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.