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, 2022

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.)

Lancaster House

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, 2022 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, 2022 and June 30, 2021	3
	Consolidated Statements of Operations Six Months Ended June 30, 2022 and June 30, 2021	4
	Consolidated Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2022 and June 30, 2021	5
	Consolidated Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2022 and June 30, 2021	6
	Consolidated Balance Sheets June 30, 2022 and December 31, 2021	7
	Consolidated Statements of Cash Flows Six Months Ended June 30, 2022 and June 30, 2021	8
	Consolidated Statement of Changes in Shareholders’ Deficit Three and Six Months Ended June 30, 2022 and June 30, 2021	9
	Notes to Consolidated Financial Statements	10 - 25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30 - 38
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	49
Item 5.	Other Information	49
Item 6.	Exhibits	50
	Signature	51

2

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
(In millions)	June 30, 2022		June 30, 2021
Product sales	$	644.1	$	864.8
Other revenue	61.2		43.5
Revenue from affiliates of Natura &Co	7.9		8.7
Total revenue	713.2		917.0
Costs, expenses and other:
Cost of sales	(301.9)		(376.9)
Cost of sales from affiliates of Natura &Co	(7.8)		(8.1)
Selling, general and administrative expenses	(432.7)		(551.1)
Operating loss	(29.2)		(19.1)
Interest expense	(8.8)		(16.7)
Interest expense on Loan from affiliates of Natura &Co	(19.9)		(9.7)
Loss on extinguishment of debt	(15.7)		—
Interest income	.6		(.1)
Interest income from affiliates of Natura &Co	.9		—
Other income (expense), net	6.4		4.9
Gain on sale of business/assets	—		1.5
Total other expenses	(36.5)		(20.1)
Loss from continuing operations, before income taxes	(65.7)		(39.2)
Income taxes	3.6		(18.8)
Loss from continuing operations, net of tax	(62.1)		(58.0)
(Loss) income from discontinued operations, net of tax	(12.9)		(4.1)
Net loss	(75.0)		(62.1)
Net (income) loss attributable to noncontrolling interests	.1		.5
Net loss attributable to Avon	$	(74.9)	$	(61.6)

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, 2022		June 30, 2021
Product sales	$	1,278.0	$	1,715.2
Other revenue	86.9		89.8
Revenue from affiliates of Natura &Co	11.6		16.4
Total revenue	1,376.5		1,821.4
Costs, expenses and other:
Cost of sales	(589.3)		(775.2)
Cost of sales from affiliates of Natura &Co	(12.0)		(15.2)
Selling, general and administrative expenses	(866.6)		(1,087.2)
Operating loss	(91.4)		(56.2)
Interest expense	(21.8)		(31.5)
Interest expense on Loan from affiliates of Natura &Co	(35.2)		(18.5)
Loss on extinguishment of debt	(15.7)		—
Interest income	1.5		.1
Interest income from affiliates of Natura &Co	1.6		—
Other income (expense), net	10.9		3.6
Gain on sale of business/assets	—		1.5
Total other expenses	(58.7)		(44.8)
Loss from continuing operations, before income taxes	(150.1)		(101.0)
Income taxes	(1.2)		(25.9)
Loss from continuing operations, net of tax	(151.3)		(126.9)
(Loss) income from discontinued operations, net of tax	(20.7)		.9
Net loss	(172.0)		(126.0)
Net (income) loss attributable to noncontrolling interests	(.1)		.8
Net loss attributable to Avon	$	(172.1)	$	(125.2)

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, 2022		June 30, 2021
Net loss	$	(75.0)	$	(62.1)
Other comprehensive income (loss):
Foreign currency translation adjustments	27.6		16.4
Unrealized loss on revaluation of long-term intercompany balances	(13.7)		14.5
Change in unrealized loss on cash flow hedges	.6		—
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes of $0.2 and $0.2	1.1		1.3
Total other comprehensive income (loss), net of income taxes	15.6		32.2
Comprehensive loss	(59.4)		(29.9)
Less: comprehensive (income) loss attributable to noncontrolling interests	(.3)		.4
Comprehensive loss attributable to Avon	$	(59.7)	$	(29.5)

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, 2022		June 30, 2021
Net loss	$	(172.0)	$	(126.0)
Other comprehensive income (loss):
Foreign currency translation adjustments	81.3		4.2
Unrealized loss on revaluation of long-term intercompany balances	(16.7)		(17.8)
Change in unrealized loss on cash flow hedges	0.7		—
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes of $0.4 and $0.4	2.5		2.5
Total other comprehensive income (loss), net of income taxes	67.8		(11.1)
Comprehensive loss	(104.2)		(137.1)
Less: comprehensive (income) loss attributable to noncontrolling interests	(.4)		.7
Comprehensive loss attributable to Avon	$	(104.6)	$	(136.4)

The accompanying notes are an integral part of these statements.

6

AVON PRODUCTS, INC.

CONSOLIDATED BALANCE SHEETS

December 31, 2021 (Audited) and June 30, 2022 (Unaudited)

(In millions)	June 30, 2022		December 31, 2021
Assets
Current Assets
Cash and cash equivalents	$	156.9	$	251.5
Accounts receivable, net	201.1		198.7
Receivables from affiliates of Natura &Co	38.6		34.1
Loans to affiliates of Natura &Co	40.8		46.6
Inventories	408.0		384.1
Prepaid expenses and other	156.5		165.6
Assets held for sale	8.7		2.8
Total current assets	1,010.6		1,083.4
Property, plant and equipment, at cost	898.5		942.5
Less accumulated depreciation	(555.0)		(578.8)
Property, plant and equipment, net	343.5		363.7
Right-of-use assets	102.0		111.1
Goodwill	68.5		72.1
Deferred tax asset	135.2		121.4
Loans to affiliates of Natura &Co	51.0		46.7
Other assets	508.9		509.4
Total assets	$	2,219.7	$	2,307.8
Liabilities and Shareholders’ Deficit
Current Liabilities
Debt maturing within one year	$	31.7	$	32.6
Loans from affiliates of Natura &Co	265.1		371.7
Accounts payable	457.9		522.8
Payables to affiliates of Natura &Co	38.7		29.4
Accrued compensation	59.1		81.5
Other accrued liabilities	246.6		273.4
Sales taxes and taxes other than income	67.9		66.8
Income taxes	6.9		11.6
Current liabilities of discontinued operations	40.5		31.7
Total current liabilities	1,214.4		1,421.5
Long-term debt	214.8		676.0
Loans from affiliates of Natura &Co	1,422.4		736.3
Long-term operating lease liability	78.3		87.5
Employee benefit plans	82.4		84.6
Long-term income taxes	85.5		81.5
Other liabilities	77.8		75.1
Total liabilities	3,175.6		3,162.5
Shareholders’ Deficit
Additional paid-in capital	634.2		631.2
Retained losses	(576.3)		(404.2)
Accumulated other comprehensive loss	(1,017.3)		(1,085.5)
Total Avon shareholders’ deficit	(959.4)		(858.5)
Noncontrolling interests	3.5		3.8
Total shareholders’ deficit	(955.9)		(854.7)
Total liabilities and shareholders’ deficit	$	2,219.7	$	2,307.8

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, 2022		June 30, 2021
Cash Flows from Operating Activities
Net loss	$	(172.0)	$	(126.0)
Loss from discontinued operations, net of tax	(20.7)		.9
Loss from continuing operations, net of tax	(151.3)		(126.9)
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities:
Depreciation	22.1		27.9
Amortization	10.0		12.1
Provision for doubtful accounts	28.3		34.6
Provision for obsolescence	14.7		13.9
Share-based compensation	3.0		3.3
Foreign exchange (gains) losses	(19.7)		(5.2)
Deferred income taxes	(13.8)		5.4
Costs associated with debt issue / repayment	15.0		—
Other	2.4		(.6)
Changes in assets and liabilities:
Accounts receivable	(39.1)		(33.5)
Inventories	(40.5)		(49.6)
Prepaid expenses and other	6.0		1.0
Accounts payable and accrued liabilities	(69.4)		(80.9)
Income and other taxes	(3.1)		(8.9)
Noncurrent assets and liabilities	(1.2)		(9.5)
Net cash used by operating activities of continuing operations	(236.6)		(216.9)
Cash Flows from Investing Activities
Capital expenditures	(28.9)		(31.4)
Disposal of assets	3.5		1.6
Net cash used by investing activities of continuing operations	(25.4)		(29.8)
Cash Flows from Financing Activities
Debt, net (maturities of three months or less)	23.6		(10.3)
Proceeds from debt from affiliates of Natura & Co	842.0		209.4
Repayment of debt	(685.9)		(48.0)
Repayment of debt to affiliates of Natura &Co	(34.9)		—
Repayment of debt by affiliates of Natura &Co	33.4		—
Costs associated with debt issue / repayment	(15.0)		—
Settlement of derivative contracts	12.0		(5.2)
Net cash provided by financing activities of continuing operations	175.2		145.9
Cash Flows from Discontinued Operations
Net cash used by operating activities of discontinued operations	(11.9)		(6.8)
Net cash used by discontinued operations	(11.9)		(6.8)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	4.1		(11.5)
Net decrease in cash and cash equivalents, and restricted cash	(94.6)		(119.1)
Cash and cash equivalents, and restricted cash at beginning of period	251.5		373.4
Cash and cash equivalents, and restricted cash at end of period	$	156.9	$	254.3

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, 2021	—	$	—	$	631.2	$	(404.2)	$	(1,085.5)	$	3.8	$	(854.7)
Net (loss) income	—	—		—		(97.2)		—		.2		(97.0)
Other comprehensive income	—	—		—		—		52.3		(.1)		52.2
Exercise/ vesting/ expense of share-based compensation	—	—		2.4		—		—		—		2.4
Balances at March 31, 2022(1)	—	$	—	$	633.6	$	(501.4)	$	(1,033.2)	$	3.9	$	(897.1)
Net loss						(74.9)				(.1)		(75.0)
Other comprehensive income								15.9		(.3)		15.6
Exercise/ vesting/ expense of share-based compensation				.6								.6
Balances at June 30, 2022 (1)	—	$	—	$	634.2	$	(576.3)	$	(1,017.3)	$	3.5	$	(955.9)

(1) The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2022 was 101.34.

(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(1)	—	$	—	$	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.

The accompanying notes are an integral part of these statements.

9

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 2021 Annual Report on Form 10-K ("2021 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" or "Natura &Co), and two subsidiaries of Natura &Co Holding 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 contained in our 2021 Form 10-K.

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 2021 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.

COVID-19, Russia-Ukraine war and going concern

In 2021 and the first half of 2022, the economic disruption caused by the COVID-19 pandemic has resulted in inflationary pressures on the cost of certain raw materials used in the production of essential items due to the increased demand for these inputs worldwide. These inflationary pressures have been compounded by the ongoing war between Russia and Ukraine, and by disruptions in global supply chains and climate events that hit electricity generation globally, among other events. Moreover, novel strains and variants of COVID-19 emerged in 2021 against which existing vaccines and acquired immunity may not be fully effective, and the rollout of vaccination programs worldwide have compromised the ability of certain countries to effectively contain the spread and the toll of the virus. While some restrictions have been lifted in the markets in which we operate, they may be reimplemented if the contagion does not subside, which could suppress economic activity.

As a result, we continue to closely monitor the evolution and impacts of the pandemic and the war in the markets in which we operate, especially with regards to Supply Chain impacts on availability of raw materials as well as inflationary costs and potential gas shortages, as well as the impacts on consumer trends and demands due to restrictions. We continuously analyze the situation and act to minimize impacts on the operations and on the equity and financial position of the Company, with the objective of implementing appropriate measures, ensuring the continuity of operations, hedge cash, improve liquidity and promote the health and safety of all.

In view of this scenario, we review the recoverability expectations of our financial and non-financial assets in the preparation of these financial statements, considering the most recent information available and reflected in the Company’s business plans. In addition, we also consider possible effects on the financial statements including revenues and the continued transition to the digital environment, allowances for doubtful accounts receivable, impairment of non-financial assets, leases, liquidity and capital resources and going concern.

10

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

As of the date of this report, we are unable to estimate the longer-term economic impact of both the war in Russia / Ukraine and the Global pandemic on our business. 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 the war and 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 2021 Annual Report.

Going Concern

Considering the uncertain nature of any possible future COVID-19 impacts which are beyond the Company’s control and the ongoing war between Russia and Ukraine, we expect some negative impact on revenue in 2022, 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.

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 obligations as they come due in the normal course of business. This commitment is effective through to March 31, 2024 and so is therefore for a period of not less than 12 months from the date of issuance of the Consolidated Financial Statements.

