Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
None | None | None |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Three Months Ended | |||||||||||
(In millions) | March 31, 2021 | March 31, 2020 | |||||||||
Product sales | $ | $ | |||||||||
Other revenue | |||||||||||
Revenue from affiliates of Natura &Co | |||||||||||
Total revenue | |||||||||||
Costs, expenses and other: | |||||||||||
Cost of sales | ( | ( | |||||||||
Selling, general and administrative expenses | ( | ( | |||||||||
Operating loss | ( | ( | |||||||||
Interest expense | ( | ( | |||||||||
Loss on extinguishment of debt and credit facilities | ( | ||||||||||
Interest income | |||||||||||
Other expense, net | ( | ( | |||||||||
Total other expenses | ( | ( | |||||||||
Loss from continuing operations, before income taxes | ( | ( | |||||||||
Income taxes | ( | ( | |||||||||
Loss from continuing operations, net of tax | ( | ( | |||||||||
Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Net loss | ( | ( | |||||||||
Net loss attributable to noncontrolling interests | |||||||||||
Net loss attributable to Avon | $ | ( | $ | ( | |||||||
Three Months Ended | |||||||||||
(In millions) | March 31, 2021 | March 31, 2020 | |||||||||
Net loss | $ | ( | $ | ( | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||
Unrealized loss on revaluation of long-term intercompany balances | ( | ( | |||||||||
Change in unrealized loss on cash flow hedges, net of taxes of $ | |||||||||||
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes of $ | |||||||||||
Total other comprehensive loss, net of income taxes | ( | ( | |||||||||
Comprehensive loss | ( | ( | |||||||||
Less: comprehensive loss attributable to noncontrolling interests | |||||||||||
Comprehensive loss attributable to Avon | $ | ( | $ | ( |
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Receivables from affiliates of Natura &Co | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other | |||||||||||
Assets held for sale | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, at cost | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | |||||||||||
Right-of-use assets | |||||||||||
Goodwill | |||||||||||
Deferred tax asset | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Deficit | |||||||||||
Current Liabilities | |||||||||||
Debt maturing within one year | $ | $ | |||||||||
Loans from affiliates of Natura &Co | |||||||||||
Accounts payable | |||||||||||
Payables to affiliates of Natura &Co | |||||||||||
Accrued compensation | |||||||||||
Other accrued liabilities | |||||||||||
Sales taxes and taxes other than income | |||||||||||
Income taxes | |||||||||||
Current liabilities of discontinued operations | |||||||||||
Liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liability | |||||||||||
Employee benefit plans | |||||||||||
Long-term income taxes | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ Deficit | |||||||||||
Common stock(1) | |||||||||||
Additional paid-in capital | |||||||||||
Retained losses | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost(1) | |||||||||||
Total Avon shareholders’ deficit | ( | ( | |||||||||
Noncontrolling interests | |||||||||||
Total shareholders’ deficit | ( | ( | |||||||||
Total liabilities and shareholders’ deficit | $ | $ |
Three Months Ended | |||||||||||
(In millions) | March 31, 2021 | March 31, 2020 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Income (loss) from discontinued operations, net of tax | ( | ||||||||||
Loss from continuing operations, net of tax | ( | ( | |||||||||
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Provision for doubtful accounts | |||||||||||
Provision for obsolescence | |||||||||||
Share-based compensation | |||||||||||
Foreign exchange losses (gains) | |||||||||||
Deferred income taxes | ( | ||||||||||
Impairment loss on assets | |||||||||||
Other | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other | ( | ||||||||||
Accounts payable and accrued liabilities | ( | ( | |||||||||
Income and other taxes | ( | ||||||||||
Noncurrent assets and liabilities | ( | ||||||||||
Net cash used by operating activities of continuing operations | ( | ( | |||||||||
Cash Flows from Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Disposal of assets | |||||||||||
Net cash used by investing activities of continuing operations | ( | ( | |||||||||
Cash Flows from Financing Activities | |||||||||||
Cash dividends | ( | ||||||||||
Debt, net (maturities of three months or less) | |||||||||||
Proceeds from debt | |||||||||||
Repayment of debt | ( | ||||||||||
Settlement of stock options | ( | ||||||||||
Settlement of derivative contracts | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash provided (used) by financing activities of continuing operations | ( | ||||||||||
Cash Flows from Discontinued Operations | |||||||||||
Net cash used by operating activities of discontinued operations | ( | ( | |||||||||
Net cash used by discontinued operations | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | ( | ( | |||||||||
Net decrease in cash and cash equivalents, and restricted cash | ( | ( | |||||||||
Cash and cash equivalents, and restricted cash at beginning of period(1) | |||||||||||
Cash and cash equivalents, and restricted cash at end of period (1) | $ | $ |
(In millions) | Common Stock | Additional | Retained | Accumulated Other | Noncontrolling | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Losses | Comprehensive Loss | Interests | Total | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2021(1) | $ | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||
(In millions) | Common Stock | Additional | Retained | Accumulated Other | Treasury Stock | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Earnings, (Losses) | Comprehensive Loss | Shares | Amount | Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series C convertible preferred stock (1) | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | — | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common stock (2) | ( | ( | ( | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020(3) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Selling, general and administrative expenses | $ | $ | ( | |||||||||||
Operating income (loss) | $ | $ | ( | |||||||||||
Income (loss) from discontinued operations, net of tax | $ | $ | ( |
March 31, 2021 | December 31, 2020 | |||||||||||||
Current held for sale assets | ||||||||||||||
Inventories | $ | $ | ||||||||||||
Property, Plant & Equipment (net) | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Other assets | ||||||||||||||
$ | $ | |||||||||||||
Current held for sale liabilities | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Other liabilities | ||||||||||||||
$ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Statement of Operations Data | ||||||||||||||
Revenue from affiliates of Natura &Co(2) | $ | $ | ||||||||||||
Gross profit from affiliates of Natura &Co(2) | $ | $ | ||||||||||||
Interest expense on Loan from affiliates of Natura &Co(4) | $ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||
Balance Sheet Data | ||||||||||||||
Receivables due from Instituto Avon(1) | $ | $ | ||||||||||||
Receivables due from affiliates of Natura &Co(2) | $ | $ | ||||||||||||
Payables due to affiliates of Natura &Co(3) | $ | $ | ||||||||||||
Loans from affiliates of Natura &Co(4) | $ | $ |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||
Avon International | Avon Latin America | Total reportable segments | Affiliates of Natura&Co | Total | ||||||||||||||||||||||||||||
Beauty: | ||||||||||||||||||||||||||||||||
Skincare | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Fragrance | ||||||||||||||||||||||||||||||||
Color | ||||||||||||||||||||||||||||||||
Total Beauty | ||||||||||||||||||||||||||||||||
Fashion & Home: | ||||||||||||||||||||||||||||||||
Fashion | ||||||||||||||||||||||||||||||||
Home | ||||||||||||||||||||||||||||||||
Total Fashion & Home | ||||||||||||||||||||||||||||||||
Product sales | ||||||||||||||||||||||||||||||||
Representative fees | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other revenue | ||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2020 | ||||||||||||||||||||
Avon International | Avon Latin America | Total | ||||||||||||||||||
Beauty: | ||||||||||||||||||||
Skincare | $ | $ | $ | |||||||||||||||||
Fragrance | ||||||||||||||||||||
Color | ||||||||||||||||||||
Total Beauty | ||||||||||||||||||||
Fashion & Home: | ||||||||||||||||||||
Fashion | ||||||||||||||||||||
Home | ||||||||||||||||||||
Total Fashion & Home | ||||||||||||||||||||
Net sales | ||||||||||||||||||||
Representative fees | ||||||||||||||||||||
Other | ||||||||||||||||||||
Other revenue | ||||||||||||||||||||
Total revenue | $ | $ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||
Accounts receivable, net of allowances of $ | $ | $ | ||||||||||||
Contract liabilities | $ | $ |
Components of Inventories | March 31, 2021 | December 31, 2020 | ||||||||||||
Raw materials | $ | $ | ||||||||||||
Finished goods | ||||||||||||||
Total | $ | $ |
Three Months Ended March 31, | ||||||||||||||||||||
Lease Costs | Classification | 2021 | 2020 | |||||||||||||||||
Sublease income | Selling, general and administrative expenses |
Three Months Ended March 31, 2021 | Foreign Currency Translation Adjustments | Net Investment Hedges | Pension and Postretirement Benefits | Total | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive loss other than reclassifications | ( | ( | ||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $ | — | — | ||||||||||||||||||||||||
Total reclassifications into earnings | ||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, 2020 | Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||
Other comprehensive loss other than reclassifications | ( | ( | ||||||||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||||||||
Derivative loss on cash flow hedges, net of tax of $ | — | — | — | |||||||||||||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $ | — | — | — | |||||||||||||||||||||||||||||
Total reclassifications into earnings | ||||||||||||||||||||||||||||||||
Balance as March 31, 2020 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | ||||||||||||||
Total Revenue | 2021 | 2020 | ||||||||||||
Avon International | $ | $ | ||||||||||||
Avon Latin America | ||||||||||||||
Total revenue from reportable segments (1) | ||||||||||||||
Revenue from affiliates to Natura &Co | ||||||||||||||
Total revenue(1) |
Three Months Ended March 31, | ||||||||||||||
Operating (Loss) Profit | 2021 | 2020 | ||||||||||||
Segment (Loss) Profit | ||||||||||||||
Avon International | $ | ( | $ | |||||||||||
Avon Latin America | ( | ( | ||||||||||||
Total loss from reportable segments (2) | $ | ( | $ | ( | ||||||||||
Unallocated global expenses(3) | ( | |||||||||||||
CTI restructuring initiatives | ( | ( | ||||||||||||
Costs related to the Transaction (4) | ( | |||||||||||||
Operating loss | $ | ( | $ | ( |
Components of Prepaid Expenses and Other | March 31, 2021 | December 31, 2020 | ||||||||||||
Prepaid taxes and tax refunds receivable | $ | $ | ||||||||||||
Receivables other than trade | ||||||||||||||
Prepaid brochure costs, paper and other literature | ||||||||||||||
Other | ||||||||||||||
Prepaid expenses and other | $ | $ |
Components of Other Assets | March 31, 2021 | December 31, 2020 | ||||||||||||
Net overfunded pension plans | $ | $ | ||||||||||||
Capitalized software | ||||||||||||||
Judicial deposits | ||||||||||||||
Long-term receivables | ||||||||||||||
Trust assets associated with supplemental benefit plans | ||||||||||||||
Other | ||||||||||||||
Other assets | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
CTI recorded in operating profit - COGS | ||||||||||||||
Inventory write-off | ( | |||||||||||||
( | ||||||||||||||
CTI recorded in operating profit - SG&A | ||||||||||||||
Net charges for employee-related costs, including severance benefits | ( | |||||||||||||
Implementation costs, primarily related to professional service fees | ( | |||||||||||||
Dual running costs | ||||||||||||||
Contract termination and other net benefits | ||||||||||||||
Impairment of other assets | ||||||||||||||
Accelerated depreciation | ||||||||||||||
Variable lease charges | ||||||||||||||
Total CTI | ||||||||||||||
Avon Integration | $ | $ | ||||||||||||
Open Up & Grow | $ | $ | ||||||||||||
Transformation Plan | $ | ( | $ | ( | ||||||||||
Employee-Related Costs | Inventory/Assets Write-offs | Contract Terminations/Other | Total | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ||||||||||||||||||||||
2021 charges | ||||||||||||||||||||||||||
Cash payments | ( | ( | ( | |||||||||||||||||||||||
Non-cash write-offs | ( | ( | ||||||||||||||||||||||||
Foreign exchange | ( | ( | ||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ |
Employee- Related Costs | Inventory/ Asset Write-offs | Contract Terminations/Other | Foreign Currency Translation Adjustment Write-offs | Total | ||||||||||||||||||||||||||||
Avon Integration | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | $ | |||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Open Up & Grow | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Transformation Plan | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | $ |
Avon International | Avon Latin America | Total | ||||||||||||||||||
Avon Integration | ||||||||||||||||||||
2020 | $ | $ | $ | |||||||||||||||||
First quarter 2021 | ( | |||||||||||||||||||
Charges incurred to-date | ||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | |||||||||||||||||
