10-Q

UNITED STATES OF AMERICA

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 10-Q

_________________________

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2021

OR

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from              to             

Commission file number 1-4881

_________________________

AVON PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

_________________________

New York	13-0544597
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

Nunn Mills Road, Northampton NN1 5PA

United Kingdom

(Address of principal executive offices)

+44-1904-232425

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Note: The registrant is a voluntary filer of reports required to be filed by certain companies under Sections 13 or 15(d) of the Securities Exchange Act of 1934.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"

"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of shares of Common Stock (par value $0.01) outstanding at June 30, 2021 was 101.34.

The registrant meets the conditions sets forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

TABLE OF CONTENTS

 

		Page Numbers
Part I. Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Operations Three Months Ended June 30, 2021 and June 30, 2020	3
	Consolidated Statements of Operations Six Months Ended June 30, 2021 and June 30, 2020	4
	Consolidated Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2021 and June 30, 2020	5
	Consolidated Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2021 and June 30, 2020	5
	Consolidated Balance Sheets June 30, 2021 and December 31, 2020	7
	Consolidated Statements of Cash Flows Six Months Ended June 30, 2021 and June 30, 2020	8
	Consolidated Statement of Changes in Shareholders’ Deficit Six Months Ended June 30, 2021 and June 30, 2020	9
	Notes to Consolidated Financial Statements	10 - 30
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31 - 46
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4.	Controls and Procedures	47
Part II. Other Information
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 5.	Other Information	48
Item 6.	Exhibits	49
	Signature	50

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
(In millions)	June 30, 2021		June 30, 2020
Product sales	$	864.8	$	573.1
Other revenue	43.5		31.6
Revenue from affiliates of Natura &Co	8.7		1.8
Total revenue	917.0		606.5
Costs, expenses and other:
Cost of sales	(385.0)		(250.5)
Selling, general and administrative expenses	(551.1)		(406.1)
Operating loss	(19.1)		(50.1)
Interest expense	(26.4)		(31.7)
Interest income	(.1)		.3
Other income (expense), net	4.9		(.9)
Gain on sale of business/assets	1.5		.1
Total other expenses	(20.1)		(32.2)
Loss from continuing operations, before income taxes	(39.2)		(82.3)
Income taxes	(18.8)		(6.1)
Loss from continuing operations, net of tax	(58.0)		(88.4)
Loss from discontinued operations, net of tax	(4.1)		(5.1)
Net loss	(62.1)		(93.5)
Net loss attributable to noncontrolling interests	.5		.7
Net loss attributable to Avon	$	(61.6)	$	(92.8)

The accompanying notes are an integral part of these statements.

3

AVON PRODUCTS, INC.

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Six Months Ended
(In millions)	June 30, 2021		June 30, 2020
Product sales	$	1,715.2	$	1,472.9
Other revenue	89.8		89.1
Revenue from affiliates of Natura &Co	16.4		1.8
Total revenue	1,821.4		1,563.8
Costs, expenses and other:
Cost of sales	(790.4)		(671.5)
Selling, general and administrative expenses	(1,087.2)		(1,044.2)
Operating loss	(56.2)		(151.9)
Interest expense	(50.0)		(63.5)
Loss on extinguishment of debt and credit facilities	—		(7.8)
Interest income	.1		1.5
Other (income) expense, net	3.6		(19.1)
Gain on sale of business/assets	1.5		.1
Total other expenses	(44.8)		(88.8)
Loss from continuing operations, before income taxes	(101.0)		(240.7)
Income taxes	(25.9)		(14.9)
Loss from continuing operations, net of tax	(126.9)		(255.6)
Income (loss) from discontinued operations, net of tax	.9		(9.8)
Net loss	(126.0)		(265.4)
Net loss attributable to noncontrolling interests	.8		1.6
Net loss attributable to Avon	$	(125.2)	$	(263.8)

The accompanying notes are an integral part of these statements.

4

AVON PRODUCTS, INC.

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended
(In millions)	June 30, 2021		June 30, 2020
Net loss	$	(62.1)	$	(93.5)
Other comprehensive income (loss):
Foreign currency translation adjustments	16.4		(.2)
Unrealized gain (loss) on revaluation of long-term intercompany balances	14.5		(3.3)
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes of $0.2 and $0.2	1.3		2.0
Total other comprehensive income (loss), net of income taxes	32.2		(1.5)
Comprehensive loss	(29.9)		(95.0)
Less: comprehensive loss attributable to noncontrolling interests	.4		.7
Comprehensive loss attributable to Avon	$	(29.5)	$	(94.3)

The accompanying notes are an integral part of these statements.

5

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Six Months Ended
(In millions)	June 30, 2021		June 30, 2020
Net loss	$	(126.0)	$	(265.4)
Other comprehensive loss:
Foreign currency translation adjustments	4.2		(84.0)
Unrealized loss on revaluation of long-term intercompany balances	(17.8)		(26.6)
Change in unrealized loss on cash flow hedges, net of taxes of $0.0 and $0.0	—		.6
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes of $0.4 and $0.4	2.5		4.0
Total other comprehensive loss, net of income taxes	(11.1)		(106.0)
Comprehensive loss	(137.1)		(371.4)
Less: comprehensive loss attributable to noncontrolling interests	.7		1.8
Comprehensive loss attributable to Avon	$	(136.4)	$	(369.6)

The accompanying notes are an integral part of these statements.

6

AVON PRODUCTS, INC.

CONSOLIDATED BALANCE SHEETS

December 31, 2020 (Audited) and June 30, 2021 (Unaudited)

(In millions)	June 30, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	254.3	$	364.9
Restricted cash	—		7.8
Accounts receivable, net	255.4		259.1
Receivables from affiliates of Natura &Co	11.0		6.1
Inventories	495.9		459.1
Prepaid expenses and other	201.6		204.2
Assets held for sale	8.9		13.9
Total current assets	1,227.1		1,315.1
Property, plant and equipment, at cost	1,155.5		1,148.5
Less accumulated depreciation	(725.4)		(709.9)
Property, plant and equipment, net	430.1		438.6
Right-of-use assets	118.1		153.1
Goodwill	77.7		83.2
Deferred tax asset	126.3		135.8
Other assets	459.1		438.5
Total assets	$	2,438.4	$	2,564.3
Liabilities and Shareholders’ Deficit
Current Liabilities
Debt maturing within one year	$	59.8	$	28.0
Loans from affiliates of Natura &Co	393.9		1,008.6
Accounts payable	606.0		709.4
Payables to affiliates of Natura &Co	4.1		—
Accrued compensation	100.1		89.4
Other accrued liabilities	315.3		334.7
Sales taxes and taxes other than income	77.0		89.9
Income taxes	—		5.4
Current liabilities of discontinued operations	19.4		27.1
Liabilities held for sale	—		2.3
Total current liabilities	1,575.6		2,294.8
Long-term debt	676.4		675.4
Loans from affiliates of Natura &Co	776.0		—
Long-term operating lease liability	91.0		120.9
Employee benefit plans	128.8		133.3
Long-term income taxes	109.9		101.1
Other liabilities	80.2		106.0
Total liabilities	3,437.9		3,431.5
Shareholders’ Deficit
Common stock	—		—
Additional paid-in capital	627.6		622.8
Retained losses	(485.7)		(360.5)
Accumulated other comprehensive loss	(1,145.0)		(1,133.8)
Treasury stock, at cost	—		—
Total Avon shareholders’ deficit	(1,003.1)		(871.5)
Noncontrolling interests	3.6		4.3
Total shareholders’ deficit	(999.5)		(867.2)
Total liabilities and shareholders’ deficit	$	2,438.4	$	2,564.3

The accompanying notes are an integral part of these statements.

7

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
(In millions)	June 30, 2021		June 30, 2020
Cash Flows from Operating Activities
Net loss	$	(126.0)	$	(265.4)
Income (loss) from discontinued operations, net of tax	.9		(9.8)
Loss from continuing operations, net of tax	(126.9)		(255.6)
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities:
Depreciation	27.9		30.2
Amortization	12.1		13.1
Provision for doubtful accounts	34.6		52.7
Provision for obsolescence	13.9		21.4
Share-based compensation	3.3		18.6
Foreign exchange (gains) losses	(5.2)		9.2
Deferred income taxes	5.4		14.9
Impairment loss on assets	—		.7
Gain on sale of business / assets	—		(.1)
Other	(.6)		13.2
Changes in assets and liabilities:
Accounts receivable	(33.5)		36.8
Inventories	(49.6)		(52.6)
Prepaid expenses and other	1.0		(12.0)
Accounts payable and accrued liabilities	(80.9)		(191.7)
Income and other taxes	(8.9)		(23.7)
Noncurrent assets and liabilities	(9.5)		(15.8)
Net cash used by operating activities of continuing operations	(216.9)		(340.7)
Cash Flows from Investing Activities
Capital expenditures	(31.4)		(21.1)
Disposal of assets	1.6		1.1
Net proceeds from sale of business / assets	—		10.0
Other investing activities	—		.4
Net cash used by investing activities of continuing operations	(29.8)		(9.6)
Cash Flows from Financing Activities
Cash dividends	—		(8.6)
Debt, net (maturities of three months or less)	(10.3)		10.1
Proceeds from debt	209.4		20.0
Repayment of debt	(48.0)		(.2)
Repurchase of common stock	—		(.4)
Settlement of stock options	—		(25.8)
Settlement of derivative contracts	(5.2)		16.5
Net cash provided by financing activities of continuing operations	145.9		11.6
Cash Flows from Discontinued Operations
Net cash used by operating activities of discontinued operations	(6.8)		(8.4)
Net cash used by discontinued operations	(6.8)		(8.4)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(11.5)		(17.4)
Net decrease in cash and cash equivalents, and restricted cash	(119.1)		(364.5)
Cash and cash equivalents, and restricted cash at beginning of period	373.4		661.1
Cash and cash equivalents, and restricted cash at end of period	$	254.3	$	296.6

The accompanying notes are an integral part of these statements.

8

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

(Unaudited)

(In millions)	Common Stock			Additional		Retained		Accumulated Other		Noncontrolling
	Shares	Amount		Paid-In Capital		Losses		Comprehensive Loss		Interests		Total
Balances at December 31, 2020	—	$	—	$	622.8	$	(360.5)	$	(1,133.8)	$	4.3	$	(867.2)
Net loss	—	—		—		(63.6)		—		(.3)		(63.9)
Other comprehensive loss	—	—		—		—		(43.3)		—		(43.3)
Exercise/ vesting/ expense of share-based compensation	—	—		.6		—		—		—		.6
Balances at March 31, 2021	—	$	—	$	623.4	$	(424.1)	$	(1,177.1)	$	4.0	$	(973.8)
Net loss	—	—		—		(61.6)		—		(.5)		(62.1)
Other comprehensive income	—	—		—		—		32.1		.1		32.2
Exercise/ vesting/ expense of share-based compensation	—	—		4.2		—		—		—		4.2
Balances at June 30, 2021 (1)	—	$	—	$	627.6	$	(485.7)	$	(1,145.0)	$	3.6	$	(999.5)

(1) The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2021 was 101.34.

(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	770.0	$	192.6	$	2,321.2	$	2,138.9	$	(1,040.0)	319.9	$	(4,603.3)	$	6.8	$	(983.8)
Credit Losses Cumulative catch up	—	—		—		(2.0)		—		—	—		—		(2.0)
Net loss	—	—		—		(171.0)		—		—	—		(.9)		(171.9)
Other comprehensive loss	—	—		—		—		(104.3)		—	—		(.2)		(104.5)
Conversion of Series C convertible preferred stock (1)	—	—		—		(710.8)		—		(87.0)	1,197.6		—		486.8
Exercise/ vesting/ expense of share-based compensation	—	(.2)		(9.7)		—		—		—	—		—		(9.9)
Exchange of common stock (2)	(770.0)	(192.4)		(1,788.1)		(1,425.2)		—		(232.9)	3,405.7		—		—
Balances at March 31, 2020	—	—		523.4		(170.1)		(1,144.3)		—	—		5.7		(785.3)
Net loss	—	—		—		(92.8)		—		—	—		(.7)		(93.5)
Other comprehensive loss	—	—		—		—		(1.5)		—	—		—		(1.5)
Exercise/ vesting/ expense of share-based compensation	—	—		.8		—		—		—	—		—		.8
Balances at June 30, 2020(3)	—	$	—	$	524.2	$	(262.9)	$	(1,145.8)	—	$	—	$	5.0	$	(879.5)

(1) On December 30, 2019, an affiliate of Cerberus Capital Management, L.P. ("Cerberus") elected to convert 435,000 shares of Series C Preferred Stock into 87,000,000 shares of the Company’s common stock, par value U.S.$0.25 per share, conditioned on the Conversion Condition (as defined below).

(2) In January 2020, subsequent to the Transaction, the Company restated its certificate of incorporation 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, were common stock and (ii) 25,000,000 shares, par value $1.00 per share, were preferred stock) to 1,000 shares of common stock, par value $0.01 per share. As a result of the Transaction, all of the issued and outstanding common stock of the Company, being 550,890,788, were canceled and converted. See Note 17, Mergers     with Natura Cosméticos S.A.

(3) The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2020 was 101.34.

The accompanying notes are an integral part of these statements.

9

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

1. 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 six-month period ended June 30, 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 six-month period ended June 30, 2020 to reclassify cash inflows of $16.5 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 second 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 and Avon International had revenue growth during the second quarter of 2021. Avon International and Brazil were more significantly impacted by COVID-19 in the second 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

10

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

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. See also “Item 1A. Risk Factors—The COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, our operations, manufacturing, supply chains and distribution systems, and we have

experienced and expect to continue to experience unpredictable negative effects associated with the pandemic" included in Item 1A of our 2020 Annual Report.

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. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776.

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.

2. 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 and six month periods ended June 30, 2021 and 2020 are shown below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Selling, general and administrative expenses	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
Operating (loss) income	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
(Loss) income from discontinued operations, net of tax	$	(4.1)	$	(5.1)	$	.9	$	(9.8)

11

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

Assets and Liabilities Held for Sale

The major classes of assets comprising held for sale assets on the Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 are shown in the following table:

	June 30, 2021		December 31, 2020
Current held for sale assets
Inventories	$	—	$	2.6
Property, Plant & Equipment (net)	8.9		9.2
Cash and cash equivalents	—		.7
Other assets	—		1.4
	$	8.9	$	13.9
Current held for sale liabilities
Accounts payable	$	—	$	.5
Other liabilities	—		1.8
	$	—	$	2.3

At June 30, 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

Italy Branch

In June 2021, we completed the sale of a branch of our Italian business for a total selling price of $1.7, the proceeds of which will be received in installments between October 2021 and December 2026, and will be presented as investing activities in the Consolidated Statement of Cash Flows.

In the second quarter of 2021, we recorded a gain of $1.4 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds and the carrying value of the branch of the Italian business on the date of sale.

Hungary Distribution Center in Gödöllő

In April 2020, we signed an agreement to sell the Hungary Distribution Center in Gödöllő for a total selling price of $3.4, and received a deposit of $.3. In June 2020, we completed the sale of the asset and the remaining proceeds of $3.1 were received. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows.

In the second quarter of 2020, we recorded a gain of $.1 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the proceeds and the carrying value of the Hungary Distribution Center on the date of sale.

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 six-month period ended June 30, 2020, we received a cash deposit for the selling price of $6.6, presented as investing activities in the Consolidated Statement of Cash Flows, which included $3.3 of restricted cash.

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

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

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.

3. 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.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)	$	8.7	$	1.8	$	16.4	$	1.8
Gross profit from affiliates of Natura &Co(2)	$	.5	$	.4	$	1.1	$	.4
Interest expense on Loan from affiliates of Natura &Co(4)	$	(9.8)	$	(.3)	$	(18.5)	$	(.3)

	June 30, 2021		December 31, 2020
Balance Sheet Data
Receivables due from Instituto Avon(1)	$	.9	$	.8
Receivables due from affiliates of Natura &Co(2)	$	11.0	$	6.1
Payables due to affiliates of Natura &Co(3)	$	4.1	$	—
Loans from affiliates of Natura &Co maturing within one year(4)	$	393.9	$	1,008.6
Loans from affiliates of Natura &Co maturing after one year(4)	$	776.0	$	—
Investments in affiliates of Natura &Co(5)	$	.1	$	—

(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 $8.7 and $1.8 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $.5 and $.4 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded revenue from related party of $16.4 and $1.8 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $1.1 and $.4 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. Receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(3) The payable to Natura &Co relates to the vesting and settlement of share based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 long-term employee incentive program which vested and were automatically exercised in March 2021.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2021 of $1,169.9 include $980.1 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021. Loans from affiliates of Natura &Co Holding at June 30, 2021 also include $181.6 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

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

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.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of BRL $.5 in Natura &Co Pay Holding Financeira S.A., representing a 10% holding in the company. This is presented in other assets in our Consolidated Balance Sheets.

4. 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:

	Three Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	147.0	$	134.0	$	281.0	$	—	$	281.0
Fragrance	114.5		106.0		220.5		—		220.5
Color	59.0		50.2		109.2		—		109.2
Total Beauty	320.5		290.2		610.7		—		610.7
Fashion & Home:
Fashion	64.7		49.2		113.9		—		113.9
Home	14.6		116.2		130.8		—		130.8
Total Fashion & Home	79.3		165.4		244.7		—		244.7
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	399.8		465.0		864.8		—		864.8
Representative fees	16.5		26.8		43.3		—		43.3
Other	.1		.1		.2		8.7		8.9
Other revenue	16.6		26.9		43.5		8.7		52.2
Total revenue	$	416.4	$	491.9	$	908.3	$	8.7	$	917.0

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

	Three Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	122.6	$	93.6	$	216.2	$	—	$	216.2
Fragrance	78.7		70.8		149.5		—		149.5
Color	45.3		29.9		75.2		—		75.2
Total Beauty	246.6		194.3		440.9		—		440.9
Fashion & Home:					—		—
Fashion	38.4		26.9		65.3		—		65.3
Home	7.8		59.1		66.9		—		66.9
Total Fashion & Home	46.2		86.0		132.2		—		132.2
Net sales	292.8		280.3		573.1		—		573.1
Representative fees	11.1		18.1		29.2		—		29.2
Other	1.1		1.3		2.4		1.8		4.2
Other revenue	12.2		19.4		31.6		1.8		33.4
Total revenue	$	305.0	$	299.7	$	604.7	$	1.8	$	606.5

	Six Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	292.3	$	261.0	$	553.3	$	—	$	553.3
Fragrance	234.4		208.1		442.5		—		442.5
Color	122.4		100.7		223.1		—		223.1
Total Beauty	649.1		569.8		1,218.9		—		1,218.9
Fashion & Home:
Fashion	132.4		100.0		232.4		—		232.4
Home	31.4		223.1		254.5		—		254.5
Total Fashion & Home	163.8		323.1		486.9		—		486.9
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	812.9		902.3		1,715.2		—		1,715.2
Representative fees	34.3		55.1		89.4		—		89.4
Other	.1		.3		.4		16.4		16.8
Other revenue	34.4		55.4		89.8		16.4		106.2
Total revenue	$	847.3	$	957.7	$	1,805.0	$	16.4	$	1,821.4

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

	Six Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	273.2	$	239.6	$	512.8	$	—	$	512.8
Fragrance	211.0		186.8		$	397.8	—		397.8
Color	130.4		93.6		$	224.0	—		224.0
Total Beauty	614.6		520.0		1,134.6		—		1,134.6
Fashion & Home:
Fashion	111.2		70.2		$	181.4	—		181.4
Home	20.9		136.0		$	156.9	—		156.9
Total Fashion & Home	132.1		206.2		338.3		—		338.3
Product sales	746.7		726.2		1,472.9		—		1,472.9
Representative fees	31.3		48.8		$	80.1	—		80.1
Other	4.1		4.9		$	9.0	1.8		10.8
Other revenue	35.4		53.7		89.1		1.8		90.9
Total revenue	$	782.1	$	779.9	$	1,562.0	$	1.8	$	1,563.8

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

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 June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Accounts receivable, net of allowances of $47.9 and $51.1	$	255.4	$	259.1
Contract liabilities	$	39.1	$	52.1

The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the six months ended June 30, 2021, we recognized $35.9 of revenue related to the contract liability balance at the beginning of the six month period ended June 30, 2021, as the result of performance obligations satisfied. In addition, we deferred an additional $27.2 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 June 30, 2021 as compared with December 31, 2020.