Turkey Currency

During the quarter ended March 31, 2022, published official exchange rates for Turkey indicated that the three-year cumulative inflation rate has exceeded 100%. As a result, we concluded that Turkey has become a highly inflationary economy. From April 1, 2022, we have applied inflationary accounting for our Turkish subsidiary. As such, the functional currency for Turkey has changed to the U.S. dollar, which is the consolidated group's reporting currency.

As a result of highly inflationary accounting for our Turkish subsidiary, the most significant impacts in our Consolidated Statement of Operations, are in cost of sales, primarily due to inventory being accounted for at its historical dollar cost, and in other (expense) income, net, primarily associated with the net monetary position of Turkey. However, these impacts are not considered material to our Consolidated Income Statements.

Accounting Standards Implemented

ASU 2021-08, Business Combinations (Topic 805)

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will be effective for our fiscal year beginning after December 15, 2022. The adoption is not expected to 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, 2022 and 2021, respectively, are shown below:

11

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Selling, general and administrative expenses	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
Operating (loss) income	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
(Loss) income from discontinued operations, net of tax	$	(12.9)	$	(4.1)	$	(20.7)	$	.9

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, 2022 and December 31, 2021 are shown in the following table:

	June 30, 2022		December 31, 2021
Current held for sale assets
Property, Plant & Equipment (net)	8.7		2.8
	$	8.7	$	2.8

At June 30, 2022, assets held for sale included one property and land in the Avon International segment. At December 31, 2021, assets held for sale included one property in the Avon Latin America Segment.

Divestitures

There were no divestitures during the quarter ended June 30, 2022. The divestitures below took place during 2021.

Disposal of Avon Beauty Arabia in Saudi Arabia

On December 23, 2021, the Company completed the sale of its 51% share of the business and assets of Avon Beauty Arabia in exchange for converting the business to a distributorship model together with the write off of a $3.9 loan balance. In the fourth quarter of 2021 we recognized a loss of $1.1 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the write off of the loan balance, the carrying value of the business and assets of the Avon Beauty Arabia on the date of sale, and associated disposal costs.

Disposal of Cosmetics Manufacturing Operations in India

On November 17, 2021, the Company completed the sale of the business and assets of the Cosmetics Manufacturing Operation in India for a total selling price of $2.9, the proceeds of which are presented as investing activities in the Consolidated Statement of Cash Flows. In the fourth quarter of 2021 we recognized a gain of $1.1 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds, the carrying value of the business and assets of the Cosmetics Manufacturing Operation in India on the date of sale, and associated disposal costs.

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding 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. The sale was accounted for as a transaction under common control in accordance with ASC805 - Business Combinations, with the resulting gain of $148, representing the difference between the proceeds, the net assets of Avon Luxembourg on the date of sale and the cumulative foreign currency translation adjustment, taken directly to Retained Earnings. For additional information, see the Consolidated Statements of Changes in Shareholders' Deficit.

Sale of a Branch of our Italian Business

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 quarter ended June 30, 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 this branch of out Italian business on the date of sale.

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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. On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, beginning on July 1, 2021, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

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,
	2022		2021		2022		2021
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)(1)	$	7.9	$	8.7	$	11.6	$	16.4
Cost of sales from affiliates of Natura &Co(2)(1)	$	(7.8)	$	(8.2)	$	(12.0)	$	(15.3)
Gross profit from affiliates of Natura &Co(2)(1)	$	.1	$	.5	$	(.4)	$	1.1
Interest expense on Loan from affiliates of Natura &Co(4)	$	(19.9)	$	(9.8)	$	(35.2)	$	(18.5)
Interest income on Loan to affiliates of Natura &Co(5)	$	.9	$	—	$	1.6	$	—

	June 30, 2022		December 31, 2021
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co(1)	$	31.7	$	32.7
Derivative Receivables due from affiliates of Natura &Co(7)	$	1.8	$	—
Other receivables due from affiliates of Natura &Co(6)	$	5.1	$	1.4
Loans to affiliates of Natura &Co maturing within one year(6)	$	40.8	$	46.6
Loans to affiliates of Natura &Co maturing after one year(6)	$	51.0	$	46.7
Trade Payables due to affiliates of Natura &Co(6)	$	(29.2)	$	(24.5)
Derivative Payables due to affiliates of Natura &Co(6)	$	(.6)	$	—
Other payables due to affiliates of Natura &Co(3)	$	(8.9)	$	(4.9)
Loans from affiliates of Natura &Co maturing within one year(4)	$	(265.1)	$	(371.7)
Loans from affiliates of Natura &Co maturing after one year(4)	$	(1,422.4)	$	(736.3)
Investments in affiliates of Natura &Co(5)	$	.1	$	.1

(1) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $7.9 and $8.7 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded gross profit from related party of $.1 and $.5 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded revenue from related party of $11.6 and $16.4 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. The Company recorded gross loss from related party of $.4 and gross profit from related party of $1.1 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(2) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue and gross profit from related party of $(.2) and $(.2) associated with these agreements during the three months ended June 30, 2022, respectively. The Company did not record any revenue or gross profit from related parties associated with these agreements during the six months ended June 30, 2022.

(3) The amount payable to Natura &Co mainly relates to the vesting and settlement of share-based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 and 2019 long-term employee incentive program which vested and were automatically exercised in March 2021 and March 2022 respectively.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 include $682.0 outstanding under a Promissory Note with Avon Beauty Limited with a maturity date of December 6, 2028, $408.4 outstanding under a Promissory Note with Avon Products, Inc. with a maturity date of May 17, 2029 and $331.8 outstanding under two Promissory Notes with Avon

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Cosmetics Limited with maturity dates of May 17, 2029 and June 28, 2029. In addition, loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 includes a number of intercompany loans between Natura &Co Luxembourg, Natura Cosméticos and Avon Products, Inc. and its affiliates. Loans from affiliates of Natura &Co Holding at December 31, 2021 of $1,108.0 include $736.3 outstanding under a Promissory Note with Avon Beauty Limited and $207.3 outstanding under a Promissory Note with an affiliate of the Company. In addition loans from affiliates of Natura &Co Holding at December 31, 2021 include $164.4 of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$.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.

(6) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

(7) During the first half of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At June 30, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $221 for various currencies, all of which were designated as cash flow hedges. In addition we had $1.8 of Accounts Receivable and $.6 of Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions.

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, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	112.4	$	101.3	$	213.7	$	—	$	213.7
Fragrance	96.8		92.0		188.8		—		188.8
Color	47.3		47.0		94.3		—		94.3
Total Beauty	256.5		240.3		496.8		—		496.8
Fashion & Home:
Fashion	51.2		26.2		77.4		—		77.4
Home	12.3		57.6		69.9		—		69.9
Total Fashion & Home	63.5		83.8		147.3		—		147.3
Product sales	320.0		324.1		644.1		—		644.1
Representative fees	37.8		20.6		58.4		—		58.4
Other	(.2)		3.0		2.8		7.9		10.7
Other revenue	37.6		23.6		61.2		7.9		69.1
Total revenue	$	357.6	$	347.7	$	705.3	$	7.9	$	713.2

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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, 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

	Six Months Ended June 30, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	229.0	$	197.9	$	426.9	$	—	$	426.9
Fragrance	200.9		172.9		373.8		—		373.8
Color	98.8		85.2		184.0		—		184.0
Total Beauty	528.7		456.0		984.7		—		984.7
Fashion & Home:							—
Fashion	105.0		49.4		154.4		—		154.4
Home	24.9		114.0		138.9		—		138.9
Total Fashion & Home	129.9		163.4		293.3		—		293.3
Product sales	658.6		619.4		1,278.0		—		1,278.0
Representative fees	52.2		34.1		86.3		—		86.3
Other	.1		.5		.6		11.6		12.2
Other revenue	52.3		34.6		86.9		11.6		98.5
Total revenue	$	710.9	$	654.0	$	1,364.9	$	11.6	$	1,376.5

15

AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

	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

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

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, the impact of COVID-19 and the ongoing war between Russia and Ukraine. 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, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
Accounts receivable, net of allowances of $44.8 and $37.1	$	201.1	$	198.7
Contract liabilities	$	39.4	$	37.1

The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the six months ended June 30, 2022, we recognized $27.0 of revenue related to the contract liability balance at the beginning of

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AVON PRODUCTS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

the six-month period ended June 30, 2022, as the result of performance obligations satisfied. In addition, we deferred an additional $30.2 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, 2022 as compared with December 31, 2021.

5. INVENTORIES

Components of Inventories	June 30, 2022		December 31, 2021
Raw materials	$	102.0	$	103.4
Finished goods	306.0		280.7
Total	$	408.0	$	384.1

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, 2022 and 2021:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2022	2021	2022	2021
Sublease income	Selling, general and administrative expenses	3.7	3.0	7.4	7.3

7. CONTINGENCIES

Brazilian Tax Assessments

Tax on Manufactured Products – minimum pricing rules

In December 2021, October 2017 and June 2022, our Brazilian subsidiary, Avon Industrial LTDA (Avon Brazil Manufacturing), received excise tax ("IPI") assessments notices for the years 2008, 2014 and 2018.

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, 2022, the total disputed amount classified as a remote risk of loss was $463. As of December 31, 2021, the total disputed amount of $360 was classified as a reasonably possible risk of loss. The change in classification was a result of enactment of new legislation in Brazil in July 2022, whilst the change in the total amount was largely due to the new assessment received in June 2022 and movements in foreign exchange rates.

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, 2022 and December 31, 2021, the total amount under discussion classified as a reasonably possible risk of loss was $278 and $243, respectively, with the increase being largely a result of higher interest and taxes due, and movements in foreign exchange rates.

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AVON PRODUCTS, INC.

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, 2022 and December 31, 2021, there were 178 and 158 individual cases. respectively. pending against the Company. During the three months ended June 30, 2022, 38 new cases were filed and 18 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, 2022. 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, 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 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, 2022 and December 31, 2021 was approximately $12 and $11, respectively. Accordingly, we have recognized a liability for this amount.

Brazilian Financial Indemnities

As of June 30, 2022 and December 31, 2021, the Company has issued a number of guarantees totaling $181 and $157, respectively, which it could be required to make in the event of adverse judgments in a number of lawsuits in Brazil.

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, 2022 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, 2022 and 2021:

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AVON PRODUCTS, INC.

Three Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2022	$	(1,011.4)	$	(4.3)	$	0.1	$	(17.6)	$	(1,033.2)
Other comprehensive income other than reclassifications	14.2		—		.6		—		14.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		—		1.1		1.1
Total reclassifications into earnings	—		—		—		1.1		1.1
Balance at June 30, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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 loss 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)

Six Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2021	$	(1,062.2)	$	(4.3)	$	—	$	(19.0)	$	(1,085.5)
Other comprehensive income other than reclassifications	65.0		—		.7		—		65.7
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, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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)

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AVON PRODUCTS, INC.

For further details on Other Comprehensive income, (loss) other than reclassifications see the Consolidated Statements of Comprehensive Income (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 loss of $4.7 and net gain of $1.9 for the three months ended June 30, 2022 and 2021, respectively, and foreign exchange net losses of $7.2 and $.1 for the six months ended June 30, 2022 and 2021, 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 Income (Loss).

9. SEGMENT INFORMATION

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

We determine segment profit by deducting the related costs and expenses from segment revenue. Segment profit includes an allocation of central expenses to the extent they support the operating activity of the segment. Segment profit excludes certain costs to implement ("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	2022		2021		2022		2021
Avon International**	$	357.6	$	416.4	$	710.9	$	847.3
Avon Latin America*	347.7		491.9		654.0		957.7
Total revenue from reportable segments*(1)	705.3		908.3		1,364.9		1,805.0
Revenue from affiliates to Natura &Co	7.9		8.7		11.6		16.4
Total revenue*(1)(4)	713.2		917.0		1,376.5		1,821.4

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2022		2021		2022		2021
Segment profit/(loss)
Avon International**	$	24.9	$	.6	$	24.0	$	(6.4)
Avon Latin America*	(32.3)		17.6		(76.9)		13.0
Total profit (loss) from reportable segments*(2)(4)	$	(7.4)	$	18.2	$	(52.9)	$	6.6
Unallocated global expenses(3)	(6.3)		(6.9)		(12.2)		(12.9)
CTI restructuring initiatives	(15.5)		(30.4)		(26.3)		(49.9)
Operating loss*(4)	$	(29.2)	$	(19.1)	$	(91.4)	$	(56.2)

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

(1)Total revenue also includes revenue from other business activities of $.2 and $2.4 for the three months ended June 30, 2022 and 2021, and $.3 and $4.3 for the six months ended June 30, 2022 and 2021, 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.