Open Up & Grow | ||||||||||||||||||||
2018 | $ | $ | $ | |||||||||||||||||
2019 | ||||||||||||||||||||
2020 | ( | |||||||||||||||||||
First quarter 2021 | ( | |||||||||||||||||||
Charges incurred to-date | ||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | |||||||||||||||||
Transformation Plan | ||||||||||||||||||||
2015 | $ | $ | $ | |||||||||||||||||
2016 | ||||||||||||||||||||
2017 | ||||||||||||||||||||
2018 | ||||||||||||||||||||
2019 | ( | ( | ||||||||||||||||||
2020 | ( | ( | ||||||||||||||||||
First quarter 2021 | ( | ( | ||||||||||||||||||
Charges incurred to-date | ||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ |
Avon International | Avon Latin America | Total | ||||||||||||||||||
Net balance at December 31, 2020 | $ | $ | $ | |||||||||||||||||
Changes during the period ended March 31, 2021: | ||||||||||||||||||||
Foreign exchange | ( | ( | ( | |||||||||||||||||
Net balance at March 31, 2021 | $ | $ | $ |
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | $ | $ | ||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ |
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | $ | $ | ||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Available-for-sale securities | $ | $ | $ | $ | |||||||||||||||||||
Debt maturing within one year | ( | ( | ( | ( | |||||||||||||||||||
Related party loan | ( | ( | ( | ( | |||||||||||||||||||
Long-term debt(1) | ( | ( | ( | ( | |||||||||||||||||||
Foreign exchange forward contracts | ( | ( |
Asset | Liability | ||||||||||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | Accounts payable | $ | |||||||||||||||||||
Total derivatives | $ | $ |
Asset | Liability | ||||||||||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | Accounts payable | $ | |||||||||||||||||||
Total derivatives | $ | $ |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | %/Basis Point Change | ||||||||||||||||||
Select Consolidated Financial Information | ||||||||||||||||||||
Total revenue | $ | 904.4 | $ | 957.3 | (6) | % | ||||||||||||||
Cost of sales | (405.4) | (421.0) | (4) | % | ||||||||||||||||
Selling, general and administrative expenses | (536.1) | (638.1) | (16) | % | ||||||||||||||||
Operating loss | (37.1) | (101.8) | (64) | % | ||||||||||||||||
Interest expense | (23.6) | (31.8) | (26) | % | ||||||||||||||||
Loss on extinguishment of debt and credit facilities | — | (7.8) | (100) | % | ||||||||||||||||
Interest income | .2 | 1.2 | (83) | % | ||||||||||||||||
Other expense, net | (1.3) | (18.2) | (93) | % | ||||||||||||||||
Loss from continuing operations, before income taxes | (61.8) | (158.4) | (61) | % | ||||||||||||||||
Loss from continuing operations, net of tax | (68.9) | (167.2) | (59) | % | ||||||||||||||||
Net loss attributable to Avon | $ | (63.6) | $ | (171.0) | (63) | % | ||||||||||||||
Advertising expenses(1) | $ | 17.6 | $ | 15.7 | 12 | % | ||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
Total revenue | $ | 904.4 | $ | 957.3 | (6) | % | ||||||||||||||
Gross margin | 55.2 | % | 56.0 | % | (80) | |||||||||||||||
CTI restructuring | — | (.1) | 10 | |||||||||||||||||
Adjusted gross margin | 55.2 | % | 55.9 | % | (70) | |||||||||||||||
Selling, general and administrative expenses as a % of total revenue | 59.3 | % | 66.7 | % | (740) | |||||||||||||||
CTI restructuring | (2.2) | (.2) | (200) | |||||||||||||||||
Costs related to the Transaction | — | (8.9) | 890 | |||||||||||||||||
Adjusted selling, general and administrative expenses as a % of total revenue | 57.1 | % | 57.6 | % | (50) | |||||||||||||||
Operating loss | $ | (37.1) | $ | (101.8) | (64) | % | ||||||||||||||
CTI restructuring | 19.5 | 1.8 | ||||||||||||||||||
Costs related to the Transaction | — | 85.5 | ||||||||||||||||||
Adjusted operating loss | $ | (17.6) | $ | (14.5) | 21 | % | ||||||||||||||
Operating margin | (4.1) | % | (10.6) | % | 650 | |||||||||||||||
CTI restructuring | 2.2 | .2 | 200 | |||||||||||||||||
Costs related to the Transaction | — | 8.9 | (890) | |||||||||||||||||
Adjusted operating margin | (1.9) | % | (1.5) | % | (40) | |||||||||||||||
Change in Constant $ Adjusted operating margin(2) | 10 | |||||||||||||||||||
Loss before taxes | $ | (61.8) | $ | (158.4) | (61) | % | ||||||||||||||
CTI restructuring | 19.5 | 1.8 | ||||||||||||||||||
Costs related to the Transaction | — | 85.5 | ||||||||||||||||||
Other items | — | 7.8 | ||||||||||||||||||
Adjusted loss before taxes | $ | (42.3) | $ | (63.3) | (33) | % | ||||||||||||||
Income taxes | $ | (7.1) | $ | (8.8) | (19) | % | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | %/Basis Point Change | ||||||||||||||||||
Effective tax rate | (11.5) | % | (5.6) | % | ||||||||||||||||
Performance Metrics | ||||||||||||||||||||
Change in Active Representatives | (6) | % | ||||||||||||||||||
Change in units sold | (4) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
%/Basis Point Change | |||||||||||||||||||||||
2021 | 2020 | US$ | Constant $ | ||||||||||||||||||||
Total revenue | $ | 430.9 | $ | 477.1 | (10) | % | (11) | % | |||||||||||||||
Segment profit | (7.0) | 2.7 | (359) | % | (442) | % | |||||||||||||||||
Segment margin | (1.6) | % | .6 | % | (220) | (160) | |||||||||||||||||
Change in Active Representatives | (20) | % | |||||||||||||||||||||
Change in units sold | (13) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
%/Basis Point Change | |||||||||||||||||||||||
2021 | 2020 | US$ | Constant $ | ||||||||||||||||||||
Total revenue | $ | 465.8 | $ | 480.2 | (3) | % | 8 | % | |||||||||||||||
Segment profit | (4.6) | (17.2) | 73 | % | 79 | % | |||||||||||||||||
Segment margin | (1.0) | % | (3.6) | % | 260 | 320 | |||||||||||||||||
Change in Active Representatives | 6 | % | |||||||||||||||||||||
Change in units sold | 2 | % |
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Loss, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements |
AVON PRODUCTS, INC. | ||||||||
(Registrant) | ||||||||
Date: | May 12, 2021 | /s/ Elena Casap | ||||||
Elena Casap | ||||||||
Controller - Principal Accounting Officer | ||||||||
Signed both on behalf of the | ||||||||
registrant and as chief | ||||||||
accounting officer. |
/s/ Angela Cretu | |||||
Angela Cretu | |||||
Chief Executive Officer |
/s/ Carl Rogberg | ||
Carl Rogberg | ||
Vice President Finance | ||
/s/ Angela Cretu | ||
Angela Cretu | ||
Chief Executive Officer | ||
/s/ Carl Rogberg | ||
Carl Rogberg | ||
Vice President Finance | ||
Cover Page |
3 Months Ended |
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Mar. 31, 2021
shares
| |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
Document Transition Report | false |
Entity File Number | 1-4881 |
Entity Registrant Name | AVON PRODUCTS, INC. |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 13-0544597 |
Entity Address, Address Line One | Building 6, Chiswick Park |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | W4 5HR |
Entity Address, Country | GB |
Country Region | 44 |
City Area Code | 1904 |
Local Phone Number | 232425 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 101.34 |
Entity Central Index Key | 0000008868 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenue from affiliates of Natura &Co | $ 7.7 | $ 0.0 |
Total revenue | 904.4 | 957.3 |
Costs, expenses and other: | ||
Cost of sales | (405.4) | (421.0) |
Selling, general and administrative expenses | (536.1) | (638.1) |
Operating loss | (37.1) | (101.8) |
Interest expense | (23.6) | (31.8) |
Loss on extinguishment of debt and credit facilities | 0.0 | (7.8) |
Interest income | 0.2 | 1.2 |
Other expense, net | (1.3) | (18.2) |
Total other expenses | (24.7) | (56.6) |
Loss from continuing operations, before income taxes | (61.8) | (158.4) |
Income taxes | (7.1) | (8.8) |
Loss from continuing operations, net of tax | (68.9) | (167.2) |
Income (loss) from discontinued operations, net of tax | 5.0 | (4.7) |
Net loss | (63.9) | (171.9) |
Net loss attributable to noncontrolling interests | 0.3 | 0.9 |
Net loss attributable to Avon | (63.6) | (171.0) |
Product sales | ||
Revenue | 850.4 | 899.8 |
Total revenue | 850.4 | 899.8 |
Other revenue | ||
Revenue | $ 46.3 | $ 57.5 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (63.9) | $ (171.9) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (12.2) | (83.8) |
Unrealized loss on revaluation of long-term intercompany balances | (32.3) | (23.3) |
Change in unrealized gain (loss) on cash flow hedges, net of taxes | 0.0 | 0.6 |
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes | 1.2 | 2.0 |
Total other comprehensive loss, net of income taxes | (43.3) | (104.5) |
Comprehensive loss | (107.2) | (276.4) |
Less: comprehensive loss attributable to noncontrolling interests | 0.3 | 1.1 |
Comprehensive loss attributable to Avon | $ (106.9) | $ (275.3) |
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Change in unrealized gain/losses on cash flow hedges, tax | $ 0.0 | $ 0.0 |
Adjustments and amortization of net actuarial loss and prior service cost, taxes | $ 0.2 | $ 0.2 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
|||||
---|---|---|---|---|---|---|---|
Current Assets | |||||||
Cash and cash equivalents | $ 239.7 | $ 364.9 | |||||
Restricted cash | 0.0 | 7.8 | |||||
Accounts receivable, net | 248.1 | 259.1 | |||||
Receivables from affiliates of Natura &Co | 9.2 | 6.1 | |||||
Inventories | 467.0 | 459.1 | |||||
Prepaid expenses and other | 210.5 | 204.2 | |||||
Assets held for sale | 8.4 | 13.9 | |||||
Total current assets | 1,182.9 | 1,315.1 | |||||
Property, plant and equipment, at cost | 1,108.3 | 1,148.5 | |||||
Less accumulated depreciation | (692.4) | (709.9) | |||||
Property, plant and equipment, net | 415.9 | 438.6 | |||||
Right-of-use assets | 127.0 | 153.1 | |||||
Goodwill | 77.4 | 83.2 | |||||
Deferred tax asset | 127.6 | 135.8 | |||||
Other assets | 418.9 | 438.5 | |||||
Total assets | 2,349.7 | 2,564.3 | |||||
Current Liabilities | |||||||
Debt maturing within one year | 38.0 | 28.0 | |||||
Loans from affiliates of Natura &Co | 1,077.4 | 1,008.6 | |||||
Accounts payable | 623.9 | 709.4 | |||||
Payables to affiliates of Natura &Co | 3.0 | 0.0 | |||||
Accrued compensation | 86.3 | 89.4 | |||||
Other accrued liabilities | 295.4 | 334.7 | |||||
Sales taxes and taxes other than income | 80.4 | 89.9 | |||||
Income taxes | 4.1 | 5.4 | |||||
Total current liabilities | 2,229.1 | 2,294.8 | |||||
Long-term debt | 676.2 | 675.4 | |||||
Long-term operating lease liability | 99.0 | 120.9 | |||||
Employee benefit plans | 126.7 | 133.3 | |||||
Long-term income taxes | 98.6 | 101.1 | |||||
Other liabilities | 93.9 | 106.0 | |||||
Total liabilities | 3,323.5 | 3,431.5 | |||||
Shareholders’ Deficit | |||||||
Common stock | [1] | 0.0 | 0.0 | ||||
Additional paid-in capital | 623.4 | 622.8 | |||||
Retained losses | (424.1) | (360.5) | |||||
Accumulated other comprehensive loss | (1,177.1) | (1,133.8) | |||||
Treasury stock, at cost | [1] | 0.0 | 0.0 | ||||
Total Avon shareholders’ deficit | (977.8) | (871.5) | |||||
Noncontrolling interests | 4.0 | 4.3 | |||||
Total shareholders’ deficit | (973.8) | [2] | (867.2) | ||||
Total liabilities and shareholders’ deficit | 2,349.7 | 2,564.3 | |||||
Discontinued Operations | |||||||
Current Liabilities | |||||||
Current liabilities of discontinued operations and liabilities held for sale | 20.6 | 27.1 | |||||
Held for sale liabilities | |||||||
Current Liabilities | |||||||
Current liabilities of discontinued operations and liabilities held for sale | $ 0.0 | $ 2.3 | |||||
|
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2021 |
Mar. 31, 2020 |
Jan. 31, 2020 |
Dec. 31, 2019 |
Dec. 30, 2019 |
---|---|---|---|---|---|
Statement of Financial Position [Abstract] | |||||
Stock, shares authorized (in shares) | 1,525,000,000 | 1,525,000,000 | |||
Common stock, authorized (in shares) | 1,000 | 1,500,000,000 | 1,500,000,000 | ||
Common stock (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.25 | $ 0.25 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 1.00 | $ 1.00 | ||
Stock converted or cancelled (in shares) | 550,890,788 |
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions |
Mar. 31, 2020
USD ($)
|
---|---|
Statement of Cash Flows [Abstract] | |
Long-term restricted cash | $ 7.6 |
Consolidated Statements of Changes in Shareholders' Deficit - USD ($) shares in Millions, $ in Millions |
Total |
Cumulative effect adjustment |
Common Stock |
Additional Paid-in Capital |
Retained Earnings (Losses) |
Retained Earnings (Losses)
Cumulative effect adjustment
|
Accumulated Other Comprehensive Loss |
Treasury Stock |
Noncontrolling Interest |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2019 | 770.0 | 319.9 | |||||||||||||||
Beginning balance at Dec. 31, 2019 | $ (983.8) | $ (2.0) | $ 192.6 | $ 2,321.2 | $ 2,138.9 | $ (2.0) | $ (1,040.0) | $ (4,603.3) | $ 6.8 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net loss | (171.9) | (171.0) | (0.9) | ||||||||||||||
Other comprehensive loss | (104.5) | (104.3) | (0.2) | ||||||||||||||
Conversion of Series C convertible preferred stock | [1] | 486.8 | (710.8) | $ 1,197.6 | |||||||||||||
Conversion of Series C convertible preferred stock (in shares) | [1] | (87.0) | |||||||||||||||
Exercise/ vesting/ expense of share-based compensation | (9.9) | $ (0.2) | (9.7) | ||||||||||||||
Exchange of common stock (in shares) | [2] | (770.0) | (232.9) | ||||||||||||||
Exchange of common stock | [2] | 0.0 | $ (192.4) | (1,788.1) | (1,425.2) | $ 3,405.7 | |||||||||||
Ending balance (in shares) at Mar. 31, 2020 | [3] | 0.0 | 0.0 | ||||||||||||||