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(U.S. dollars in millions, except per share data)

5. INVENTORIES

Components of Inventories	June 30, 2021		December 31, 2020
Raw materials	$	143.7	$	131.3
Finished goods	352.2		327.8
Total	$	495.9	$	459.1

6. 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 June 30, 2021 and 2020:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2021	2020	2021	2020
Sublease income	Selling, general and administrative expenses	3.0	4.5	7.3	8.6

7. 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 June 30, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $395 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 June 30, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $254 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 June 30, 2021, there were 129 individual cases pending against the Company. During the three months ended June 30, 2021, 28 new cases were filed and 8 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 June 30, 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

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AVON PRODUCTS, INC.

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 June 30, 2021 and December 31, 2020 was approximately $10 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 judgment 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 June 30, 2021 is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows.

8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The tables below present the changes in AOCI by component and the reclassifications out of AOCI for the three and six months ended June 30, 2021 and 2020:

Three Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2021	$	(1,082.7)	$	(4.3)	$	(90.1)	$	(1,177.1)
Other comprehensive income other than reclassifications	30.8		—		—		30.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		1.3		1.3
Total reclassifications into earnings	—		—		1.3		1.3
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

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AVON PRODUCTS, INC.

Three Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2020	$	(1,049.6)	$	(4.3)	$	(90.4)	$	(1,144.3)
Other comprehensive loss other than reclassifications	(3.5)		—		—		(3.5)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		2.0		2.0
Total reclassifications into earnings	—		—		2.0		2.0
Balance as June 30, 2020	$	(1,053.1)	$	(4.3)	$	(88.4)	$	(1,145.8)

Six Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2020	$	(1,038.2)	$	(4.3)	$	(91.3)	$	(1,133.8)
Other comprehensive loss other than reclassifications	(13.7)		—		—		(13.7)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		2.5		2.5
Total reclassifications into earnings	—		—		2.5		2.5
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

Six Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Cash Flow Hedges		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2019	$	(942.7)	$	(.6)	$	(4.3)	$	(92.4)	$	(1,040.0)
Other comprehensive loss other than reclassifications	(110.4)		—		—		—		(110.4)
Reclassifications into earnings:
Derivative losses on cash flow hedges, net of tax of $0.0	—		.6		—		—		.6
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		—		4.0		4.0
Total reclassifications into earnings	—		.6		—		4.0		4.6
Balance at June 30, 2020	$	(1,053.1)	$	—	$	(4.3)	$	(88.4)	$	(1,145.8)

For further details on Other Comprehensive income, (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 gain of $1.9 and net loss $.1 for the three months ended June 30, 2021 and 2020, respectively, and foreign exchange net losses of $.1 and $3.9 for the six months ended June 30, 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.

9. SEGMENT INFORMATION

We have identified two reportable segments based on geographic operations: Avon International and Avon Latin America.

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AVON PRODUCTS, INC.

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

Summarized financial information concerning our reportable segments was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2021		2020		2021		2020
Avon International	$	416.4	$	305.0	$	847.3	$	782.1
Avon Latin America*	491.9		299.7		957.7		779.9
Total revenue from reportable segments*(1)	908.3		604.7		1,805.0		1,562.0
Revenue from affiliates to Natura &Co	8.7		1.8		16.4		1.8
Total revenue*(1)	917.0		606.5		1,821.4		1,563.8

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2021		2020		2021		2020
Segment Profit (Loss)
Avon International	$	.6	$	(4.4)	$	(6.4)	$	(1.7)
Avon Latin America*	17.6		(50.8)		13.0		(68.0)
Total profit (loss) from reportable segments*(2)	$	18.2	$	(55.2)	$	6.6	$	(69.7)
Unallocated global expenses(3)	(6.9)		(1.8)		(12.9)		(1.8)
Certain Brazil indirect taxes(5)	—		10.6		—		10.6
CTI restructuring initiatives	(30.4)		(3.4)		(49.9)		(5.2)
Costs related to the Transaction (4)	—		(.3)		—		(85.8)
Operating loss*	$	(19.1)	$	(50.1)	$	(56.2)	$	(151.9)

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

(1)Total revenue also includes revenue from other business activities of $2.4 and $2.4 for the three months ended June 30, 2021 and 2020, and $4.3 and $8.8 for the six months ended June 30, 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 $.3 and $1.2 for the three months ended June 30, 2021 and 2020, and $.4 and $4.1 for the six months ended June 30, 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 $55.7 and $39.3 for the three months ended June 30, 2021 and 2020, and $115.9 and $103.0 for the six months ended June 30, 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.

(3)For the three and six months ended June 30, 2021 and 2020, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)For the three and six months ended June 30, 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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(5)The three and six month periods ended June 30, 2020 include the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11.

10. SUPPLEMENTAL BALANCE SHEET INFORMATION

At June 30, 2021 and December 31, 2020, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2021		December 31, 2020
Prepaid taxes and tax refunds receivable	$	117.6	$	117.6
Receivables other than trade	29.8		34.9
Prepaid brochure costs, paper and other literature	9.9		12.0
Other	44.3		39.7
Prepaid expenses and other	$	201.6	$	204.2

At June 30, 2021 and December 31, 2020, other assets included the following:

Components of Other Assets	June 30, 2021		December 31, 2020
Net overfunded pension plans	$	108.9	$	103.0
Capitalized software	75.0		76.0
Judicial deposits	51.3		50.9
Long-term receivables	178.1		157.0
Trust assets associated with supplemental benefit plans	29.8		33.7
Other	16.0		17.9
Other assets	$	459.1	$	438.5

Prepaid taxes and tax refunds receivable and long-term receivables include approximately $121 and $112 related to certain Brazil indirect taxes as of June 30, 2021 and December 31, 2020, respectively. During the second quarter of 2021, the Brazilian Supreme Federal Court reached a final decision on a Motion of Clarification which supported the recognition of additional receivable balances related to certain Brazil indirect taxes. As of June 30, 2021, we have recorded our best estimate of the receivable of $12 and will continue to assess the impacts of the final decision.

11. 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

AVON PRODUCTS, INC.

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 June 30, 2021 and 2020

During the three months ended June 30, 2021, we recorded net costs to implement of $28.9, of which $3.8 related to Avon Integration, $24.8 related to Open Up & Grow and $.3 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended June 30, 2020, we recorded costs to implement of $3.3 of which $1.5 related to Avon Integration, $2.0 related to Open Up & Grow, and a net benefit of $.2 related to the Transformation Plan, in our Consolidated Statements of Operations.

During the six months ended June 30, 2021, we recorded net costs to implement of $48.4, of which $9.9 related to Avon Integration, $39.0 related to Open Up & Grow and a net benefit of $0.5 related to the Transformation Plan, in our Consolidated Statements of Operations. During the six months ended June 30, 2020, we recorded costs to implement of $5.1 of which $1.5 related to Avon Integration, $6.9 related to Open Up & Grow, and a net benefit of $3.3 related to the Transformation Plan, in our Consolidated Statements of Operations.

The costs during the three and six months ended June 30, 2021 and 2020 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
CTI recorded in operating profit - COGS
Inventory write-off	—		(.2)		.2		(.3)
	—		(.2)		.2		(.3)
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	21.1		.6		30.4		(1.7)
Implementation costs, primarily related to professional service fees	6.1		1.2		10.2		.7
Dual running costs	.3		.7		$	.6	1.5
Contract termination and other net benefits	2.4		.7		$	7.4	3.0
Impairment of other assets	—		—		$	—	.7
Accelerated depreciation	.2		—		$	.2	.4
Variable lease charges	.3		.4		$	.9	.9
	30.4		3.6		$	49.7	5.5
CTI recorded in operating profit	30.4		3.4		$	49.9	5.2
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	(1.5)		(.1)		$	(1.5)	(.1)
Total CTI	$	28.9	$	3.3	$	48.4	$	5.1
Avon Integration	$	3.8	$	1.5	$	9.9	$	1.5
Open Up & Grow	$	24.8	$	2.0	$	39.0	$	6.9
Transformation Plan	$	.3	$	(.2)	$	(.5)	$	(3.3)

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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 June 30, 2021 and December 31, 2020 is $2.7 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 June 30, 2021 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2020	$	9.0	$	—	$	2.8	$	11.8
2021 charges	26.2		.2		1.5		27.9
Cash payments	(12.0)		—		(2.3)		(14.3)
Non-cash write-offs	—		(.2)		—		(.2)
Foreign exchange	(.1)		—		(.1)		(.2)
Balance at June 30, 2021	$	23.1	$	—	$	1.9	$	25.0

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at June 30, 2021 and December 31, 2020 is $.4 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:

	Employee- Related Costs		Inventory/ Asset Write-offs		Contract Terminations/Other		Foreign Currency Translation Adjustment Write-offs		Total
Avon Integration
Charges incurred to date	$	11.4	$	—	$	.2	$	—	$	11.6
Estimated charges to be incurred on approved initiatives	—		—		$	—	—		—
Total expected charges on approved initiatives	$	11.4	$	—	$	.2	$	—	$	11.6
Open Up & Grow
Charges incurred to date	$	112.0	$	106.6	$	13.8	$	(10.9)	$	221.5
Estimated charges to be incurred on approved initiatives	—		—		2.1		—		2.1
Total expected charges on approved initiatives	$	112.0	$	106.6	$	15.9	$	(10.9)	$	223.6

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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:

	Avon International		Avon Latin America		Total
Avon Integration
2020	$	6.2	$	4.6	$	10.8
First quarter 2021	(.5)		2.0		1.5
Second quarter 2021	(.7)		—		(.7)
Charges incurred to date	5.0		6.6		11.6
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.0	$	6.6	$	11.6
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
First quarter 2021	9.4		(.1)		9.3
Second quarter 2021	21.1		—		21.1
Charges incurred to date	121.2		100.3		221.5
Estimated charges to be incurred on approved initiatives	2.1		—		2.1
Total expected charges on approved initiatives	$	123.3	$	100.3	$	223.6

The charges above are not included in segment profit, as this excludes costs to implement restructuring initiatives. The amounts shown in the tables above as charges recorded to date relate to initiatives that have been approved and recorded in the consolidated financial statements, as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met.

12. GOODWILL

	Avon International		Avon Latin America		Total
Net balance at December 31, 2020	$	20.0	$	63.2	$	83.2
Changes during the period ended June 30, 2021:
Foreign exchange	(.7)		(4.8)		(5.5)
Net balance at June 30, 2021	$	19.3	$	58.4	$	77.7

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13. 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 June 30, 2021:

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	.4	$	.4
Total	$	—	$	.4	$	.4
Liabilities:
Foreign exchange forward contracts	$	—	$	.1	$	.1
Total	$	—	$	.1	$	.1

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:

	Level 1		Level 2		Total
Assets:
Available-for-sale securities	$	4.2	$	—	$	4.2
Foreign exchange forward contracts	$	—	$	2.8	$	2.8
Total	$	4.2	$	2.8	$	7.0
Liabilities:
Foreign exchange forward contracts	$	—	$	6.0	$	6.0
Total	$	—	$	6.0	$	6.0

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 June 30, 2021 and December 31, 2020, respectively, consisted of the following:

	June 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Available-for-sale securities	$	—	$	—	$	4.2	$	4.2
Debt maturing within one year	(59.8)		(59.8)		(28.0)		(28.0)
Loans from affiliates of Natura &Co maturing within one year	(393.9)		(393.9)		(1,008.6)		(1,008.6)
Long-term debt(1)	(676.4)		(781.7)		(675.4)		(782.4)
Loans from affiliates of Natura &Co maturing after one year	(776.0)		(776.0)		—		—
Foreign exchange forward contracts	.3		.3		(3.2)		(3.2)

(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:

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•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.

14. 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 June 30, 2021:

	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	$	.4	Accounts payable	$	.1
Total derivatives		$	.4		$	.1

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:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	2.8	Accounts payable	$	6.0
Total derivatives		$	2.8		$	6.0

Interest Rate Risk

On June 30, 2021 we entered into a cross-currency interest rate swap agreement with a third party bank, designated as a cash flow hedge, whereby we receive fixed rate interest payments on $11 at 2.10% per annum in exchange for making floating interest rate payments on BRL $55 at CDI plus 1.87% for a period of 6 months. At June 30, 2021 the fair value of the cross currency interest-rate swap agreement was less than $.1. At December 31, 2020, we did not have any interest-rate swap agreements. Approximately 10% and 4% of our debt portfolio at June 30, 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 June 30, 2021, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $196 for various currencies, none of which were designated as cash flow hedges.

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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 June 30, 2021 and 2020, we recorded losses of $.6 and $3.7, respectively, in other (expense) income, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. During the six months ended June 30, 2021 and 2020, we recorded a loss of $1.3 and a gain $6.8, respectively, in other (expense) income, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts.

15. 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 an arms length margin, the Facility will mature on May 31, 2022. As at June 30, 2021, $181.6 including interest was outstanding under the Facility. In July 2021, $150 was repaid linked to the sale of Avon Luxembourg Holdings S.à r.l to a subsidiary of Natura &Co Holding S.A.

Other loans from affiliates of Natura &Co

In May 2021, Cosmeticos Avon S.A.C.I entered into a Promissory Note with a subsidiary of Natura&Co Holding S.A. in the amount of ARS$550 million. The promissory note bears interest at a rate per annum of 44.29% and matures on November 11, 2021. As at June 30, 2021, $6 including interest was outstanding under the Promissory Note.

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 June 30, 2021, $980 including accrued interest of $20 was outstanding under the Promissory Note. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021.

Loans from affiliates of Natura &Co Holding at June 30, 2021 also include a $2 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 June 30, 2021, we utilized approximately $60 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 June 30, 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.

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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.

16. 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 June 30, 2021, our annual effective tax rate, excluding discrete items, is 27.1%, as compared to 27.5% as of June 30, 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 June 30, 2021 and 2020 was $18.8 and $6.1, respectively. Our effective tax rates for the three months ended June 30, 2021 and 2020 were (48.0)% and (7.4)%, respectively. The provision for income taxes for the six months ended June 30, 2021 and 2020 was $25.9 and $14.9, respectively. Our effective tax rates for the six months ended June 30, 2021 and 2020 were (25.6)% and (6.2)%, respectively.

The effective tax rates for the three months ended June 30, 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 second quarter of 2021 was unfavorably impacted by the accrual of net income tax expense of $7.0 associated with recording a valuation allowance of $6.0 and reserves for uncertain tax positions of $1.4 net of miscellaneous income tax benefits of approximately $.4. The effective tax rate in the first quarter of 2020 was unfavorably impacted by miscellaneous income tax expense of approximately $2.3.

The effective tax rates for the six months ended June 30, 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 half of 2021 was unfavorably impacted by the accrual of net income tax expense of $9.4 associated with recording a valuation allowance of $6.0, reserves for uncertain tax positions of $2.6, and legislative changes of $.8. The effective tax rate in the first half of 2020 was also unfavorably impacted by miscellaneous income tax expense of approximately $3.8.

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

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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 June 30, 2021, the COVID-19 pandemic is negative evidence the Company must consider. As of June 30, 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.

17. 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.

29

AVON PRODUCTS, INC.

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.

18. SUBSEQUENT EVENTS

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg Holdings S.à r.l and its subsidiaries, including our Mexican business, to a subsidiary of Natura &Co Holding S.A. for $150. In the third quarter of 2021, the sale will be accounted for as a transaction under common control in accordance with ASC805 - Business Combinations. Any gain or loss on this transaction will be recorded directly in Retained Earnings representing the difference between the proceeds and the net assets of Avon Luxembourg Holdings S.à r.l and its subsidiaries on the date of sale. We are still assessing this transaction, including quantifying the amount of any foreign currency translation adjustment that should be included in the calculation of gain or loss and therefore are currently unable to estimate the impact it will have on our Consolidated Financial Statements. The proceeds were used to repay maturing loans of $150 borrowed under the $250 Revolving Credit Facility with a subsidiary of Natura &Co Holding S.A..

In July 2021, the $960 loan with a subsidiary of Natura &Co Holding S.A. was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021.

30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

When used in this report, the terms "Avon," "Company," "we," "our" or "us" mean, unless the context otherwise indicates, Avon Products, Inc. and its majority, wholly owned and controlled subsidiaries.

OVERVIEW

We are a global manufacturer and marketer of beauty and related products. Our business is conducted primarily in the direct-selling channel, with a strategy to expand to omni-channel. During 2020, we had sales operations in 55 countries and territories, and distributed products in 25 more. All of our consolidated revenue is derived from operations of subsidiaries outside of the United States ("U.S."). Our reportable segments are based on geographic operations in two regions, Avon International and Avon Latin America. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion apparel, accessories, housewares and leisure products. Sales are made to the ultimate consumer principally through direct selling by Representatives, who are independent contractors and not our employees.

During the six months ended June 30, 2021, revenue increased 16% with the impact of foreign exchange being broadly neutral as the weakening of the U.S. dollar relative to the South African rand, the British pound and the Mexican peso was offset by the strengthening of the U.S. dollar relative to the Russian ruble, the Turkish lira, the Brazilian real and the Argentinian peso. Constant $ Adjusted revenue increased 16%.

Revenue and Constant $ Adjusted revenue was impacted by an increase in Active Representatives of 8%, with increases in Avon Latin America being partly offset by decreases in Avon International, as well as a 8% increase in Constant $ Adjusted Average Representative Sales, with growth in both regions. Revenue in the six month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $87 of revenue to the third quarter of 2020.

The increase in Constant $ Adjusted revenue was driven by growth of 5% in Avon International and 27% in Avon Latin America, mostly driven by the relaxation of COVID-19 restrictions in some markets compared to the three months ended June 30, 2020. Some markets were materially impacted by COVID-19 restrictions and are yet to show signs of recovery.

Units sold increased 7%, largely due to increases in Avon Latin America.

See "Segment Review" in this management's discussion and analysis of financial condition and results of operations ("MD&A") for additional information related to changes in revenue by segment.

Transaction with Natura Cosméticos S.A.

On January 3, 2020 the Company became a fully owned direct subsidiary of Natura &Co Holding following the consummation of the Merger Agreement with Natura Cosméticos, Natura &Co Holding and two subsidiaries of Natura &Co Holding (the "Transaction"). In connection with the Transaction, trading of the Company's stock was suspended by the NYSE, the Company's common stock was subsequently delisted and deregistered.

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 second 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 and Avon International had revenue growth during the second quarter of 2021. Avon International and Brazil were more significantly impacted by COVID-19 in the second 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.

31

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

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. See also “Item 1A. Risk Factors—The COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, our operations, manufacturing, supply chains and distribution systems, and we have

experienced and expect to continue to experience unpredictable negative effects associated with the pandemic" included in Item 1A of our 2020 Annual Report.

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 refreshed our strategy ("Open Up & Grow") which has aims to return Avon 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.

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg Holdings S.à r.l and its subsidiaries, including our Mexican business, to a subsidiary of Natura &Co Holding S.A. for $150, with the proceeds used to repay maturing loans of $150 borrowed under the $250 Revolving Credit Facility with a subsidiary of Natura &Co Holding S.A.. For additional information, see Note 18, Subsequent Events.

In addition, on July 2, 2021, the $960 loan with a subsidiary of Natura &Co Holding S.A. was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. For additional information, see Note 3, Related Party Transactions, Note 15, Debt and Note 18, Subsequent Events.

NEW ACCOUNTING STANDARDS

Information relating to new accounting standards is included in Note 1, Accounting Policies, to the Consolidated Financial Statements included herein.

