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.