Ending balance at Mar. 31, 2020 | [3] | (785.3) | $ 0.0 | 523.4 | (170.1) | (1,144.3) | $ 0.0 | 5.7 | |||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 0.0 | ||||||||||||||||
Beginning balance at Dec. 31, 2020 | (867.2) | $ 0.0 | 622.8 | (360.5) | (1,133.8) | 4.3 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net loss | (63.9) | (63.6) | (0.3) | ||||||||||||||
Other comprehensive loss | (43.3) | (43.3) | |||||||||||||||
Exercise/ vesting/ expense of share-based compensation | 0.6 | 0.6 | |||||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | [4] | 0.0 | |||||||||||||||
Ending balance at Mar. 31, 2021 | [4] | $ (973.8) | $ 0.0 | $ 623.4 | $ (424.1) | $ (1,177.1) | $ 4.0 | ||||||||||
|
Consolidated Statements of Changes in Shareholders' Deficit (Parenthetical) |
Dec. 30, 2019
$ / shares
shares
|
---|---|
Common stock (in dollars per share) | $ / shares | $ 0.25 |
Converted Series C Convertible Preferred Stock (in shares) | 87,000,000 |
Stock, shares authorized (in shares) | 1,525,000,000 |
Common stock, authorized (in shares) | 1,500,000,000 |
Preferred stock, authorized (in shares) | 25,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 1.00 |
Series C Preferred Stock | |
Shares converted (in shares) | 435,000 |
ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of Presentation We prepare our unaudited interim Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States ("GAAP"). We consistently applied the accounting policies described in our 2020 Annual Report on Form 10-K ("2020 Form 10-K") in preparing these unaudited interim Consolidated Financial Statements, other than those impacted by new accounting standards as described below. On January 3, 2020, we completed the Agreement and Plan of Mergers with Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) ("Natura Cosméticos"), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima) ("Natura &Co Holding"), and two subsidiaries of Natura &Co Holding S.A. ("Natura &Co") pursuant to which, in a series of transactions (the "Transaction"). Upon the consummation of the Transaction, the Company became a wholly owned subsidiary of Natura &Co Holding and Avon's common stock ceased to be traded on the NYSE. The Company files these unaudited interim Consolidated Financial Statements with the SEC as a voluntary filer to comply with the terms of certain debt instruments. For additional information, see Note 17, Agreement and Plan of Mergers with Natura Cosméticos S.A. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. You should read these unaudited interim Consolidated Financial Statements in conjunction with our Consolidated Financial Statements contained in our 2020 Form 10-K. When used in this report, the terms "Avon," "Company," "we" or "us" mean Avon Products, Inc. For interim Consolidated Financial Statements purposes, we generally provide for accruals under our various employee benefit plans for each quarter based on one quarter of the estimated annual expense, and adjust these accruals as estimates are refined. In addition, our income tax provision is determined using an estimate of our consolidated annual effective tax rate, adjusted in the current period for discrete income tax items including: •the effects of significant, unusual or extraordinary pretax and income tax items, if any; •the impact of changes in tax legislation, if any; •withholding taxes recognized associated with cash repatriations; and •the impact of loss-making subsidiaries for which we cannot recognize an income tax benefit and subsidiaries for which an effective tax rate cannot be reliably estimated. Reclassifications During the third quarter of 2020, we identified an immaterial classification error in the Consolidated Statement of Cash Flows relating to the three-month period ended March 31, 2020 with respect to cash flows from the settlement of derivative contracts. Our accounting policy is to classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. However, we have identified that cash flows relating to derivative contracts that economically hedge foreign exchange gains and losses on intercompany loans have been incorrectly classified as operating activities rather than financing activities. We have corrected this reclassification error through a revision to the unaudited interim Consolidated Statement of Cash Flows for the three-month period ended March 31, 2020 to reclassify cash inflows of $5.7 from the settlement of derivative contracts from operating activities to financing activities. COVID-19 pandemic A novel strain of coronavirus (COVID-19) was first identified in Wuhan, China in December 2019, and subsequently declared a pandemic by the World Health Organization. Due to the uncertain and rapidly evolving nature of current conditions around the world, the impacts of COVID-19 most of which are beyond the Company’s control, continue to evolve, and the outcome is uncertain. We are therefore unable to predict accurately the impact that COVID-19 will have on our business going forward. In the first quarter of 2021, COVID-19 continued to have a significant impact on our operations as many markets were subject to restrictions. Most markets in Avon Latin America were not significantly impacted by COVID-19 and had revenue growth during the first quarter of 2021. Avon International and Brazil were more significantly impacted by COVID-19 in the first quarter which resulted in deceleration of the Beauty market growth and a lower representative base. It is unclear if current lockdown measures will continue or be reestablished elsewhere globally which could dampen our recovery from COVID-19. We continue to closely monitor the COVID-19 pandemic and adapt our actions to minimize business disruptions while ensuring the safety of all the people involved. Since the beginning of the COVID-19 pandemic and consequently restrictive measures imposed by governments, such as the closing of non-essential trade and travel restrictions, the Company has implemented new measures in all its operations in line with the official guidelines. As of the date of this report, we are unable to estimate the long-term impact of the economic paralysis arising from efforts to curb the spread of the COVID-19 virus and the expected reduction in activity on our business, results of operations and financial condition. We will continue to review our revenue, investments, expenses and cash outflows, as well as adjusting our relationships with suppliers. Furthermore, the actions outlined above are continuously being re-evaluated in light of global developments relating to COVID-19. Going concern Considering the uncertain nature of any possible future COVID-19 impacts which are beyond the Company’s control, we might expect some negative impact on revenue from COVID-19 to continue for the remainder of 2021, which will, in turn, result in lower cash generation from activities. If the downturn is deeper or for longer than we anticipate, the Company could take certain further actions to ease the pressure of certain cash outflows, such as reducing discretionary expenditure, selling non-core assets, accessing government pandemic initiatives or arranging borrowing facilities with third-party banks and affiliate companies. Our projections indicate that we should have sufficient liquidity to meet our obligations to parties other than Natura &Co and its affiliates for a period of not less than 12 months from the issuance date of the Consolidated Financial Statements. The Company has received an irrevocable commitment from Natura &Co Holding that it will provide sufficient financial support if and when needed to enable the Company to meet its operating and financing obligations as they come due in the normal course of business for a period of not less than 12 months from the date issuance of the Consolidated Financial Statements. This support also includes the loan originally issued by a subsidiary of Natura &Co Holding to a subsidiary of the Company of $960 that is currently due on November 2, 2021. Accounting Standards Implemented ASU 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes, which is intended to simplify the accounting standard and improve the usefulness of information provided in the financial statements. We adopted this new accounting guidance as of January 1, 2021. The adoption did not have a material impact on our Consolidated Financial Statements.
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DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES | DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES Discontinued Operations On March 1, 2016, the Company completed the separation of the North America business, which represented the Company’s operations in the United States, Canada and Puerto Rico, from the Company into New Avon Company, formerly New Avon, LLC ("New Avon"), a privately held company majority-owned and managed by Cerberus NA Investor LLC (an affiliate of Cerberus). From that date, the resolution of contingent liabilities and corresponding costs relating to Avon’s ownership and operation of the North America business prior to its separation from the Company into New Avon have been treated as discontinued operations. The major classes of financial statement components comprising the loss on discontinued operations, net of tax for New Avon during the three-month period ended March 31, 2021 and 2020 are shown below:
Assets and Liabilities Held for Sale The major classes of assets comprising held for sale assets on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are shown in the following table:
At March 31, 2021, assets held for sale include one property in Avon International segment and one property in the Avon Latin America Segment. At December 31, 2020, assets held for sale include one property and one business in Avon International segment and one property in the Avon Latin America Segment. Divestitures There were no divestitures during the three-month period ended March 31, 2021. The divestitures below took place during 2020. China Wellness Plant In March 2020, we signed an agreement to sell the China Wellness Plant for a total selling price of $6.6 before expenses. In the three-month period ended March 31, 2020 we received a deposit of $1.3, presented as investing activities in the Consolidated Statement of Cash Flows. China manufacturing On February 15, 2019, we completed the sale to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd. ("TheFaceShop"), of all of the equity interests in Avon Manufacturing (Guangzhou), Ltd. for a total selling price of $71.0, less expenses of approximately $1.1. The selling price included $23.5 relating to outstanding intercompany loans payable to Avon Manufacturing (Guangzhou), Ltd. from other Avon subsidiaries that was presented as financing activities in the Consolidated Statement of Cash Flows, this was subsequently settled in April 2019. The cash proceeds of $46.4, net of loan amounts, were presented as investing activities in the Consolidated Statement of Cash Flows, which included $7.5 of long-term restricted cash as of December 31, 2019. This was subsequently reclassified to short-term restricted cash in the three-month period ended March 31, 2020. The restriction on this cash was removed in the three-month period ended March 31, 2021.
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RELATED PARTY TRANSACTIONS |
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RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS On January 3, 2020, the Company became a wholly owned subsidiary of Natura &Co Holding. From this point Natura &Co Holding, its subsidiaries and affiliates became related parties of the Company. The following tables present the related party transactions with Natura &Co and its affiliates and the Instituto Avon in Brazil. There are no other related party transactions.
(1) 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 reais) for an unsecured five-year term at a fixed interest rate of 7% per annum, to be paid back in five 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 was 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. (2) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $7.7 associated with these agreements during the three months ended March 31, 2021. The Company recorded gross profit from related party of $.6 associated with these agreements during the three months ended March 31, 2021. Receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements. (3) During the first quarter of 2021, the nominal cost options related to the grant of the 2018 long-term employee incentive program vested and were automatically exercised. The equity awards were denominated in Natura &Co American Depository Receipts. The payable to Natura &Co is related to vesting and settlement of these awards. (4) Loans from affiliates of Natura &Co Holding at March 31, 2021 of $1,077.4 include $972.5 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. Loans from affiliates of Natura &Co Holding at March 31, 2021 also include $102.9 outstanding under the Revolving Credit Facility between Avon Luxembourg Holdings S.à r.l and Natura &Co International S.à r.l.. Loans from affiliates of Natura &Co Holding at December 31, 2020 of $1,008.6 include $965 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. Loans from affiliates of Natura &Co Holding at December 31, 2020 also include $41.6 outstanding under the Revolving Credit Facility between Avon Luxembourg Holdings S.à r.l and Natura &Co International S.à r.l.. See Note 15, Debt and Other Financing, for further information relating to these loans.