RESULTS OF OPERATIONS—THE THREE MONTHS ENDED JUNE 30, 2021 AS COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2020

Non-GAAP Financial Measures

To supplement our financial results presented in accordance with accounting principles generally accepted in the United States ("GAAP"), we disclose operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: revenue, Adjusted revenue, operating profit, Adjusted operating

32

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

profit, operating margin and Adjusted operating margin. We also refer to these adjusted financial measures as Constant $ items, which are Non-GAAP financial measures. We believe these measures provide investors an additional perspective on trends and underlying business results. To exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, we calculate current-year results and prior-year results at constant exchange rates, which are updated on an annual basis as part of our budgeting process. Foreign currency impact is determined as the difference between actual growth rates and Constant $ growth rates.

We also present gross margin, SG&A as a percentage of revenue, operating profit, operating margin and income (loss) before taxes on a Non-GAAP basis. We refer to these Non-GAAP financial measures as "Adjusted." We have provided a quantitative reconciliation of the difference between the Non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP. See "Reconciliation of Non-GAAP Financial Measures" within "Results of Operations" in this MD&A for this quantitative reconciliation.

The Company uses the Non-GAAP financial measures to evaluate its operating performance. These Non-GAAP measures should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company believes investors find the Non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the Company's financial results in any particular period. The Company believes that it is meaningful for investors to be made aware of the impacts of 1) CTI restructuring initiatives; 2) costs related to the Transaction; 3) costs associated with the early termination of debt; 4) certain Brazil indirect taxes.

(1)CTI restructuring initiatives includes the impact on the Consolidated Statements of Operations for all periods presented of net charges incurred on approved restructuring initiatives. See Note 11, Restructuring Initiatives, to the Consolidated Financial Statements contained herein for further information.

(2)For the six months ended June 30, 2020, costs related to the Transaction of $86 primarily included professional fees incurred in relation to the Transaction of approximately $44, severance payments of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. Further information relating to the Transaction is included in Note 17, Merger with Natura, to the Consolidated Financial Statements included herein.

(3)During the first quarter of 2020, the Company incurred costs of $8 associated with the early termination of debt.

(4)The three and six month periods ended June 30, 2021 include the impact of certain Brazil indirect taxes of approximately $12, which were recorded in product sales and other income. The three and six month periods ended June 30, 2020 include the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11.

33

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

	Three Months Ended June 30,								Six Months Ended June 30,
	2021			2020			%/Basis Point Change		2021			2020			%/Basis Point Change
Select Consolidated Financial Information
Total revenue	$	917.0		$	606.5		51	%	$	1,821.4		$	1,563.8		16	%
Cost of sales	(385.0)			(250.5)			54	%	(790.4)			(671.5)			18	%
Selling, general and administrative expenses	(551.1)			(406.1)			36	%	(1,087.2)			(1,044.2)			4	%
Operating loss	(19.1)			(50.1)			(62)	%	(56.2)			(151.9)			(63)	%
Interest expense	(26.4)			(31.7)			(17)	%	(50.0)			(63.5)			(21)	%
Loss on extinguishment of debt and credit facilities	—			—			—	%	—			(7.8)			*
Interest (expense) income	(.1)			.3			*		.1			1.5			(93)	%
Other income (expense), net	4.9			(.9)			*		3.6			(19.1)			*
Gain on sale of business / assets	1.5			.1			*		1.5			.1			*
Loss from continuing operations, before income taxes	(39.2)			(82.3)			(52)	%	(101.0)			(240.7)			(58)	%
Loss from continuing operations, net of tax	(58.0)			(88.4)			(34)	%	(126.9)			(255.6)			(50)	%
Net loss attributable to Avon	$	(61.6)		$	(92.8)		(34)	%	$	(125.2)		$	(263.8)		(53)	%
Advertising expenses(1)	$	(18.6)		$	(7.1)		*		$	(36.2)		$	(22.8)		59	%
Reconciliation of Non-GAAP Financial Measures
Total revenue	$	917.0		$	606.5		51	%	$	1,821.4		$	1,563.8		16	%
Certain Brazil Indirect taxes	(9.4)			—					(9.4)			—
Adjusted revenue	$	907.6		$	606.5		50	%	$	1,812.0		$	1,563.8		16	%
Gross margin	58.0		%	58.7		%	(70)		56.6		%	57.1		%	(50)
CTI restructuring	—			—			—		—			—			—
Certain Brazil Indirect taxes	(.4)			(.1)			(30)		(.2)			(.1)			(10)
Adjusted gross margin	57.6		%	58.6		%	(100)		56.4		%	57.0		%	(60)
Selling, general and administrative expenses as a % of total revenue	60.1		%	67.0		%	(690)		59.7		%	66.8		%	(710)
CTI restructuring	(3.3)			(.6)			(270)		(2.7)			(.3)			(240)
Certain Brazil Indirect taxes	.6			1.6			(100)		.3			.6			(30)
Costs related to the Transaction	—			—			—		—			(5.5)			550
Adjusted selling, general and administrative expenses as a % of total revenue	57.4		%	68.0		%	(1,060)		57.3		%	61.6		%	(430)
Operating loss	$	(19.1)		$	(50.1)		(62)	%	$	(56.2)		$	(151.9)		(63)	%
CTI restructuring	30.4			3.4					49.9			5.2
Certain Brazil Indirect taxes	(9.4)			(10.6)					(9.4)			(10.6)
Costs related to the Transaction	—			.3					—			85.8
Adjusted operating income (loss)	$	1.9		$	(57.0)		*		$	(15.7)		$	(71.5)		(78)	%
Operating margin	(2.1)		%	(8.3)		%	620		(3.1)		%	(9.7)		%	660
CTI restructuring	3.3			.6			270		2.6			.3			230
Certain Brazil Indirect taxes	(1.0)			(1.7)			70		(.4)			(.7)			30
Costs related to the Transaction	—			—			—		—			5.5			(550)
Adjusted operating margin	0.2		%	(9.4)		%	960		(0.9)		%	(4.6)		%	370
Change in Constant $ Adjusted operating margin(2)							860								380

34

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

	Three Months Ended June 30,								Six Months Ended June 30,
	2021			2020			%/Basis Point Change		2021			2020			%/Basis Point Change
Loss before taxes	$	(39.2)		$	(82.3)		(52)	%	$	(101.0)		$	(240.7)		(58)	%
CTI restructuring	28.9			3.3					48.4			5.1
Certain Brazil Indirect taxes	(11.9)			(10.6)					(11.9)			(10.6)
Costs related to the Transaction	—			.3					—			85.8
Other items	—			—					—			7.8
Adjusted loss before taxes	$	(22.2)		$	(89.3)		(75)	%	$	(64.5)		$	(152.6)		(58)	%
Income taxes	$	(18.8)		$	(6.1)		*		$	(25.9)		$	(14.9)		74	%
Effective tax rate	(48.0)		%	(7.4)		%			(25.6)		%	(6.2)		%
Performance Metrics
Change in Active Representatives							27	%							8	%
Change in units sold							23	%							7	%

* Calculation not meaningful

Amounts in the table above may not necessarily sum due to rounding.

(1)Advertising expenses are recorded in SG&A.

(2)Change in Constant $ Adjusted operating margin for all periods presented is calculated using the current-year Constant $ rates.

Three Months Ended June 30, 2021

Revenue

During the three months ended June 30, 2021, revenue increased 51% compared to the prior-year period, favorably impacted by the recognition of certain Brazil indirect taxes in the current year. Excluding these items, Adjusted revenue increased 50% favorably impacted by foreign exchange, primarily driven by the weakening of the U.S. dollar relative to the South African rand, the British pound and the Mexican peso. On a Constant $ basis, Adjusted revenue increased 41%.

Revenue and Constant $ Adjusted revenue was impacted by an increase in Active Representatives of 27% in multiple markets and a 14% increase in Constant $ Adjusted Average Representative Sales. The increase in Constant $ Adjusted revenue was driven by growth of 27% in Avon International and 52% in Avon Latin America, mostly driven by the relaxation of COVID-19 restrictions in some markets compared to the three months ended June 30, 2020. Some markets were materially impacted by COVID-19 restrictions and are yet to show signs of recovery. Revenue in the three month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $87 of revenue to the third quarter of 2020.

Units sold increased 23%, largely due to increases in Avon Latin America.

See "Segment Review" in this MD&A for additional information related to changes in revenue by segment.

Operating Margin

Operating margin increased by 620 basis points including the impact of increased restructuring expenses during the three month period ended June 30, 2021 and the receipt of certain Brazil Indirect taxes in the three month period ended June 30, 2020. Excluding these items, Adjusted operating margin increased by 960 basis points, compared to the same period of 2020. Adjusted operating margin performance was impacted favorably by foreign exchange translation losses as constant $ Adjusted operating margin increased by 860 basis points driven by improved SG&A as a percentage of total revenue offsetting the decline in gross margin. The movements in operating margin and Adjusted operating margin are discussed further below in "Gross Margin" and "Selling, General and Administrative Expenses".

35

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

Gross Margin

Adjusted gross margin decreased 100 basis points, compared to the same period of 2020, as higher supply chain costs and the unfavorable impact of foreign currency transaction losses more than offset the favorable impact of price/mix.

Selling, General and Administrative Expenses ("SG&A")

SG&A as a percentage of total revenue decreased 690 basis points including the impact of increased restructuring expenses during the three month period ended June 30, 2021 and the receipt of certain Brazil Indirect taxes in the three month period ended June 30, 2020. Excluding these items, Adjusted SG&A as a percentage of Adjusted revenue decreased 1,060 basis points, compared to the same period of 2020. The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was driven by the impact of revenue growth on fixed costs and sales leader and field investments as investments made during the three months ended June 30, 2020 to support our Representatives in response to the COVID-19 pandemic were not required in the current year. In addition, Constant $ Adjusted SG&A as a percentage of Adjusted revenue was favorably impacted by lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current period.

Other Expenses

Interest expense decreased by approximately $6 and interest income has remained relatively unchanged compared to the prior-year period.

Other income (expense), net, of approximately $5 represents a favorable impact of $6 compared to the second quarter of 2020 primarily attributable to the favorable impact of foreign exchange net gains in the second quarter of 2021 which were not experienced to the same extent in the second quarter of 2020, and recognition of interest of $2 in 2021 relating to certain Brazil indirect taxes.

Effective Tax Rate

The effective tax rates in 2021 and 2020 continue to be impacted by our inability to recognize additional deferred tax assets in various jurisdictions related to our current-year operating results. In addition, the effective tax rates in 2021 and 2020 continue to be impacted by 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 corporate overhead.

Our effective tax rates for the three months ended June 30, 2021 and 2020 were (48.0)% and (7.4)%, respectively. The effective tax rates for the three months ended June 30, 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 second quarter of 2021 was unfavorably impacted by the accrual of net income tax expense of $7.0 associated with recording a valuation allowance of $6.0 and, reserves for uncertain tax positions of $1.4, net of miscellaneous income tax expense of approximately $.4. The effective tax rate for in the second quarter of 2020 was unfavorably impacted by miscellaneous income tax expense of approximately $2.3.

Our Adjusted effective tax rates for the three months ended June 30, 2021 and 2020 were (72.5)% and (2.7)%, respectively. The Adjusted effective tax rates in 2021 and 2020 were impacted by country mix of earnings and withholding taxes. The Adjusted effective tax rate for the second quarter of 2021 was unfavorably impacted by the accrual of net income tax expense of $7.0 associated with recording a valuation allowance of $6.0 and, reserves for uncertain tax positions of $1.4 net of miscellaneous income tax expense of approximately $.4. The Adjusted effective tax rate in the second quarter of 2020 was unfavorably impacted by miscellaneous income tax expense of approximately $2.3.

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 June 30, 2021, the COVID-19 pandemic is negative evidence the Company must consider. As of June 30, 2021, the negative

36

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

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.

See Note 16, Income Taxes, to the Consolidated Financial Statements included herein for more information on the effective tax rate, and Note 11, Restructuring Initiatives, to the Consolidated Financial Statements included herein for more information on CTI restructuring.

Impact of Foreign Currency

As compared to the prior-year period, foreign currency has impacted our consolidated financial results in the form of:

•foreign currency transaction losses (classified within cost of sales and SG&A in our Consolidated Statements of Operations), which had an unfavorable impact to operating profit and Adjusted operating profit of approximately $5, or approximately 150 basis points to both operating margin and Adjusted operating margin;

•foreign currency translation, which had an favorable impact to operating profit and Adjusted operating profit of less than $5, or less than 50 basis points on both operating margin and Adjusted operating margin; and

•foreign exchange net gains, on our working capital (classified within other income (expense), net in our Consolidated Statements of Operations) as compared to gains in the prior year, resulting in a favorable impact of approximately $5 before tax on both a reported and Adjusted basis.

Six Months Ended June 30, 2021

Revenue

During the six months ended June 30, 2021, revenue increased 16% with the impact of foreign exchange being broadly neutral as the weakening of the U.S. dollar relative to the South African rand, the British pound and the Mexican peso was offset by the strengthening of the U.S. dollar relative to the Russian ruble, the Turkish lira, the Brazilian real and the Argentinian peso. Constant $ Adjusted revenue increased 16%.

Revenue and Constant $ Adjusted revenue was impacted by an increase in Active Representatives of 8%, with increases in Avon Latin America being partly offset by decreases in Avon International, as well as a 8% increase in Constant $ Adjusted Average Representative Sales, with growth in both regions. Revenue in the six month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $87 of revenue to the third quarter of 2020.

The increase in Constant $ Adjusted revenue was driven by growth of 5% in Avon International and 27% in Avon Latin America, mostly driven by the relaxation of COVID-19 restrictions in some markets compared to the three months ended June 30, 2020. Some markets were materially impacted by COVID-19 restrictions and are yet to show signs of recovery.

Units sold increased 7%, largely due to increases in Avon Latin America.

See "Segment Review" in this MD&A for additional information related to changes in revenue by segment.

Operating Margin

Operating margin increased by 660 basis points, significantly benefiting from costs related to the Natura transaction in the six month period ended June 30, 2020 not repeating in the current year. This benefit was partially offset by increased restructuring expenses in the six month period ended June 30, 2021. Excluding these items, Adjusted operating margin increased by 370 basis points, compared to the same period of 2020. The impact of foreign exchange on Adjusted operating margin was broadly neutral and Constant $ Adjusted Operating Margin increased by 380 basis points driven by improved SG&A as a percentage of total revenue offsetting the decline in gross margin. The movements in operating margin and Adjusted operating margin are discussed further below in "Gross Margin" and "Selling, General and Administrative Expenses".

Gross Margin

Adjusted gross margin decreased 60 basis points, compared to the same period of 2020 as higher supply chain costs and the unfavorable impact of foreign currency transaction losses more than offset the favorable impact of price/mix.

37

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

Selling, General and Administrative Expenses ("SG&A")

SG&A as a percentage of total revenue decreased 710 basis points, significantly impacted by costs related to the Natura transaction in the six month period ended June 30, 2021. This benefit was partially offset by increased restructuring expenses in the six month period ended June 30, 2021. Excluding these items, Adjusted SG&A as a percentage of Adjusted revenue decreased 430 basis points, compared to the same period of 2020. The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was driven by the impact of revenue growth on fixed costs and sales leader and field investments as investments made during the three months ended June 30, 2020 to support our Representatives in response to the COVID-19 pandemic were not required in the current year. In addition, Constant $ Adjusted SG&A as a percentage of Adjusted revenue was favorably impacted by lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current period.

Other Expenses

Interest expense decreased by approximately $13 and interest income decreased by approximately $1 compared to the prior-year period.

Loss on extinguishment of debt and credit facilities of approximately $8 is primarily comprised of the costs of termination of our revolving credit facility in the six month period ended June 30, 2020. Refer to Note 15, Debt, to the Consolidated Financial Statements included herein for more information relating to these extinguishments of debt.

Other income (expense), net, of approximately $4 represents a favorable impact of $23 compared to the six month period ended June 30, 2020 primarily attributable to the unfavorable impact of foreign exchange net losses in the six month period ended June 30, 2020 which were not repeated in the six month period ended June 30, 2021 and recognition of interest of $2 in 2021 relating to certain Brazil indirect taxes.

Effective Tax Rate

The effective tax rates in 2021 and 2020 continue to be impacted by our inability to recognize additional deferred tax assets in various jurisdictions related to our current-year operating results. In addition, the effective tax rates in 2021 and 2020 continue to be impacted by 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 corporate overhead.

Our effective tax rates for the six months ended June 30, 2021 and 2020 were (25.6)% and (6.2%), respectively. The effective tax rates for the six months ended June 30, 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 half of 2021 was unfavorably impacted by the accrual of net income tax expense of $9.4 associated with recording a valuation allowance of $6.0, reserves for uncertain tax positions of $2.6, and legislative changes of $.8. The effective tax rate in the first half of 2020 was also unfavorably impacted by miscellaneous income tax expense of approximately $3.8.

Our Adjusted effective tax rates for the six months ended June 30, 2021 and 2020 were (38.7)% and (7.3%), respectively. The Adjusted effective tax rates in 2021 and 2020 were impacted by country mix of earnings and withholding taxes. The Adjusted effective tax rate for the second half of 2021 was unfavorably impacted by the accrual of net income tax expense of $9.4 associated with recording a valuation allowance of $6.0, reserves for uncertain tax positions of $2.6, and legislative changes of $.8. The effective tax rate in the first half of 2020 was also unfavorably impacted by miscellaneous income tax expense of approximately $3.8.

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 June 30, 2021, the global COVID-19 pandemic is a piece of negative evidence the Company must consider. As of June 30, 2021, the increase in negative evidence due to COVID-19 has not resulted in any changes to the Company’s conclusions regarding the realizability of existing deferred tax assets that are not subject to a valuation allowance. The Company will continue to monitor the evolution of the COVID-19 pandemic and other effects that could impact the conclusions regarding the realizability of its deferred tax assets. Potential negative evidence, including 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.

See Note 16, Income Taxes, to the Consolidated Financial Statements included herein for more information on the effective tax rate, and Note 11, Restructuring Initiatives, to the Consolidated Financial Statements included herein for more information on CTI restructuring.

38

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

Impact of Foreign Currency

As compared to the prior-year period, foreign currency has impacted our consolidated financial results in the form of:

•foreign currency transaction losses (classified within cost of sales and SG&A in our Consolidated Statements of Operations), which had an unfavorable impact to operating profit and Adjusted operating profit of approximately $25, or approximately 150 basis points to both operating margin and Adjusted operating margin;

•foreign currency translation, which had an unfavorable impact to operating profit and Adjusted operating profit of less than $5, or less than 50 basis points on both operating margin and Adjusted operating margin; and

•foreign exchange net gains, on our working capital (classified within other income (expense), net in our Consolidated Statements of Operations) as compared to gains in the prior year, resulting in a favorable impact of approximately $20 before tax on both a reported and Adjusted basis.

Segment Review

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. See Note 9, Segment Information, to the Consolidated Financial Statements included herein for a reconciliation of segment profit to operating profit.

Avon International

	Three Months Ended June 30,										Six Months Ended June 30,
							%/Basis Point Change										%/Basis Point Change
	2021			2020			US$		Constant $		2021			2020			US$		Constant $
Total revenue	$	416.4		$	305.0		37	%	27	%	$	847.3		$	782.1		8	%	5	%
Segment profit	.6			(4.4)			114	%	131	%	$	(6.4)		(1.7)			(276)	%	(16)	%
Segment margin	.1		%	(1.4)		%	150		230		(.8)		%	(.2)		%	(60)		10
Change in Active Representatives									7	%									(9)	%
Change in units sold									9	%									(4)	%

Amounts in the table above may not necessarily sum due to rounding.

Three Months Ended June 30, 2021

Total revenue increased 37% compared to the prior-year period, including the favorable impact of foreign exchange which was primarily driven by the weakening of the U.S. dollar relative to the South African rand and the British pound. On a Constant $ basis, revenue increased 27% driven by an increase in Average Representative Sales and to a lesser extent Active Representatives. The increase in Revenue and Constant $ revenue was mostly driven by the relaxation of COVID-19 restrictions in some markets compared to the three months ended June 30, 2020. Some markets were materially impacted by COVID-19 restrictions and are yet to show signs of recovery. Revenue in the three month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $12 of revenue to the third quarter of 2020.