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(2)Total loss from reportable segments also includes profit from other business activities and central expenses allocated to Avon International and Avon Latin America segments. Other business activities of $.1 and $.3 for the three months ended June 30, 2022 and 2021, and $.2 and $.4 for the six months ended June 30, 2022 and 2021 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 $27.2 and $55.7 for the three months ended June 30, 2022 and 2021, and $56.2 and $115.9 for the six months ended June 30, 2022 and 2021 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, 2022 and 2021, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, from the same date, the results of Avon Luxembourg are no longer included within Avon's consolidated results. The three and six-month period ended June 30, 2021 includes the results of Avon Luxembourg.

10. SUPPLEMENTAL BALANCE SHEET INFORMATION

At June 30, 2022 and December 31, 2021, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2022		December 31, 2021
Prepaid taxes and tax refunds receivable	$	79.8	$	84.0
Receivables other than trade	25.9		27.8
Prepaid brochure costs, paper and other literature	8.7		8.3
Other	42.1		45.5
Prepaid expenses and other	$	156.5	$	165.6

At June 30, 2022 and December 31, 2021, other assets included the following:

Components of Other Assets	June 30, 2022		December 31, 2021
Net overfunded pension plans	$	148.4	$	162.5
Capitalized software	72.2		74.9
Judicial deposits	51.9		47.2
Long-term receivables including Taxes	195.2		180.2
Trust assets associated with supplemental benefit plans	28.3		30.4
Other	12.9		14.2
Other assets	$	508.9	$	509.4

Prepaid taxes and tax refunds receivable and long-term receivables include approximately $133 and $128 related to certain Brazil indirect taxes as of June 30, 2022 and December 31, 2021, respectively. During the second quarter of 2021, the Brazilian Supreme Federal Court ruled on a Motion of Clarification which supported the recognition of additional receivable balances related to certain Brazil indirect taxes.

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.

AVON PRODUCTS, INC.

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.

CTI Restructuring Initiatives - Three Months Ended June 30, 2022 and 2021

During the three months ended June 30, 2022, we recorded net CTI of $15.5, of which $9.9 related to Avon Integration, and a net benefit of $5.2 related to Open Up & Grow and a net benefit of $.3 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended June 30, 2021, we recorded CTI 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 six months ended June 30, 2022, we recorded implementation costs in our Consolidated Statement of Operations of $26.3, of which $13.3 related to Avon Integration, $12.8 related to Open Up & Grow and a net benefit of $.2 related to the Transformation Plan. During the six months ended June 30, 2021, we recorded 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 $.5 related to the Transformation Plan, in our Consolidated Statements of Operations.

The costs during the three and six months ended June 30, 2022 and 2021 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
CTI recorded in operating profit - COGS
Inventory write-off	—		—		—		.2
	—		—		—		.2
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	9.2		21.1		11.6		30.4
Implementation costs, primarily related to professional service fees	5.6		6.1		11.7		10.2
Dual running costs	.4		.3		.8		0.6
Contract termination and other net benefits	.3		2.4		2.2		7.4
Accelerated depreciation	—		0.2		—		.2
Variable lease charges	—		.3		—		.9
	15.5		30.4		26.3		49.7
CTI recorded in operating profit	15.5		30.4		26.3		49.9
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	—		(1.5)				(1.5)
Total CTI	$	15.5	$	28.9	$	26.3	$	48.4
Avon Integration	$	9.9	$	3.8	$	13.3	$	9.9
Open Up & Grow	$	5.2	$	24.8	$	12.8	$	39.0
Transformation Plan	$	.3	$	.3	$	.2	$	(0.5)

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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 CTI 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, 2022 and December 31, 2021 is $0.2 and $1.6, 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, 2022 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2021	$	14.0	$	—	$	1.2	$	15.2
2022 charges	4.4		—		1.5		5.9
Cash payments	(9.1)		—		(1.9)		(11.0)
Foreign exchange	(.6)		—		(.1)		(.7)
Balance at June 30, 2022	$	8.7	$	—	$	.7	$	9.4

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, 2022 and December 31, 2021 is $1.3 and $1.5, 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 2022.

The following table presents the restructuring charges incurred to date under Avon Integration and Open Up & Grow (formerly Open Up Avon) 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	$	19.5	$	—	$	.9	$	—	$	20.4
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	19.5	$	—	$	.9	$	—	$	20.4
Open Up & Grow
Charges incurred to date	$	120.2	$	107.4	$	17.4	$	(10.9)	$	234.1
Estimated charges to be incurred on approved initiatives			—		.8		—		.8
Total expected charges on approved initiatives	$	120.2	$	107.4	$	18.2	$	(10.9)	$	234.9

The charges, net of adjustments, of initiatives under the Avon Integration and Open Up & Grow along with the estimated charges expected to be incurred on approved initiatives under the plans, by reportable segment are as follows:

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AVON PRODUCTS, INC.

	Avon International		Avon Latin America		Total
Avon Integration
2020	$	6.2	$	4.6	$	10.8
2021	(1.2)		3.0		$	1.8
First quarter 2022	.1		1.5		1.6
Second quarter 2022	.2		6.0		6.2
Charges incurred to date	5.3		15.1		20.4
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.3	$	15.1	$	20.4
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
2021	36.9		.2		37.1
First quarter 2022	2.7		—		2.7
Second quarter 2022	3.2		—		3.2
Charges incurred to date	133.5		100.6		234.1
Estimated charges to be incurred on approved initiatives	.8		—		.8
Total expected charges on approved initiatives	$	134.3	$	100.6	$	234.9

The charges above are not included in segment profit/(loss), as this excludes CTI restructuring initiatives. The amounts shown in the tables above as charges incurred 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, 2021	$	17.6	$	54.5	$	72.1
Changes during the period ended June 30, 2022:
Foreign exchange	(1.4)		(2.2)		(3.6)
Net balance at June 30, 2022	$	16.2	$	52.3	$	68.5

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, 2022:

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AVON PRODUCTS, INC.

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	1.0	$	1.0
Total	$	—	$	1.0	$	1.0
Liabilities:
Foreign exchange forward contracts	$	—	$	—	$	—
Total	$	—	$	—	$	—

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, 2021:

	Level 1		Level 2		Total
Liabilities:
Foreign exchange forward contracts	$	—	$	2.7	$	2.7
Total	$	—	$	2.7	$	2.7

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, 2022 and December 31, 2021, respectively, consisted of the following:

	June 30, 2022		December 31, 2021
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Loans to affiliates of Natura &Co maturing within one year	40.8	40.8	46.6	46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	51.0	46.7	46.7
Debt maturing within one year	(31.7)	(31.7)	(32.6)	(32.6)
Loans from affiliates of Natura &Co maturing within one year	(265.1)	(265.1)	(371.7)	(371.7)
Long-term debt(1)	(215.1)	(211.3)	(676.0)	(754.2)
Loans from affiliates of Natura &Co maturing after one year	(1,422.4)	(1,422.4)	(736.3)	(736.3)
Foreign exchange forward contracts	1.0	1.0	(2.7)	(2.7)

(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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AVON PRODUCTS, INC.

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, 2022:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.8	Accounts payable	$	.6
Derivatives not designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.0	Accounts payable	$	—
Total derivatives		$	2.8		$	.6

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, 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	$	—	Accounts payable	$	2.7
Total derivatives		$	—		$	2.7

Interest Rate Risk

Approximately 13% and 5% of our debt portfolio at June 30, 2022 and December 31, 2021, 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, 2022, we had outstanding third-party foreign exchange forward contracts with notional amounts totaling approximately $182 for various currencies, $30 of which were designated as cash flow hedges.

During the first half of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At June 30, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $221 for various currencies for up to 6 months, all of which were designated as cash flow hedges. In addition we had $1.8 Accounts Receivable and $.6 Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions, all of which are expected to be reclassified into earnings within the next 12 months.

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

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AVON PRODUCTS, INC.

translation impact recognized in earnings relating to the associated balance sheet items. During the three months ended June 30, 2022 and 2021, we recorded a gain of $8.8 and a loss $.6, 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, 2022 and 2021, we recorded a gain of $12.3 and a loss of $1.3, 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 entered into a Revolving Credit Facility Agreement with Natura &Co International S.à r.l., a subsidiary of Natura &Co Holding and an affiliate of the Company, in the initial amount of $100, increased to $250 in March 2021, which could be used for working capital and other general corporate purposes. Borrowings under this Facility bore interest at a rate per annum of LIBOR plus a margin determined on an arm's length basis, and the Facility was to mature on May 31, 2022. On July 1, 2021, the Company sold Avon Luxembourg to a subsidiary of Natura &Co Holding and therefore Company no longer has access to this facility.

Other Loans from Affiliates of Natura &Co

In November 2020, Avon International Operations, Inc. ("AIO") entered into a Promissory Note with a subsidiary of Natura &Co Holding 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, 2022. On July 1, 2021, as part of the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding, the $960 loan was partially repaid with the proceeds from a loan maturing in 2028. The loan was fully repaid in the quarter ended June 30, 2022 as part of a refinancing and the subsequent repurchase of Unsecured Notes (see below). As at June 30, 2022, $682 was outstanding under the loan maturing in 2028 which is between Avon Beauty Limited and a subsidiary of Natura &Co Holding.

In May 2022, Avon Products, Inc and Avon Cosmetics Limited entered into Promissory Notes with a subsidiary of Natura &Co Holding in the amount of $405 and $215 respectively. The Promissory Notes bear interest at a rate per annum of 6.71% and mature on May 17, 2029. In addition, in June 2022 Avon Cosmetics Limited entered into an additional Promissory Note with a subsidiary of Natura &Co Holding in the amount of $115. This Promissory Note bears interest at a rate per annum of 6.51% and matures on June 28, 2029.

In addition, loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 includes a number of intercompany loans between Natura &Co Luxembourg, Natura Cosméticos and Avon Products, Inc. affiliates.

Other Short-Term Financing

In addition, at June 30, 2022, we utilized approximately $32 of short-term financing from third-party banks across multiple markets.

Unsecured Notes

In March 2013, we issued a series of unsecured notes (the "2013 Notes"). As of June 30, 2022, following the repurchase of the 5% Notes due March 15, 2023 (see below), $216.1 aggregate principal amount of 6.95% Notes due March 15, 2043 remained outstanding.

In May 2022, we repurchased $461.9 of our 5% Notes due 15 March, 2023. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $15.0 and accrued interest of $5.4. In connection with the repurchase, we incurred a loss on extinguishment of debt of $15.7 before tax in the quarter ended June 30, 2022 consisting of the $15.0 premium paid for the repurchase and $.7 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased.

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.

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, 2021.

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AVON PRODUCTS, INC.

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, 2022, our annual effective tax rate, excluding discrete items, is 26.2%, as compared to 27.1% as of June 30, 2021. 

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 2022 and 2021 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 costs incurred in the U.S. and U.K., 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, 2022 and 2021 was $(3.6) and $18.8, respectively. Our effective tax rates for the three months ended June 30, 2022 and 2021 were 5.5% and (48.0)%, respectively. The provision for income taxes for the six months ended June 30, 2022 and 2021 was $1.2 and $25.9, respectively. Our effective tax rates for the six months ended June 30, 2022 and 2021 were (.8)% and (25.6)%, respectively.

The effective tax rates for the three months ended June 30, 2022 and 2021 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 2022 was unfavorably impacted by other miscellaneous net tax expense of $.4. 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 rates for the six months ended June 30, 2022 and 2021 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 2022 was unfavorably impacted by the recording of valuation allowance of $3.8 and other miscellaneous net tax expense of $3.8. 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.

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 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, 2022, the COVID-19 pandemic is an example of negative evidence the Company must consider. As of June 30, 2022, 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.

We monitor the realizability of our deferred tax assets on a continuous basis. Should macroeconomic and socio-political conditions change or our business operations do not improve, approximately $75 of deferred tax assets could potentially need to be offset with the recording of a valuation allowance during the next 12 months. The deferred tax assets are associated with Avon subsidiary operations that suffered a loss in earnings before tax during 2021.

17. SUBSEQUENT EVENTS

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AVON PRODUCTS, INC.

As set out in Note 7, Contingencies, following the enactment in Brazil of Law No 14,395 by the National Congress on 8 July 2022, the total disputed IPI assessments of $463 as of June 30, 2022 are now classified as a remote risk of loss whereas previously they were classified as a reasonably possible risk of loss.

29

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.

When used in this report, the term "Constant $" means translated at a constant rate to allow comparisons between periods without the impact of movements in foreign exchange rates.

OVERVIEW

We are a global manufacturer and marketer of beauty and related products. We are 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") on January 3, 2020.

Our business is conducted primarily in the direct-selling channel, with a strategy to expand to omni-channel. During 2021, we had sales operations in 54 countries and territories, and distributed products in 24 more. As at December 31, 2021 we had sales operations in 52 countries and territories. 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, 2022, revenue decreased 24% compared to the prior-year period, favorably impacted by the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period.

