715.6  
Operating Profit201920182017
Segment Profit
Europe, Middle East & Africa
$225.6  $267.5  $329.6  
South Latin America (1)
240.6  314.6  195.7  
North Latin America
65.8  70.4  83.4  
Asia Pacific
45.4  42.0  50.8  
Total segment profit (1)
577.4  694.5  659.5  
Other operating segments and business activities(3)
2.4  3.6  2.5  
Unallocated global expenses(250.6) (282.4) (302.3) 
CTI restructuring initiatives
(139.3) (180.5) (60.2) 
Loss contingency
—  —  (18.2) 
Other expenses(2)
(64.3) —  —  
Operating profit (1)
125.6235.2281.3
(1)2019 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $68, in our Consolidated Income Statements. See Note 21 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information. 2018 includes the impact of the Brazil IPI, which was recorded in product sales, of approximately $168, in our Consolidated Income Statements. See Note 19, Contingencies, to the Consolidated Financial Statements contained herein for further information.
(2)Other expenses were incurred in relation to the Transaction, primarily professional fees, and impairment losses on assets. See Note 23, Agreement and Plan of Mergers with Natura Cosméticos S.A., to the Consolidated Financial Statements contained herein and "Agreement and Plan of Mergers with Natura Cosméticos S.A.," in the MD&A in this 2019 Annual Report for further information.
(3)Other operating segments and business activities include markets that have been exited. Effective in the first quarter of 2018, given that we exited Australia and New Zealand during 2018, the results of Australia and New Zealand are now reported in Other operating segments and business activities for all periods presented, while previously the results had been reported in the Asia Pacific segment. 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.

Total Assets201920182017
Europe, Middle East & Africa
$1,079.5  $1,048.8  $1,190.5  
South Latin America
1,057.8  1,001.0  1,273.6  
North Latin America
316.1  329.7  335.8  
Asia Pacific
212.2  272.0  278.2  
Total from reportable segments2,665.6  2,651.5  3,078.1  
Other operating segments1.8  5.4  18.9  
Global
418.9  353.1  600.9  
Total assets$3,086.3  $3,010.0  $3,697.9  
Capital Expenditures201920182017
Europe, Middle East & Africa
$23.8  $37.0  $29.4  
South Latin America
16.5  27.5  35.4  
North Latin America2.4  9.1  12.9  
Asia Pacific2.0  2.9  2.3  
Total from reportable segments44.7  76.5  80.0  
Global13.8  18.4  17.3  
Total capital expenditures$58.5  $94.9  $97.3  
Depreciation and Amortization201920182017
Europe, Middle East & Africa
$27.4  $27.3  $29.9  
South Latin America
27.3  30.1  34.3  
North Latin America14.0  14.2  13.6  
Asia Pacific
4.3  8.3  8.9  
Total from reportable segments73.0  79.9  86.7  
Other operating segments
—  .3  .4  
Global
19.9  27.5  26.9  
Total depreciation and amortization$92.9  $107.7  $114.0  
Total Revenue by Major Country
A major country is defined as one with total revenues greater than 10% of consolidated total revenues.
 201920182017
Brazil$1,034.4  $1,262.8  $1,263.8  
Mexico(1)
509.4  533.1  520.3  
All other3,219.4  3,775.4  3,931.5  
Total$4,763.2  $5,571.3  $5,715.6  
(1) Mexico's revenue is greater than 10% of consolidated revenues in 2019 only
Long-Lived Assets by Major Country
A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets, and also includes our country of domicile (the U.S.). Long-lived assets primarily include property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities and long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility.
 201920182017
Brazil$203.3  $283.2  $396.9  
U.S.120.8  152.6  174.4  
Poland(1)
86.3  93.7  107.8  
All other335.6  364.3  446.5  
Total746.0893.81125.6
(1) Poland's Long-Lived asset population is greater than 10% of consolidated Long-Lived assets in 2019 only