New Accounting Standards (Tables)

12 Months Ended

Dec. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Summary of Impact of Adoption of New Accounting Standards

The following tables summarize the impacts of adopting ASC 606 on the Company's consolidated financial statements for the twelve months ended December 31, 2018:

	Impact of change in revenue recognition standard
Line items impacted within the Consolidated Statements of Operations	Per consolidated financial statements		Adjustments			Balances excluding the impact of adopting ASC 606
Revenue
Net sales	$	5,247.7	$	(28.5)	(1)	$	5,219.2
Other revenue	323.6		(200.7)		(2)	122.9
Total revenue	5,571.3		(229.2)			5,342.1
Costs and expenses
Cost of sales	2,364.0		(277.4)		(3)	2,086.6
SG&A expenses	2,972.1		60.4		(4)	3,032.5
Operating profit	235.2		(12.2)			223.0
Income before income taxes	108.1		(12.2)			95.9
Income taxes	(129.9)		3.6			(126.3)
Net loss	(21.8)		(8.6)			(30.4)
Net loss attributable to Avon	(19.5)		(8.6)			(28.1)

(1)Primarily relates to appointment kits, which were reclassified from SG&A, partially offset by the timing of recognition of sales incentives.

(2)Relates to Representative fees (primarily brochure fees, late payment fees and certain other fees), which were reclassified from SG&A. Brochure fees were also impacted by the timing of recognition.

(3)Primarily relates to the cost of sales incentives, the cost of brochures paid for by Representatives and the cost of appointment kits, which were reclassified from SG&A. The cost of sales incentives and the cost of brochures were also impacted by the timing of recognition.

(4)Relates to the cost of sales incentives, which were reclassified to cost of sales and were also impacted by the timing of recognition. This was partially offset by Representative fees, which were reclassified to other revenue, and appointment kits, which were reclassified to net sales and cost of sales.

	Impact of change in revenue recognition standard
Line items impacted within the Consolidated Statements of Other Comprehensive Income	Per consolidated financial statements	Adjustments		Balances excluding the impact of adopting ASC 606
Net loss	(21.8)	$	(8.6)	$	(30.4)
Foreign currency translation adjustments	(48.7)	(3.5)		(52.2)
Total other comprehensive loss, net of income taxes	(104.4)	(3.5)		(107.9)
Comprehensive loss	(126.2)	(12.1)		(138.3)
Comprehensive loss attributable to Avon	(123.6)	(12.1)		(135.7)

	Impact of change in revenue recognition standard
Line items impacted within the Consolidated Balance Sheets	Per consolidated financial statements	Adjustments			Balances excluding the impact of adopting ASC 606
Accounts receivable, net	349.7	$	(8.2)	(1)	$	341.5
Inventories	542.0	(42.8)		(2)	499.2
Prepaid expenses and other	272.0	47.8		(2)	319.8
Total current assets	1,762.0	(3.2)			1,758.8
Other assets	603.0	(10.1)		(3)	592.9
Total assets	3,010.0	(13.3)			2,996.7
Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit
Other accrued liabilities	451.3	(38.0)		(4)	413.3
Income taxes	15.9	(3.6)			12.3
Total current liabilities	1,496.5	(41.6)			1,454.9
Other liabilities	72.1	(0.7)			71.4
Total liabilities	3,414.7	(42.3)			3,372.4
Retained earnings	2,234.3	32.5		(5)	2,266.8
Accumulated other comprehensive loss	(1,030.4)	(3.5)			(1,033.9)
Total Avon shareholders’ deficit	(904.5)	29.0			(875.5)
Total shareholders’ deficit	(896.8)	29.0			(867.8)
Total liabilities, series C convertible preferred stock and shareholders’ deficit	3,010.0	(13.3)			2,996.7

(1)Relates to sales returns, which were reclassified from a reduction of accounts receivable to a refund liability (within other accrued liabilities) and a returns asset (within prepaid expenses and other).

(2)Primarily relates to sales incentives and brochures, both of which were reclassified from prepaid expenses and other to inventories, and were also impacted by the timing of recognition. In addition, prepaid expenses and other was impacted by the timing of recognition of brochures, as well as the reclassification of sales returns (described above).

(3)Relates to deferred tax assets associated with the cumulative-effect adjustment.

(4)Primarily relates to the contract liability for sales incentives, which is partially offset by the lower accrual for sales incentives. In addition, other accrued liabilities was impacted by the reclassification of sales returns (described above).

(5)Relates to the $41.1 cumulative-effect adjustment upon adoption of ASC 606, partially offset by the year-to-date $8.6 net loss adjustment.

	Impact of change in revenue recognition standard
Line items impacted within the Consolidated Statements of Cash Flows	Per consolidated financial statements	Adjustments		Balances excluding the impact of adopting ASC 606
Cash Flows from Operating Activities
Net loss	(21.8)	$	(8.6)	$	(30.4)
Other	18.5	(3.5)		15.0
Accounts receivable	(102.8)	(.4)		(103.2)
Inventories	(99.6)	3.5		(96.1)
Prepaid expenses and other	(49.3)	3.9		(45.4)
Accounts payable and accrued liabilities	73.1	10.5		83.6
Income and other taxes	63.2	(3.6)		59.6
Noncurrent assets and liabilities	42.8	(1.8)		41.0

The following tables summarize the impacts of adopting ASC 2017-07 on the Company's consolidated financial statements for the twelve months ended December 31, 2017 and 2016:

	Impact of ASU 2017-07 adoption
Line items impacted within the Consolidated Statements of Operations	Per consolidated financial statements				Impact of adoption					As originally reported
	2017		2016		2017		2016			2017		2016
SG&A expenses	$	3,231.0	$	3,136.9	$	(8.0)	$	(1.9)	(4)	$	3,239.0	$	3,138.8
Operating profit	281.3		323.8		8.0		1.9			273.3		321.9
Other expense, net	34.6		172.9		8.0		1.9			26.6		171.0
Income before income taxes	120.7		31.2		—		—			120.7		31.2