The contribution of Active Representatives and Average Representative Sales into Total revenue was also impacted by a reduction in the frequency of campaign cycles as part of our strategy to simplify our business, with all markets now on a monthly campaign cycle.

Segment margin increased 150 basis points, or 230 on a Constant $ basis, mostly driven by lower SG&A as a percentage of total revenue.

Constant $ Adjusted gross margin increased slightly as the positive impact of price/mix fully offset the unfavorable impact of foreign currency transaction losses and higher supply chain costs.

The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current

39

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

period and lower sales leader and field investments as investments made during the three months ended June 30, 2020 to support our Representatives in response to the COVID-19 pandemic were not required in the current year.

Six Months Ended June 30, 2021

Total revenue increased 8% compared to the prior-year period, including the favorable impact of foreign exchange which was primarily driven by the weakening of the U.S. dollar relative to the South African rand and the British pound, partially offset by the strengthening of the U.S. dollar relative to the Russian ruble and the Turkish lira. On a Constant $ basis, revenue increased 5% driven by an increase in Average Representative Sales which more than offset the decrease in Active Representatives across most markets and the impact of a lower representative base compared to the prior year period. The increase in Revenue and Constant $ revenue was mostly driven by the relaxation of COVID-19 restrictions in some markets compared to the three months ended June 30, 2020. Some markets were materially impacted by COVID-19 restrictions and are yet to show signs of recovery. Revenue in the three month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $12 of revenue to the third quarter of 2020.

The contribution of Active Representatives and Average Representative Sales into Total revenue was also impacted by a reduction in the frequency of campaign cycles as part of our strategy to simplify our business, with all markets now on a monthly campaign cycle.

Segment margin decreased 60 basis points, or increased 10 basis points on a Constant $ basis, mostly driven by lower SG&A as a percentage of total revenue.

Constant $ Adjusted gross margin increased slightly as the positive impact of price/mix fully offset the unfavorable impact of foreign currency transaction losses and higher supply chain costs.

The increase in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to the impact of revenue decline causing deleverage of our fixed expenses partially offset by lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current period.

Avon Latin America

	Three Months Ended June 30,										Six Months Ended June 30,
							%/Basis Point Change										%/Basis Point Change
	2021			2020			US$		Constant $		2021			2020			US$		Constant $
Total revenue	$	491.9		$	299.7		64	%	56	%	$	957.7		$	779.9		23	%	28	%
Certain Brazil indirect tax benefit	(9.4)			—			*		*		(9.4)			—			*		*
Adjusted revenue	482.5			299.7			61	%	52	%	948.3			779.9			22	%	27	%
Segment profit (loss)	17.6			(50.8)			*		*		13.0			(68.0)			*		*
Certain Brazil indirect tax benefit	(9.4)			—			*		*		(9.4)			—			*		*
Adjusted segment profit (loss)	8.2			(50.8)			*		*		3.6			(68.0)			*		*
Segment margin	3.6		%	(17.0)		%	2,060		1,780		1.4		%	(8.7)		%	1,010		970
Certain Brazil indirect tax benefit	1.9		%	—		%	*		*		1.0		%	—		%	*		*
Adjusted segment margin	1.7		%	(17.0)		%	1,870		1,580		.4		%	(8.7)		%	910		870
Change in Active Representatives									42	%									21	%
Change in units sold									34	%									16	%

*Calculation not meaningful

Amounts in the table above may not necessarily sum due to rounding.

Three Months Ended June 30, 2021

Total revenue increased 64% compared to the prior-year period, favorably impacted by the recognition of certain Brazil indirect taxes in the current year. Excluding these items, Adjusted revenue increased 61% favorably impacted by foreign exchange, which was largely driven by the weakening of the U.S. dollar relative to the Mexican peso. On a Constant $ basis, Adjusted revenue increased 52% driven by an increase in Active Representatives and to a lesser extent an increase in Average

40

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

Representative Sales. Revenue grew in all markets driven by the relaxation of COVID-19 restrictions in many countries, resulting in a return to growth in most markets as economies began to recover from the impact of the pandemic. Revenue in the three month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020 which shifted approximately $75 of revenue to the third quarter of 2020.

Revenue in Brazil increased 38% compared to the prior year period, favorably impacted by the recognition of certain Brazil indirect taxes in the current year. Excluding these items, Adjusted revenue increased 30% favorably impacted by foreign exchange. Active Representatives increased 26% primarily due to the impact of the cyber incident in June 2020 which shifted revenue to the third quarter of 2020.

Segment margin increased 2,060 basis points, or 1,580 basis points on a Constant $ Adjusted segment margin basis, primarily driven by improvements in SG&A.

Constant $ Adjusted gross margin declined primarily due to the unfavorable impact of foreign currency.

The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was driven by the impact of revenue growth on fixed costs and sales leader and field investments as investments made during the three months ended June 30, 2020 to support our Representatives in response to the COVID-19 pandemic were not required in the current year. In addition, Constant $ Adjusted SG&A as a percentage of Adjusted revenue was favorably impacted by lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current period.

Six Months Ended June 30, 2021

Total revenue increased 23% compared to the prior-year period, favorably impacted by the recognition of certain Brazil indirect taxes in the current year. Excluding these items, Adjusted revenue increased 22% unfavorably impacted by foreign exchange, which was driven by the strengthening of the U.S. dollar relative to the Brazilian real and the Argentinian peso, partially offset by the weakening of the U.S. dollar relative to the Mexican peso in the latter part of the period. On a Constant $ basis, Adjusted revenue increased 27% driven by an increase in Active Representatives and to a lesser extent an increase in Average Representative Sales. Growth in the region was driven by most markets which more than offset the decline in Brazil. Revenue in the six month period ended June 30, 2021 was negatively impacted by the cyber incident in June 2020 which shifted approximately $75m of revenue to the third quarter of 2020.

Revenue in Brazil increased 2% compared to the prior year period, favorably impacted by the recognition of certain Brazil indirect taxes in the current year. Excluding these items, Adjusted revenue decreased 1% unfavorably impacted by foreign exchange. On an Adjusted Constant $ basis, revenue increased 10% primarily driven by an increase in Active Representatives as the six month period ended June 30, 2020 was negatively impacted by the cyber incident in June 2020.

Segment margin increased 1,010 basis points, or 870 basis points on a Constant $ Adjusted segment margin basis, primarily driven by improvements in SG&A.

Constant $ Adjusted gross margin marginally declined primarily due to the unfavorable impact of foreign currency and price/mix.

The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was driven by the impact of revenue growth on fixed costs and sales leader and field investments. In addition, Constant $ Adjusted SG&A as a percentage of Adjusted revenue was favorably impacted by lower bad debt, as the prior year period had an unfavorable impact on trade receivables recoverability from COVID-19 which is not seen in the current period.

41

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

LIQUIDITY AND CAPITAL RESOURCES

Our principal sources of funds historically have been cash flows from operations, public offerings of notes, bank financings, issuance of commercial paper, borrowings under lines of credit and private placement of notes. Furthermore, since January 3, 2020, we are part of the Natura &Co group of companies which gives us access to intercompany funding.

The Company has cash on hand of approximately $254 as of June 30, 2021.

COVID-19 pandemic and 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 contained herein. 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. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776.

Other liquidity matters

We may seek to retire our outstanding debt in open market purchases, through existing call mechanisms, privately negotiated transactions, through derivative instruments, cash tender offers or otherwise. Repurchases of debt may be funded by cash or the incurrence of additional debt and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors, and the amounts involved may be material. We may also elect to incur additional debt to finance ongoing operations or to meet our other liquidity needs. However, our credit ratings remain below investment grade which may impact our ability to access such transactions on favorable terms, if at all. For more information, see "Risk Factors - Our credit ratings are below investment grade, which could limit our access to financing, affect the market price of our financing and increase financing costs. A downgrade in our credit ratings may adversely affect our access to liquidity," "Risk Factors - Our indebtedness and any future inability to meet any of our obligations under our indebtedness, could adversely affect us by reducing our flexibility to respond to changing business and economic conditions" and "Risk Factors - A general economic downturn, a recession globally or in one or more of our geographic regions or markets or sudden disruption in business conditions or other challenges may adversely affect our business, our access to liquidity and capital, and our credit ratings" included in Item 1A of our 2020 Annual Report.

Our liquidity could also be negatively impacted by restructuring initiatives, dividends, capital expenditures, acquisitions, and certain contingencies, including any legal or regulatory settlements, described more fully in Note 7, Contingencies, to the Consolidated Financial Statements included herein. See our Cautionary Statement for purposes of the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 contained in this report.

Cash Flows

Net Cash Used by Operating Activities of Continuing Operations

Net cash used by operating activities of continuing operations during the first six months of 2021 was approximately $217 as compared to net cash used by operating activities of continuing operations of approximately $341 during the first six months of 2020, a decreased cash outflow of approximately $124. The decrease in net cash used by operating activities was primarily due to one-time transaction costs in the first quarter of 2020, related to the acquisition by Natura &Co Holding. Cash outflows related to the Transaction included professional fees, senior officer severance and other expenses. Further information relating to the Transaction is included in Note 17, Merger with Natura Cosméticos S.A., to the Consolidated Financial Statements included herein.

Net Cash Used by Investing Activities of Continuing Operations

Net cash used by continuing investing activities during the first six months of 2021 was approximately $30, as compared to net cash used by continuing investing activities of approximately $10 during the first six months of 2020. The approximate $20

42

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

increase to net cash used by continuing investing activities was driven by an increase in capital expenditure in the first six months of 2021 compared to the first six months of 2020. In addition, in the six month period ended, June 30, 2020, net proceeds of $10 were received from the sale of the Hungary Distribution Center in Gödöllő and deposits received for the sale of the China Wellness Plant.

Net Cash Provided by Financing Activities of Continuing Operations

Net cash provided by continuing financing activities during the first six months of 2021 was approximately $146, as compared to cash provided by continuing financing activities of $12 in the first six months of 2020. The approximate $134 increase to net cash from financing activities was driven by debt proceeds from affiliates of Natura &Co in 2021 and the settlement of stock options in the prior year period.

43

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT STRATEGIES

Interest Rate Risk

Approximately 10% of our debt portfolio, our short-term debt, is exposed to floating interest rates. Our long-term borrowings are all at fixed rates of interest.

Foreign Currency Risk

We conduct business globally, with operations in various locations around the world. Since 2016, all of our consolidated revenue has been derived from operations of subsidiaries outside of the U.S. The functional currency for most of our foreign operations is their local currency. We may reduce our exposure to fluctuations in cash flows associated with changes in foreign exchange rates by creating offsetting positions, including through the use of derivative financial instruments.

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements in this report (or in the documents it incorporates by reference) that are not historical facts or information may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "project," "forecast," "plan," "believe," "may," "expect," "anticipate," "intend," "planned," "potential," "can," "expectation," "could," "will," "would" and similar expressions, or the negative of those expressions, may identify forward-looking statements. They include, among other things, statements regarding our anticipated or expected results, future financial performance, various strategies and initiatives (including our Open Up & Grow and Avon Integration plans, stabilization strategies, digital strategies, cost savings initiatives, restructuring and other initiatives and related actions), costs and cost savings, competitive advantages, impairments, the impact of foreign currency, including devaluations, and other laws and regulations, government investigations, results of litigation, contingencies, taxes and tax rates, potential alliances or divestitures, liquidity, cash flow, uses of cash and financing, hedging and risk management strategies, pension, postretirement and incentive compensation plans, supply chain, the legal status of the Representatives, and the anticipated impact of the evolving COVID-19 pandemic and related responses from governments and private sector participants on the Company, its supply chain, third-party suppliers, project development timelines, costs, revenue, margins, liquidity and financial condition, the anticipated timing, speed and magnitude of recovery from these COVID-19 pandemic related impacts and the Company’s planned actions and responses to this pandemic. Such forward-looking statements are based on management's reasonable current assumptions, expectations, plans and forecasts regarding the Company's current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avon to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management's expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

•the COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, our operations, manufacturing, supply chains and distribution systems. There is uncertainty around the duration and breadth of the COVID-19 pandemic and the effectiveness of responses to it. As a result, we cannot reasonably estimate at this time the continued impact, that COVID-19 may have on our business or operations. The extent to which COVID-19 impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact including on financial markets or otherwise. See also "Item 1A. Risk Factors—The COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, our operations, manufacturing, supply chains and distribution systems, and we have experienced and expect to continue to experience unpredictable negative effects associated with the pandemic" included in Item 1A of our 2020 Annual Report.

•our ability to improve our financial and operational performance and execute fully our global business strategy, including our ability to implement the key initiatives of, and/or realize the projected benefits (in the amounts and time schedules we expect) from Open Up & Grow and Avon Integration plans, stabilization strategies, cost savings initiatives, restructuring and other initiatives, product mix and pricing strategies, enterprise resource planning, customer service initiatives, sales and operation planning process, outsourcing strategies, digital strategies, Internet platform and technology strategies including e-commerce, marketing and advertising strategies, information technology and related system enhancements and cash management, tax, foreign currency hedging and risk management strategies, and any plans to invest these projected benefits ahead of future growth;

44

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

•our broad-based geographic portfolio, which is heavily weighted towards emerging markets, a general economic downturn, a recession globally or in one or more of our geographic regions or markets, such as Brazil, Mexico or Russia, or sudden disruption in business conditions, and the ability to withstand an economic downturn, recession, cost inflation, commodity cost pressures, economic or political instability (including fluctuations in foreign exchange rates), competitive or other market pressures or conditions;

•the effect of economic factors, including inflation and fluctuations in interest rates and foreign currency exchange rates; as well as the designation of Argentina as a highly inflationary economy, and the potential effect of such factors on our business, results of operations and financial condition;

•the possibility of business disruption in connection with our Open Up & Grow and Avon Integration plans, stabilization strategies, cost savings initiatives, or restructuring and other initiatives;

•our ability to reverse declining revenue, to improve margins and net income, or to achieve profitable growth, particularly in our largest markets and developing and emerging markets, such as Brazil, Mexico, Russia and the United Kingdom;

•our ability to improve working capital and effectively manage doubtful accounts and inventory and implement initiatives to reduce inventory levels, and the potential impact on cash flows and obsolescence;

•our ability to reverse declines in Active Representatives, to enhance our sales leadership programs, to generate Representative activity, to increase the number of consumers served per Representative and their engagement online, to enhance branding and the Representative and consumer experience and increase Representative productivity through field activation and segmentation programs and technology tools and enablers, to invest in the direct-selling channel, to offer a more social selling experience, and to compete with other direct-selling organizations to recruit, retain and service Representatives and to continue to innovate the direct-selling model;

•general economic and business conditions in our markets, including social, economic and political uncertainties, such as in Russia and Ukraine or elsewhere, and any potential sanctions, restrictions or responses to such conditions imposed by other markets in which we operate;

•the effect of economic, political, legal, tax, including changes in tax rates, and other regulatory risks imposed on us abroad and in the U.S., our operations or the Representatives, including foreign exchange, pricing, data privacy or other restrictions, the adoption, interpretation and enforcement of foreign laws, including in jurisdictions such as Brazil and Russia, and any changes thereto, as well as reviews and investigations by government regulators that have occurred or may occur from time to time, including, for example, local regulatory scrutiny;

•competitive uncertainties in our markets, including competition from companies in the consumer packaged goods industry, some of which are larger than we are and have greater resources;

•the impact of the adverse effect of volatile energy, commodity and raw material prices, changes in market trends, purchasing habits of our consumers and changes in consumer preferences, particularly given the global nature of our business and the conduct of our business in primarily one channel;

•our ability to attract and retain key personnel;

•other sudden disruption in business operations beyond our control as a result of events such as acts of terrorism or war, natural disasters, pandemic situations, large-scale power outages and similar events;

•key information technology systems, process or site outages and disruptions, and any cybersecurity breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of Representative, customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident which could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations, and related costs to address such malicious intentional acts and to implement adequate preventative measures against cybersecurity breaches. This includes the cyber incident which occurred in the second quarter of 2020, see Note 1, Accounting Policies, to the Consolidated Financial Statements included herein and Item 4, Controls and Procedures;

•our ability to comply with various data privacy laws affecting the markets in which we do business;

•the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;

•any changes to our credit ratings and the impact of such changes on our financing costs, rates, terms, debt service obligations, access to lending sources and working capital needs;

45

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(U.S. dollars in millions, except per share data)

•the impact of our indebtedness, our access to cash and financing, and our ability to secure financing or financing at attractive rates and terms and conditions;

•our ability to successfully identify new business opportunities, strategic alliances and strategic alternatives and identify and analyze alliance candidates, secure financing on favorable terms and negotiate and consummate alliances;

•disruption in our supply chain or manufacturing and distribution operations;

•the quality, safety and efficacy of our products;

•the success of our research and development activities;

•our ability to protect our intellectual property rights, including in connection with the separation of the North America business;

•the risk of an adverse outcome in any material pending and future litigation or with respect to the legal status of Representatives; and,

•other risks and uncertainties include the possibility that the expected synergies and value creation from the Transaction (as defined in “Item 2 Management’s Discussion And Analysis Of Financial Condition And Results Of Operations—Overview—Transaction with Natura Cosméticos S.A.”) will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Natura &Co Holding will not be integrated successfully; disruption from the Transaction making it more difficult to maintain business and operational relationships; the possibility that the intended accounting and tax treatments of the Transaction are not achieved; the effect of the consummation of the Transaction on customers, employees, representatives, suppliers and partners and operating results; as well as more specific risks and uncertainties.

Additional information identifying such factors is contained in Item 1A of our 2020 Form 10-K for the year ended December 31, 2020, and in Item 1A of this 10-Q. We undertake no obligation to update any such forward-looking statements.

46

AVON PRODUCTS, INC.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in market risk from the information provided in Item 7A, Quantitative and Qualitative Disclosures About Market Risk, of our 2020 Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our principal executive and principal financial officers carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 of the Exchange Act. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating and implementing possible controls and procedures. Based upon their evaluation, the principal executive and principal financial officers concluded that our disclosure controls and procedures were effective as of June 30, 2021, at the reasonable assurance level. Disclosure controls and procedures are designed to ensure that information relating to Avon (including our consolidated subsidiaries) required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the United States Securities and Exchange Commission’s rules and forms and to ensure that information required to be disclosed is accumulated and communicated to management to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

Our management has evaluated, with the participation of our principal executive and principal financial officers, whether any changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2021 have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Based on the evaluation we conducted, our management has concluded that no such changes have occurred.

47

AVON PRODUCTS, INC.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 7, Contingencies, to the Consolidated Financial Statements included herein.

ITEM 1A. RISK FACTORS

For a discussion of the risk factors affecting the Company, see "Risk Factors" in Item 1A of our 2020 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

48

AVON PRODUCTS, INC.

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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

49

AVON PRODUCTS, INC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		AVON PRODUCTS, INC.
		(Registrant)
Date:	August 13, 2021	/s/ Samantha Hutchison
		Samantha Hutchison
		Controller - Principal Accounting Officer
		Signed both on behalf of the
		registrant and as chief
		accounting officer.