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REVENUE |
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REVENUE | REVENUE Disaggregation of revenue In the following table, revenue is disaggregated by product or service type. All revenue is recognized at a point in time when control of a product is transferred to a customer:
Contract balances The timing of revenue recognition generally is different from the timing of a promise made to a Representative. As a result, we have contract liabilities, which primarily relate to the advance consideration received from Representatives prior to transfer of the related good or service for material rights, such as loyalty points and status programs, and are primarily classified within other accrued liabilities (with the long-term portion in other liabilities) in our Consolidated Balance Sheets. Generally, we record accounts receivable when we invoice a Representative. In addition, we record an estimate of an allowance for doubtful accounts on receivable balances based on an analysis of historical data and current circumstances, including seasonality, changing trends and the impact of COVID-19. The allowance for doubtful accounts is reviewed for adequacy, at a minimum, on a quarterly basis. We generally have no detailed information concerning, or any communication with, any ultimate consumer of our products beyond the Representative. We have no legal recourse against the ultimate consumer for the collection of any accounts receivable balances due from the Representative to us. If the financial condition of the Representatives were to deteriorate, resulting in their inability to make payments, additional allowances may be required. The following table provides information about receivables and contract liabilities from contracts with customers at March 31, 2021 and December 31, 2020:
The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the three months ended March 31, 2021, we recognized $31.1 of revenue related to the contract liability balance at the beginning of the three-month period ended March 31, 2021, as the result of performance obligations satisfied. In addition, we deferred an additional $25.3 related to certain material rights granted during the period, for which the performance obligations are not yet satisfied. Of the amount deferred during the period, substantially all will be recognized within a year, with the significant majority to be captured within a quarter. The remaining movement in the contract liability balance is attributable to foreign exchange differences arising on the translation of the balance as at March 31, 2021 as compared with December 31, 2020.
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INVENTORIES |
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INVENTORIES | INVENTORIES
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES We have operating and finance leases for corporate and market offices, warehouses, automotive and other equipment. Our sublease portfolio consists of the sublease of our previous principal executive office located at 777 Third Avenue, New York, NY. The table below shows the sublease income recorded in the Consolidated Statement of Operations incurred during the three months ended March 31, 2021 and 2020:
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Leases | LEASES We have operating and finance leases for corporate and market offices, warehouses, automotive and other equipment. Our sublease portfolio consists of the sublease of our previous principal executive office located at 777 Third Avenue, New York, NY. The table below shows the sublease income recorded in the Consolidated Statement of Operations incurred during the three months ended March 31, 2021 and 2020:
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CONTINGENCIES |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Brazilian Tax Assessments Tax on Manufactured Products – minimum pricing rules In December 2012 and in October 2017, our Brazilian subsidiary, Avon Industrial LTDA (Avon Brazil Manufacturing) received excise tax ("IPI") assessments for the years 2008 and 2014. As in prior IPI cases that have been resolved in Avon’s favor, the assessments assert that the establishment in 1995 of separate manufacturing and distribution companies in Brazil was done without a valid business purpose and that Avon Brazil Manufacturing did not observe minimum pricing rules to define the taxable basis of the tax on manufactured products. The structure adopted in 1995 is comparable to that used by many other companies in Brazil. We believe that our Brazilian corporate structure is appropriate, both operationally and legally, and that the assessments are unfounded. These matters are being contested at the administrative court, where proceedings are currently in progress. As of March 31, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $346 and $378, respectively. Tax on Manufactured Products – Decree equated certain commercial companies (not subject to IPI taxation) to industrial companies (IPI taxpayers) In May 2015, an executive decree established the levy of IPI on the sales of cosmetic products by Avon Brazil. Avon Brazil filed an objection to this levy on the basis that it is not constitutional since this tax is already paid by Avon Brazil Manufacturing. In December 2016, Avon Brazil received a favorable decision from the Federal District Court regarding this objection. This decision has been appealed by the Federal Tax Authority. As of March 31, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $216 and $231, respectively. Talc-Related Litigation The Company has been named a defendant in numerous personal injury lawsuits filed in U.S. courts, alleging that certain talc products the Company sold in the past were contaminated with asbestos. Many of these actions involve a number of co-defendants from a variety of different industries, including manufacturers of cosmetics and manufacturers of other products that, unlike the Company’s products, were designed to contain asbestos. As of March 31, 2021, there were 109 individual cases pending against the Company. During the three months ended March 31, 2021, 27 new cases were filed and 82 cases were dismissed, settled or otherwise resolved. The value of the settlements was not material, either individually or in the aggregate, to the Company’s results of operations for the three months ended March 31, 2021. Additional similar cases arising out of the use of the Company’s talc products are reasonably anticipated. We believe that the claims asserted against us in these cases are without merit. We are defending vigorously against these claims and will continue to do so. To date, the Company has not proceeded to trial in any case filed against it and there have been no findings of liability enforceable against the Company. However, nationwide trial results in similar cases filed against other manufacturers of cosmetic talc products have ranged from outright dismissals to very large jury awards of both compensatory and punitive damages. Given the inherent uncertainties of litigation, we cannot predict the outcome of all individual cases pending against the Company, and we are only able to make a specific estimate for a small number of individual cases that have advanced to the later stages of legal proceedings. For the remaining cases, we provide an estimate of exposure on an aggregated and ongoing basis, which takes into account the historical outcomes of all cases we have resolved to date. Any accruals currently recorded on the Company’s balance sheet with respect to these cases are not material. However, any adverse outcomes, either in an individual case or in the aggregate, could be material. Future costs to litigate these cases, which we expense as incurred, are not known but may be significant, though some costs will be covered by insurance. Brazilian Labor-Related Litigation On an ongoing basis, the Company is subject to numerous and diverse labor-related lawsuits filed by employees in Brazil. These cases are assessed on an aggregated and ongoing basis based on historical outcomes of similar cases. The claims made are often for significantly larger sums than have historically been paid out by the Company. Our practice continues to be to recognize a liability based on our assessment of historical payments in similar cases. Our best estimate of the probable loss for such cases at March 31, 2021 and December 31, 2020 was approximately $7 and $8, respectively. Accordingly, we have recognized a liability for this amount. Shareholder Litigation On February 14, 2019, a purported shareholder’s class action complaint (Bevinal v. Avon Products, Inc., et al., No. 19-cv-1420) was filed in the United States District Court for the Southern District of New York against the Company and certain former officers of the Company. The complaint was subsequently amended and recaptioned "In re Avon Products, Inc. Securities Litigation". The amended complaint is brought on behalf of a purported class consisting of all purchasers or acquirers of Avon common stock between January 21, 2016 and November 1, 2017, inclusive. The complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") based on allegedly false or misleading statements and alleged market manipulation with respect to, among other things, changes made to Avon’s credit terms for Representatives in Brazil. Avon and the individual defendants filed a motion to dismiss which the court denied. During 2020, the parties reached an agreement on a settlement of this class action. The terms of settlement include releases by members of the class of claims against the Company and the individual defendants and payment of $14.5 million. Approximately $2 million of the settlement was paid by the Company (which represented the remaining deductible under the Company’s applicable insurance policies) and the remainder of the settlement was paid by the Company’s insurers. On August 31, 2020, the court granted preliminary approval of the settlement, and on February 3, 2021, the court entered an order and judgment granting final approval of the settlement. This judgement is now final. Other Matters Various other lawsuits and claims, arising in the ordinary course of business or related to businesses previously sold, are pending or threatened against Avon. In management’s opinion, based on its review of the information available at this time, the total cost of resolving such other contingencies at March 31, 2021, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The tables below present the changes in AOCI by component and the reclassifications out of AOCI for the three months ended March 31, 2021 and 2020:
For further details on Other Comprehensive loss other than reclassifications see the Consolidated Statement of Comprehensive Loss. (1) Gross amount reclassified to other income (expense), net in our Consolidated Statements of Operations, and related taxes reclassified to income taxes in our Consolidated Statements of Operations. Foreign exchange net losses of $2.0 and $3.8 for the three months ended March 31, 2021 and 2020, respectively, resulting from the translation of actuarial losses and prior service cost recorded in AOCI, are included in foreign currency translation adjustments in our Consolidated Statements of Comprehensive Loss.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION We have identified two reportable segments based on geographic operations: Avon International and Avon Latin America. 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:
(1)Total revenue also includes revenue from other business activities of $1.9 and $6.4 for the three months ended March 31, 2021 and 2020, respectively, allocated to Avon International and Avon Latin America segments. Other 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. (2)Total loss from reportable segments also includes profit from other business activities and central expenses allocated to Avon International and Avon Latin America segments. Other business activities of $.1 and $2.9 for the three months ended March 31, 2021 and 2020, 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 $60.2 and $63.7 for the three months ended March 31, 2021 and 2020, 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, 2021, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments. (4)For the three months ended March 31, 2020, costs related to the Transaction primarily include professional fees 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 17, Merger with Natura for more information relating to the Natura transaction.
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SUPPLEMENTAL BALANCE SHEET INFORMATION |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION At March 31, 2021 and December 31, 2020, prepaid expenses and other included the following:
At March 31, 2021 and December 31, 2020, other assets included the following:
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RESTRUCTURING INITIATIVES |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING INITIATIVES | RESTRUCTURING INITIATIVES Natura &Co - Avon Integration Subsequent to the merger of Natura and Avon in January 2020, an integration plan (the "Avon Integration") was established to create the right global infrastructure to support the future ambitions of the Natura &Co Group while also identifying synergies and opportunities to leverage our combined strength, scale and reach. Synergies will be derived mainly from procurement, manufacturing/distribution and administrative, as well as top line synergies, primarily between Avon LATAM and Natura &Co Latin America. Open Up Avon, Open Up & Grow and Transformation Plan In January 2016, we initiated a transformation plan (the "Transformation Plan"), in order to enable us to achieve our long-term goals of mid-single-digit Constant $ revenue growth and low double-digit operating margin. There are no further restructuring actions to be taken associated with our Transformation Plan as, beginning in the third quarter of 2018, all new restructuring actions approved operate under our new Open Up Avon plan described below. In September 2018, we initiated a new strategy in order to return Avon to growth ("Open Up Avon"). The Open Up Avon strategy was integral to our ability to return Avon to growth, built around the necessity of incorporating new approaches to various elements of our business, including increased utilization of third-party providers in manufacturing and technology, a more fit for purpose asset base, and a focus on enabling our Representatives to more easily interact with the company and achieve relevant earnings. In January 2019, we announced significant advancements in this strategy, including a structural reset of inventory processes and a reduction in global workforce. In May 2020, the new leadership of Avon International refreshed our strategy ("Open Up & Grow") which aims to return Avon International to growth over the next three years. Open Up & Grow replaces and builds on the success of the Open Up Avon strategy, launched in 2018, to strengthen competitiveness through enhancing the representative experience, improving brand position and relevance, accelerating digital expansion and improving costs. Over the next three years, savings are expected to continue to be achieved through restructuring actions (that may continue to result in charges related to severance, contract terminations and asset write-offs), as well as other cost-savings strategies that would not result in restructuring charges. Costs to Implement Restructuring Initiatives - Three Months Ended March 31, 2021 and 2020 During the three months ended March 31, 2021, we recorded net costs to implement of $19.5, of which $6.1 related to Avon Integration, $14.2 related to Open Up & Grow and a benefit of $.8 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended March 31, 2020, we recorded costs to implement of $1.8 of which $4.9 related to Open Up & Grow, and a net benefit of $3.1 related to the Transformation Plan, in our Consolidated Statements of Operations. The costs during the three months ended March 31, 2021 and 2020 consisted of the following:
The following liability balances include restructuring costs such as employee-related costs, inventory and asset write-offs, foreign currency translation write-offs and contract terminations, and do not include other costs to implement restructuring initiatives such as professional services fees, dual running costs, accelerated depreciation and gain on sale of business. The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Avon Integration at March 31, 2021 and December 31, 2020 is $3.6 and $.7, respectively, related to employee related costs. The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Open Up & Grow at March 31, 2021 is as follows:
The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at March 31, 2021 and December 31, 2020 is $.5 and $3.5, respectively, related to employee related costs. The majority of cash payments, if applicable, associated with the year-end liability are expected to be made during 2021. The following table presents the restructuring charges incurred to date under Avon Integration, Open Up & Grow (formerly Open Up Avon) and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans:
The charges, net of adjustments, of initiatives under the Open Up & Grow and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans, by reportable segment are as follows:
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GOODWILL |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL
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FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2021:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:
Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, accounts receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forward contracts. The carrying value for cash and cash equivalents, accounts receivable, accounts payable, debt maturing within one year and short-term investments approximate fair value because of the short-term nature of these instruments. The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at March 31, 2021 and December 31, 2020, respectively, consisted of the following:
(1) The carrying value of long-term debt is presented net of debt issuance costs and includes any related discount or premium, as applicable. The methods and assumptions used to estimate fair value are as follows: •Available-for-sale securities - The fair values of these investments were the quoted market prices for issues listed on securities exchanges. •Long-term debt - The fair values of our debt and other financing were determined using Level 2 inputs based on indicative market prices. •Foreign exchange forward contracts - The fair values of forward contracts were estimated based on quoted forward foreign exchange prices at the reporting date.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We operate globally, with manufacturing and distribution facilities in various countries around the world. We may reduce our exposure to fluctuations in the fair value and cash flows associated with changes in interest rates and foreign exchange rates by creating offsetting positions, including through the use of derivative financial instruments. If we use foreign currency-rate sensitive and interest-rate sensitive instruments to hedge a certain portion of our existing and forecasted transactions, we would expect that any gain or loss in value of the hedge instruments generally would be offset by decreases or increases in the value of the underlying forecasted transactions. We do not enter into derivative financial instruments for trading or speculative purposes, nor are we a party to leveraged derivatives. Agreements governing our derivative contracts generally contain standard provisions that could trigger early termination of the contracts in certain circumstances, including if we were to merge with another entity and the creditworthiness of the surviving entity were to be "materially weaker" than that of Avon prior to the Transaction. Derivatives are recognized in the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments at March 31, 2021:
Derivatives are recognized in the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments at December 31, 2020:
Interest Rate Risk At March 31, 2021 and December 31, 2020, we do not have any interest-rate swap agreements. Approximately 5% and 4% of our debt portfolio at March 31, 2021 and December 31, 2020, respectively, was exposed to floating interest rates, which relates to our short-term debt portfolio. Foreign Currency Risk We may use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At March 31, 2021, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $170 for various currencies, none of which were designated as cash flow hedges. We may use foreign exchange forward contracts to manage foreign currency exposure of certain balance sheet items. The change in fair value of these items is immediately recognized in earnings and substantially offsets the foreign currency translation impact recognized in earnings relating to the associated balance sheet items. During the three months ended March 31, 2021 and 2020, we recorded a loss of $.7 and a gain of $10.6, respectively, in other (expense) income, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. During the first quarter of 2019, we discontinued our program to hedge foreign exchange risk relating to forecasted operational transactions. The last of our designated cash flow hedges expired during the first quarter of 2020. Our designated hedges did not have a material impact on our Consolidated Financial Statements for the three months ended March 31, 2020.