Excluding these items, Adjusted revenue decreased 25% unfavorably impacted by foreign exchange variations, primarily driven by the weakening of the U.S. dollar relative to the Brazilian real, offset by the strengthening of the U.S. dollar relative to the Turkish lira, Russian ruble, Polish zloty, Philippine peso, Chilean peso and the Argentinian peso.

On a Constant $ basis, Adjusted revenue decreased 21% driven by declines of 11% in Avon International and 30% in Avon Latin America, mostly as a result of (i) the sale of Avon Luxembourg on July 1, 2021, (ii) decreases in Active Representatives in most markets and (iii) the impact of the ongoing war between Ukraine and Russia. During the six months ended June 30, 2022, revenues from Russia and Ukraine represented approximately 7% of total revenue compared to approximately 8% for the six months ended June 30, 2021.

Constant $ Adjusted revenue excluding the impact of the sale of Avon Luxembourg decreased 8% as a 6% increase in Average Representative Sales was more than offset by a 14% decrease in Active Representatives.

Units sold decreased 27% (14% decrease excluding the impact of the sale of Avon Luxembourg) driven by decreases in both Avon International and 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.

COVID-19, Russia-Ukraine war and going concern

In 2021 and the first half of 2022, the economic disruption caused by the COVID-19 pandemic has resulted in inflationary pressures on the cost of certain raw materials used in the production of essential items due to the increased demand for these inputs worldwide. These inflationary pressures have been compounded by the ongoing war between Russia and Ukraine, and by disruptions in global supply chains and climate events that hit electricity generation globally, among other events. Moreover, novel strains and variants of COVID-19 emerged in 2021 against which existing vaccines and acquired immunity may not be fully effective, and the rollout of vaccination programs worldwide have compromised the ability of certain countries to effectively contain the spread and the toll of the virus. While some restrictions have been lifted in the markets in which we operate, they may be reimplemented if the contagion does not subside, which could suppress economic activity.

As a result, we continue to closely monitor the evolution and impacts of the pandemic and the war in the markets in which we operate, especially with regards to Supply Chain impacts on availability of raw materials as well as inflationary costs and potential gas shortages, as well as the impacts on consumer trends and demands due to restrictions. We continuously analyze the situation and act to minimize impacts on the operations and on the equity and financial position of the Company, with the

30

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

objective of implementing appropriate measures, ensuring the continuity of operations, hedge cash, improve liquidity and promote the health and safety of all.

In view of this scenario, we review the recoverability expectations of our financial and non-financial assets in the preparation of these financial statements, considering the most recent information available and reflected in the Company’s business plans. In addition, we also consider possible effects on the financial statements including revenues and the continued transition to the digital environment, allowances for doubtful accounts receivable, impairment of non-financial assets, leases, liquidity and capital resources and going concern.

As of the date of this report, we are unable to estimate the longer-term economic impact of both the war in Russia / Ukraine and the Global pandemic on our business. 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 the war and 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 2021 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

In May 2020, the new leadership of Avon refreshed our strategy ("Open Up & Grow") which has aims to return Avon to growth over 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 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.

Turkey Currency

During the quarter ended March 31, 2022, published official exchange rates for Turkey indicated that the three-year cumulative inflation rate has exceeded 100%. As a result, we concluded that Turkey has become a highly inflationary economy. From April 1, 2022, we have applied inflationary accounting for our Turkish subsidiary. As such, the functional currency for Turkey has changed to the U.S. dollar, which is the consolidated group's reporting currency.

As a result of highly inflationary accounting for our Turkish subsidiary, the most significant impacts in our Consolidated Statement of Operations, are in cost of sales, primarily due to inventory being accounted for at its historical dollar cost, and in other (expense) income, net, primarily associated with the net monetary position of Turkey. However, these impacts are not considered material to our Consolidated Income Statements.

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding for $150. The sale was accounted for as a transaction under common control in accordance with ASC805 - Business Combinations, with the resulting gain of $148 representing the difference between the proceeds, the net assets of Avon Luxembourg on the date of sale, and the cumulative foreign currency translation adjustment, taken directly to Retained Earnings. For additional information, see the Consolidated Statements of Changes in Shareholders' Deficit.

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, 2022 AS COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2021

31

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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 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 associated with the early termination of debt; 3) certain Brazil indirect taxes and 4) the settlement agreement to resolve a breach of contract dispute.

1)    CTI restructuring initiatives include 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)    During the second quarter of 2022, the Company incurred costs of $15.7 associated with the early repayment of the $461.9 aggregate principal of the 5% Notes due in March 2023, in May 2022.

3)    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.

4)     In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million was recognized as revenue in the quarter ended June 30, 2022.

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding for $150. The sale did not qualify for accounting as a discontinued operation in accordance with ASC805 - Business Combinations on the basis that it did not represent a strategic shift having a major effect on the Company's operations and, as a consequence, the results of operations in prior periods include the results of Avon Luxembourg Holdings S.à r.l. and its subsidiaries. While not a non-GAAP measure, in order to better evaluate the ongoing operating performance of the remaining group, the tables below also identify the prior period impacts of the sale of Avon Luxembourg Holdings S.à r.l. and its subsidiaries, including our Mexican business.

32

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,
	2022			2021			%/Basis Point Change		2022			2021			%/Basis Point Change
Select Consolidated Financial Information
Total revenue	$	713.2		$	917.0		(22)	%	$	1,376.5		$	1,821.4		(24)	%
Cost of sales	(301.9)			(376.9)			(20)	%	(589.3)			(775.2)			(24)	%
Cost of sales from affiliates of Natura &Co	(7.8)			(8.1)			(4)	%	(12.0)			(15.2)			(21)	%
Selling, general and administrative expenses	(432.7)			(551.1)			(21)	%	(866.6)			(1,087.2)			(20)	%
Operating loss	(29.2)			(19.1)			53	%	(91.4)			(56.2)			63	%
Interest expense	(8.8)			(16.7)			*		(21.8)			(31.5)			(31)	%
Interest expense on Loans from affiliates of Natura &Co	(19.9)			(9.7)			*		(35.2)			(18.5)			90	%
Loss on extinguishment of debt and credit facilities	(15.7)			—			*		(15.7)			—			*
Interest income	.6			(.1)			*		1.5			.1			*
Interest income on Loans to affiliates of Natura &Co	.9			—			*		1.6			—			*
Other income (expense), net	6.4			4.9			31	%	10.9			3.6			203	%
Gain on sale of business / assets	—			1.5			(100)	%	—			1.5			(100)	%
Loss from continuing operations, before income taxes	(65.7)			(39.2)			68	%	(150.1)			(101.0)			49	%
Loss from continuing operations, net of tax	(62.1)			(58.0)			7	%	(151.3)			(126.9)			19	%
Net loss attributable to Avon	$	(74.9)		$	(61.6)		22	%	$	(172.1)		$	(125.2)		37	%
Advertising expenses(1)	$	(20.0)		$	(18.6)		8	%	$	(40.2)		$	(36.2)		11	%
Reconciliation of Non-GAAP Financial Measures
Total revenue	$	713.2		$	917.0		(22)	%	$	1,376.5		$	1,821.4		(24)	%
Settlement agreement	(23.7)			—					(23.7)			—
Certain Brazil taxes	—			(9.4)					—			(9.4)
Adjusted revenue	$	689.5		$	907.6		(24)	%	$	1,352.8		$	1,812.0		(25)	%
Avon Luxembourg	—			(128.1)			*		—			(249.2)			*
Adjusted revenue excluding Avon Luxembourg	$	689.5		$	779.5		(12)	%	$	1,352.8		$	1,562.8		(13)	%
Gross margin	56.6		%	58.0		%	(140)		57.2		%	57.4		%	(20)
Settlement agreement	(1.5)			—			(150)		(.8)			—			(80)
Certain Brazil taxes	—			(.4)			40		—			(.2)			20
Adjusted gross margin	55.1		%	57.6		%	(250)		56.4		%	57.2		%	(80)
Avon Luxembourg	—			1.0		%	(100)		—			.9		%	(90)
Adjusted Gross Margin excluding Avon Luxembourg	55.1		%	58.6		%	(350)		56.4		%	58.1		%	(170)
Selling, general and administrative expenses as a % of total revenue	60.7		%	60.1		%	60		63.0		%	59.7		%	330
CTI restructuring	(2.2)			(3.3)			110		(1.9)			(2.7)			80
Settlement agreement	2.1			—			210		1.1			—			110
Certain Brazil taxes	—			.6			(60)		—			.3			(30)
Adjusted selling, general and administrative expenses as a % of total revenue	60.6		%	57.4		%	320		62.2		%	57.3		%	490
Avon Luxembourg	—			2.4		%	*		—			2.4		%	*

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,
	2022			2021			%/Basis Point Change		2022			2021			%/Basis Point Change
Adjusted selling, general and administrative expenses as a % of total revenue excluding Avon Luxembourg	60.6		%	59.8		%	80		62.2		%	59.7		%	250
Operating loss	$	(29.2)		$	(19.1)		53	%	$	(91.4)		$	(56.2)		63	%
CTI restructuring	15.5			30.4					26.3			49.9
Settlement agreement	(23.7)			—					(23.7)			—
Certain Brazil taxes	—			(9.4)					—			(9.4)
Adjusted operating income (loss)	$	(37.4)		$	1.9		*		$	(88.8)		$	(15.7)		466	%
Avon Luxembourg	—			(10.8)			*		—			(21.3)			*
Adjusted operating loss excluding Avon Luxembourg	$	(37.4)		$	(8.9)		*		$	(88.8)		$	(37.0)		140	%
Operating margin	(4.1)		%	(2.1)		%	(200)		(6.6)		%	(3.1)		%	(350)
CTI restructuring	2.2			3.3			(110)		1.9			2.7			(80)
Settlement agreement	(3.6)			—			(360)		(1.9)			—			(190)
Certain Brazil taxes	—			(1.0)			100		—			(.5)			50
Adjusted operating margin	(5.5)		%	0.2		%	(570)		(6.6)		%	(0.9)		%	(570)
Sale of Avon Luxembourg	—			(1.4)		%	*		—		%	(1.5)		%	*
Adjusted operating margin excluding Avon Luxembourg	(5.5)		%	(1.2)		%	(430)		(6.6)		%	(2.4)		%	(420)
Change in Constant $ Adjusted operating margin(2)							(460)								(390)
Loss before taxes	$	(65.7)		$	(39.2)		68	%	$	(150.1)		$	(101.0)		49	%
CTI restructuring	15.5			30.4					26.3			49.9
Settlement agreement	(23.7)			—					(23.7)			—
Loss on early termination of debt	15.7			—					15.7			—
Certain Brazil taxes	—			(9.4)					—			(9.4)
Adjusted loss before taxes	$	(58.2)		$	(18.2)		220	%	$	(131.8)		$	(60.5)		118	%
Income taxes	$	3.6		$	(18.8)		(119)	%	$	(1.2)		$	(25.9)		(95)	%
Effective tax rate	5.5		%	(48.0)		%	*		(0.8)		%	(25.6)		%
Performance Metrics
Change in Active Representatives							(26)	%							(26)	%
Change in units sold							(26)	%							(27)	%

* 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.

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, 2022

Revenue

During the three months ended June 30, 2022, revenue decreased 22% compared to the prior-year period, favorably impacted by the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period.

Excluding these items, Adjusted revenue decreased 24% unfavorably impacted by foreign exchange variations, primarily driven by the weakening of the U.S. dollar relative to the Brazilian real and the Russian ruble, offset by the strengthening of the U.S. dollar relative to the Turkish lira, Pound sterling, Polish zloty, Philippine peso and the Argentinian peso.

On a Constant $ basis, Adjusted revenue decreased 20% driven by declines of 11% in Avon International and 28% in Avon Latin America, mostly as a result of (i) the sale of Avon Luxembourg on July 1, 2021, (ii) decreases in Active Representatives in most markets and (iii) the impact of the ongoing war between Ukraine and Russia. During the three months ended June 30, 2022, revenues from Russia and Ukraine represented approximately 6% of total revenue compared to approximately 7% for the three months ended June 30, 2021.

Constant $ Adjusted revenue excluding the impact of the sale of Avon Luxembourg decreased 7% as a 7% increase in Average Representative Sales was more than offset by a 12% decrease in Active Representatives.

Units sold decreased 26% (13% decrease excluding the impact of the sale of Avon Luxembourg) driven by decreases in both Avon International and Avon Latin America.

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

Operating Margin

Operating margin decreased by 200 basis points including the impact of lower restructuring expenses in the current year period, the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and the recognition of certain Brazil indirect taxes in the prior-year period. Excluding these items, Adjusted operating margin decreased by 570 basis points compared to the same period of 2021, due to the decrease in gross margin and higher SG&A as a percentage of total revenue. 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 250 basis points compared to the same period of 2021 due to higher supply chain costs and the unfavorable impact of foreign currency transaction losses.