50

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Angela Cretu, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Avon Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2021

/s/ Angela Cretu

Angela Cretu

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Carl Rogberg, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Avon Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 13, 2021

/s/ Carl Rogberg

Carl Rogberg

Vice President Finance

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Avon Products, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Angela Cretu, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

a.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

b.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2021

/s/ Angela Cretu

Angela Cretu

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Avon Products, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carl Rogberg, Vice President Finance of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

a.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

b.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2021

/s/ Carl Rogberg

Carl Rogberg

Vice President Finance

XML

Cover Page	6 Months Ended
	Jun. 30, 2021 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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	Nunn Mills Road
Entity Address, City or Town	Northampton
Entity Address, Postal Zip Code	NN1 5PA
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	Q2
Amendment Flag	false

XML

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue from affiliates of Natura &Co	$ 8.7	$ 1.8	$ 16.4	$ 1.8
Total revenue	917.0	606.5	1,821.4	1,563.8
Costs, expenses and other:
Cost of sales	(385.0)	(250.5)	(790.4)	(671.5)
Selling, general and administrative expenses	(551.1)	(406.1)	(1,087.2)	(1,044.2)
Operating loss	(19.1)	(50.1)	(56.2)	(151.9)
Interest expense	(26.4)	(31.7)	(50.0)	(63.5)
Loss on extinguishment of debt and credit facilities			0.0	(7.8)
Interest income	(0.1)	0.3	0.1	1.5
Other income (expense), net	4.9	(0.9)	3.6	(19.1)
Gain on sale of business/assets	1.5	0.1	1.5	0.1
Total other expenses	(20.1)	(32.2)	(44.8)	(88.8)
Loss from continuing operations, before income taxes	(39.2)	(82.3)	(101.0)	(240.7)
Income taxes	(18.8)	(6.1)	(25.9)	(14.9)
Loss from continuing operations, net of tax	(58.0)	(88.4)	(126.9)	(255.6)
Income (loss) from discontinued operations, net of tax	(4.1)	(5.1)	0.9	(9.8)
Net loss	(62.1)	(93.5)	(126.0)	(265.4)
Net loss attributable to noncontrolling interests	0.5	0.7	0.8	1.6
Net loss attributable to Avon	(61.6)	(92.8)	(125.2)	(263.8)
Product sales
Revenue	864.8	573.1	1,715.2	1,472.9
Total revenue	864.8	573.1	1,715.2	1,472.9
Other revenue
Revenue	$ 43.5	$ 31.6	$ 89.8	$ 89.1

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (62.1)	$ (93.5)	$ (126.0)	$ (265.4)
Other comprehensive income (loss):
Foreign currency translation adjustments	16.4	(0.2)	4.2	(84.0)
Unrealized gain (loss) on revaluation of long-term intercompany balances	14.5	(3.3)	(17.8)	(26.6)
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	1.3	2.0	2.5	4.0
Total other comprehensive income (loss), net of income taxes	32.2	(1.5)	(11.1)	(106.0)
Comprehensive loss	(29.9)	(95.0)	(137.1)	(371.4)
Less: comprehensive loss attributable to noncontrolling interests	0.4	0.7	0.7	1.8
Comprehensive loss attributable to Avon	$ (29.5)	$ (94.3)	$ (136.4)	$ (369.6)

XML

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 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	$ 0.4	$ 0.4

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2021		Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 254.3		$ 364.9
Restricted cash	0.0		7.8
Accounts receivable, net	255.4		259.1
Receivables from affiliates of Natura &Co	11.0		6.1
Inventories	495.9		459.1
Prepaid expenses and other	201.6		204.2
Assets held for sale	8.9		13.9
Total current assets	1,227.1		1,315.1
Property, plant and equipment, at cost	1,155.5		1,148.5
Less accumulated depreciation	(725.4)		(709.9)
Property, plant and equipment, net	430.1		438.6
Right-of-use assets	118.1		153.1
Goodwill	77.7		83.2
Deferred tax asset	126.3		135.8
Other assets	459.1		438.5
Total assets	2,438.4		2,564.3
Current Liabilities
Debt maturing within one year	59.8		28.0
Loans from affiliates of Natura &Co	393.9		1,008.6
Accounts payable	606.0		709.4
Payables to affiliates of Natura &Co	4.1		0.0
Accrued compensation	100.1		89.4
Other accrued liabilities	315.3		334.7
Sales taxes and taxes other than income	77.0		89.9
Income taxes	0.0		5.4
Total current liabilities	1,575.6		2,294.8
Long-term debt	676.4		675.4
Loans from affiliates of Natura &Co	776.0		0.0
Long-term operating lease liability	91.0		120.9
Employee benefit plans	128.8		133.3
Long-term income taxes	109.9		101.1
Other liabilities	80.2		106.0
Total liabilities	3,437.9		3,431.5
Shareholders’ Deficit
Common stock	0.0		0.0
Additional paid-in capital	627.6		622.8
Retained losses	(485.7)		(360.5)
Accumulated other comprehensive loss	(1,145.0)		(1,133.8)
Treasury stock, at cost	0.0		0.0
Total Avon shareholders’ deficit	(1,003.1)		(871.5)
Noncontrolling interests	3.6		4.3
Total shareholders’ deficit	(999.5)	[1]	(867.2)
Total liabilities and shareholders’ deficit	2,438.4		2,564.3
Discontinued Operations
Current Liabilities
Current liabilities of discontinued operations and liabilities held for sale	19.4		27.1
Held for sale liabilities
Current Liabilities
Current liabilities of discontinued operations and liabilities held for sale	$ 0.0		$ 2.3

[1] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2021 was 101.34.

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net loss	$ (126.0)	$ (265.4)
Income (loss) from discontinued operations, net of tax	0.9	(9.8)
Loss from continuing operations, net of tax	(126.9)	(255.6)
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities:
Depreciation	27.9	30.2
Amortization	12.1	13.1
Provision for doubtful accounts	34.6	52.7
Provision for obsolescence	13.9	21.4
Share-based compensation	3.3	18.6
Foreign exchange (gains) losses	(5.2)	9.2
Deferred income taxes	5.4	14.9
Impairment loss on assets	0.0	0.7
Gain on sale of business / assets	0.0	(0.1)
Other	(0.6)	13.2
Changes in assets and liabilities:
Accounts receivable	(33.5)	36.8
Inventories	(49.6)	(52.6)
Prepaid expenses and other	1.0	(12.0)
Accounts payable and accrued liabilities	(80.9)	(191.7)
Income and other taxes	(8.9)	(23.7)
Noncurrent assets and liabilities	(9.5)	(15.8)
Net cash used by operating activities of continuing operations	(216.9)	(340.7)
Cash Flows from Investing Activities
Capital expenditures	(31.4)	(21.1)
Disposal of assets	1.6	1.1
Net proceeds from sale of business / assets	0.0	10.0
Other investing activities	0.0	0.4
Net cash used by investing activities of continuing operations	(29.8)	(9.6)
Cash Flows from Financing Activities
Cash dividends	0.0	(8.6)
Debt, net (maturities of three months or less)	(10.3)	10.1
Proceeds from debt	209.4	20.0
Repayment of debt	(48.0)	(0.2)
Repurchase of common stock	0.0	(0.4)
Settlement of stock options	0.0	(25.8)
Settlement of derivative contracts	(5.2)	16.5
Net cash provided by financing activities of continuing operations	145.9	11.6
Net cash used by operating activities of discontinued operations	(6.8)	(8.4)
Net cash used by discontinued operations	(6.8)	(8.4)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(11.5)	(17.4)
Net decrease in cash and cash equivalents, and restricted cash	(119.1)	(364.5)
Cash and cash equivalents, and restricted cash at beginning of year	373.4	661.1
Cash and cash equivalents, and restricted cash at end of period	$ 254.3	$ 296.6

XML

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 income (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, 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		(265.4)
Other comprehensive income (loss)		(106.0)
Ending balance (in shares) at Jun. 30, 2020	[3]			0.0					0.0
Ending balance at Jun. 30, 2020	[3]	(879.5)		$ 0.0	524.2	(262.9)		(1,145.8)	$ 0.0	5.0
Beginning balance (in shares) at Mar. 31, 2020	[3]			0.0					0.0
Beginning balance at Mar. 31, 2020	[3]	(785.3)		$ 0.0	523.4	(170.1)		(1,144.3)	$ 0.0	5.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(93.5)				(92.8)				(0.7)
Other comprehensive income (loss)		(1.5)						(1.5)
Exercise/ vesting/ expense of share-based compensation		0.8			0.8
Ending balance (in shares) at Jun. 30, 2020	[3]			0.0					0.0
Ending balance at Jun. 30, 2020	[3]	(879.5)		$ 0.0	524.2	(262.9)		(1,145.8)	$ 0.0	5.0
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 income (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
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		(126.0)
Other comprehensive income (loss)		(11.1)
Ending balance (in shares) at Jun. 30, 2021	[4]			0.0
Ending balance at Jun. 30, 2021	[4]	(999.5)		$ 0.0	627.6	(485.7)		(1,145.0)		3.6
Beginning balance (in shares) at Mar. 31, 2021	[4]			0.0
Beginning balance at Mar. 31, 2021	[4]	(973.8)		$ 0.0	623.4	(424.1)		(1,177.1)		4.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(62.1)				(61.6)				(0.5)
Other comprehensive income (loss)		32.2						32.1		0.1
Exercise/ vesting/ expense of share-based compensation		4.2			4.2
Ending balance (in shares) at Jun. 30, 2021	[4]			0.0
Ending balance at Jun. 30, 2021	[4]	$ (999.5)		$ 0.0	$ 627.6	$ (485.7)		$ (1,145.0)		$ 3.6

[1] On December 30, 2019, an affiliate of Cerberus Capital Management, L.P. ("Cerberus") elected to convert 435,000 shares of Series C Preferred Stock into 87,000,000 shares of the Company’s common stock, par value U.S.$0.25 per share, conditioned on the Conversion Condition (as defined below).

[2] In January 2020, subsequent to the Transaction, the Company restated its certificate of incorporation 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, were common stock and (ii) 25,000,000 shares, par value $1.00 per share, were preferred stock) to 1,000 shares of common stock, par value $0.01 per share. As a result of the Transaction, all of the issued and outstanding common stock of the Company, being 550,890,788, were canceled and converted. See Note 17, Mergers     with Natura Cosméticos S.A.

[3] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2020 was 101.34.

[4] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2021 was 101.34.

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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

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ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 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 six-month period ended June 30, 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 six-month period ended June 30, 2020 to reclassify cash inflows of $16.5 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 second 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 and Avon International had revenue growth during the second quarter of 2021. Avon International and Brazil were more significantly impacted by COVID-19 in the second 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. See also “Item 1A. Risk Factors—The COVID-19 pandemic is adversely affecting, and is expected to continue to adversely affect, our operations, manufacturing, supply chains and distribution systems, and we have

experienced and expect to continue to experience unpredictable negative effects associated with the pandemic" included in Item 1A of our 2020 Annual Report.

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. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776.

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

6 Months Ended

Jun. 30, 2021

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 and six month periods ended June 30, 2021 and 2020 are shown below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Selling, general and administrative expenses	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
Operating (loss) income	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
(Loss) income from discontinued operations, net of tax	$	(4.1)	$	(5.1)	$	.9	$	(9.8)

Assets and Liabilities Held for Sale

The major classes of assets comprising held for sale assets on the Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 are shown in the following table:

	June 30, 2021		December 31, 2020
Current held for sale assets
Inventories	$	—	$	2.6
Property, Plant & Equipment (net)	8.9		9.2
Cash and cash equivalents	—		.7
Other assets	—		1.4
	$	8.9	$	13.9
Current held for sale liabilities
Accounts payable	$	—	$	.5
Other liabilities	—		1.8
	$	—	$	2.3

At June 30, 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

Italy Branch

In June 2021, we completed the sale of a branch of our Italian business for a total selling price of $1.7, the proceeds of which will be received in installments between October 2021 and December 2026, and will be presented as investing activities in the Consolidated Statement of Cash Flows.

In the second quarter of 2021, we recorded a gain of $1.4 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds and the carrying value of the branch of the Italian business on the date of sale.

Hungary Distribution Center in Gödöllő

In April 2020, we signed an agreement to sell the Hungary Distribution Center in Gödöllő for a total selling price of $3.4, and received a deposit of $.3. In June 2020, we completed the sale of the asset and the remaining proceeds of $3.1 were received. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows.

In the second quarter of 2020, we recorded a gain of $.1 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the proceeds and the carrying value of the Hungary Distribution Center on the date of sale.

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 six-month period ended June 30, 2020, we received a cash deposit for the selling price of $6.6, presented as investing activities in the Consolidated Statement of Cash Flows, which included $3.3 of restricted cash.

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

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

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.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)	$	8.7	$	1.8	$	16.4	$	1.8
Gross profit from affiliates of Natura &Co(2)	$	.5	$	.4	$	1.1	$	.4
Interest expense on Loan from affiliates of Natura &Co(4)	$	(9.8)	$	(.3)	$	(18.5)	$	(.3)

	June 30, 2021		December 31, 2020
Balance Sheet Data
Receivables due from Instituto Avon(1)	$	.9	$	.8
Receivables due from affiliates of Natura &Co(2)	$	11.0	$	6.1
Payables due to affiliates of Natura &Co(3)	$	4.1	$	—
Loans from affiliates of Natura &Co maturing within one year(4)	$	393.9	$	1,008.6
Loans from affiliates of Natura &Co maturing after one year(4)	$	776.0	$	—
Investments in affiliates of Natura &Co(5)	$	.1	$	—

(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 $8.7 and $1.8 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $.5 and $.4 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded revenue from related party of $16.4 and $1.8 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $1.1 and $.4 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. Receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(3) The payable to Natura &Co relates to the vesting and settlement of share based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 long-term employee incentive program which vested and were automatically exercised in March 2021.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2021 of $1,169.9 include $980.1 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021. Loans from affiliates of Natura &Co Holding at June 30, 2021 also include $181.6 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.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of BRL $.5 in Natura &Co Pay Holding Financeira S.A., representing a 10% holding in the company. This is presented in other assets in our Consolidated Balance Sheets.

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REVENUE

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

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:

	Three Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	147.0	$	134.0	$	281.0	$	—	$	281.0
Fragrance	114.5		106.0		220.5		—		220.5
Color	59.0		50.2		109.2		—		109.2
Total Beauty	320.5		290.2		610.7		—		610.7
Fashion & Home:
Fashion	64.7		49.2		113.9		—		113.9
Home	14.6		116.2		130.8		—		130.8
Total Fashion & Home	79.3		165.4		244.7		—		244.7
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	399.8		465.0		864.8		—		864.8
Representative fees	16.5		26.8		43.3		—		43.3
Other	.1		.1		.2		8.7		8.9
Other revenue	16.6		26.9		43.5		8.7		52.2
Total revenue	$	416.4	$	491.9	$	908.3	$	8.7	$	917.0

	Three Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	122.6	$	93.6	$	216.2	$	—	$	216.2
Fragrance	78.7		70.8		149.5		—		149.5
Color	45.3		29.9		75.2		—		75.2
Total Beauty	246.6		194.3		440.9		—		440.9
Fashion & Home:					—		—
Fashion	38.4		26.9		65.3		—		65.3
Home	7.8		59.1		66.9		—		66.9
Total Fashion & Home	46.2		86.0		132.2		—		132.2
Net sales	292.8		280.3		573.1		—		573.1
Representative fees	11.1		18.1		29.2		—		29.2
Other	1.1		1.3		2.4		1.8		4.2
Other revenue	12.2		19.4		31.6		1.8		33.4
Total revenue	$	305.0	$	299.7	$	604.7	$	1.8	$	606.5

	Six Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	292.3	$	261.0	$	553.3	$	—	$	553.3
Fragrance	234.4		208.1		442.5		—		442.5
Color	122.4		100.7		223.1		—		223.1
Total Beauty	649.1		569.8		1,218.9		—		1,218.9
Fashion & Home:
Fashion	132.4		100.0		232.4		—		232.4
Home	31.4		223.1		254.5		—		254.5
Total Fashion & Home	163.8		323.1		486.9		—		486.9
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	812.9		902.3		1,715.2		—		1,715.2
Representative fees	34.3		55.1		89.4		—		89.4
Other	.1		.3		.4		16.4		16.8
Other revenue	34.4		55.4		89.8		16.4		106.2
Total revenue	$	847.3	$	957.7	$	1,805.0	$	16.4	$	1,821.4

	Six Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	273.2	$	239.6	$	512.8	$	—	$	512.8
Fragrance	211.0		186.8		$	397.8	—		397.8
Color	130.4		93.6		$	224.0	—		224.0
Total Beauty	614.6		520.0		1,134.6		—		1,134.6
Fashion & Home:
Fashion	111.2		70.2		$	181.4	—		181.4
Home	20.9		136.0		$	156.9	—		156.9
Total Fashion & Home	132.1		206.2		338.3		—		338.3
Product sales	746.7		726.2		1,472.9		—		1,472.9
Representative fees	31.3		48.8		$	80.1	—		80.1
Other	4.1		4.9		$	9.0	1.8		10.8
Other revenue	35.4		53.7		89.1		1.8		90.9
Total revenue	$	782.1	$	779.9	$	1,562.0	$	1.8	$	1,563.8

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

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 June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Accounts receivable, net of allowances of $47.9 and $51.1	$	255.4	$	259.1
Contract liabilities	$	39.1	$	52.1

The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the six months ended June 30, 2021, we recognized $35.9 of revenue related to the contract liability balance at the beginning of the six month period ended June 30, 2021, as the result of performance obligations satisfied. In addition, we deferred an additional $27.2 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 June 30, 2021 as compared with December 31, 2020.

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INVENTORIES

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Components of Inventories	June 30, 2021		December 31, 2020
Raw materials	$	143.7	$	131.3
Finished goods	352.2		327.8
Total	$	495.9	$	459.1

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LEASES

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and 2020:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2021	2020	2021	2020
Sublease income	Selling, general and administrative expenses	3.0	4.5	7.3	8.6

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 June 30, 2021 and 2020:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2021	2020	2021	2020
Sublease income	Selling, general and administrative expenses	3.0	4.5	7.3	8.6

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CONTINGENCIES

6 Months Ended

Jun. 30, 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 June 30, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $395 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 June 30, 2021 and December 31, 2020, the total amount under discussion classified as reasonably possible was $254 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 June 30, 2021, there were 129 individual cases pending against the Company. During the three months ended June 30, 2021, 28 new cases were filed and 8 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 June 30, 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 June 30, 2021 and December 31, 2020 was approximately $10 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 judgment 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 June 30, 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)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

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 and six months ended June 30, 2021 and 2020:

Three Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2021	$	(1,082.7)	$	(4.3)	$	(90.1)	$	(1,177.1)
Other comprehensive income other than reclassifications	30.8		—		—		30.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		1.3		1.3
Total reclassifications into earnings	—		—		1.3		1.3
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

Three Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2020	$	(1,049.6)	$	(4.3)	$	(90.4)	$	(1,144.3)
Other comprehensive loss other than reclassifications	(3.5)		—		—		(3.5)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		2.0		2.0
Total reclassifications into earnings	—		—		2.0		2.0
Balance as June 30, 2020	$	(1,053.1)	$	(4.3)	$	(88.4)	$	(1,145.8)

Six Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2020	$	(1,038.2)	$	(4.3)	$	(91.3)	$	(1,133.8)
Other comprehensive loss other than reclassifications	(13.7)		—		—		(13.7)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		2.5		2.5
Total reclassifications into earnings	—		—		2.5		2.5
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

Six Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Cash Flow Hedges		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2019	$	(942.7)	$	(.6)	$	(4.3)	$	(92.4)	$	(1,040.0)
Other comprehensive loss other than reclassifications	(110.4)		—		—		—		(110.4)
Reclassifications into earnings:
Derivative losses on cash flow hedges, net of tax of $0.0	—		.6		—		—		.6
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		—		4.0		4.0
Total reclassifications into earnings	—		.6		—		4.0		4.6
Balance at June 30, 2020	$	(1,053.1)	$	—	$	(4.3)	$	(88.4)	$	(1,145.8)

For further details on Other Comprehensive income, (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 gain of $1.9 and net loss $.1 for the three months ended June 30, 2021 and 2020, respectively, and foreign exchange net losses of $.1 and $3.9 for the six months ended June 30, 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

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONWe 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:

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2021		2020		2021		2020
Avon International	$	416.4	$	305.0	$	847.3	$	782.1
Avon Latin America*	491.9		299.7		957.7		779.9
Total revenue from reportable segments*(1)	908.3		604.7		1,805.0		1,562.0
Revenue from affiliates to Natura &Co	8.7		1.8		16.4		1.8
Total revenue*(1)	917.0		606.5		1,821.4		1,563.8

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2021		2020		2021		2020
Segment Profit (Loss)
Avon International	$	.6	$	(4.4)	$	(6.4)	$	(1.7)
Avon Latin America*	17.6		(50.8)		13.0		(68.0)
Total profit (loss) from reportable segments*(2)	$	18.2	$	(55.2)	$	6.6	$	(69.7)
Unallocated global expenses(3)	(6.9)		(1.8)		(12.9)		(1.8)
Certain Brazil indirect taxes(5)	—		10.6		—		10.6
CTI restructuring initiatives	(30.4)		(3.4)		(49.9)		(5.2)
Costs related to the Transaction (4)	—		(.3)		—		(85.8)
Operating loss*	$	(19.1)	$	(50.1)	$	(56.2)	$	(151.9)

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

(1)Total revenue also includes revenue from other business activities of $2.4 and $2.4 for the three months ended June 30, 2021 and 2020, and $4.3 and $8.8 for the six months ended June 30, 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 $.3 and $1.2 for the three months ended June 30, 2021 and 2020, and $.4 and $4.1 for the six months ended June 30, 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 $55.7 and $39.3 for the three months ended June 30, 2021 and 2020, and $115.9 and $103.0 for the six months ended June 30, 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.