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DEBT |
3 Months Ended |
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Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Natura Revolving Credit Facility In May 2020, the Company’s subsidiary, Avon Luxembourg Holdings S.à r.l entered into a Revolving Credit Facility Agreement with Natura &Co International S.à r.l,. a subsidiary of Natura &Co Holding S.A. and an affiliate of the Company in the initial amount of $100, such amount increased to $250 in March 2021, which may be used for working capital and other general corporate purposes (the "Facility"). Any borrowings under the Facility will bear interest at a rate per annum of LIBOR plus 7.7% and the Facility will mature on May 31, 2022. As at March 31, 2021, $103 including interest was outstanding under the Facility. See Note 18, Subsequent Events, for information related to changes subsequent to March 31, 2021. Other loans from affiliates of Natura &Co In November 2020, Avon International Operations, Inc. ("AIO") entered into a Promissory Note with a subsidiary of Natura &Co Holding S.A. and an affiliate of the Company in the amount of $960. The Promissory Note bears interest at a rate per annum of 3.13% and matures on November 2, 2021 (“the Natura &Co Loan”). As at March 31, 2021, $972.5 including accrued interest of $12.5 was outstanding under the Promissory Note. Loans from affiliates of Natura &Co Holding at March 31, 2021 also include a $2.0 previously intercompany balance that became a related party balance on the sale of Avon Shanghai Management to an affiliate of Natura &Co Holding in August 2020. Other short-term financing In addition, at March 31, 2021, we utilized approximately $38 of short-term financing from third-party banks across multiple markets. 2019 Revolving Credit Facility In February 2019, Avon International Capital, p.l.c. ("AIC"), a wholly owned foreign subsidiary of the Company, entered into a three year €200.0 senior secured revolving credit facility (the "2019 facility") and capitalized $11.0 of issuance costs, the related cash outflow is presented in other financing activities within the 10-K Consolidated Statement of Cash Flows. The 2019 facility was available for general corporate and working capital purposes. As of December 31, 2019, there were no amounts outstanding under the 2019 facility and on January 3, 2020, the facility was automatically canceled upon change of control, and as a result $7.8 of unamortized issuance costs were written off, see Note 17, Mergers with Natura Cosméticos S.A. Unsecured Notes In March 2013, we issued a series of unsecured notes (the "2013 Notes"). As of March 31, 2021, the following 2013 Notes remain outstanding; $461.9 aggregate principal amount of 5% Notes due March 15, 2023 and $216.1 aggregate principal amount of 6.95% Notes due March 15, 2043. Interest on the 2013 Notes is payable semiannually on March 15 and September 15 of each year. The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the long-term credit ratings assigned to the 2013 Notes by S&P and Moody’s. As described in the indenture, the interest rates on the 2013 Notes increase or decrease by .25% for each one-notch movement below investment grade on each of the credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes. In September 2020, we repurchased $27.8 of our 6.95% Notes due March 15, 2043. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $3.8 and accrued interest of $1.2. In connection with the repurchase, we incurred a loss on extinguishment of debt of $4.1 before tax in the third quarter of 2020 consisting of the $3.8 premium paid for the repurchases, and $.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased. Senior Secured Notes In August 2016, AIO, issued $500.0 in aggregate principal amount of 7.875% Senior Secured Notes due August 15, 2022 (the "2016 Notes"). In July 2019, AIC issued $400.0 in aggregate principal amount of 6.5% Senior Secured Notes due August 15, 2022 (the "2019 Notes"). In November 2020, in connection with the Natura & Co Promissory Note, we redeemed the outstanding principal amount of our 2016 Notes due August 15, 2022 and the outstanding principal amount of our 2019 Notes due August 15, 2022. With respect to the 2016 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $500, plus a premium of $9.8 and accrued interest of $8.4. With respect to the 2019 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $400, plus a premium of $7.9 and accrued interest of $5.6. In connection with the redemption, we incurred a loss on extinguishment of debt of $25.6 before tax in the fourth quarter of 2020 consisting of the $17.7 premiums, and the write-off of $7.9 of debt issuance costs related to the initial issuances of the notes that were redeemed. For a more detailed description of the Company’s debt agreements, refer to Note 7, Debt and Other Financing of our Annual Report on Form 10-K for the year ended December 31, 2020.
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our quarterly income tax provision is calculated using an estimated annual effective income tax approach. The quarterly effective tax rate can differ from our estimated annual effective tax rate as the Company cannot apply an effective tax rate approach for all of its operations. For those entities that can apply an effective tax rate approach, as of March 31, 2021, our annual effective tax rate, excluding discrete items, is 26.5%, as compared to 27.2% as of March 31, 2020. The remaining entities, which are operations that generate pre-tax losses which cannot be tax benefited and/or have an effective tax rate which cannot be reliably estimated, have to account for their income taxes on a discrete year-to-date basis as of the end of each quarter and are excluded from the effective tax rate approach. The estimated annual effective tax rate for 2021 and 2020 also excludes the unfavorable impact of withholding taxes associated with certain intercompany payments, including royalties, service charges, interest and dividends, which in the aggregate are relatively consistent each year due to the need to repatriate funds to cover U.S. and U.K. based costs, such as interest on debt and central expenses. Withholding taxes associated with the relatively consistent intercompany payments are accounted for discretely and accrued in the provision for income taxes as they become due. The provision for income taxes for the three months ended March 31, 2021 and 2020 was $7.1 and $8.8, respectively. Our effective tax rates for the three months ended March 31, 2021 and 2020 were (11.5)% and (5.6)%, respectively. The effective tax rates for the three months ended March 31, 2021 and 2020 were impacted by CTI restructuring charges which could not all be benefited, country mix of earnings and withholding taxes. The effective tax rate in the first quarter of 2021 was unfavorably impacted by reserves for uncertain tax positions of $1.2 legislative changes of $.8 and miscellaneous income tax expense of approximately $.4. The effective tax rate in the first quarter of 2020 was unfavorably impacted by miscellaneous income tax expense of approximately $1.5. In prior years, we had previously recorded valuation allowances against certain deferred tax assets associated with the U.S. and various foreign jurisdictions. We intend to continue maintaining these valuation allowances on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that we are able to actually achieve. The Company continuously monitors its operational and capital structure changes, business performance, tax planning actions and tax planning strategies that could potentially allow for the recognition of deferred tax assets which are currently subject to a valuation allowance. There is the possibility that, in the foreseeable future, certain deferred tax assets could be recognized, which may be material, related to changes in business operations and associated financing of such operations. Further, the Company continuously assesses available positive and negative evidence to estimate whether sufficient future taxable income will be generated to utilize our existing deferred tax assets that are not subject to a valuation allowance. As of March 31, 2021, the COVID-19 pandemic is negative evidence the Company must consider. As of March 31, 2021, the negative evidence associated with COVID-19 has not required the recording of additional valuation allowances against deferred tax assets that are expected to be realized in future periods. The Company will continue to monitor the COVID-19 pandemic and other effects that could impact the conclusions regarding the realizability of its remaining deferred tax assets. Potential negative evidence, including such things as the worsening of the economies in the markets we operate in and reduced profitability of our markets could give rise to a need for a valuation allowance to reduce our deferred tax assets in upcoming quarters.
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MERGER WITH NATURA COSMETICOS S.A. |
3 Months Ended |
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Mar. 31, 2021 | |
Business Combinations [Abstract] | |
MERGER WITH NATURA COSMETICOS S.A. | MERGER WITH NATURA COSMÉTICOS S.A. On May 22, 2019, the Company entered into the Agreement and Plan of Mergers (as amended by Amendment Number One to Agreement and Plant of Mergers, dated as of October 3, 2019, and as further amended by Amendment Number Two to Agreement and Plan of Mergers, dated as of November 5, 2019, the "Merger Agreement") among the Company, Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) ("Natura Cosméticos"), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima), Nectarine Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Natura &Co Holding ("Merger Sub I"), and Nectarine Merger Sub II, Inc., a Delaware corporation and a direct wholly owned subsidiary of Merger Sub I ("Merger Sub II"), pursuant to which (i) Natura &Co Holding, after the completion of certain restructuring steps, holds all issued and outstanding shares of Natura Cosméticos, (ii) Merger Sub II merged with and into the Company, with the Company surviving the merger (the "First Merger") and (iii) Merger Sub I merged with and into Natura &Co Holding (the "Second Merger"), with Natura &Co Holding surviving the merger and as a result of which the Company and Natura Cosméticos became wholly owned direct subsidiaries of Natura &Co Holding (collectively, the "Transaction"). The Transaction was consummated on January 3, 2020, and at this time, the Company became a wholly owned direct subsidiary of Natura &Co Holding. In connection with the Transaction, trading of the Company’s stock was suspended by the NYSE, and the Company’s common stock was subsequently delisted and deregistered. On completion of the Transaction, each share of the Company’s common stock issued and outstanding immediately prior to the consummation of the Transaction was converted into the ultimate right to receive, (i) 0.300 validly issued and allotted, fully paid-up American Depositary Shares of Natura &Co Holding, ("Natura &Co Holding ADSs") against the deposit of two shares of common stock of Natura &Co Holding ("Natura &Co Holding Shares", subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding ADSs or (ii) 0.600 validly issued and allotted, fully paid-up Natura &Co Holding Shares, subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding Shares. The Company’s Series C Preferred Stock held by Cerberus Investor were converted to common stock prior to consummation of the Transaction and were therefore automatically converted into common stock of Natura &Co. In January 2020, Natura &Co Holding paid the accrued dividend of $91.5 to Cerberus. Natura &Co Holding Shares are listed on the B3 S.A. - Brasil, Bolsa, Balcão stock exchange, and Natura &Co Holding ADSs are listed on the NYSE. Additionally, upon the consummation of the Transaction, Avon common stock ceased to be traded on the NYSE. In January 2020, subsequent to the Transaction, the Company restated the certificate of incorporation. The certificate of incorporation was restated to effect a change in capitalization of the Company by changing the number of authorized shares of common stock from 1,525,000,000 shares (of which (i) 1,500,000,000 shares, par value $0.25 per share, are common stock and (ii) 25,000,000 shares, par value $1.00 per share, are preferred stock) to 1,000 shares of common stock, par value $0.01 per share. As a result, all of the issued and outstanding common stock of the Company, being 550,890,788 were canceled and converted into 101.34 common stock, par value $0.01 per share, and all outstanding treasury shares were canceled. The Company incurred costs of $46 in relation to the Transaction, primarily professional fees during the year ended December 31, 2020. During January 2020, it was announced that the employment of certain senior officers of the Company would be terminated, in connection with the Transaction. The Company incurred severance of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. As a result of the Transaction, the Company made payments of approximately $26 related to the settlement of stock options. In addition, any remaining restricted stock units and performance restricted stock units were exchanged for awards of Natura &Co Holding. The replacement awards contain substantially the same terms and conditions of the original awards except for the removal of the performance conditions. As such, the replacement awards contain only a service vesting condition. On consummation of the Transaction, a deferred compensation scheme relating to former employees of the Company became payable which resulted in extinguishing the liability and a cash outflow of approximately $12. In January 2020, upon completion of the Transaction, the Company’s revolving credit facility was canceled, triggered by change in control provisions. As a result, debt issuance costs of $7.8 were written off. As a result of the Transaction, the Company will no longer have access to certain tax attributes of approximately $546 to approximately $616 in certain taxing jurisdictions. These tax attributes had been formerly reflected as deferred tax assets which were subject to a full valuation allowance and as a result, there was no impact to net income in 2020 from the write-off of the deferred tax asset and the associated valuation allowances.