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

SG&A as a percentage of total revenue increased by 60 basis points including the impact of lower restructuring expenses in the current year period, the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and the recognition of certain Brazil indirect taxes in the prior-year period. Excluding these items, Adjusted SG&A as a percentage of Adjusted revenue increased 320 basis points, compared to the same period of 2021. The increase in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to the impact of our lower revenue, which resulted in a deleveraging of our fixed expenses, as well as increases in advertising expenses.

Other Expenses

Total interest income increased by approximately $2 and total interest expense increased by approximately $2 driven by higher loans from affiliates compared to the prior-year period.

Loss on extinguishment of debt of $15.7 in the quarter ended June 30, 2022 represents the costs associated with the early repayment of the $461.9 aggregate principal of the 5% Notes due in March 2023, in May 2022.

Other income (expense), net, of approximately $6 represents a favorable impact of $2 compared to the second quarter of 2021 primarily attributable to higher foreign exchange gains in the current period.

Effective Tax Rate

The effective tax rates in 2022 and 2021 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 2022 and 2021 continue to be impacted by withholding taxes associated with certain intercompany payments, including royalties, service charges,

35

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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, respectively.

Our effective tax rates for the three months ended June 30, 2022 and 2021 were 5.5% and (48.0)%, respectively. The effective tax rates for the three months ended June 30, 2022 and 2021 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 quarter ended June 30, 2022 was unfavorably impacted by other miscellaneous net tax expense of $.4. The effective tax rate in the quarter ended June 30, 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.

Our Adjusted effective tax rates for the three months ended June 30, 2022 and 2021 were 3.2% and (72.5)%, respectively. The Adjusted effective tax rates in 2022 and 2021 were impacted by country mix of earnings and withholding taxes. The Adjusted effective tax rate for the second quarter of 2022 was unfavorably impacted by other miscellaneous net tax expense of $0.4. The Adjusted 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.

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 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, 2022, the COVID-19 pandemic is an example of negative evidence the Company must consider. As of June 30, 2022, 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.

We monitor the realizability of our deferred tax assets on a continuous basis. Should macroeconomic and sociopolitical conditions change or our business operations do not improve, approximately $75 of deferred tax assets could potentially need to be offset with the recording of a valuation allowance during the next 12 months. The deferred tax assets are associated with Avon subsidiary operations that suffered a loss in earnings before tax during 2021.

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 on operating profit and Adjusted operating profit of approximately $10, or approximately 100 basis points to both operating margin and Adjusted operating margin;

•foreign currency translation, which had an unfavorable impact on 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.

36

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

Six Months Ended June 30, 2022

Revenue

During the six months ended June 30, 2022, revenue decreased 24% compared to the prior-year period, favorably impacted by the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period.

Excluding these items, Adjusted revenue decreased 25% unfavorably impacted by foreign exchange variations, primarily driven by the weakening of the U.S. dollar relative to the Brazilian real, offset by the strengthening of the U.S. dollar relative to the Turkish lira, Russian ruble, Polish zloty, Philippine peso, Chilean peso and the Argentinian peso.

On a Constant $ basis, Adjusted revenue decreased 21% driven by declines of 11% in Avon International and 30% in Avon Latin America, mostly as a result of (i) the sale of Avon Luxembourg on July 1, 2021, (ii) decreases in Active Representatives in most markets and (iii) the impact of the ongoing war between Ukraine and Russia. During the six months ended June 30, 2022, revenues from Russia and Ukraine represented approximately 7% of total revenue compared to approximately 8% for the six months ended June 30, 2021.

Constant $ Adjusted revenue excluding the impact of the sale of Avon Luxembourg decreased 9% as a 6% increase in Average Representative Sales was more than offset by a 14% decrease in Active Representatives.

Units sold decreased 27% (14% decrease excluding the impact of the sale of Avon Luxembourg) driven by decreases in both Avon International and Avon Latin America.

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

Operating Margin

Operating margin decreased by 350 basis points including the impact of lower restructuring expenses in the current year period, the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and the recognition of certain Brazil indirect taxes in the prior-year period. Excluding these items, Adjusted operating margin decreased by 570 basis points compared to the same period of 2021, due to the decrease in gross margin and higher SG&A as a percentage of total revenue. 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 80 basis points, compared to the same period of 2021 due to higher supply chain costs and the unfavorable impact of foreign currency transaction losses.

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

SG&A as a percentage of total revenue increased by 330 basis points including the impact of lower restructuring expenses in the current year period, the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period and the recognition of certain Brazil indirect taxes in the prior-year period. Excluding these items, Adjusted SG&A as a percentage of Adjusted revenue increased 490 basis points, compared to the same period of 2021. The increase in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to the impact of our lower revenue, which resulted in a deleveraging of our fixed expenses, as well as increases in advertising expenses.

Other Expenses

Total interest income increased by approximately $3 and total interest expense increased by approximately $7 driven by higher loans from affiliates compared to the prior-year period.

Loss on extinguishment of debt of $15.7 in the six-month period ended June 30, 2022 represents the costs associated with the early repayment of the $461.9 aggregate principal of the 5% Notes due in March 2023, in May 2022.

Other income (expense), net, of approximately $11 represents a favorable impact of $7 compared to the six-month period ended June 30, 2021 primarily attributable to higher foreign exchange gains in the current period.

Effective Tax Rate

The effective tax rates in 2022 and 2021 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 2022 and 2021 continue to be impacted by withholding taxes associated with certain intercompany payments, including royalties, service charges,

37

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

interest and dividends, which in the aggregate are relatively consistent each year due to the need to repatriate funds to cover costs incurred in the U.S. and U.K., such as interest on debt and corporate overhead.

Our effective tax rates for the six months ended June 30, 2022 and 2021 were (.8)% and (25.6%), respectively. The effective tax rates for the six months ended June 30, 2022 and 2021 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 2022 was unfavorably impacted by the recording of valuation allowance of $3.8 and other miscellaneous net tax expense of $3.8. 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.

Our Adjusted effective tax rates for the six months ended June 30, 2022 and 2021 were (2.9)% and (38.7%), respectively. The Adjusted effective tax rates in 2022 and 2021 were impacted by country mix of earnings and withholding taxes. The Adjusted effective tax rate in the first half of 2022 was unfavorably impacted by the recording of valuation allowances of $3.8 and other miscellaneous net tax expense of $3.8. The Adjusted 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.

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, 2022, the global COVID-19 pandemic is a piece of negative evidence the Company must consider in this assessment. As of June 30, 2022, 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.

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 on operating profit and Adjusted operating profit of approximately $10, or approximately 50 basis points to both operating margin and Adjusted operating margin;

•foreign currency translation, which had an unfavorable impact on operating profit and Adjusted operating profit of approximately $5, or approximately 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 $10 before tax on both a reported and Adjusted basis.

38

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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
	2022			2021			US$		Constant $		2022			2021			US$		Constant $
Total revenue	$	357.6		$	416.4		(14)	%	(5)	%	$	710.9		$	847.3		(16)	%	(7)	%
Settlement agreement	(23.7)			—			*		*		(23.7)			—			*		*
Adjusted revenue	333.9			416.4			(20)	%	(11)	%	687.2			847.3			(19)	%	(11)	%
Segment profit/(loss)	24.9			.6			*		*		24.0			(6.4)			*		*
Settlement agreement	(23.7)			—			*		*		(23.7)			—			*		*
Adjusted Segment profit/(loss)	1.2			.6			100	%	*		.3			(6.4)			*		*
Segment margin	7.0		%	.1		%	690		620		3.4		%	(.8)		%	420		420
Settlement agreement	(6.6)		%	—		%	(660)		(690)		(3.3)		%	—		%	(330)		(350)
Adjusted segment margin	.4		%	.1		%	30		(70)		.1		%	(.8)		%	90		70
Change in Active Representatives									(20)	%									(19)	%
Change in units sold									(19)	%									(18)	%

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

Three Months Ended June 30, 2022

Total revenue decreased 14% compared to the prior-year period, favorably impacted by the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period. Excluding these items Adjusted revenue decreased 20% unfavorably impacted by foreign exchange variations, primarily driven by the weakening of the U.S. dollar relative to the Russian ruble, offset by the strengthening of the U.S. dollar relative to the Turkish lira, Pound sterling, Polish zloty and the Philippine peso.

On a Constant $ basis, Adjusted revenue decreased 11% driven by an increase in Average Representative Sales which was more than offset by a 20% decrease in Active Representatives across most markets in Europe, Middle East & Africa and Asia Pacific. The decrease in Revenue and Constant $ revenue was also due, in part, to the ongoing war between Ukraine and Russia which affected revenues in this region.

Segment margin increased 690 basis points, or decreased 70 basis points on a Constant $ Adjusted segment margin basis, as the decrease in the Constant $ Adjusted gross margin was offset by the lower Constant $ Adjusted SG&A as a percentage of total revenue.

Constant $ Adjusted gross margin declined as favorable impact of price/mix was offset by higher supply chain costs and the unfavorable impact of foreign currency transaction losses.

The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to lower sales leader and field investments as investments made during the prior-year period to support our Representatives in response to the COVID-19 pandemic were discontinued in the current year.

Six Months Ended June 30, 2022

Total revenue decreased 16% compared to the prior-year period, favorably impacted by the recognition of revenue associated with a settlement agreement to resolve a breach of contract dispute in the current year period. Excluding these items Adjusted revenue decreased 19% unfavorably impacted by foreign exchange variations, primarily driven by the strengthening of the U.S. dollar relative to the Turkish lira, Russian ruble, Polish zloty and the Philippine peso.

39

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

On a Constant $ basis, Adjusted revenue decreased 11% driven by an increase in Average Representative Sales which was more than offset by a 19% decrease in Active Representatives across most markets in Europe, Middle East & Africa and Asia Pacific. The decrease in Revenue and Constant $ revenue was also due, in part, to the ongoing war between Ukraine and Russia which affected revenues in this region.

Segment margin increased 420 basis points, or 70 basis points on a Constant $ Adjusted segment margin basis, as the decrease in the Constant $ Adjusted gross margin was offset by the lower Constant $ Adjusted SG&A as a percentage of total revenue.

Constant $ Adjusted gross margin declined as the favorable impact of price/mix was offset by higher supply chain costs and the unfavorable impact of foreign currency transaction losses

The decrease in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to lower sales leader and field investments as investments made during the prior-year period to support our Representatives in response to the COVID-19 pandemic were discontinued in the current year.

Avon Latin America

	Three Months Ended June 30,										Six Months Ended June 30,
							%/Basis Point Change										%/Basis Point Change
	2022			2021			US$		Constant $		2022			2021			US$		Constant $
Total revenue	$	347.7		$	491.9		(29)	%	(29)	%	$	654.0		$	957.7		(32)	%	(31)	%
Certain Brazil taxes	—			(9.4)			*		*					(9.4)			*		*
Adjusted revenue	347.7			482.5			(28)	%	(28)	%	654.0			948.3			(31)	%	(30)	%
Avon Luxembourg	—			(128.1)			*		*					(249.2)			*		*
Adjusted revenue excluding Avon Luxembourg	347.7			354.4			(2)	%	(2)	%	654.0			699.1			(6)	%	(6)	%
Segment (loss)/profit	(32.3)			17.6			*		*		(76.9)			13.0			*		*
Certain Brazil taxes	—			(9.4)			*		*					(9.4)			*		*
Adjusted segment (loss)/profit	(32.3)			8.2			*		*		(76.9)			3.6			*		*
Avon Luxembourg	—			(10.8)			*		*					(21.4)			*		*
Adjusted segment loss excluding Avon Luxembourg	(32.3)			(2.6)			*		*		(76.9)			(17.8)			*		*
Segment margin	(9.3)		%	3.6		%	(1,290)		(1,210)		(11.8)		%	1.4		%	(1,320)		(1,260)
Certain Brazil taxes	—		%	(1.9)		%	190		190		—		%	(1.0)		%	100		100
Adjusted segment margin	(9.3)		%	1.7		%	(1,100)		(1,020)		(11.8)		%	.4		%	(1,220)		(1,160)
Avon Luxembourg	—		%	(2.4)		%	240		240					(2.9)		%	292		287
Adjusted segment margin excluding Avon Luxembourg	(9.3)		%	(.7)		%	(860)		(781)		(11.8)		%	(2.5)		%	(930)		(870)
Change in Active Representatives									(29)	%									(30)	%
Change in units sold									(30)	%									(32)	%

*Calculation not meaningful

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

Three Months Ended June 30, 2022

Total revenue decreased 29% compared to the prior-year period, unfavorably impacted by the recognition of certain Brazilian indirect taxes in the prior-year period. Excluding this item, Adjusted revenue decreased 28% with the impact of foreign exchange being broadly neutral as the weakening of the U.S. dollar relative to the Brazilian real offset by the strengthening of the U.S. dollar relative to the Argentinian peso.