(3)For the three and six months ended June 30, 2021 and 2020, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)For the three and six months ended June 30, 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.

(5)The three and six month periods ended June 30, 2020 include the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11.

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SUPPLEMENTAL BALANCE SHEET INFORMATION

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

SUPPLEMENTAL BALANCE SHEET INFORMATION

At June 30, 2021 and December 31, 2020, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2021		December 31, 2020
Prepaid taxes and tax refunds receivable	$	117.6	$	117.6
Receivables other than trade	29.8		34.9
Prepaid brochure costs, paper and other literature	9.9		12.0
Other	44.3		39.7
Prepaid expenses and other	$	201.6	$	204.2

At June 30, 2021 and December 31, 2020, other assets included the following:

Components of Other Assets	June 30, 2021		December 31, 2020
Net overfunded pension plans	$	108.9	$	103.0
Capitalized software	75.0		76.0
Judicial deposits	51.3		50.9
Long-term receivables	178.1		157.0
Trust assets associated with supplemental benefit plans	29.8		33.7
Other	16.0		17.9
Other assets	$	459.1	$	438.5

Prepaid taxes and tax refunds receivable and long-term receivables include approximately $121 and $112 related to certain Brazil indirect taxes as of June 30, 2021 and December 31, 2020, respectively. During the second quarter of 2021, the Brazilian Supreme Federal Court reached a final decision on a Motion of Clarification which supported the recognition of additional receivable balances related to certain Brazil indirect taxes. As of June 30, 2021, we have recorded our best estimate of the receivable of $12 and will continue to assess the impacts of the final decision.

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RESTRUCTURING INITIATIVES

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and 2020

During the three months ended June 30, 2021, we recorded net costs to implement of $28.9, of which $3.8 related to Avon Integration, $24.8 related to Open Up & Grow and $.3 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended June 30, 2020, we recorded costs to implement of $3.3 of which $1.5 related to Avon Integration, $2.0 related to Open Up & Grow, and a net benefit of $.2 related to the Transformation Plan, in our Consolidated Statements of Operations.

During the six months ended June 30, 2021, we recorded net costs to implement of $48.4, of which $9.9 related to Avon Integration, $39.0 related to Open Up & Grow and a net benefit of $0.5 related to the Transformation Plan, in our Consolidated Statements of Operations. During the six months ended June 30, 2020, we recorded costs to implement of $5.1 of which $1.5 related to Avon Integration, $6.9 related to Open Up & Grow, and a net benefit of $3.3 related to the Transformation Plan, in our Consolidated Statements of Operations.

The costs during the three and six months ended June 30, 2021 and 2020 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
CTI recorded in operating profit - COGS
Inventory write-off	—		(.2)		.2		(.3)
	—		(.2)		.2		(.3)
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	21.1		.6		30.4		(1.7)
Implementation costs, primarily related to professional service fees	6.1		1.2		10.2		.7
Dual running costs	.3		.7		$	.6	1.5
Contract termination and other net benefits	2.4		.7		$	7.4	3.0
Impairment of other assets	—		—		$	—	.7
Accelerated depreciation	.2		—		$	.2	.4
Variable lease charges	.3		.4		$	.9	.9
	30.4		3.6		$	49.7	5.5
CTI recorded in operating profit	30.4		3.4		$	49.9	5.2
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	(1.5)		(.1)		$	(1.5)	(.1)
Total CTI	$	28.9	$	3.3	$	48.4	$	5.1
Avon Integration	$	3.8	$	1.5	$	9.9	$	1.5
Open Up & Grow	$	24.8	$	2.0	$	39.0	$	6.9
Transformation Plan	$	.3	$	(.2)	$	(.5)	$	(3.3)

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 June 30, 2021 and December 31, 2020 is $2.7 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 June 30, 2021 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2020	$	9.0	$	—	$	2.8	$	11.8
2021 charges	26.2		.2		1.5		27.9
Cash payments	(12.0)		—		(2.3)		(14.3)
Non-cash write-offs	—		(.2)		—		(.2)
Foreign exchange	(.1)		—		(.1)		(.2)
Balance at June 30, 2021	$	23.1	$	—	$	1.9	$	25.0

The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at June 30, 2021 and December 31, 2020 is $.4 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:

	Employee- Related Costs		Inventory/ Asset Write-offs		Contract Terminations/Other		Foreign Currency Translation Adjustment Write-offs		Total
Avon Integration
Charges incurred to date	$	11.4	$	—	$	.2	$	—	$	11.6
Estimated charges to be incurred on approved initiatives	—		—		$	—	—		—
Total expected charges on approved initiatives	$	11.4	$	—	$	.2	$	—	$	11.6
Open Up & Grow
Charges incurred to date	$	112.0	$	106.6	$	13.8	$	(10.9)	$	221.5
Estimated charges to be incurred on approved initiatives	—		—		2.1		—		2.1
Total expected charges on approved initiatives	$	112.0	$	106.6	$	15.9	$	(10.9)	$	223.6

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:

	Avon International		Avon Latin America		Total
Avon Integration
2020	$	6.2	$	4.6	$	10.8
First quarter 2021	(.5)		2.0		1.5
Second quarter 2021	(.7)		—		(.7)
Charges incurred to date	5.0		6.6		11.6
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.0	$	6.6	$	11.6
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
First quarter 2021	9.4		(.1)		9.3
Second quarter 2021	21.1		—		21.1
Charges incurred to date	121.2		100.3		221.5
Estimated charges to be incurred on approved initiatives	2.1		—		2.1
Total expected charges on approved initiatives	$	123.3	$	100.3	$	223.6

The charges above are not included in segment profit, as this excludes costs to implement restructuring initiatives. The amounts shown in the tables above as charges recorded to date relate to initiatives that have been approved and recorded in the consolidated financial statements, as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met.

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GOODWILL

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

	Avon International		Avon Latin America		Total
Net balance at December 31, 2020	$	20.0	$	63.2	$	83.2
Changes during the period ended June 30, 2021:
Foreign exchange	(.7)		(4.8)		(5.5)
Net balance at June 30, 2021	$	19.3	$	58.4	$	77.7

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FAIR VALUE

6 Months Ended

Jun. 30, 2021

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 June 30, 2021:

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	.4	$	.4
Total	$	—	$	.4	$	.4
Liabilities:
Foreign exchange forward contracts	$	—	$	.1	$	.1
Total	$	—	$	.1	$	.1

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:

	Level 1		Level 2		Total
Assets:
Available-for-sale securities	$	4.2	$	—	$	4.2
Foreign exchange forward contracts	$	—	$	2.8	$	2.8
Total	$	4.2	$	2.8	$	7.0
Liabilities:
Foreign exchange forward contracts	$	—	$	6.0	$	6.0
Total	$	—	$	6.0	$	6.0

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 June 30, 2021 and December 31, 2020, respectively, consisted of the following:

	June 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Available-for-sale securities	$	—	$	—	$	4.2	$	4.2
Debt maturing within one year	(59.8)		(59.8)		(28.0)		(28.0)
Loans from affiliates of Natura &Co maturing within one year	(393.9)		(393.9)		(1,008.6)		(1,008.6)
Long-term debt(1)	(676.4)		(781.7)		(675.4)		(782.4)
Loans from affiliates of Natura &Co maturing after one year	(776.0)		(776.0)		—		—
Foreign exchange forward contracts	.3		.3		(3.2)		(3.2)

(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

6 Months Ended

Jun. 30, 2021

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 June 30, 2021:

	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	$	.4	Accounts payable	$	.1
Total derivatives		$	.4		$	.1

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:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	2.8	Accounts payable	$	6.0
Total derivatives		$	2.8		$	6.0

Interest Rate Risk

On June 30, 2021 we entered into a cross-currency interest rate swap agreement with a third party bank, designated as a cash flow hedge, whereby we receive fixed rate interest payments on $11 at 2.10% per annum in exchange for making floating interest rate payments on BRL $55 at CDI plus 1.87% for a period of 6 months. At June 30, 2021 the fair value of the cross currency interest-rate swap agreement was less than $.1. At December 31, 2020, we did not have any interest-rate swap agreements. Approximately 10% and 4% of our debt portfolio at June 30, 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 June 30, 2021, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $196 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 June 30, 2021 and 2020, we recorded losses of $.6 and $3.7, respectively, in other (expense) income, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. During the six months ended June 30, 2021 and 2020, we recorded a loss of $1.3 and a gain $6.8, respectively, in other (expense) income, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts.

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DEBT

6 Months Ended

Jun. 30, 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 an arms length margin, the Facility will mature on May 31, 2022. As at June 30, 2021, $181.6 including interest was outstanding under the Facility. In July 2021, $150 was repaid linked to the sale of Avon Luxembourg Holdings S.à r.l to a subsidiary of Natura &Co Holding S.A.

Other loans from affiliates of Natura &Co

In May 2021, Cosmeticos Avon S.A.C.I entered into a Promissory Note with a subsidiary of Natura&Co Holding S.A. in the amount of ARS$550 million. The promissory note bears interest at a rate per annum of 44.29% and matures on November 11, 2021. As at June 30, 2021, $6 including interest was outstanding under the Promissory Note.

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 June 30, 2021, $980 including accrued interest of $20 was outstanding under the Promissory Note. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021.

Loans from affiliates of Natura &Co Holding at June 30, 2021 also include a $2 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 June 30, 2021, we utilized approximately $60 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 June 30, 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

6 Months Ended

Jun. 30, 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 June 30, 2021, our annual effective tax rate, excluding discrete items, is 27.1%, as compared to 27.5% as of June 30, 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 June 30, 2021 and 2020 was $18.8 and $6.1, respectively. Our effective tax rates for the three months ended June 30, 2021 and 2020 were (48.0)% and (7.4)%, respectively. The provision for income taxes for the six months ended June 30, 2021 and 2020 was $25.9 and $14.9, respectively. Our effective tax rates for the six months ended June 30, 2021 and 2020 were (25.6)% and (6.2)%, respectively.

The effective tax rates for the three months ended June 30, 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 second quarter of 2021 was unfavorably impacted by the accrual of net income tax expense of $7.0 associated with recording a valuation allowance of $6.0 and reserves for uncertain tax positions of $1.4 net of miscellaneous income tax benefits of approximately $.4. The effective tax rate in the first quarter of 2020 was unfavorably impacted by miscellaneous income tax expense of approximately $2.3.

The effective tax rates for the six months ended June 30, 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 half of 2021 was unfavorably impacted by the accrual of net income tax expense of $9.4 associated with recording a valuation allowance of $6.0, reserves for uncertain tax positions of $2.6, and legislative changes of $.8. The effective tax rate in the first half of 2020 was also unfavorably impacted by miscellaneous income tax expense of approximately $3.8.

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 June 30, 2021, the COVID-19 pandemic is negative evidence the Company must consider. As of June 30, 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.

6 Months Ended

Jun. 30, 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

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg Holdings S.à r.l and its subsidiaries, including our Mexican business, to a subsidiary of Natura &Co Holding S.A. for $150. In the third quarter of 2021, the sale will be accounted for as a transaction under common control in accordance with ASC805 - Business Combinations. Any gain or loss on this transaction will be recorded directly in Retained Earnings representing the difference between the proceeds and the net assets of Avon Luxembourg Holdings S.à r.l and its subsidiaries on the date of sale. We are still assessing this transaction, including quantifying the amount of any foreign currency translation adjustment that should be included in the calculation of gain or loss and therefore are currently unable to estimate the impact it will have on our Consolidated Financial Statements. The proceeds were used to repay maturing loans of $150 borrowed under the $250 Revolving Credit Facility with a subsidiary of Natura &Co Holding S.A..

In July 2021, the $960 loan with a subsidiary of Natura &Co Holding S.A. was partially repaid with a loan maturing in 2028. As a result the outstanding balance due to a subsidiary of Natura &Co Holding S.A., on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021.

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ACCOUNTING POLICIES (Policy)

6 Months Ended

Jun. 30, 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.

Reclassifications

ReclassificationsDuring the third quarter of 2020, we identified an immaterial classification error in the Consolidated Statement of Cash Flows relating to the six-month period ended June 30, 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 six-month period ended June 30, 2020 to reclassify cash inflows of $16.5 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)

6 Months Ended

Jun. 30, 2021

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 and six month periods ended June 30, 2021 and 2020 are shown below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Selling, general and administrative expenses	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
Operating (loss) income	$	(4.1)	$	(5.1)	$	.9	$	(9.8)
(Loss) income from discontinued operations, net of tax	$	(4.1)	$	(5.1)	$	.9	$	(9.8)

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 June 30, 2021 and December 31, 2020 are shown in the following table:

	June 30, 2021		December 31, 2020
Current held for sale assets
Inventories	$	—	$	2.6
Property, Plant & Equipment (net)	8.9		9.2
Cash and cash equivalents	—		.7
Other assets	—		1.4
	$	8.9	$	13.9
Current held for sale liabilities
Accounts payable	$	—	$	.5
Other liabilities	—		1.8
	$	—	$	2.3

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

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.

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)	$	8.7	$	1.8	$	16.4	$	1.8
Gross profit from affiliates of Natura &Co(2)	$	.5	$	.4	$	1.1	$	.4
Interest expense on Loan from affiliates of Natura &Co(4)	$	(9.8)	$	(.3)	$	(18.5)	$	(.3)

	June 30, 2021		December 31, 2020
Balance Sheet Data
Receivables due from Instituto Avon(1)	$	.9	$	.8
Receivables due from affiliates of Natura &Co(2)	$	11.0	$	6.1
Payables due to affiliates of Natura &Co(3)	$	4.1	$	—
Loans from affiliates of Natura &Co maturing within one year(4)	$	393.9	$	1,008.6
Loans from affiliates of Natura &Co maturing after one year(4)	$	776.0	$	—
Investments in affiliates of Natura &Co(5)	$	.1	$	—

(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 $8.7 and $1.8 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $.5 and $.4 associated with these agreements during the three months ended June 30, 2021 and 2020, respectively. The Company recorded revenue from related party of $16.4 and $1.8 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. The Company recorded gross profit from related party of $1.1 and $.4 associated with these agreements during the six months ended June 30, 2021 and 2020, respectively. Receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(3) The payable to Natura &Co relates to the vesting and settlement of share based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 long-term employee incentive program which vested and were automatically exercised in March 2021.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2021 of $1,169.9 include $980.1 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding S.A.. In July 2021, the $960 loan was partially repaid with a loan maturing in 2028. As a result the outstanding balance due on November 2, 2021 is $204 and the amount outstanding in 2028 is $776. In accordance with ASC 470 - Debt, $776 has been presented as non-current in the Consolidated Balance Sheet as of June 30, 2021. Loans from affiliates of Natura &Co Holding at June 30, 2021 also include $181.6 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.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of BRL $.5 in Natura &Co Pay Holding Financeira S.A., representing a 10% holding in the company. This is presented in other assets in our Consolidated Balance Sheets.

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REVENUE (Tables)

6 Months Ended

Jun. 30, 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:

	Three Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	147.0	$	134.0	$	281.0	$	—	$	281.0
Fragrance	114.5		106.0		220.5		—		220.5
Color	59.0		50.2		109.2		—		109.2
Total Beauty	320.5		290.2		610.7		—		610.7
Fashion & Home:
Fashion	64.7		49.2		113.9		—		113.9
Home	14.6		116.2		130.8		—		130.8
Total Fashion & Home	79.3		165.4		244.7		—		244.7
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	399.8		465.0		864.8		—		864.8
Representative fees	16.5		26.8		43.3		—		43.3
Other	.1		.1		.2		8.7		8.9
Other revenue	16.6		26.9		43.5		8.7		52.2
Total revenue	$	416.4	$	491.9	$	908.3	$	8.7	$	917.0

	Three Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	122.6	$	93.6	$	216.2	$	—	$	216.2
Fragrance	78.7		70.8		149.5		—		149.5
Color	45.3		29.9		75.2		—		75.2
Total Beauty	246.6		194.3		440.9		—		440.9
Fashion & Home:					—		—
Fashion	38.4		26.9		65.3		—		65.3
Home	7.8		59.1		66.9		—		66.9
Total Fashion & Home	46.2		86.0		132.2		—		132.2
Net sales	292.8		280.3		573.1		—		573.1
Representative fees	11.1		18.1		29.2		—		29.2
Other	1.1		1.3		2.4		1.8		4.2
Other revenue	12.2		19.4		31.6		1.8		33.4
Total revenue	$	305.0	$	299.7	$	604.7	$	1.8	$	606.5

	Six Months Ended June 30, 2021
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	292.3	$	261.0	$	553.3	$	—	$	553.3
Fragrance	234.4		208.1		442.5		—		442.5
Color	122.4		100.7		223.1		—		223.1
Total Beauty	649.1		569.8		1,218.9		—		1,218.9
Fashion & Home:
Fashion	132.4		100.0		232.4		—		232.4
Home	31.4		223.1		254.5		—		254.5
Total Fashion & Home	163.8		323.1		486.9		—		486.9
Certain Brazil indirect taxes*	—		9.4		9.4		—		9.4
Product sales	812.9		902.3		1,715.2		—		1,715.2
Representative fees	34.3		55.1		89.4		—		89.4
Other	.1		.3		.4		16.4		16.8
Other revenue	34.4		55.4		89.8		16.4		106.2
Total revenue	$	847.3	$	957.7	$	1,805.0	$	16.4	$	1,821.4

	Six Months Ended June 30, 2020
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	273.2	$	239.6	$	512.8	$	—	$	512.8
Fragrance	211.0		186.8		$	397.8	—		397.8
Color	130.4		93.6		$	224.0	—		224.0
Total Beauty	614.6		520.0		1,134.6		—		1,134.6
Fashion & Home:
Fashion	111.2		70.2		$	181.4	—		181.4
Home	20.9		136.0		$	156.9	—		156.9
Total Fashion & Home	132.1		206.2		338.3		—		338.3
Product sales	746.7		726.2		1,472.9		—		1,472.9
Representative fees	31.3		48.8		$	80.1	—		80.1
Other	4.1		4.9		$	9.0	1.8		10.8
Other revenue	35.4		53.7		89.1		1.8		90.9
Total revenue	$	782.1	$	779.9	$	1,562.0	$	1.8	$	1,563.8

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

Receivables and Contract Liabilities from Contracts with Customers

The following table provides information about receivables and contract liabilities from contracts with customers at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Accounts receivable, net of allowances of $47.9 and $51.1	$	255.4	$	259.1
Contract liabilities	$	39.1	$	52.1

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

Components of Inventories	June 30, 2021		December 31, 2020
Raw materials	$	143.7	$	131.3
Finished goods	352.2		327.8
Total	$	495.9	$	459.1