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS During April 2021, the Company borrowed an additional $40 under the $250 Revolving Credit Facility with a subsidiary of Natura &Co Holding S.A.,. During May 2021, maturing loans of $143 borrowed under the $250 Revolving Credit Facility with a subsidiary of Natura &Co Holding S.A. were renewed including capitalization of the accrued interest.
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ACCOUNTING POLICIES (Policy) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepare our unaudited interim Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States ("GAAP"). We consistently applied the accounting policies described in our 2020 Annual Report on Form 10-K ("2020 Form 10-K") in preparing these unaudited interim Consolidated Financial Statements, other than those impacted by new accounting standards as described below. On January 3, 2020, we completed the Agreement and Plan of Mergers with Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) ("Natura Cosméticos"), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima) ("Natura &Co Holding"), and two subsidiaries of Natura &Co Holding S.A. ("Natura &Co") pursuant to which, in a series of transactions (the "Transaction"). Upon the consummation of the Transaction, the Company became a wholly owned subsidiary of Natura &Co Holding and Avon's common stock ceased to be traded on the NYSE. The Company files these unaudited interim Consolidated Financial Statements with the SEC as a voluntary filer to comply with the terms of certain debt instruments. For additional information, see Note 17, Agreement and Plan of Mergers with Natura Cosméticos S.A. In our opinion, the unaudited interim Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results for a full year. You should read these unaudited interim Consolidated Financial Statements in conjunction with our Consolidated Financial Statements contained in our 2020 Form 10-K. When used in this report, the terms "Avon," "Company," "we" or "us" mean Avon Products, Inc. For interim Consolidated Financial Statements purposes, we generally provide for accruals under our various employee benefit plans for each quarter based on one quarter of the estimated annual expense, and adjust these accruals as estimates are refined. In addition, our income tax provision is determined using an estimate of our consolidated annual effective tax rate, adjusted in the current period for discrete income tax items including: •the effects of significant, unusual or extraordinary pretax and income tax items, if any; •the impact of changes in tax legislation, if any; •withholding taxes recognized associated with cash repatriations; and •the impact of loss-making subsidiaries for which we cannot recognize an income tax benefit and subsidiaries for which an effective tax rate cannot be reliably estimated.
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Reclassifications | ReclassificationsDuring the third quarter of 2020, we identified an immaterial classification error in the Consolidated Statement of Cash Flows relating to the three-month period ended March 31, 2020 with respect to cash flows from the settlement of derivative contracts. Our accounting policy is to classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. However, we have identified that cash flows relating to derivative contracts that economically hedge foreign exchange gains and losses on intercompany loans have been incorrectly classified as operating activities rather than financing activities. We have corrected this reclassification error through a revision to the unaudited interim Consolidated Statement of Cash Flows for the three-month period ended March 31, 2020 to reclassify cash inflows of $5.7 from the settlement of derivative contracts from operating activities to financing activities. |
Accounting Standards Implemented | Accounting Standards Implemented ASU 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes, which is intended to simplify the accounting standard and improve the usefulness of information provided in the financial statements. We adopted this new accounting guidance as of January 1, 2021. The adoption did not have a material impact on our Consolidated Financial Statements.
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DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The major classes of financial statement components comprising the loss on discontinued operations, net of tax for New Avon during the three-month period ended March 31, 2021 and 2020 are shown below:
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Major Classes of Financial Statement Components Comprising the Loss on Discontinued Operations | The major classes of assets comprising held for sale assets on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 are shown in the following table:
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RELATED PARTY TRANSACTIONS (Tables) |
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Schedule of Related Party Transactions | The following tables present the related party transactions with Natura &Co and its affiliates and the Instituto Avon in Brazil. There are no other related party transactions.
(1) 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 reais) for an unsecured five-year term at a fixed interest rate of 7% per annum, to be paid back in five 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 was 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. (2) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $7.7 associated with these agreements during the three months ended March 31, 2021. The Company recorded gross profit from related party of $.6 associated with these agreements during the three months ended March 31, 2021. Receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements. (3) During the first quarter of 2021, the nominal cost options related to the grant of the 2018 long-term employee incentive program vested and were automatically exercised. The equity awards were denominated in Natura &Co American Depository Receipts. The payable to Natura &Co is related to vesting and settlement of these awards. (4) Loans from affiliates of Natura &Co Holding at March 31, 2021 of $1,077.4 include $972.5 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. Loans from affiliates of Natura &Co Holding at March 31, 2021 also include $102.9 outstanding under the Revolving Credit Facility between Avon Luxembourg Holdings S.à r.l and Natura &Co International S.à r.l.. Loans from affiliates of Natura &Co Holding at December 31, 2020 of $1,008.6 include $965 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. Loans from affiliates of Natura &Co Holding at December 31, 2020 also include $41.6 outstanding under the Revolving Credit Facility between Avon Luxembourg Holdings S.à r.l and Natura &Co International S.à r.l.. See Note 15, Debt and Other Financing, for further information relating to these loans.
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REVENUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | All revenue is recognized at a point in time when control of a product is transferred to a customer:
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Receivables and Contract Liabilities from Contracts with Customers | The following table provides information about receivables and contract liabilities from contracts with customers at March 31, 2021 and December 31, 2020:
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INVENTORIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventories |
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost | The table below shows the sublease income recorded in the Consolidated Statement of Operations incurred during the three months ended March 31, 2021 and 2020:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) | The tables below present the changes in AOCI by component and the reclassifications out of AOCI for the three months ended March 31, 2021 and 2020:
For further details on Other Comprehensive loss other than reclassifications see the Consolidated Statement of Comprehensive Loss. (1) Gross amount reclassified to other income (expense), net in our Consolidated Statements of Operations, and related taxes reclassified to income taxes in our Consolidated Statements of Operations.
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SEGMENT INFORMATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Revenue | Summarized financial information concerning our reportable segments was as follows:
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Schedule of Operating (Loss) Profit |
(1)Total revenue also includes revenue from other business activities of $1.9 and $6.4 for the three months ended March 31, 2021 and 2020, respectively, allocated to Avon International and Avon Latin America segments. Other 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. (2)Total loss from reportable segments also includes profit from other business activities and central expenses allocated to Avon International and Avon Latin America segments. Other business activities of $.1 and $2.9 for the three months ended March 31, 2021 and 2020, 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 $60.2 and $63.7 for the three months ended March 31, 2021 and 2020, 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, 2021, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments. (4)For the three months ended March 31, 2020, costs related to the Transaction primarily include professional fees 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 17, Merger with Natura for more information relating to the Natura transaction.
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SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Prepaid Expenses and Other | At March 31, 2021 and December 31, 2020, prepaid expenses and other included the following:
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Schedule of Components of Other Assets | At March 31, 2021 and December 31, 2020, other assets included the following:
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RESTRUCTURING INITIATIVES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring and Related Costs | The costs during the three months ended March 31, 2021 and 2020 consisted of the following:
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Schedule of Restructuring Reserve | The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with Open Up & Grow at March 31, 2021 is as follows:
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Schedule of Restructuring Charges Reportable by Business Segment | The following table presents the restructuring charges incurred to date under Avon Integration, Open Up & Grow (formerly Open Up Avon) and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans:
The charges, net of adjustments, of initiatives under the Open Up & Grow and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans, by reportable segment are as follows:
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GOODWILL (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill |
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FAIR VALUE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2021:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2020:
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Summary of Carrying Value and Fair Value of Financial Instruments | The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at March 31, 2021 and December 31, 2020, respectively, consisted of the following:
(1) The carrying value of long-term debt is presented net of debt issuance costs and includes any related discount or premium, as applicable.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | The following table presents the fair value of derivative instruments at March 31, 2021:
Derivatives are recognized in the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments at December 31, 2020:
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ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Nov. 30, 2020 |
|
Property, Plant and Equipment [Line Items] | ||||
Foreign exchange gain | $ 0.5 | $ 21.9 | ||
Loans from affiliates of Natura &Co | $ 1,077.4 | $ 1,008.6 | ||
3.13% Promissory Notes due November 2022 | ||||
Property, Plant and Equipment [Line Items] | ||||
Loans from affiliates of Natura &Co | $ 960.0 | |||
Revision of Prior Period, Reclassification, Adjustment | ||||
Property, Plant and Equipment [Line Items] | ||||
Foreign exchange gain | 5.7 | |||
Settlement of derivative contracts | $ 5.7 |
DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Major Classes of Financial Statement Components Comprising the Loss on Discontinued Operations (Details) - New Avon - Discontinued Operations - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Selling, general and administrative expenses | $ 5.0 | $ (4.7) |
Operating income (loss) | 5.0 | (4.7) |
Income (loss) from discontinued operations, net of tax | $ 5.0 | $ (4.7) |
DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Current held for sale assets | ||
Cash and cash equivalents | $ 0.7 | |
Held for sale liabilities | ||
Current held for sale assets | ||
Inventories | 0.0 | $ 2.6 |
Property, Plant & Equipment (net) | 8.4 | 9.2 |
Cash and cash equivalents | 0.0 | 0.7 |
Other assets | 0.0 | 1.4 |
Held for sale assets | 8.4 | 13.9 |
Current held for sale liabilities | ||
Accounts payable | 0.0 | 0.5 |
Other liabilities | 0.0 | 1.8 |
Held for sale liabilities | $ 0.0 | $ 2.3 |
DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Narrative (Details) $ in Millions |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 15, 2019
USD ($)
|
Mar. 31, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Mar. 31, 2021
property
|
Dec. 31, 2020
property
business
|
Dec. 31, 2019
USD ($)
|
|
Avon Manufacturing (Guangzhou), Ltd. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net proceeds from sale of business / assets | $ 46.4 | |||||
Restricted cash | $ 7.5 | |||||
Avon Manufacturing (Guangzhou), Ltd. | TheFaceShop Co., LTd. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net proceeds from sale of business / assets | 71.0 | |||||
Disposal costs | 1.1 | |||||
Loans assumed | $ 23.5 | |||||
Avon International | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of properties held for sale | property | 1 | 1 | ||||
Number of businesses held for sale | business | 1 | |||||
Avon Latin America | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of properties held for sale | property | 1 | 1 | ||||
China Wellness Plant | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net proceeds from sale of business / assets | $ 6.6 | $ 1.3 |
RELATED PARTY TRANSACTIONS - Summary of Related Parties (Details) R$ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Jun. 30, 2018
BRL (R$)
installment
|
Dec. 31, 2020
USD ($)
|
|
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 7,700,000 | $ 0 | ||
Loan term | 5 years | |||
Natura Promissory Note | ||||
Related Party Transaction [Line Items] | ||||
Outstanding | 972,500,000 | $ 965,000,000 | ||
Natura Revolving Facility Due May 2022 | ||||