On a Constant $ basis, Adjusted revenue decreased 28% which includes the impact from the sale of Avon Luxembourg, including our Mexican business, on July 1, 2021. Constant $ Adjusted revenue excluding the impact of the sale of Avon

40

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

Luxembourg decreased 2% as a slight increase in Average Representative Sales was more than offset by a 6% decrease in Active Representatives.

Revenue decreased in many markets largely driven by decreases in Active Representatives

Revenue in Brazil decreased 8% compared to the prior-year period, unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period. Excluding this item, Adjusted revenue decreased 3% favorably impacted by foreign exchange. On an Adjusted Constant $ basis, revenue decreased 9% primarily driven by a decrease in Active Representatives and changes in macro-economic conditions.

Segment margin decreased 1,290 basis points, or 1,210 basis points on a Constant $ Adjusted segment margin basis, which was largely due the decline in Constant $ Adjusted gross margin and the impact of revenue decline causing deleverage of our fixed expenses.

Constant $ Adjusted gross margin declined as the favorable impact of price/mix was offset by higher supply chain costs and the unfavorable impact of foreign currency transaction losses.

The increase in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to the impact of revenue decline, causing a deleveraging of our fixed expenses.

Six Months Ended June 30, 2022

Total revenue decreased 32% compared to the prior-year period, unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period. Excluding this item, Adjusted revenue decreased 31% unfavorably impacted by foreign exchange variations primarily driven by the weakening of the U.S. dollar relative to the Brazilian real, offset by the strengthening of the U.S. dollar relative to the Chilean peso and the Argentinian peso.

On a Constant $ basis, Adjusted revenue decreased 30% which includes the impact from the sale of Avon Luxembourg, including our Mexican business, on July 1, 2021. Constant $ Adjusted revenue excluding the impact of the sale of Avon Luxembourg decreased 6% as a slight increase in Average Representative Sales was more than offset by a 10% decrease in Active Representatives.

Revenue decreased in many markets largely driven by decreases in Active Representatives

Revenue in Brazil decreased 11% compared to the prior-year period, unfavorably impacted by the recognition of certain Brazil indirect taxes in the prior-year period. Excluding this item, Adjusted revenue decreased 8% favorably impacted by foreign exchange. On an Adjusted Constant $ basis, revenue decreased 14% primarily driven by a decrease in Active Representatives and changes in macro-economic conditions.

Segment margin increased 1,320 basis points, or 1,160 basis points on a Constant $ Adjusted segment margin basis, was largely due the decline in Constant $ Adjusted gross margin and the impact of revenue decline causing deleverage of our fixed expenses.

Constant $ Adjusted gross margin declined as the favorable impact of price/mix was offset by higher supply chain costs and the unfavorable impact of foreign currency transaction losses.

The increase in Constant $ Adjusted SG&A as a percentage of Adjusted revenue was largely due to the impact of revenue decline, causing a deleveraging of our fixed expenses.

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. See Note 15, Debt for information on our debt, including the loans from Natura &Co and its affiliates maturing within 1 year.

The Company has cash on hand of approximately $157 as of June 30, 2022.

Refinancing and the subsequent repurchase of Unsecured Notes

In May 2022, Avon Products, Inc and Avon Cosmetics Limited entered into Promissory Notes with a subsidiary of Natura &Co Holding in the amount of $405 and $215 respectively. The Promissory Notes bear interest at a rate per annum of 6.71% and mature on May 17, 2029. In addition, in June 2022 Avon Cosmetics Limited entered into an additional Promissory Note with a subsidiary of Natura &Co Holding in the amount of $115. This Promissory Note bears interest at a rate per annum of 6.51% and matures on June 28, 2029.

In May 2022, we repurchased $461.9 of our 5% Notes due 15 March, 2023. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $15.0 and accrued interest of $5.4. In connection with the repurchase, we incurred a loss on extinguishment of debt of $15.7 before tax in the quarter ended June 30, 2022 consisting of the $15.0 premium paid for the repurchase and $.7 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased.

In June 2022, the $210 outstanding under the Promissory Note with a subsidiary of Natura &Co Holding and an affiliate of the Company, maturing in November 2022, was repaid in full.

COVID-19, Russia-Ukraine war and going concern

Considering the uncertain nature of any possible future COVID-19 impacts which are beyond the Company’s control and the ongoing war between Russia and Ukraine, we expect some negative impact on revenue in 2022, 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.

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 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.

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 "Item 1A. Risk Factors - Risks Related to Financial Matters - 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," and "Risk Factors - General 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 2021 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.

Off balance sheet arrangements

At June 30, 2022, the Company has issued a number of guarantees totaling $181000 that it could be required to make in the event of adverse judgments in a number of lawsuits in Brazil. See Note 7, Contingencies, to the Consolidated Financial Statements included herein for more information. The company has no other material off balance sheet arrangements at June 30, 2022.

42

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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 2022 was approximately $237 as compared to net cash used by operating activities of continuing operations of approximately $217 during the first six months of 2021, an increased cash outflow of approximately $20. This was primarily driven by movements in working capital, offset by increased losses in the first six months of 2022.

Net Cash Used by Investing Activities of Continuing Operations

Net cash used by continuing investing activities during the first six months of 2022 was approximately $25, as compared to net cash used by continuing investing activities of approximately $30 during the first six months of 2021. The approximate $5 decrease to net cash used by continuing investing activities was primarily driven by reduced capital expenditure in the first six months of 2022 compared to the first six months of 2021.

Net Cash Provided by Financing Activities of Continuing Operations

Net cash provided by continuing financing activities during the first six months of 2022 was approximately $175, as compared to cash provided by continuing financing activities of $146 in the first six months of 2021. The approximate $29 increase to net cash from financing activities was primarily driven by the repayment of related party loans during the first six months of 2022.

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 13% 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, including as a result of the emergence of new variants, the rollout of vaccination campaigns and uncertainty as to whether existing vaccines and treatments will be effective against these new variants. 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 2021 Annual Report;

•general economic and business conditions in our markets, including social, economic and political uncertainties, such as the ongoing war between Ukraine and Russia or elsewhere, and any existing and potential sanctions, restrictions or responses to such conditions imposed by other markets in which we operate. See also “Item 1A. Risk Factors—Risks Related to Our International Operations— Our ability to conduct business in our international markets may be affected by economic, political, legal, tax and regulatory risks” and “Item 1A. Risk Factors—Risks Related to Our International Operations—The ongoing war between Ukraine and Russia may have a material adverse effect on our business, financial condition and results of operations” included in Item 1A of this report;

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 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;

•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;

•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, environmental rules and regulations in areas related to our activities, including with regard to climate change, 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;

•disruptions to our manufacturing operations, supply chains and distribution systems;

•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;

45

AVON PRODUCTS, INC.

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

•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;

•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”) 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 2021 Form 10-K for the year ended December 31, 2021, 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 2021 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, 2022, 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, 2022 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

The following additional risk factor should be read in conjunction with the risk factors set forth under "Risk Factors" in Item 1A of our 2021 Annual Report. The developments described below have heightened, or in some cases manifested, certain of the risks disclosed in the risk factor section of our 2021 Annual Report, and such risk factors are further qualified by the information relating to our operations in Russia and Ukraine as described in this Form 10-Q and our Form 10-Q for the quarter ended March 31, 2022 (“Q1 2022 Form 10-Q”), including in the additional risk factor below.

You should carefully consider the risks described below and in our 2021 Annual Report in addition to the other information set forth in this Form 10-Q, our Q1 2022 Form 10-Q and in our 2021 Annual Report, including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and the consolidated financial statements and related notes. These risks, some of which have occurred and any of which may occur in the future, may have a material adverse effect on our business, financial condition and results of operations. The risks described below and in our 2021 Annual Report are not the only risks we face. There may be other risks we are not currently aware of or that we currently deem not to be material but that may become material in the future. Therefore, historical operating results, financial and business performance, events and trends are often not a reliable indicator of future operating results, financial and business performance, events or trends.

The ongoing war between Ukraine and Russia may have a material adverse effect on our business, financial condition and results of operations.

The ongoing war between Russia and Ukraine has provoked strong reactions from the United States, the UK, the EU and various other countries around the world, including from the members of the North Atlantic Treaty Organization, or “NATO.” Following Russia’s invasion of Ukraine beginning on February 24, 2022, the United States, the UK, the EU and other countries announced broad economic sanctions against Russia, including financial measures such as freezing Russia’s central bank assets and limiting its ability to access its U.S. dollar reserves. The United States, the EU and the UK have also banned people and businesses from dealings with the Russian central bank, its finance ministry and its wealth fund, among others. Selected Russian banks will also be removed from the Swift messaging system, which enables the smooth transfer of money across borders. Other sanctions by the UK include major Russian banks being excluded from the UK financial system, stopping them from accessing sterling and clearing payments, major Russian companies and the state being stopped from raising finance or borrowing money on the UK markets, and the establishment of limits on deposits Russians can make at UK banks. The United States, the EU and the UK have also adopted personal measures, such as sanctions on individuals with close ties to Mr. Putin, and placed visa restrictions on several Russian oligarchs, as well as their family members and close associates, as well as asset freezes. While the precise effect of the ongoing war and these sanctions on the Russian and global economies remains uncertain, they have already resulted in significant volatility in financial markets, depreciation of the Russian ruble and the Ukrainian hryvnia against the U.S. dollar and other major currencies, as well as in an increase in energy and commodity prices globally. Should the conflict continue to increase, markets may face continued volatility as well as economic and security consequences including, but not limited to, supply shortages of different kinds, further increases in prices of commodities, including piped gas, oil and agricultural goods, reduced consumer purchasing power, significant disruptions in logistics infrastructure, telecommunications services, the risk of unavailability of information technology systems and infrastructure, among others, given that Russia and Ukraine are significant exporters of commodities. Given that Russia and Ukraine are among the largest grain exporters in the world, impacts on financial markets, inflation, interest rates, unemployment and other matters could affect the global economy that is currently recovering from the effects of the COVID-19 pandemic. Other potential consequences include, but are not limited to, growth in the number of popular uprisings in the region, increased political discontent, especially in the regions most affected by the conflict or economic sanctions, increase in cyber-terrorism activities and attacks, exodus to regions close to the areas of conflict and increase in the number of refugees fleeing across Europe, among other unforeseen social and humanitarian effects.

We have sales operations in multiple countries including in Russia and Ukraine and we are continuously monitoring the developments to assess any potential future impacts that may arise as a result of the ongoing crisis. Given our operations in Russia and Ukraine, the adverse effects—global or localized—of the ongoing war between Russia and Ukraine, and/or economic sanctions and import and/or export controls to be imposed on the Russian government by the United States, the UK, the EU or others, and the above-mentioned adverse effect on the wider global economy and market conditions could, in turn, have a material adverse effect on our business, financial condition and results of operations.

48

AVON PRODUCTS, INC.

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

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

49

AVON PRODUCTS, INC.

ITEM 6. EXHIBITS

10.1	Promissory Note dated as of June 29, 2022 between Avon Cosmetics Limited and Natura &Co Luxembourg Holdings S.à.r.l. (incorporated by reference to Exhibit 4.1 to Avon’s Current Report on Form 8-K filed on July 1, 2022).
10.2	Promissory Note dated as of May 17, 2022 between Avon Products, Inc. and Natura &Co UK Holdings Plc (incorporated by reference to Exhibit 4.1 to Avon’s Current Report on Form 8-K filed on May 23, 2022).
10.3	Promissory Note dated as of May 17, 2022 between Avon Cosmetics Limited and Natura &Co UK Holdings Plc (incorporated by reference to Exhibit 4.2 to Avon’s Current Report on Form 8-K filed on May 23, 2022).
10.4	Amendment Number One dated as of June 17, 2022, to the Intellectual Property License Agreement, dated as of March 1, 2016, among Avon Products, Inc., Avon International Operations, Inc., Avon NA IP LLC and New Avon LLC.
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 Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements

50

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 12, 2022	/s/ Samantha Hutchison
		Samantha Hutchison
		Controller - Principal Accounting Officer
		Signed both on behalf of the
		registrant and as chief
		accounting officer.

51

EX-10.4

EXHIBIT 10.4

AMENDMENT NO. 1 TO THE INTELLECTUAL PROPERTY LICENSE AGREEMENT

This AMENDMENT NO. 1 TO THE INTELLECTUAL PROPERTY LICENSE

AGREEMENT (this “Amendment No. 1”), dated as of June 17, 2022 (the “Amendment Date”), is entered into by and among Avon Products, Inc., a New York corporation, Avon International Operations, Inc., a Delaware corporation, Avon NA IP LLC, a Delaware limited liability company, and The Avon Company (f/k/a New Avon LLC, f/k/a C-A NA LLC), a Delaware limited liability company.

