RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2021

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.


	Three Months Ended March 31,
	2021		2020
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)	$	7.7	$	—
Gross profit from affiliates of Natura &Co(2)	$	.6	$	—


Interest expense on Loan from affiliates of Natura &Co(4)	$	8.7	$	—


	March 31, 2021		December 31, 2020
Balance Sheet Data
Receivables due from Instituto Avon(1)	$	.8	$	.8
Receivables due from affiliates of Natura &Co(2)	$	9.2	$	6.1
Payables due to affiliates of Natura &Co(3)	$	3.0	$	—
Loans from affiliates of Natura &Co(4)	$	1,077.4	$	1,008.6

(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.