Related Party Transaction [Line Items] | ||||
Outstanding | 102,900,000 | 41,600,000 | ||
Affiliates of Natura&Co | ||||
Related Party Transaction [Line Items] | ||||
Interest expense on loan from Natura & Co | 8,700,000 | 0 | ||
Receivables due from related party | 9,200,000 | 6,100,000 | ||
Payables due to related parties | 3,000,000.0 | 0 | ||
Loan from Natura &Co | 1,077,400,000 | 1,008,600,000 | ||
Affiliates of Natura&Co | Manufacturing and Supply Agreement | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 7,700,000 | 0 | ||
Gross profit from sale of product | 600,000 | $ 0 | ||
Instituto Avon | ||||
Related Party Transaction [Line Items] | ||||
Receivables due from related party | $ 800,000 | $ 800,000 | ||
Affiliated entity | Loan to Related Party | Instituto Avon | ||||
Related Party Transaction [Line Items] | ||||
Loan amount | R$ | R$ 12 | |||
Loan interest rate | 7.00% | |||
Number of loan annual installments | installment | 5 |
REVENUE - Disaggregation of Revenues (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | $ 7.7 | $ 0.0 |
Total revenue | 904.4 | 957.3 |
Beauty | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 608.2 | 693.8 |
Beauty - Skincare | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 272.3 | 296.8 |
Beauty - Fragrance | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 222.0 | 248.3 |
Beauty - Color | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 113.9 | 148.7 |
Fashion And Home | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 242.2 | 206.0 |
Fashion & Home - Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 118.5 | 115.9 |
Fashion & Home - Home | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 123.7 | 90.1 |
Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 850.4 | 899.8 |
Total revenue | 850.4 | 899.8 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 54.0 | 57.5 |
Other - Representative Fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 46.1 | 51.0 |
Other - Other Product And Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 7.9 | 6.5 |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 896.7 | |
Total revenue | 896.7 | 957.3 |
Operating Segments | Beauty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 608.2 | |
Operating Segments | Beauty - Skincare | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 272.3 | |
Operating Segments | Beauty - Fragrance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 222.0 | |
Operating Segments | Beauty - Color | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 113.9 | |
Operating Segments | Fashion And Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 242.2 | |
Operating Segments | Fashion & Home - Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 118.5 | |
Operating Segments | Fashion & Home - Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 123.7 | |
Operating Segments | Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 850.4 | |
Operating Segments | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46.3 | |
Operating Segments | Other - Representative Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46.1 | |
Operating Segments | Other - Other Product And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.2 | |
Revenue from affiliates to Natura &Co | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 7.7 | |
Total revenue | 7.7 | 0.0 |
Revenue from affiliates to Natura &Co | Beauty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Beauty - Skincare | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Beauty - Fragrance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Beauty - Color | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Fashion And Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Fashion & Home - Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Fashion & Home - Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 7.7 | |
Revenue from affiliates to Natura &Co | Other - Representative Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 0.0 | |
Revenue from affiliates to Natura &Co | Other - Other Product And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from affiliates of Natura &Co | 7.7 | |
Avon International | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 430.9 | 477.1 |
Total revenue | 430.9 | 477.1 |
Avon International | Operating Segments | Beauty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 328.6 | 368.1 |
Avon International | Operating Segments | Beauty - Skincare | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 145.3 | 150.8 |
Avon International | Operating Segments | Beauty - Fragrance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 119.9 | 132.3 |
Avon International | Operating Segments | Beauty - Color | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 63.4 | 85.0 |
Avon International | Operating Segments | Fashion And Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 84.5 | 85.9 |
Avon International | Operating Segments | Fashion & Home - Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 67.7 | 72.7 |
Avon International | Operating Segments | Fashion & Home - Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16.8 | 13.2 |
Avon International | Operating Segments | Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 413.1 | 454.0 |
Avon International | Operating Segments | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17.8 | 23.1 |
Avon International | Operating Segments | Other - Representative Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17.8 | 20.2 |
Avon International | Operating Segments | Other - Other Product And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0.0 | 2.9 |
Avon Latin America | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 465.8 | 480.2 |
Total revenue | 465.8 | 480.2 |
Avon Latin America | Operating Segments | Beauty | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 279.6 | 325.7 |
Avon Latin America | Operating Segments | Beauty - Skincare | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 127.0 | 146.0 |
Avon Latin America | Operating Segments | Beauty - Fragrance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 102.1 | 116.0 |
Avon Latin America | Operating Segments | Beauty - Color | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 50.5 | 63.7 |
Avon Latin America | Operating Segments | Fashion And Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 157.7 | 120.1 |
Avon Latin America | Operating Segments | Fashion & Home - Fashion | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 50.8 | 43.2 |
Avon Latin America | Operating Segments | Fashion & Home - Home | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 106.9 | 76.9 |
Avon Latin America | Operating Segments | Net Sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 437.3 | 445.8 |
Avon Latin America | Operating Segments | Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28.5 | 34.4 |
Avon Latin America | Operating Segments | Other - Representative Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28.3 | 30.8 |
Avon Latin America | Operating Segments | Other - Other Product And Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0.2 | $ 3.6 |
REVENUE - Assets and Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net of allowances of $47.5 and $51.1 | $ 248.1 | $ 259.1 |
Contract liabilities | 41.3 | 52.1 |
Accounts receivable, allowances | $ 47.5 | $ 51.1 |
REVENUE - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Performance obligations satisfied | $ 31.1 |
Material rights | $ 25.3 |
INVENTORIES - Components of Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 119.0 | $ 131.3 |
Finished goods | 348.0 | 327.8 |
Inventories | $ 467.0 | $ 459.1 |
LEASES - Income and Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Leases [Abstract] | ||
Sublease income | $ 4.3 | $ 4.1 |
CONTINGENCIES (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
lawsuit
|
Dec. 31, 2020
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Number of litigation suits | lawsuit | 109 | |
Number of litigation suits, new | lawsuit | 27 | |
Number of litigation suits, dismissed | lawsuit | 82 | |
Brazilian Tax Assessments | ||
Loss Contingencies [Line Items] | ||
Possible loss | $ 346.0 | $ 378.0 |
IPI Tax on Cosmetics | ||
Loss Contingencies [Line Items] | ||
Possible loss | 216.0 | 231.0 |
Brazil labor-related | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 7.0 | $ 8.0 |
Shareholder Litigation | ||
Loss Contingencies [Line Items] | ||
Litigation settlement payment | 14.5 | |
Settlement payment paid by company | $ 2.0 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | $ (871.5) | |
Other comprehensive loss other than reclassifications | (44.5) | $ (106.9) |
Reclassifications into earnings: | ||
Derivative losses on cash flow hedges, net of tax | 0.6 | |
Amortization of net actuarial loss and prior service cost, net of tax | 1.2 | 2.0 |
Total reclassifications into earnings | 1.2 | 2.6 |
Accumulated other comprehensive income, ending balance | (977.8) | |
Derivative losses on cash flow hedges, tax | 0.0 | |
Amortization of net actuarial loss and prior service cost, tax | 0.2 | 0.2 |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (1,038.2) | (942.7) |
Other comprehensive loss other than reclassifications | (44.5) | (106.9) |
Reclassifications into earnings: | ||
Total reclassifications into earnings | 0.0 | 0.0 |
Accumulated other comprehensive income, ending balance | (1,082.7) | (1,049.6) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (0.6) | |
Other comprehensive loss other than reclassifications | 0.0 | |
Reclassifications into earnings: | ||
Derivative losses on cash flow hedges, net of tax | 0.6 | |
Total reclassifications into earnings | 0.6 | |
Accumulated other comprehensive income, ending balance | 0.0 | |
Net Investment Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (4.3) | (4.3) |
Other comprehensive loss other than reclassifications | 0.0 | 0.0 |
Reclassifications into earnings: | ||
Total reclassifications into earnings | 0.0 | 0.0 |
Accumulated other comprehensive income, ending balance | (4.3) | (4.3) |
Pension and Postretirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (91.3) | (92.4) |
Other comprehensive loss other than reclassifications | 0.0 | 0.0 |
Reclassifications into earnings: | ||
Amortization of net actuarial loss and prior service cost, net of tax | 1.2 | 2.0 |
Total reclassifications into earnings | 1.2 | 2.0 |
Accumulated other comprehensive income, ending balance | (90.1) | (90.4) |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (1,133.8) | (1,040.0) |
Reclassifications into earnings: | ||
Accumulated other comprehensive income, ending balance | $ (1,177.1) | $ (1,144.3) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Equity [Abstract] | ||
Foreign exchange losses | $ 2.0 | $ 3.8 |
SEGMENT INFORMATION - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION - Total Revenue and Operating Profit by Reporting Segment (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jan. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 904.4 | $ 957.3 | ||
Operating (loss) profit | (37.1) | (101.8) | ||
CTI restructuring initiatives | (19.5) | (1.8) | ||
Other expense, net | (1.3) | (18.2) | ||
Royalty expense | 60.2 | 63.7 | ||
Merger Agreement | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition expenses | 44.0 | $ 46.0 | ||
Severance costs | $ 25.0 | 25.0 | ||
Accelerated share based compensation | $ 10.0 | 10.0 | ||
Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 896.7 | 957.3 | ||
Operating (loss) profit | (11.6) | (14.5) | ||
All other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1.9 | 6.4 | ||
Operating (loss) profit | 0.1 | 2.9 | ||
Unallocated global expenses | (6.0) | 0.0 | ||
CTI restructuring initiatives | (19.5) | (1.8) | ||
Other expense, net | 0.0 | (85.5) | ||
Revenue from affiliates to Natura &Co | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 7.7 | 0.0 | ||
Avon International | Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 430.9 | 477.1 | ||
Operating (loss) profit | (7.0) | 2.7 | ||
Avon Latin America | Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 465.8 | 480.2 | ||
Operating (loss) profit | $ (4.6) | $ (17.2) |
SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Prepaid Expenses and Other (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 119.3 | $ 117.6 |
Receivables other than trade | 32.1 | 34.9 |
Prepaid brochure costs, paper and other literature | 9.3 | 12.0 |
Other | 49.8 | 39.7 |
Prepaid expenses and other | $ 210.5 | $ 204.2 |
SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Other Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net overfunded pension plans | $ 106.4 | $ 103.0 |
Capitalized software | 72.7 | 76.0 |
Judicial deposits | 44.6 | 50.9 |
Long-term receivables | 144.7 | 157.0 |
Trust assets associated with supplemental benefit plans | 33.2 | 33.7 |
Other | 17.3 | 17.9 |
Other assets | $ 418.9 | $ 438.5 |
SUPPLEMENTAL BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Brazil indirect taxes | $ 100 | $ 112 |
RESTRUCTURING INITIATIVES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and other costs | $ 19.5 | $ 1.8 | |
Avon Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and other costs | 6.1 | 0.0 | |
Employee-related liabilities | 3.6 | $ 0.7 | |
Open Up & Grow | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and other costs | 14.2 | 4.9 | |
Transformation Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and other costs | (0.8) | $ (3.1) | |
Employee-related liabilities | $ 0.5 | $ 3.5 |
RESTRUCTURING INITIATIVES - Summary (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | $ 19.5 | $ 1.8 |
Avon Integration | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 6.1 | 0.0 |
Open Up & Grow | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 14.2 | 4.9 |
Transformation Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | (0.8) | (3.1) |
Cost of Goods Sold | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.2 | (0.1) |
Cost of Goods Sold | Inventory write-off | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.2 | (0.1) |
Selling, General and Administrative Expense | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 19.3 | 1.9 |
Selling, General and Administrative Expense | Net charges for employee-related costs, including severance benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 9.3 | (2.3) |
Selling, General and Administrative Expense | Implementation costs, primarily related to professional service fees | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 4.1 | (0.5) |
Selling, General and Administrative Expense | Dual running costs | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.3 | 0.6 |
Selling, General and Administrative Expense | Contract termination and other net benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 5.0 | 2.5 |
Selling, General and Administrative Expense | Impairment of other assets | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.0 | 0.7 |
Selling, General and Administrative Expense | Accelerated depreciation | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.0 | 0.4 |