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LEASES (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Schedule of Sublease Income

The table below shows the sublease income recorded in the Consolidated Statement of Operations incurred during the three months ended June 30, 2021 and 2020:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2021	2020	2021	2020
Sublease income	Selling, general and administrative expenses	3.0	4.5	7.3	8.6

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2021 and 2020:

Three Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2021	$	(1,082.7)	$	(4.3)	$	(90.1)	$	(1,177.1)
Other comprehensive income other than reclassifications	30.8		—		—		30.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		1.3		1.3
Total reclassifications into earnings	—		—		1.3		1.3
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

Three Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2020	$	(1,049.6)	$	(4.3)	$	(90.4)	$	(1,144.3)
Other comprehensive loss other than reclassifications	(3.5)		—		—		(3.5)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		2.0		2.0
Total reclassifications into earnings	—		—		2.0		2.0
Balance as June 30, 2020	$	(1,053.1)	$	(4.3)	$	(88.4)	$	(1,145.8)

Six Months Ended June 30, 2021	Foreign Currency Translation Adjustments		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2020	$	(1,038.2)	$	(4.3)	$	(91.3)	$	(1,133.8)
Other comprehensive loss other than reclassifications	(13.7)		—		—		(13.7)
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		2.5		2.5
Total reclassifications into earnings	—		—		2.5		2.5
Balance at June 30, 2021	$	(1,051.9)	$	(4.3)	$	(88.8)	$	(1,145.0)

Six Months Ended June 30, 2020	Foreign Currency Translation Adjustments		Cash Flow Hedges		Net Investment Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2019	$	(942.7)	$	(.6)	$	(4.3)	$	(92.4)	$	(1,040.0)
Other comprehensive loss other than reclassifications	(110.4)		—		—		—		(110.4)
Reclassifications into earnings:
Derivative losses on cash flow hedges, net of tax of $0.0	—		.6		—		—		.6
Amortization of net actuarial loss and prior service cost, net of tax of $0.4(1)	—		—		—		4.0		4.0
Total reclassifications into earnings	—		.6		—		4.0		4.6
Balance at June 30, 2020	$	(1,053.1)	$	—	$	(4.3)	$	(88.4)	$	(1,145.8)

For further details on Other Comprehensive income, (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)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Total Revenue

Summarized financial information concerning our reportable segments was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Total Revenue	2021		2020		2021		2020
Avon International	$	416.4	$	305.0	$	847.3	$	782.1
Avon Latin America*	491.9		299.7		957.7		779.9
Total revenue from reportable segments*(1)	908.3		604.7		1,805.0		1,562.0
Revenue from affiliates to Natura &Co	8.7		1.8		16.4		1.8
Total revenue*(1)	917.0		606.5		1,821.4		1,563.8

Schedule of Operating (Loss) Profit

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2021		2020		2021		2020
Segment Profit (Loss)
Avon International	$	.6	$	(4.4)	$	(6.4)	$	(1.7)
Avon Latin America*	17.6		(50.8)		13.0		(68.0)
Total profit (loss) from reportable segments*(2)	$	18.2	$	(55.2)	$	6.6	$	(69.7)
Unallocated global expenses(3)	(6.9)		(1.8)		(12.9)		(1.8)
Certain Brazil indirect taxes(5)	—		10.6		—		10.6
CTI restructuring initiatives	(30.4)		(3.4)		(49.9)		(5.2)
Costs related to the Transaction (4)	—		(.3)		—		(85.8)
Operating loss*	$	(19.1)	$	(50.1)	$	(56.2)	$	(151.9)

* 2021 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $9, in our Consolidated Income Statements. See Note 10 Supplemental Balance Sheet Information, to the Consolidated Financial Statements contained herein for further information.

(1)Total revenue also includes revenue from other business activities of $2.4 and $2.4 for the three months ended June 30, 2021 and 2020, and $4.3 and $8.8 for the six months ended June 30, 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 $.3 and $1.2 for the three months ended June 30, 2021 and 2020, and $.4 and $4.1 for the six months ended June 30, 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 $55.7 and $39.3 for the three months ended June 30, 2021 and 2020, and $115.9 and $103.0 for the six months ended June 30, 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.

(3)For the three and six months ended June 30, 2021 and 2020, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)For the three and six months ended June 30, 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.

(5)The three and six month periods ended June 30, 2020 include the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11.

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SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Components of Prepaid Expenses and Other

At June 30, 2021 and December 31, 2020, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2021		December 31, 2020
Prepaid taxes and tax refunds receivable	$	117.6	$	117.6
Receivables other than trade	29.8		34.9
Prepaid brochure costs, paper and other literature	9.9		12.0
Other	44.3		39.7
Prepaid expenses and other	$	201.6	$	204.2

Schedule of Components of Other Assets

At June 30, 2021 and December 31, 2020, other assets included the following:

Components of Other Assets	June 30, 2021		December 31, 2020
Net overfunded pension plans	$	108.9	$	103.0
Capitalized software	75.0		76.0
Judicial deposits	51.3		50.9
Long-term receivables	178.1		157.0
Trust assets associated with supplemental benefit plans	29.8		33.7
Other	16.0		17.9
Other assets	$	459.1	$	438.5

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RESTRUCTURING INITIATIVES (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Summary of Restructuring and Related Costs

The costs during the three and six months ended June 30, 2021 and 2020 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
CTI recorded in operating profit - COGS
Inventory write-off	—		(.2)		.2		(.3)
	—		(.2)		.2		(.3)
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	21.1		.6		30.4		(1.7)
Implementation costs, primarily related to professional service fees	6.1		1.2		10.2		.7
Dual running costs	.3		.7		$	.6	1.5
Contract termination and other net benefits	2.4		.7		$	7.4	3.0
Impairment of other assets	—		—		$	—	.7
Accelerated depreciation	.2		—		$	.2	.4
Variable lease charges	.3		.4		$	.9	.9
	30.4		3.6		$	49.7	5.5
CTI recorded in operating profit	30.4		3.4		$	49.9	5.2
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	(1.5)		(.1)		$	(1.5)	(.1)
Total CTI	$	28.9	$	3.3	$	48.4	$	5.1
Avon Integration	$	3.8	$	1.5	$	9.9	$	1.5
Open Up & Grow	$	24.8	$	2.0	$	39.0	$	6.9
Transformation Plan	$	.3	$	(.2)	$	(.5)	$	(3.3)

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 June 30, 2021 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2020	$	9.0	$	—	$	2.8	$	11.8
2021 charges	26.2		.2		1.5		27.9
Cash payments	(12.0)		—		(2.3)		(14.3)
Non-cash write-offs	—		(.2)		—		(.2)
Foreign exchange	(.1)		—		(.1)		(.2)
Balance at June 30, 2021	$	23.1	$	—	$	1.9	$	25.0

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:

	Employee- Related Costs		Inventory/ Asset Write-offs		Contract Terminations/Other		Foreign Currency Translation Adjustment Write-offs		Total
Avon Integration
Charges incurred to date	$	11.4	$	—	$	.2	$	—	$	11.6
Estimated charges to be incurred on approved initiatives	—		—		$	—	—		—
Total expected charges on approved initiatives	$	11.4	$	—	$	.2	$	—	$	11.6
Open Up & Grow
Charges incurred to date	$	112.0	$	106.6	$	13.8	$	(10.9)	$	221.5
Estimated charges to be incurred on approved initiatives	—		—		2.1		—		2.1
Total expected charges on approved initiatives	$	112.0	$	106.6	$	15.9	$	(10.9)	$	223.6

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:

	Avon International		Avon Latin America		Total
Avon Integration
2020	$	6.2	$	4.6	$	10.8
First quarter 2021	(.5)		2.0		1.5
Second quarter 2021	(.7)		—		(.7)
Charges incurred to date	5.0		6.6		11.6
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.0	$	6.6	$	11.6
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
First quarter 2021	9.4		(.1)		9.3
Second quarter 2021	21.1		—		21.1
Charges incurred to date	121.2		100.3		221.5
Estimated charges to be incurred on approved initiatives	2.1		—		2.1
Total expected charges on approved initiatives	$	123.3	$	100.3	$	223.6

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

	Avon International		Avon Latin America		Total
Net balance at December 31, 2020	$	20.0	$	63.2	$	83.2
Changes during the period ended June 30, 2021:
Foreign exchange	(.7)		(4.8)		(5.5)
Net balance at June 30, 2021	$	19.3	$	58.4	$	77.7

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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2021:

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	.4	$	.4
Total	$	—	$	.4	$	.4
Liabilities:
Foreign exchange forward contracts	$	—	$	.1	$	.1
Total	$	—	$	.1	$	.1

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:

	Level 1		Level 2		Total
Assets:
Available-for-sale securities	$	4.2	$	—	$	4.2
Foreign exchange forward contracts	$	—	$	2.8	$	2.8
Total	$	4.2	$	2.8	$	7.0
Liabilities:
Foreign exchange forward contracts	$	—	$	6.0	$	6.0
Total	$	—	$	6.0	$	6.0

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 June 30, 2021 and December 31, 2020, respectively, consisted of the following:

	June 30, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Available-for-sale securities	$	—	$	—	$	4.2	$	4.2
Debt maturing within one year	(59.8)		(59.8)		(28.0)		(28.0)
Loans from affiliates of Natura &Co maturing within one year	(393.9)		(393.9)		(1,008.6)		(1,008.6)
Long-term debt(1)	(676.4)		(781.7)		(675.4)		(782.4)
Loans from affiliates of Natura &Co maturing after one year	(776.0)		(776.0)		—		—
Foreign exchange forward contracts	.3		.3		(3.2)		(3.2)

(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)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table presents the fair value of derivative instruments at June 30, 2021:

	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	$	.4	Accounts payable	$	.1
Total derivatives		$	.4		$	.1

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:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	2.8	Accounts payable	$	6.0
Total derivatives		$	2.8		$	6.0

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ACCOUNTING POLICIES (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jul. 31, 2021	Dec. 31, 2020	Nov. 30, 2020
Property, Plant and Equipment [Line Items]
Foreign exchange gain	$ (5,200,000)	$ 9,200,000
Loans from affiliates of Natura &Co	393,900,000			$ 1,008,600,000
3.13% Promissory Notes due November 2022
Property, Plant and Equipment [Line Items]
Loans from affiliates of Natura &Co					$ 960,000,000
3.13% Promissory Notes due November 2022 | November 2, 2021
Property, Plant and Equipment [Line Items]
Loans from affiliates of Natura &Co	$ 204,000,000
3.13% Promissory Notes due November 2022 | Subsequent Event | November 2, 2021
Property, Plant and Equipment [Line Items]
Loans from affiliates of Natura &Co			$ 204,000,000
3.13% Promissory Notes due November 2022 | Subsequent Event | November 2, 2028
Property, Plant and Equipment [Line Items]
Loans from affiliates of Natura &Co			$ 776,000,000
Revision of Prior Period, Reclassification, Adjustment
Property, Plant and Equipment [Line Items]
Foreign exchange gain		16,500,000
Settlement of derivative contracts		$ 16,500,000

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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		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Selling, general and administrative expenses	$ (4.1)	$ (5.1)	$ 0.9	$ (9.8)
Operating (loss) income	(4.1)	(5.1)	0.9	(9.8)
(Loss) income from discontinued operations, net of tax	$ (4.1)	$ (5.1)	$ 0.9	$ (9.8)

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DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Assets and Liabilities Held For Sale (Details) - Held for sale liabilities - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current held for sale assets
Inventories	$ 0.0	$ 2.6
Property, Plant & Equipment (net)	8.9	9.2
Cash and cash equivalents	0.0	0.7
Other assets	0.0	1.4
Held for sale assets	8.9	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

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DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Narrative (Details) $ in Millions		1 Months Ended				3 Months Ended		6 Months Ended
	Feb. 15, 2019 USD ($)	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($)	Apr. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) property	Jun. 30, 2020 USD ($)	Dec. 31, 2020 property business	Dec. 31, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of business / assets								$ 0.0	$ 10.0
Gain on sale of business/assets						$ 1.5	$ 0.1	$ 1.5	0.1
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		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		1		1
Italy Branch
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of business / assets		$ 1.7
Gain on sale of business/assets						$ 1.4
Hungary Distribution Center in Gödöllő
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of business / assets			$ 3.1	$ 3.4
Gain on sale of business/assets							0.1
Deposit				$ 0.3
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				6.6
Restricted cash			$ 3.3				$ 3.3		$ 3.3

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RELATED PARTY TRANSACTIONS - Summary of Related Parties (Details) R$ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2018 BRL (R$) installment	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 BRL (R$)	Dec. 31, 2020 USD ($)
Related Party Transaction [Line Items]
Revenue from related parties	$ 8,700,000	$ 1,800,000		$ 16,400,000	$ 1,800,000
Loan from Natura &Co maturing within one year	1,169,900,000			1,169,900,000
Loans from affiliates of Natura &Co	776,000,000.0			776,000,000.0			$ 0
Loan term			5 years
Natura Promissory Note
Related Party Transaction [Line Items]
Outstanding	980,100,000			980,100,000			965,000,000
Natura Revolving Facility Due May 2022
Related Party Transaction [Line Items]
Outstanding	181,600,000			181,600,000			41,600,000
Affiliates of Natura&Co
Related Party Transaction [Line Items]
Interest expense on loan from Natura & Co	(9,800,000)	(300,000)		(18,500,000)	(300,000)
Receivables due from related party	11,000,000.0			11,000,000.0			6,100,000
Payables due to related parties	4,100,000			4,100,000			0
Loan from Natura &Co maturing within one year	393,900,000			393,900,000			1,008,600,000
Loans from affiliates of Natura &Co	776,000,000.0			776,000,000.0			0
Investments in affiliates of Natura & Co	100,000			100,000		R$ 0.5	0
Affiliates of Natura&Co | Manufacturing and Supply Agreement
Related Party Transaction [Line Items]
Revenue from related parties	8,700,000	1,800,000		16,400,000	1,800,000
Gross profit from sale of product	500,000	$ 400,000		1,100,000	$ 400,000
Instituto Avon
Related Party Transaction [Line Items]
Receivables due from related party	$ 900,000			$ 900,000			$ 800,000
Affiliated entity | Loan to Related Party | Instituto Avon
Related Party Transaction [Line Items]
Loan amount | R$			R$ 12.0
Loan interest rate			7.00%
Number of loan annual installments | installment			5

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REVENUE - Disaggregation of Revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	$ 8.7	$ 1.8	$ 16.4	$ 1.8
Total revenue	917.0	606.5	1,821.4	1,563.8
Beauty
Disaggregation of Revenue [Line Items]
Total revenue	610.7	440.9	1,218.9	1,134.6
Beauty - Skincare
Disaggregation of Revenue [Line Items]
Total revenue	281.0	216.2	553.3	512.8
Beauty - Fragrance
Disaggregation of Revenue [Line Items]
Total revenue	220.5	149.5	442.5	397.8
Beauty - Color
Disaggregation of Revenue [Line Items]
Total revenue	109.2	75.2	223.1	224.0
Fashion And Home
Disaggregation of Revenue [Line Items]
Total revenue	244.7	132.2	486.9	338.3
Fashion & Home - Fashion
Disaggregation of Revenue [Line Items]
Total revenue	113.9	65.3	232.4	181.4
Fashion & Home - Home
Disaggregation of Revenue [Line Items]
Total revenue	130.8	66.9	254.5	156.9
Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Total revenue	9.4		9.4
Net Sales
Disaggregation of Revenue [Line Items]
Revenue	864.8	573.1	1,715.2	1,472.9
Total revenue	864.8	573.1	1,715.2	1,472.9
Other revenue
Disaggregation of Revenue [Line Items]
Total revenue	52.2	33.4	106.2	90.9
Other - Representative Fees
Disaggregation of Revenue [Line Items]
Total revenue	43.3	29.2	89.4	80.1
Other - Other Product And Services
Disaggregation of Revenue [Line Items]
Total revenue	8.9	4.2	16.8	10.8
Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	908.3	604.7	1,805.0	1,562.0
Total revenue	908.3	604.7	1,805.0	1,562.0
Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Revenue	610.7	440.9	1,218.9	1,134.6
Operating Segments | Beauty - Skincare
Disaggregation of Revenue [Line Items]
Revenue	281.0	216.2	553.3	512.8
Operating Segments | Beauty - Fragrance
Disaggregation of Revenue [Line Items]
Revenue	220.5	149.5	442.5	397.8
Operating Segments | Beauty - Color
Disaggregation of Revenue [Line Items]
Revenue	109.2	75.2	223.1	224.0
Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Revenue	244.7	132.2	486.9	338.3
Operating Segments | Fashion & Home - Fashion
Disaggregation of Revenue [Line Items]
Revenue	113.9	65.3	232.4	181.4
Operating Segments | Fashion & Home - Home
Disaggregation of Revenue [Line Items]
Revenue	130.8	66.9	254.5	156.9
Operating Segments | Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Revenue	9.4		9.4
Operating Segments | Net Sales
Disaggregation of Revenue [Line Items]
Revenue	864.8	573.1	1,715.2	1,472.9
Operating Segments | Other revenue
Disaggregation of Revenue [Line Items]
Revenue	43.5	31.6	89.8	89.1
Operating Segments | Other - Representative Fees
Disaggregation of Revenue [Line Items]
Revenue	43.3	29.2	89.4	80.1
Operating Segments | Other - Other Product And Services
Disaggregation of Revenue [Line Items]
Revenue	0.2	2.4	0.4	9.0
Revenue from affiliates to Natura &Co
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	8.7	1.8	16.4	1.8
Total revenue	8.7	1.8	16.4	1.8
Revenue from affiliates to Natura &Co | Beauty
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Beauty - Skincare
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Beauty - Fragrance
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Beauty - Color
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Fashion And Home
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Fashion & Home - Fashion
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Fashion & Home - Home
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0		0.0
Revenue from affiliates to Natura &Co | Net Sales
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Other revenue
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	8.7	1.8	16.4	1.8
Revenue from affiliates to Natura &Co | Other - Representative Fees
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	0.0	0.0	0.0	0.0
Revenue from affiliates to Natura &Co | Other - Other Product And Services
Disaggregation of Revenue [Line Items]
Revenue from affiliates of Natura &Co	8.7	1.8	16.4	1.8
Avon International | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	416.4	305.0	847.3	782.1
Total revenue	416.4	305.0	847.3	782.1
Avon International | Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Revenue	320.5	246.6	649.1	614.6
Avon International | Operating Segments | Beauty - Skincare
Disaggregation of Revenue [Line Items]
Revenue	147.0	122.6	292.3	273.2
Avon International | Operating Segments | Beauty - Fragrance
Disaggregation of Revenue [Line Items]
Revenue	114.5	78.7	234.4	211.0
Avon International | Operating Segments | Beauty - Color
Disaggregation of Revenue [Line Items]
Revenue	59.0	45.3	122.4	130.4
Avon International | Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Revenue	79.3	46.2	163.8	132.1
Avon International | Operating Segments | Fashion & Home - Fashion
Disaggregation of Revenue [Line Items]
Revenue	64.7	38.4	132.4	111.2
Avon International | Operating Segments | Fashion & Home - Home
Disaggregation of Revenue [Line Items]
Revenue	14.6	7.8	31.4	20.9
Avon International | Operating Segments | Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Revenue	0.0		0.0
Avon International | Operating Segments | Net Sales
Disaggregation of Revenue [Line Items]
Revenue	399.8	292.8	812.9	746.7
Avon International | Operating Segments | Other revenue
Disaggregation of Revenue [Line Items]
Revenue	16.6	12.2	34.4	35.4
Avon International | Operating Segments | Other - Representative Fees
Disaggregation of Revenue [Line Items]
Revenue	16.5	11.1	34.3	31.3
Avon International | Operating Segments | Other - Other Product And Services
Disaggregation of Revenue [Line Items]
Revenue	0.1	1.1	0.1	4.1
Avon Latin America | Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Total revenue			9.0
Avon Latin America | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	491.9	299.7	957.7	779.9
Total revenue	491.9	299.7	957.7	779.9
Avon Latin America | Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Revenue	290.2	194.3	569.8	520.0
Avon Latin America | Operating Segments | Beauty - Skincare
Disaggregation of Revenue [Line Items]
Revenue	134.0	93.6	261.0	239.6
Avon Latin America | Operating Segments | Beauty - Fragrance
Disaggregation of Revenue [Line Items]
Revenue	106.0	70.8	208.1	186.8
Avon Latin America | Operating Segments | Beauty - Color
Disaggregation of Revenue [Line Items]
Revenue	50.2	29.9	100.7	93.6
Avon Latin America | Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Revenue	165.4	86.0	323.1	206.2
Avon Latin America | Operating Segments | Fashion & Home - Fashion
Disaggregation of Revenue [Line Items]
Revenue	49.2	26.9	100.0	70.2
Avon Latin America | Operating Segments | Fashion & Home - Home
Disaggregation of Revenue [Line Items]
Revenue	116.2	59.1	223.1	136.0
Avon Latin America | Operating Segments | Brazil IPI Tax Release
Disaggregation of Revenue [Line Items]
Revenue	9.4		9.4
Avon Latin America | Operating Segments | Net Sales
Disaggregation of Revenue [Line Items]
Revenue	465.0	280.3	902.3	726.2
Avon Latin America | Operating Segments | Other revenue
Disaggregation of Revenue [Line Items]
Revenue	26.9	19.4	55.4	53.7
Avon Latin America | Operating Segments | Other - Representative Fees
Disaggregation of Revenue [Line Items]
Revenue	26.8	18.1	55.1	48.8
Avon Latin America | Operating Segments | Other - Other Product And Services
Disaggregation of Revenue [Line Items]
Revenue	$ 0.1	$ 1.3	$ 0.3	$ 4.9