RECITALS

WHEREAS, the Parties have heretofore entered into that certain Intellectual Property License Agreement dated as of March 1, 2016 (the “Agreement”);

WHEREAS, the Parties wish to amend the Agreement to reflect the terms and conditions set forth herein; and

WHEREAS, Section 11.08 of the Agreement provides that the Agreement may be amended if, and only if, such amendment is in writing and is signed by the Party against whom such amendment shall be enforced.

NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the Parties, intending to be bound, hereby agree as follows:

1.Definitions. Any capitalized term that is used herein but is not otherwise defined in this Amendment No. 1 shall have the meaning given to such term in the Agreement.

2. Amendments.

(a) Section 2.03(a) of the Agreement is hereby amended and restated in

its entirety as follows:

“Subject to this Section 2.03, each Licensee may grant sublicenses under the Licensed IP Rights to its Affiliates or to third parties; provided that such Licensees may not grant any such sublicense to any Restricted Person. Any sublicense to a Subsidiary shall automatically terminate if the sublicensee ceases to be a Subsidiary of Licensee.”

(b) Section 3.04(a) of the Agreement is hereby amended and restated in

its entirety as follows:

“Each Licensee agrees that in connection with all uses by such Licensee or permitted sublicensees of the Trademarks or Trademark Extensions included in the Licensed IP Rights, and all products and services offered in connection therewith, such Licensee and any permitted sublicensee: (i) shall not make any statements that are misleading as to the quality of the products or services, or that cause confusion with the business or identity of a Person (provided that the use by Licensee and its permitted sublicensees of the Trademarks or Trademark Extensions included in the Licensed IP Rights within the scope of the licenses granted pursuant to this Agreement shall not be deemed to cause confusion as to the business or identity of any Person),

EXHIBIT 10.4

(ii) shall be in compliance with all Judgments, (iii) shall not enter into any agreement that conflicts with, results in any breach of, or constitutes a default under, the terms and conditions of this Agreement, (iv) shall not do, omit to do, or permit to be done, any act that will invalidate any registration of any Trademark, Trademark Extension or other associated IP Rights included in the Licensed IP Rights, (v) shall not do any act that will cause substantial damage to a Specified Quality Brand, provided (A) no Licensee nor any sublicensee shall be deemed to have caused substantial damage to a Specified Quality Brand by exercising its rights under this Agreement, (B) the occurrence of an ordinary adverse event in the conduct of any such Licensee’s or sublicensee’s business or an act outside the reasonable control of such Licensee or sublicensee cannot be the basis for an allegation of substantial damage under this Section 3.04, (C) upon learning of any act that will cause substantial damage to a Specified Quality Brand, Licensor shall promptly give notice to the applicable Licensee or sublicensee, (D) such Licensee or sublicensee shall have a reasonable period of time to remedy such act before Licensor seeks to enforce any rights under this Agreement in connection with the act that violates Section 3.04 but without limiting Licensor’s rights to enforce under this Agreement should that same act violate another section of this Agreement, and (E) the burden to prove substantial damage to a Specified Quality Brand under this Section 3.04 is on the Licensor and must be met by clear and convincing evidence, (vi) shall not file applications to register any Trademarks or design patent registrations that consist in whole or in part of, or are confusingly similar to, the Trademarks or Trademark Extensions included in the Licensed IP Rights, or assist any Person in doing the same, and (vii) shall not contest, challenge, or otherwise take any action adverse to Licensor’s ownership of or rights in and to the Trademarks or Trademark Extensions included in the Licensed IP Rights, or assist any Person in doing the same. Notwithstanding anything to the contrary herein, in the event that any Licensee or sublicensee engages in, or conducts, any animal testing with respect to any products or services offered under any Specified Quality Brand, such Licensee or sublicensee, as applicable, shall be deemed to have caused substantial damage to such Specified Quality Brand.”

(c)Article VI of the Agreement is hereby amended by adding the following language as new Section 6.02 of the Agreement:

“SECTION 6.02. Right of First Offer. In the event that, during the Term, Avon NA or any of its Affiliates intends, desires or proposes to transfer, assign, sublicense, pledge, create an encumbrance or lien on or otherwise monetize in any manner its rights under any NA Licensed IP Rights (excluding any sublicenses of such NA Licensed IP Rights to Avon NA’s Subcontractors) (such rights, collectively, the “ROFO Rights” and any such transaction, a “ROFO-TriggeringTransaction”), whether such intent, desire or proposal is independent on the part of Avon NA or related to or arising from receipt by Avon NA of an unsolicited offer to do so, Avon NA shall, and shall cause its Affiliates to, provide written notice (an “Offer Notice”) to Avon International that Avon NA intends, desires or proposes to engage in a ROFO-Triggering Transaction (it being understood that (a) such Offer Notice shall set forth all material terms that Avon NA would seek in the event that the rights afforded to Avon International under this Section 6.02 were exercised by Avon International and Avon NA would enter into the ROFO-Triggering Transaction with Avon International (which terms sought by Avon NA and described in such Offer Notice shall be made in good faith and shall not be made with the purpose of frustrating or otherwise circumventing Avon International’s rights under this Section 6.02), and (b) in the event the Offer Notice is provided as a result of Avon NA receiving an unsolicited offer to engage in a ROFO- Triggering Transaction, such Offer Notice shall set forth all material terms of such offer). The provision of an Offer Notice shall constitute an offer (the “Offer”) by Avon NA to provide Avon

EXHIBIT 10.4

International such ROFO Rights and engage in the ROFO-Triggering Transaction with Avon International on the terms set forth in such Offer Notice. Avon International shall have a thirty

(30) day period commencing on the date the Offer is received by Avon International (the “OfferPeriod”) in which to accept such Offer and, during the Offer Period (and, during the sixty (60)- period described in the following sentences of this Section 6.02, if applicable), Avon NA shall, and shall cause its Affiliates to, (i) reasonably cooperate with Avon International, and reasonably respond to Avon International, with respect to any information reasonably requested by Avon International in order to evaluate the ROFO-Triggering Transaction and (ii) not engage in any manner with respect to or be a party to any ROFO-Triggering Transaction with any Person other than Avon International (including by not making available to any such Person any confidential information with respect to the ROFO Rights). At the same time, Avon International shall, during the Offer Period, use commercially reasonable efforts to evaluate and respond to the Offer in an expeditious manner. In the event that Avon International provides a notice of acceptance of the Offer to Avon NA prior to the expiration of such Offer Period, the Parties shall negotiate in good faith the terms of definitive agreements which shall reasonably reflect the material terms of the Offer. If Avon International fails to notify Avon NA of its acceptance of such Offer prior to the expiration of the Offer Period, or if Avon International accepts the Offer during the Offer Period but the Parties do not agree on and enter into definitive agreements within sixty (60) days following the date of Avon International’s notice of acceptance (other than as a result of Avon NA’s breach of this Agreement or otherwise acting in bad faith), Avon International shall be deemed to have declined such Offer, in which case Avon NA shall have the right to negotiate and enter into definitive agreements with respect to such ROFO-Triggering Transaction with any third party on identical or more favorable, in the aggregate, as to Avon NA, terms and conditions as were set forth in the Offer Notice. For the avoidance of doubt, Avon NA and Avon International shall comply in all respects with the procedures set forth in this Section 6.02 with respect to any newly proposed ROFO-Triggering Transaction.”

(d) Section 9.02 of the Agreement is hereby amended and restated in its

entirety as follows:

“SECTION 9.02 Indemnity by Avon NA. Avon NA shall indemnify and hold harmless Avon International, its Affiliates, equity holders, and each of their Personnel (collectively, “Avon International Indemnified Parties”) and defend such Avon International Indemnified Party, from and against all Losses arising out of or resulting from Claims by any third Person against such Avon International Indemnified Party arising out of (a) any material breach by Avon NA of any of its representations or warranties set forth in this Article IX or of the covenants set forth in Section 6.01 or (b) the conduct or operation by Avon NA of any Restricted Business (all such Claims, together with all Claims that are the subject of the indemnity by Avon NA in Section 2.08(c), hereafter referred to as “Avon International IndemnifiedClaims”).”

(e) Section 9.03 of the Agreement is hereby amended and restated in its

entirety as follows:

“SECTION 9.03 Indemnity by Avon International. Avon International shall indemnify and hold harmless Avon NA, its Affiliates and each of their Personnel (collectively, “Avon NA Indemnified Parties”) and defend such Avon NA Indemnified Party, from and against all Losses arising out of or resulting from Claims by any third Person against such Avon NA

EXHIBIT 10.4

Indemnified Party arising out of (a) any material breach by Avon International of any of its representations or warranties set forth in this Article IX or of the covenants set forth in Section 6.01, (b) Avon International’s exercise of the licenses granted under this Agreement to Avon International, (c) the conduct or operation by Avon International of any Restricted Business, or

(d) the operation by Avon International of the Avon International Business from and after the Effective Date, including any product liability Claims or Claims for infringement or misappropriation of any IP Rights (all such Claims, together with all Claims that are the subject of the indemnity by Avon International in Section 2.08(d), hereafter referred to as “Avon NAIndemnified Claims”).”

(f) Schedule F of the Agreement is hereby amended by removing “Natura Cosmeticos S.A.” and replacing it with “O Boticário”.

3. Notices. All notices sent under this Amendment No. 1 shall be treated as notices for the purposes of Section 11.05 of the Agreement and may be delivered as specified therein. The addresses to which notices from Avon NA to Avon International shall be sent are hereby amended as follows:

If from Avon NA to Avon International:

Avon Products, Inc. One Avon Place Suffern, NY 10901

Attention: General Counsel Email: ginny.edwards@avon.com

with a copy to (which copy alone shall not constitute notice): Avon Products, Inc.

Nunn Mills Road

Northampton NN1 5PA United Kingdom

Attention: Legal Department

4. Conflicts. In the event of any conflict between the terms and conditions of this Amendment No. 1, on the one hand, and the Agreement (other than this Amendment No. 1), on the other hand, the terms and conditions of this Amendment No. 1 shall govern solely to the extent of any such conflict.

5. Governing Law. This Amendment No. 1 shall be governed by, and construed in accordance with, the internal laws of the State of New York applicable to agreements made and to be performed entirely within such state, without regard to the conflicts of law principles of such state.

6. Counterparts; Effectiveness; Third Party Beneficiaries. This Amendment No. 1 may be executed in two or more identical counterparts (including by facsimile or electronic transmission), each of which shall be an original, with the same effect as if the signatures thereto

and hereto were upon the same instrument, and shall become effective as of the Amendment Date when one or more counterparts have been signed by each Party and delivered (by facsimile, electronic transmission or otherwise) to the other Parties. Except as expressly set forth in the Agreement, this Amendment No. 1 is for the sole benefit of the Parties and their permitted assigns and nothing expressed or referred to in this Amendment No. 1 will be construed to give any Person, other than the Parties and such permitted assigns, any legal or equitable right,

EXHIBIT 10.4

remedy or claim under or with respect to this Amendment No. 1 or any provision of this Amendment No. 1, whether as third-party beneficiary or otherwise.

7. Amendments and Waivers. This Amendment No. 1 may be amended or waived if, and only if, such amendment or waiver is in writing and signed by the Party against whom such amendment or waiver shall be enforced. The failure of any Party to exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other Party with its obligations hereunder, shall not constitute a waiver by such Party of its right to exercise any such other right, power or remedy or to demand such compliance.

8. Agreement Otherwise Unchanged. This Amendment No. 1 is limited precisely as written and shall not be deemed to be an amendment to, or waiver of, any other term or condition of the Agreement. Wherever the Agreement is referred to therein, such reference shall be to the Agreement as amended hereby. Except as expressly amended by this Amendment No. 1, all terms and conditions of the Agreement shall remain unchanged and in full force and effect.

9. Section Headings. The section headings used herein are for reference and convenience only, and shall not enter into the interpretation hereof.

10. Severability. If any term or other provision of this Amendment No. 1 is or becomes invalid, illegal or incapable of being enforced because of any Applicable Law or public policy, all other conditions and provisions of this Amendment No. 1 shall nevertheless remain in full force and effect so long as the economic or legal substance of this Amendment No. 1 is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Amendment No. 1 so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that this Amendment No. 1 be given the effect originally contemplated to the greatest extent possible.

[Signature Page Follows]

EXHIBIT 10.4

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to be duly executed by their respective authorized officers as of the Amendment Date.

AVON PRODUCTS, INC.

By:

Name: Ginny Edwards

Title: VP, General Counsel & Corporate Secretary

AVON INTERNATIONAL OPERATIONS, INC.