Selling, General and Administrative Expense | Variable lease charges | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | 0.6 | 0.5 |
Operating Profit | ||
Restructuring Cost and Reserve [Line Items] | ||
CTI restructuring initiatives | $ 19.5 | $ 1.8 |
RESTRUCTURING INITIATIVES - Open Up Avon (Details) - Open Up & Grow $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 11.8 |
2021 charges | 9.3 |
Cash payments | (11.2) |
Non-cash write-offs | (0.1) |
Foreign exchange | (0.2) |
Ending balance | 9.6 |
Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 9.0 |
2021 charges | 7.7 |
Cash payments | (9.1) |
Non-cash write-offs | 0.0 |
Foreign exchange | (0.2) |
Ending balance | 7.4 |
Inventory/Assets Write-offs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0.0 |
2021 charges | 0.1 |
Cash payments | 0.0 |
Non-cash write-offs | (0.1) |
Foreign exchange | 0.0 |
Ending balance | 0.0 |
Contract Terminations/Other | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 2.8 |
2021 charges | 1.5 |
Cash payments | (2.1) |
Non-cash write-offs | 0.0 |
Foreign exchange | 0.0 |
Ending balance | $ 2.2 |
RESTRUCTURING INITIATIVES - Restructuring Initiatives by Charge Type (Details) $ in Millions |
Mar. 31, 2021
USD ($)
|
---|---|
Avon Integration | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | $ 12.3 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 12.3 |
Avon Integration | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 12.1 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 12.1 |
Avon Integration | Inventory/Assets Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0.0 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.0 |
Avon Integration | Contract Terminations/Other | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0.2 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.2 |
Avon Integration | Foreign Currency Translation Adjustment Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0.0 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.0 |
Open Up & Grow | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 200.4 |
Estimated charges to be incurred on approved initiatives | 0.8 |
Total expected charges on approved initiatives | 201.2 |
Open Up & Grow | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 90.9 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 90.9 |
Open Up & Grow | Inventory/Assets Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 106.6 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 106.6 |
Open Up & Grow | Contract Terminations/Other | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 13.8 |
Estimated charges to be incurred on approved initiatives | 0.8 |
Total expected charges on approved initiatives | 14.6 |
Open Up & Grow | Foreign Currency Translation Adjustment Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | (10.9) |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | (10.9) |
Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 169.2 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 169.2 |
Transformation Plan | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 122.4 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 122.4 |
Transformation Plan | Inventory/Assets Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 2.5 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 2.5 |
Transformation Plan | Contract Terminations/Other | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 40.9 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 40.9 |
Transformation Plan | Foreign Currency Translation Adjustment Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 3.4 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | $ 3.4 |
RESTRUCTURING INITIATIVES - Charges Reportable by Business Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Avon Integration | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | $ 1.5 | $ 10.8 | |||||
Charges incurred to-date | 12.3 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 12.3 | ||||||
Avon Integration | Avon International | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | (0.5) | 6.2 | |||||
Charges incurred to-date | 5.7 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 5.7 | ||||||
Avon Integration | Avon Latin America | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | 2.0 | 4.6 | |||||
Charges incurred to-date | 6.6 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 6.6 | ||||||
Open Up & Grow | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | 9.3 | 2.4 | $ 71.6 | $ 117.1 | |||
Charges incurred to-date | 200.4 | ||||||
Estimated charges to be incurred on approved initiatives | 0.8 | ||||||
Total expected charges on approved initiatives | 201.2 | ||||||
Open Up & Grow | Avon International | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | 9.4 | 3.2 | 34.7 | 52.8 | |||
Charges incurred to-date | 100.1 | ||||||
Estimated charges to be incurred on approved initiatives | 0.8 | ||||||
Total expected charges on approved initiatives | 100.9 | ||||||
Open Up & Grow | Avon Latin America | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | (0.1) | (0.8) | 36.9 | 64.3 | |||
Charges incurred to-date | 100.3 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 100.3 | ||||||
Transformation Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | (0.2) | (4.5) | (0.4) | 23.7 | $ 54.8 | $ 74.4 | $ 21.4 |
Charges incurred to-date | 169.2 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 169.2 | ||||||
Transformation Plan | Avon International | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | (0.2) | (4.7) | (1.0) | 19.0 | 49.8 | 56.8 | 21.4 |
Charges incurred to-date | 141.1 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | 141.1 | ||||||
Transformation Plan | Avon Latin America | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges and adjustments incurred | 0.0 | $ 0.2 | $ 0.6 | $ 4.7 | $ 5.0 | $ 17.6 | $ 0.0 |
Charges incurred to-date | 28.1 | ||||||
Estimated charges to be incurred on approved initiatives | 0.0 | ||||||
Total expected charges on approved initiatives | $ 28.1 |
GOODWILL - Schedule of Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Net balance at beginning | $ 83.2 |
Foreign exchange | (5.8) |
Net balance at ending | 77.4 |
Avon International | |
Goodwill [Roll Forward] | |
Net balance at beginning | 20.0 |
Foreign exchange | (1.0) |
Net balance at ending | 19.0 |
Avon Latin America | |
Goodwill [Roll Forward] | |
Net balance at beginning | 63.2 |
Foreign exchange | (4.8) |
Net balance at ending | $ 58.4 |
FAIR VALUE- Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets: | ||
Available-for-sale securities | $ 4.1 | $ 4.2 |
Foreign exchange forward contracts | 1.4 | 2.8 |
Total Assets | 5.5 | 7.0 |
Liabilities: | ||
Foreign exchange forward contracts | 0.5 | 6.0 |
Total Liabilities | 0.5 | 6.0 |
Level 1 | ||
Assets: | ||
Available-for-sale securities | 4.1 | 4.2 |
Foreign exchange forward contracts | 0.0 | 0.0 |
Total Assets | 4.1 | 4.2 |
Liabilities: | ||
Foreign exchange forward contracts | 0.0 | 0.0 |
Total Liabilities | 0.0 | 0.0 |
Level 2 | ||
Assets: | ||
Available-for-sale securities | 0.0 | 0.0 |
Foreign exchange forward contracts | 1.4 | 2.8 |
Total Assets | 1.4 | 2.8 |
Liabilities: | ||
Foreign exchange forward contracts | 0.5 | 6.0 |
Total Liabilities | $ 0.5 | $ 6.0 |
FAIR VALUE - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | $ 4.1 | $ 4.2 |
Debt maturing within one year | (38.0) | (28.0) |
Related party loan | (1,077.4) | (1,008.6) |
Long-term debt | (676.2) | (675.4) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale securities | 4.1 | 4.2 |
Debt maturing within one year | (38.0) | (28.0) |
Related party loan | (1,077.4) | (1,008.6) |
Long-term debt | (758.5) | (782.4) |
Foreign exchange forward contracts | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange forward contracts | 0.9 | (3.2) |
Foreign exchange forward contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign exchange forward contracts | $ 0.9 | $ (3.2) |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative [Line Items] | ||
Foreign exchange forward contracts, asset | $ 1.4 | $ 2.8 |
Foreign exchange forward contracts, liability | 0.5 | 6.0 |
Prepaid expenses and other | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign exchange forward contracts, asset | 1.4 | |
Prepaid expenses and other | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign exchange forward contracts, asset | 2.8 | |
Accounts payable | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign exchange forward contracts, liability | $ 0.5 | |
Accounts payable | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Foreign exchange forward contracts, liability | $ 6.0 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Derivative [Line Items] | |||
Total exposure to floating rate interest rates | 5.00% | 4.00% | |
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional amount | $ 170,000,000 | ||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | (700,000) | $ 10,600,000 | |
Foreign Exchange Contract | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Notional amount | $ 0 |
DEBT (Details) |
1 Months Ended | 3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2020
USD ($)
|
Nov. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
May 31, 2020
USD ($)
|
Feb. 28, 2019
USD ($)
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Dec. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jul. 31, 2019
USD ($)
|
Feb. 28, 2019
EUR (€)
|
Aug. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||||||||
Loans from affiliates of Natura &Co | $ 1,077,400,000 | $ 1,008,600,000 | ||||||||||||
Short-term financing | 38,000,000 | |||||||||||||
Loss on extinguishment of debt | 0 | 25,600,000 | $ 7,800,000 | |||||||||||
Affiliates of Natura&Co | Avon Shanghai | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loans from affiliates of Natura &Co | 2,000,000.0 | |||||||||||||
Natura Revolving Facility Due May 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility | $ 100,000,000 | 250,000,000 | ||||||||||||
Basis spread on variable rate | 7.70% | |||||||||||||
Outstanding | $ 102,900,000 | 41,600,000 | ||||||||||||
2019 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility | € | € 200,000,000.0 | |||||||||||||
Outstanding | $ 0 | |||||||||||||
Debt term | 3 years | |||||||||||||
Write off debt issuance costs | $ 7,800,000 | |||||||||||||
2013 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Percent change per each one-notch movement in ratings | 0.25% | |||||||||||||
Maximum aggregate increase in interest rate related to downgrade of long-term credit ratings below investment grade | 2.00% | |||||||||||||
3.13% Promissory Notes due November 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loans from affiliates of Natura &Co | $ 960,000,000 | |||||||||||||
Related Party Short-Term Borrowings | $ 972,500,000 | |||||||||||||
Interest Payable | $ 12,500,000 | |||||||||||||
Interest rate | 3.13% | |||||||||||||
4.6% Notes due February 2022 | 2019 Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt issuance costs | $ 11,000,000.0 | |||||||||||||
5.0% Notes due March 2023 | 2013 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 5.00% | |||||||||||||
Principal amount | $ 461,900,000 | |||||||||||||
6.95% Notes due March 2043 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt premium | $ 17,700,000 | |||||||||||||
Accrued interest | $ 7,900,000 | |||||||||||||
6.95% Notes due March 2043 | 2013 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 6.95% | 6.95% | 6.95% | |||||||||||
Write off debt issuance costs | $ 300,000 | |||||||||||||
Principal amount | $ 216,100,000 | |||||||||||||
Repurchase of debt | $ 27,800,000 | 27,800,000 | ||||||||||||
Debt premium | 3,800,000 | 3,800,000 | ||||||||||||
Accrued interest | $ 1,200,000 | |||||||||||||
Loss on extinguishment of debt | $ 4,100,000 | |||||||||||||
6.95% Notes due March 2043 | 2016 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 500,000,000 | |||||||||||||
Debt premium | $ 9,800,000 | |||||||||||||
Accrued interest | 8,400,000 | |||||||||||||
7.875% Notes due August 2022 | 2016 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 7.875% | |||||||||||||
Principal amount | $ 500,000,000.0 | |||||||||||||
6.50% Notes due August 2022 | 2019 Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 6.50% | |||||||||||||
Principal amount | $ 400,000,000.0 | |||||||||||||
Debt premium | 7,900,000 | |||||||||||||
Accrued interest | $ 5,600,000 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, excluding discrete items | 26.50% | 27.20% |
Income taxes provision | $ 7.1 | $ 8.8 |
Effective income tax rate | (11.50%) | (5.60%) |
Income tax accrual benefit | $ 1.2 | |
Effective income tax rate reconciliation, tax contingency | 0.8 | |
Effective income tax rate reconciliation, other adjustments | $ (0.4) | $ 1.5 |
MERGER WITH NATURA COSMETICOS S.A. (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 03, 2020 |
May 22, 2019 |
Jan. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 30, 2019 |
|
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Stock, shares authorized (in shares) | 1,525,000,000 | 1,525,000,000 | ||||||
Common stock, authorized (in shares) | 1,000 | 1,500,000,000 | 1,500,000,000 | |||||
Common stock (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.25 | $ 0.25 | |||
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 1.00 | $ 1.00 | |||||
Stock converted or cancelled (in shares) | 550,890,788 | |||||||
Common stock, shares outstanding (in shares) | 101.34 | 101.34 | 101.34 | |||||
Settlement of stock options | $ 0.0 | $ 25.8 | ||||||
Minimum | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Lost tax attributes | $ 546.0 | |||||||
Maximum | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Lost tax attributes | 616.0 | |||||||
Affiliates of Natura&Co | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Dividends | $ 91.5 | |||||||
Merger Agreement | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Share conversion ratio | 60.00% | |||||||
Acquisition expenses | 44.0 | $ 46.0 | ||||||
Severance costs | 25.0 | 25.0 | ||||||
Accelerated share based compensation | 10.0 | $ 10.0 | ||||||
Settlement of stock options | 26.0 | |||||||
Deferred compensation expense | 12.0 | |||||||
Write off debt issuance costs | $ 7.8 | |||||||
Merger Agreement | Affiliates of Natura&Co | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Common stock composing one American depository shares (in shares) | 2 | |||||||
American Depositary Shares | Merger Agreement | ||||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||||
Share conversion ratio | 30.00% |
SUBSEQUENT EVENTS (Details) - Natura Revolving Facility Due May 2022 - USD ($) |
1 Months Ended | |||
---|---|---|---|---|
Apr. 30, 2021 |
May 12, 2021 |
Mar. 31, 2021 |
May 31, 2020 |
|
Subsequent Event [Line Items] | ||||
Line of credit facility | $ 250,000,000 | $ 100,000,000 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Proceeds from lines of credit | $ 40,000,000 | |||
Line of credit, renewed | $ 143,000,000 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |
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