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REVENUE - Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net of allowances of $47.9 and $51.1	$ 255.4	$ 259.1
Contract liabilities	39.1	52.1
Accounts receivable, allowances	$ 47.9	$ 51.1

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REVENUE - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations satisfied	$ 35.9
Material rights	$ 27.2

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INVENTORIES - Components of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 143.7	$ 131.3
Finished goods	352.2	327.8
Inventories	$ 495.9	$ 459.1

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LEASES - Schedule of Sublease Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Sublease income	$ 3.0	$ 4.5	$ 7.3	$ 8.6

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CONTINGENCIES (Details) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($) lawsuit	Jun. 30, 2021 USD ($) lawsuit	Dec. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Number of litigation suits | lawsuit		129
Number of litigation suits, new | lawsuit	28
Number of litigation suits, dismissed | lawsuit	8
Brazilian Tax Assessments
Loss Contingencies [Line Items]
Possible loss	$ 395.0	$ 395.0	$ 378.0
IPI Tax on Cosmetics
Loss Contingencies [Line Items]
Possible loss	254.0	254.0	231.0
Brazil labor-related
Loss Contingencies [Line Items]
Estimated litigation liability	$ 10.0	$ 10.0	8.0
Shareholder Litigation
Loss Contingencies [Line Items]
Litigation settlement payment			14.5
Settlement payment paid by company			$ 2.0

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance			$ (871.5)
Other comprehensive income other than reclassifications	$ 30.8	$ (3.5)	(13.7)	$ (110.4)
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	1.3	2.0	2.5	4.0
Total reclassifications into earnings	1.3	2.0	2.5
Accumulated other comprehensive income, ending balance	(1,003.1)		(1,003.1)
Derivative losses on cash flow hedges, tax				0.0
Amortization of net actuarial loss and prior service cost, tax	0.2	0.2	0.4	0.4
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(1,082.7)	(1,049.6)	(1,038.2)	(942.7)
Other comprehensive income other than reclassifications	30.8	(3.5)	(13.7)	(110.4)
Reclassifications into earnings:
Total reclassifications into earnings	0.0	0.0	0.0	0.0
Accumulated other comprehensive income, ending balance	(1,051.9)	(1,053.1)	(1,051.9)	(1,053.1)
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance				(0.6)
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		0.0
Net Investment Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(4.3)	(4.3)	(4.3)	(4.3)
Other comprehensive income other than reclassifications	0.0	0.0	0.0
Reclassifications into earnings:
Total reclassifications into earnings	0.0	0.0	0.0	0.0
Accumulated other comprehensive income, ending balance	(4.3)	(4.3)	(4.3)	(4.3)
Pension and Postretirement Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(90.1)	(90.4)	(91.3)	(92.4)
Other comprehensive income other than reclassifications	0.0	0.0	0.0
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax	1.3	2.0	2.5	4.0
Total reclassifications into earnings	1.3	2.0	2.5	4.0
Accumulated other comprehensive income, ending balance	(88.8)	(88.4)	(88.8)	(88.4)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(1,177.1)	(1,144.3)	(1,133.8)	(1,040.0)
Reclassifications into earnings:
Total reclassifications into earnings				4.6
Accumulated other comprehensive income, ending balance	$ (1,145.0)	$ (1,145.8)	$ (1,145.0)	$ (1,145.8)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Equity [Abstract]
Foreign exchange gains (losses)	$ 1.9	$ (0.1)	$ (0.1)	$ (3.9)

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SEGMENT INFORMATION - Narrative (Details)	6 Months Ended
	Jun. 30, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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SEGMENT INFORMATION - Total Revenue and Operating Profit by Reporting Segment (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total revenue		$ 917.0	$ 606.5	$ 1,821.4	$ 1,563.8
Operating (loss) profit		(19.1)	(50.1)	(56.2)	(151.9)
CTI restructuring initiatives		(28.9)	(3.3)	(48.4)	(5.1)
Costs related to the Transaction		4.9	(0.9)	3.6	(19.1)
Royalty expense		55.7	39.3	115.9	103.0
Selling, general and administrative expenses		551.1	406.1	1,087.2	1,044.2
Brazil IPI Tax Release
Segment Reporting Information [Line Items]
Total revenue		9.4		9.4
Merger Agreement
Segment Reporting Information [Line Items]
Acquisition expenses			44.0		44.0	$ 46.0
Severance costs	$ 25.0		25.0		25.0
Accelerated share based compensation	$ 10.0		10.0		10.0
Reportable segments
Segment Reporting Information [Line Items]
Total revenue		908.3	604.7	1,805.0	1,562.0
Operating (loss) profit		18.2	(55.2)	6.6	(69.7)
All other
Segment Reporting Information [Line Items]
Total revenue		2.4	2.4	4.3	8.8
Operating (loss) profit		0.3	1.2	0.4	4.1
Unallocated global expenses		(6.9)	(1.8)	(12.9)	(1.8)
Certain Brazil indirect taxes		0.0	10.6	0.0	10.6
CTI restructuring initiatives		(30.4)	(3.4)	(49.9)	(5.2)
Costs related to the Transaction		0.0	(0.3)	0.0	(85.8)
Revenue from affiliates to Natura &Co
Segment Reporting Information [Line Items]
Total revenue		8.7	1.8	16.4	1.8
Avon International | Reportable segments
Segment Reporting Information [Line Items]
Total revenue		416.4	305.0	847.3	782.1
Operating (loss) profit		0.6	(4.4)	(6.4)	(1.7)
Avon Latin America | Brazil IPI Tax Release
Segment Reporting Information [Line Items]
Total revenue				9.0
Avon Latin America | Reportable segments
Segment Reporting Information [Line Items]
Total revenue		491.9	299.7	957.7	779.9
Operating (loss) profit		$ 17.6	$ (50.8)	$ 13.0	$ (68.0)

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Prepaid Expenses and Other (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid taxes and tax refunds receivable	$ 117.6	$ 117.6
Receivables other than trade	29.8	34.9
Prepaid brochure costs, paper and other literature	9.9	12.0
Other	44.3	39.7
Prepaid expenses and other	$ 201.6	$ 204.2

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net overfunded pension plans	$ 108.9	$ 103.0
Capitalized software	75.0	76.0
Judicial deposits	51.3	50.9
Long-term receivables	178.1	157.0
Trust assets associated with supplemental benefit plans	29.8	33.7
Other	16.0	17.9
Other assets	$ 459.1	$ 438.5

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Brazil indirect taxes	$ 121	$ 112
Brazil indirect taxes, additional receivable	$ 12

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RESTRUCTURING INITIATIVES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	May 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and related activities, return to growth period						3 years
Restructuring charges and other costs	$ 28.9	$ 3.3	$ 48.4	$ 5.1
Avon Integration
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	3.8	1.5	9.9	1.5
Employee-related liabilities	2.7		2.7		$ 0.7
Open Up & Grow
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	24.8	2.0	39.0	6.9
Transformation Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	0.3	$ (0.2)	(0.5)	$ (3.3)
Employee-related liabilities	$ 0.4		$ 0.4		$ 3.5

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RESTRUCTURING INITIATIVES - Summary (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	$ 28.9	$ 3.3	$ 48.4	$ 5.1
Avon Integration
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	3.8	1.5	9.9	1.5
Open Up & Grow
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	24.8	2.0	39.0	6.9
Transformation Plan
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.3	(0.2)	(0.5)	(3.3)
Cost of Goods Sold
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	(0.2)	0.2	(0.3)
Cost of Goods Sold | Inventory write-off
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	(0.2)	0.2	(0.3)
Selling, General and Administrative Expense
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	30.4	3.6	49.7	5.5
Selling, General and Administrative Expense | Net charges for employee-related costs, including severance benefits
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	21.1	0.6	30.4	(1.7)
Selling, General and Administrative Expense | Implementation costs, primarily related to professional service fees
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	6.1	1.2	10.2	0.7
Selling, General and Administrative Expense | Dual running costs
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.3	0.7	0.6	1.5
Selling, General and Administrative Expense | Contract termination and other net benefits
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	2.4	0.7	7.4	3.0
Selling, General and Administrative Expense | Impairment of other assets
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	0.0	0.0	0.7
Selling, General and Administrative Expense | Accelerated depreciation
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.2	0.0	0.2	0.4
Selling, General and Administrative Expense | Variable lease charges
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.3	0.4	0.9	0.9
Operating Profit
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	30.4	3.4	49.9	5.2
Other (Expense) Income | (Gain) loss on sale of business / assets
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	$ (1.5)	$ (0.1)	$ (1.5)	$ (0.1)

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RESTRUCTURING INITIATIVES - Open Up Avon (Details) - Open Up & Grow $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 11.8
2021 charges	27.9
Cash payments	(14.3)
Non-cash write-offs	(0.2)
Foreign exchange	(0.2)
Ending balance	25.0
Employee-Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance	9.0
2021 charges	26.2
Cash payments	(12.0)
Non-cash write-offs	0.0
Foreign exchange	(0.1)
Ending balance	23.1
Inventory/Assets Write-offs
Restructuring Reserve [Roll Forward]
Beginning balance	0.0
2021 charges	0.2
Cash payments	0.0
Non-cash write-offs	(0.2)
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	(2.3)
Non-cash write-offs	0.0
Foreign exchange	(0.1)
Ending balance	$ 1.9

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RESTRUCTURING INITIATIVES - Restructuring Initiatives by Charge Type (Details) $ in Millions	Jun. 30, 2021 USD ($)
Avon Integration
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	$ 11.6
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	11.6
Avon Integration | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	11.4
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	11.4
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	221.5
Estimated charges to be incurred on approved initiatives	2.1
Total expected charges on approved initiatives	223.6
Open Up & Grow | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	112.0
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	112.0
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	2.1
Total expected charges on approved initiatives	15.9
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)

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RESTRUCTURING INITIATIVES - Charges Reportable by Business Segment (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Avon Integration
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	$ (0.7)	$ 1.5	$ 10.8
Charges incurred to-date	11.6
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	11.6
Avon Integration | Avon International
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	(0.7)	(0.5)	6.2
Charges incurred to-date	5.0
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	5.0
Avon Integration | Avon Latin America
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	0.0	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	21.1	9.3	2.4	$ 71.6	$ 117.1
Charges incurred to-date	221.5
Estimated charges to be incurred on approved initiatives	2.1
Total expected charges on approved initiatives	223.6
Open Up & Grow | Avon International
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	21.1	9.4	3.2	34.7	52.8
Charges incurred to-date	121.2
Estimated charges to be incurred on approved initiatives	2.1
Total expected charges on approved initiatives	123.3
Open Up & Grow | Avon Latin America
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	0.0	$ (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

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GOODWILL - Schedule of Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill [Roll Forward]
Net balance at beginning	$ 83.2
Foreign exchange	(5.5)
Net balance at ending	77.7
Avon International
Goodwill [Roll Forward]
Net balance at beginning	20.0
Foreign exchange	(0.7)
Net balance at ending	19.3
Avon Latin America
Goodwill [Roll Forward]
Net balance at beginning	63.2
Foreign exchange	(4.8)
Net balance at ending	$ 58.4

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FAIR VALUE- Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Assets:
Available-for-sale securities		$ 4.2
Foreign exchange forward contracts	$ 0.4	2.8
Total	0.4	7.0
Liabilities:
Foreign exchange forward contracts	0.1	6.0
Total	0.1	6.0
Level 1
Assets:
Available-for-sale securities		4.2
Foreign exchange forward contracts	0.0	0.0
Total	0.0	4.2
Liabilities:
Foreign exchange forward contracts	0.0	0.0
Total	0.0	0.0
Level 2
Assets:
Available-for-sale securities		0.0
Foreign exchange forward contracts	0.4	2.8
Total	0.4	2.8
Liabilities:
Foreign exchange forward contracts	0.1	6.0
Total	$ 0.1	$ 6.0

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FAIR VALUE - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans from affiliates of Natura &Co maturing after one year	$ (776.0)	$ 0.0
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	0.0	4.2
Debt maturing within one year	(59.8)	(28.0)
Loans from affiliates of Natura &Co maturing within one year	(393.9)	(1,008.6)
Long-term debt	(676.4)	(675.4)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	0.0	4.2
Debt maturing within one year	(59.8)	(28.0)
Loans from affiliates of Natura &Co maturing within one year	(393.9)	(1,008.6)
Long-term debt	(781.7)	(782.4)
Foreign exchange forward contracts | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts	0.3	(3.2)
Foreign exchange forward contracts | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts	$ 0.3	$ (3.2)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivative [Line Items]
Foreign exchange forward contracts, asset	$ 0.4	$ 2.8
Foreign exchange forward contracts, liability	0.1	6.0
Prepaid expenses and other | Not Designated as Hedging Instrument
Derivative [Line Items]
Foreign exchange forward contracts, asset	0.4
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	$ 0.1
Accounts payable | Designated as Hedging Instrument
Derivative [Line Items]
Foreign exchange forward contracts, liability		$ 6.0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) R$ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 BRL (R$)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020
Derivative [Line Items]
Total exposure to floating rate interest rates	10.00%			10.00%		4.00%
Interest Rate Swap
Derivative [Line Items]
Notional amount	$ 11,000,000			$ 11,000,000
Derivative, interest rate	2.10%			2.10%
Derivative, Floating Interest Rate Payment | R$		R$ 55
Interest rate fair value hedge derivative at fair value	$ 100,000			$ 100,000
Interest Rate Swap | Brazilian Interbank Deposit Rate (CDI)
Derivative [Line Items]
Derivative, variable interest rate	1.87%			1.87%
Foreign Exchange Contract
Derivative [Line Items]
Notional amount	$ 196,000,000			$ 196,000,000
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	(600,000)		$ (3,700,000)	(1,300,000)	$ 6,800,000
Foreign Exchange Contract | Cash Flow Hedging
Derivative [Line Items]
Notional amount	$ 0			$ 0

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DEBT (Details)			1 Months Ended				3 Months Ended		6 Months Ended
	Jul. 01, 2021 USD ($)	Jan. 03, 2020 USD ($)	Jul. 31, 2021 USD ($)	Nov. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Feb. 28, 2019 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	May 12, 2021 USD ($)	Mar. 31, 2021 USD ($)	May 31, 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							$ 1,008,600,000		$ 393,900,000
Loans from affiliates of Natura &Co							0		776,000,000.0
Short-term financing									60,000,000
Loss on extinguishment of debt							25,600,000		0	$ 7,800,000
Affiliates of Natura&Co
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co							0		776,000,000.0
Affiliates of Natura&Co | Avon Shanghai
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co									2,000,000
Natura Revolving Facility Due May 2022
Debt Instrument [Line Items]
Line of credit facility												$ 250,000,000	$ 100,000,000
Outstanding							41,600,000		$ 181,600,000
Natura Revolving Facility Due May 2022 | Subsequent Event
Debt Instrument [Line Items]
Repayments of lines of credit	$ 150,000,000		$ 150,000,000
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%
44.29% Promissory Notes due November 2022
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co											$ 550,000,000
Interest rate											44.29%
Related party short-term borrowings									$ 6,000,000
3.13% Promissory Notes due November 2022
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co				$ 960,000,000
Interest rate				3.13%
Related party short-term borrowings									980,000,000
Interest Payable									20,000,000
3.13% Promissory Notes due November 2022 | November 2, 2021
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co									204,000,000
3.13% Promissory Notes due November 2022 | November 2, 2028
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co									$ 776,000,000
3.13% Promissory Notes due November 2022 | Subsequent Event | November 2, 2021
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co			204,000,000
3.13% Promissory Notes due November 2022 | Subsequent Event | November 2, 2028
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co			$ 776,000,000
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
Debt premium				7,900,000
Accrued interest				$ 5,600,000

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate, excluding discrete items				27.10%	27.50%
Income taxes provision	$ 18.8	$ 6.1		$ 25.9	$ 14.9
Effective income tax rate	(48.00%)	(7.40%)		(25.60%)	(6.20%)
Effective income tax rate reconciliation amount	$ 7.0			$ 9.4
Valuation allowance	6.0			6.0
Effective income tax rate reconciliation, discrete expense	1.4			2.6
Miscellaneous income tax expense	$ (0.4)	$ 3.8	$ 2.3
Effective income tax rate reconciliation, legislative changes				$ 0.8

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MERGER WITH NATURA COSMETICOS S.A. (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended
	May 22, 2019	Jan. 31, 2020	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 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	$ 0.01		$ 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	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		44.0	$ 46.0
Severance costs		25.0	25.0		25.0
Accelerated share based compensation		10.0	$ 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%

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SUBSEQUENT EVENTS (Details) - USD ($)		1 Months Ended	6 Months Ended
	Jul. 01, 2021	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Nov. 30, 2020	May 31, 2020
Subsequent Event [Line Items]
Net proceeds from sale of business / assets			$ 0	$ 10,000,000.0
Loans from affiliates of Natura &Co, current			393,900,000			$ 1,008,600,000
Loans from affiliates of Natura &Co, noncurrent			776,000,000.0			$ 0
3.13% Promissory Notes due November 2022
Subsequent Event [Line Items]
Loans from affiliates of Natura &Co, current							$ 960,000,000
November 2, 2021 | 3.13% Promissory Notes due November 2022
Subsequent Event [Line Items]
Loans from affiliates of Natura &Co, current			204,000,000
November 2, 2028 | 3.13% Promissory Notes due November 2022
Subsequent Event [Line Items]
Loans from affiliates of Natura &Co, noncurrent			$ 776,000,000
Natura Revolving Facility Due May 2022
Subsequent Event [Line Items]
Line of credit facility					$ 250,000,000			$ 100,000,000
Subsequent Event | Avon Luxembourg Holdings
Subsequent Event [Line Items]
Net proceeds from sale of business / assets	$ 150,000,000
Subsequent Event | November 2, 2021 | 3.13% Promissory Notes due November 2022
Subsequent Event [Line Items]
Loans from affiliates of Natura &Co, current		$ 204,000,000
Subsequent Event | November 2, 2028 | 3.13% Promissory Notes due November 2022
Subsequent Event [Line Items]
Loans from affiliates of Natura &Co, current		776,000,000
Subsequent Event | Natura Revolving Facility Due May 2022
Subsequent Event [Line Items]
Repayments of lines of credit	$ 150,000,000	$ 150,000,000

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Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]