SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

The Company has updated its reportable segments to align with how the business is operated and managed since the merger with Natura, we have identified two reportable segments based on geographic operations: Avon International and Avon Latin America. In prior periods, the Company reported four segments: Europe, Middle East and Africa, Asia Pacific, South Latin America and North Latin America. Previously reported segment information has been recast throughout the consolidated financial statements, as applicable, for all periods presented to reflect the changes in the Company’s reportable segments.

We determine segment profit by deducting the related costs and expenses from segment revenue. Segment profit includes an allocation of central expenses to the extent they support the operating activity of the segment. Segment profit excludes certain CTI restructuring initiatives, certain significant asset impairment charges, and other expenses, which are not allocated to a particular segment, if applicable. This is consistent with the manner in which we assess our performance and allocate resources.

Summarized financial information concerning our reportable segments was as follows:


	Three Months Ended March 31,
Total Revenue	2020		2019
Avon International	$	477.1	$	574.7
Avon Latin America	480.2		612.2
Total revenue⁽¹⁾	957.3		1,186.9


	Three Months Ended March 31,
Operating Profit	2020		2019
Segment Profit
Avon International	$	2.7	$	50.0
Avon Latin America	(17.2)		12.7
Total profit from reportable segments ⁽²⁾	$	(14.5)	$	62.7
Unallocated global expenses⁽³⁾	—		(9.0)
CTI restructuring initiatives	(1.8)		(53.5)
Other expenses⁽⁴⁾	(85.5)		(4.1)
Operating profit	$	(101.8)	$	(3.9)

⁽¹⁾ Total revenue also includes revenue from other operating segments and business activities of $6.4 and $5.5 for the three months ended March 31, 2020 and 2019, respectively, allocated to Avon International and Avon Latin America segments. Other operating segments and business activities 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. Previously reported amount has been allocated to Avon International and Avon Latin America segments to conform to the current year presentation.

⁽²⁾ Total profit from reportable segments also includes profit from other operating segments and business activities and central expenses allocated to Avon International and Avon Latin America segments. Other operating segments and business activities of $2.9 and $.6 for the three months ended March 31, 2020 and 2019, respectively, include profit 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. Central expenses of $63.7 and $63.1 for the three months ended March 31, 2020 and 2019, respectively, include corporate general and administrative expenses allocated to Avon International and Avon Latin America to the extent they support the operating activity of the segment. Previously reported amounts has been allocated to segments to conform to the current year presentation.

⁽³⁾ For the three months ended March 31, 2019, unallocated global expenses include stewardship expenses of approximately $9. These costs are no longer incurred by the Company since the merger with Natura in January 2020.

(4) For the three months ended March 31, 2020, other expenses include primarily professional fees incurred in relation to the Natura transaction of approximately $44, severance payments of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions.. Refer to Note 19, Mergers with Natura Cosméticos S.A., to the Consolidated Financial Statements contained herein for more information relating to the Natura transaction.