By:

Name: Ginny Edwards Title: Director & Secretary

AVON NA IP LLC

By:

Name: Ginny Edwards Title: Manager

EXHIBIT 10.4

SignaturePagetoAmendmentNo.1totheIntellectualPropertyLicense Agreement

INWITNESSWHEREOF,thePartieshavecausedthisAmendmentNo.1tobeduly executed by their respective authorized officers as of the Amendment Date.

THE AVON COMPANY

Suk Cha

CEO & Chairman

SignaturePagetoAmendmentNo.1to theIntellectualPropertyLicense Agreement

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 12, 2022

/s/ Angela Cretu

Angela Cretu

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Marcin Kopa, 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 12, 2022

/s/ Marcin Kopa

Marcin Kopa

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, 2022, 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 12, 2022

/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, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marcin Kopa, 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 12, 2022

/s/ Marcin Kopa

Marcin Kopa

Vice President Finance

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Entity Registrant Name	AVON PRODUCTS, INC.
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	13-0544597
Entity Address, Address Line One	Lancaster House
Entity Address, Address Line Two	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
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31

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Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Product sales	$ 644.1	$ 864.8	$ 1,278.0	$ 1,715.2
Revenue from contract with customer, product and service, extensible enumeration	Product [Member]	Product [Member]	Product [Member]	Product [Member]
Other revenue	$ 61.2	$ 43.5	$ 86.9	$ 89.8
Revenue from affiliates of Natura &Co	7.9	8.7	11.6	16.4
Total revenue	713.2	917.0	1,376.5	1,821.4
Costs, expenses and other:
Cost of sales	(301.9)	(376.9)	(589.3)	(775.2)
Cost of sales from affiliates of Natura &Co	(7.8)	(8.1)	(12.0)	(15.2)
Selling, general and administrative expenses	(432.7)	(551.1)	(866.6)	(1,087.2)
Operating loss	(29.2)	(19.1)	(91.4)	(56.2)
Interest expense	(8.8)	(16.7)	(21.8)	(31.5)
Interest expense on Loan from affiliates of Natura &Co	(19.9)	(9.7)	(35.2)	(18.5)
Loss on extinguishment of debt	(15.7)	0.0	(15.7)	0.0
Interest income	0.6	(0.1)	1.5	0.1
Interest income from affiliates of Natura &Co	0.9	0.0	1.6	0.0
Other income (expense), net	6.4	4.9	10.9	3.6
Gain on sale of business/assets	0.0	1.5	0.0	1.5
Total other expenses	(36.5)	(20.1)	(58.7)	(44.8)
Loss from continuing operations, before income taxes	(65.7)	(39.2)	(150.1)	(101.0)
Income taxes	3.6	(18.8)	(1.2)	(25.9)
Loss from continuing operations, net of tax	(62.1)	(58.0)	(151.3)	(126.9)
(Loss) income from discontinued operations, net of tax	(12.9)	(4.1)	(20.7)	0.9
Net loss	(75.0)	(62.1)	(172.0)	(126.0)
Net (income) loss attributable to noncontrolling interests	0.1	0.5	(0.1)	0.8
Net loss attributable to Avon	$ (74.9)	$ (61.6)	$ (172.1)	$ (125.2)

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (75.0)	$ (62.1)	$ (172.0)	$ (126.0)
Other comprehensive income (loss):
Foreign currency translation adjustments	27.6	16.4	81.3	4.2
Unrealized loss on revaluation of long-term intercompany balances	(13.7)	14.5	(16.7)	(17.8)
Change in unrealized loss on cash flow hedges	0.6	0.0	0.7	0.0
Adjustments and amortization of net actuarial loss and prior service cost, net of taxes	1.1	1.3	2.5	2.5
Total other comprehensive income (loss), net of income taxes	15.6	32.2	67.8	(11.1)
Comprehensive loss	(59.4)	(29.9)	(104.2)	(137.1)
Less: comprehensive (income) loss attributable to noncontrolling interests	(0.3)	0.4	(0.4)	0.7
Comprehensive loss attributable to Avon	$ (59.7)	$ (29.5)	$ (104.6)	$ (136.4)

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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Adjustments and amortization of net actuarial loss and prior service cost, taxes	$ 0.2	$ 0.2	$ 0.4	$ 0.4

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Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022		Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 156.9		$ 251.5
Accounts receivable, net	201.1		198.7
Receivables from affiliates of Natura &Co	38.6		34.1
Loans to affiliates of Natura &Co	40.8		46.6
Inventories	408.0		384.1
Prepaid expenses and other	156.5		165.6
Assets held for sale	8.7		2.8
Total current assets	1,010.6		1,083.4
Property, plant and equipment, at cost	898.5		942.5
Less accumulated depreciation	(555.0)		(578.8)
Property, plant and equipment, net	343.5		363.7
Right-of-use assets	102.0		111.1
Goodwill	68.5		72.1
Deferred tax asset	135.2		121.4
Loans to affiliates of Natura &Co	51.0		46.7
Other assets	508.9		509.4
Total assets	2,219.7		2,307.8
Current Liabilities
Debt maturing within one year	31.7		32.6
Loans from affiliates of Natura &Co	265.1		371.7
Accounts payable	457.9		522.8
Payables to affiliates of Natura &Co	38.7		29.4
Accrued compensation	59.1		81.5
Other accrued liabilities	246.6		273.4
Sales taxes and taxes other than income	67.9		66.8
Income taxes	6.9		11.6
Current liabilities of discontinued operations	40.5		31.7
Total current liabilities	1,214.4		1,421.5
Long-term debt	214.8		676.0
Loans from affiliates of Natura &Co	1,422.4		736.3
Long-term operating lease liability	78.3		87.5
Employee benefit plans	82.4		84.6
Long-term income taxes	85.5		81.5
Other liabilities	77.8		75.1
Total liabilities	3,175.6		3,162.5
Shareholders’ Deficit
Additional paid-in capital	634.2		631.2
Retained losses	(576.3)		(404.2)
Accumulated other comprehensive loss	(1,017.3)		(1,085.5)
Total Avon shareholders’ deficit	(959.4)		(858.5)
Noncontrolling interests	3.5		3.8
Total shareholders’ deficit	(955.9)	[1]	(854.7)
Total liabilities and shareholders’ deficit	$ 2,219.7		$ 2,307.8

[1] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2022 was 101.34.

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities
Net loss	$ (172.0)	$ (126.0)
Loss from discontinued operations, net of tax	(20.7)	0.9
Loss from continuing operations, net of tax	(151.3)	(126.9)
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities:
Depreciation	22.1	27.9
Amortization	10.0	12.1
Provision for doubtful accounts	28.3	34.6
Provision for obsolescence	14.7	13.9
Share-based compensation	3.0	3.3
Foreign exchange (gains) losses	(19.7)	(5.2)
Deferred income taxes	(13.8)	5.4
Costs associated with debt issue / repayment	15.0	0.0
Other	2.4	(0.6)
Changes in assets and liabilities:
Accounts receivable	(39.1)	(33.5)
Inventories	(40.5)	(49.6)
Prepaid expenses and other	6.0	1.0
Accounts payable and accrued liabilities	(69.4)	(80.9)
Income and other taxes	(3.1)	(8.9)
Noncurrent assets and liabilities	(1.2)	(9.5)
Net cash used by operating activities of continuing operations	(236.6)	(216.9)
Cash Flows from Investing Activities
Capital expenditures	(28.9)	(31.4)
Disposal of assets	3.5	1.6
Net cash used by investing activities of continuing operations	(25.4)	(29.8)
Cash Flows from Financing Activities
Debt, net (maturities of three months or less)	23.6	(10.3)
Proceeds from debt from affiliates of Natura & Co	842.0	209.4
Repayment of debt	(685.9)	(48.0)
Repayment of debt to affiliates of Natura &Co	(34.9)	0.0
Repayment of debt by affiliates of Natura &Co	33.4	0.0
Costs associated with debt issue / repayment	(15.0)	0.0
Settlement of derivative contracts	12.0	(5.2)
Net cash provided by financing activities of continuing operations	175.2	145.9
Net cash used by operating activities of discontinued operations	(11.9)	(6.8)
Net cash used by discontinued operations	(11.9)	(6.8)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	4.1	(11.5)
Net decrease in cash and cash equivalents, and restricted cash	(94.6)	(119.1)
Cash and cash equivalents, and restricted cash at beginning of period	251.5	373.4
Cash and cash equivalents, and restricted cash at end of period	$ 156.9	$ 254.3

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Consolidated Statements of Changes in Shareholders' Deficit - USD ($) shares in Millions, $ in Millions		Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Losses)	Accumulated Other Comprehensive Loss	Noncontrolling Interest
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) income		(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	[1]		0.0
Ending balance at Mar. 31, 2021	[1]	(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) income		(126.0)
Other comprehensive income (loss)		(11.1)
Ending balance (in shares) at Jun. 30, 2021	[1]		0.0
Ending balance at Jun. 30, 2021	[1]	(999.5)	$ 0.0	627.6	(485.7)	(1,145.0)	3.6
Beginning balance (in shares) at Mar. 31, 2021	[1]		0.0
Beginning balance at Mar. 31, 2021	[1]	(973.8)	$ 0.0	623.4	(424.1)	(1,177.1)	4.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income		(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	[1]		0.0
Ending balance at Jun. 30, 2021	[1]	(999.5)	$ 0.0	627.6	(485.7)	(1,145.0)	3.6
Beginning balance (in shares) at Dec. 31, 2021			0.0
Beginning balance at Dec. 31, 2021		(854.7)	$ 0.0	631.2	(404.2)	(1,085.5)	3.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income		(97.0)			(97.2)		0.2
Other comprehensive income (loss)		52.2				52.3	(0.1)
Exercise/ vesting/ expense of share-based compensation		2.4		2.4
Ending balance (in shares) at Mar. 31, 2022	[2]		0.0
Ending balance at Mar. 31, 2022	[2]	(897.1)	$ 0.0	633.6	(501.4)	(1,033.2)	3.9
Beginning balance (in shares) at Dec. 31, 2021			0.0
Beginning balance at Dec. 31, 2021		(854.7)	$ 0.0	631.2	(404.2)	(1,085.5)	3.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income		(172.0)
Other comprehensive income (loss)		67.8
Ending balance (in shares) at Jun. 30, 2022	[2]		0.0
Ending balance at Jun. 30, 2022	[2]	(955.9)	$ 0.0	634.2	(576.3)	(1,017.3)	3.5
Beginning balance (in shares) at Mar. 31, 2022	[2]		0.0
Beginning balance at Mar. 31, 2022	[2]	(897.1)	$ 0.0	633.6	(501.4)	(1,033.2)	3.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income		(75.0)			(74.9)		(0.1)
Other comprehensive income (loss)		15.6				15.9	(0.3)
Exercise/ vesting/ expense of share-based compensation		0.6		0.6
Ending balance (in shares) at Jun. 30, 2022	[2]		0.0
Ending balance at Jun. 30, 2022	[2]	$ (955.9)	$ 0.0	$ 634.2	$ (576.3)	$ (1,017.3)	$ 3.5

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

[2] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2022 was 101.34.

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Consolidated Statements of Changes in Shareholders' Deficit (Parenthetical) - $ / shares	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Common stock (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares outstanding (in shares)	101.34	101.34

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ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

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 2021 Annual Report on Form 10-K ("2021 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" or "Natura &Co), and two subsidiaries of Natura &Co Holding 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 contained in our 2021 Form 10-K.

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 2021 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.

COVID-19, Russia-Ukraine war and going concern

In 2021 and the first half of 2022, the economic disruption caused by the COVID-19 pandemic has resulted in inflationary pressures on the cost of certain raw materials used in the production of essential items due to the increased demand for these inputs worldwide. These inflationary pressures have been compounded by the ongoing war between Russia and Ukraine, and by disruptions in global supply chains and climate events that hit electricity generation globally, among other events. Moreover, novel strains and variants of COVID-19 emerged in 2021 against which existing vaccines and acquired immunity may not be fully effective, and the rollout of vaccination programs worldwide have compromised the ability of certain countries to effectively contain the spread and the toll of the virus. While some restrictions have been lifted in the markets in which we operate, they may be reimplemented if the contagion does not subside, which could suppress economic activity.

As a result, we continue to closely monitor the evolution and impacts of the pandemic and the war in the markets in which we operate, especially with regards to Supply Chain impacts on availability of raw materials as well as inflationary costs and potential gas shortages, as well as the impacts on consumer trends and demands due to restrictions. We continuously analyze the situation and act to minimize impacts on the operations and on the equity and financial position of the Company, with the objective of implementing appropriate measures, ensuring the continuity of operations, hedge cash, improve liquidity and promote the health and safety of all.

In view of this scenario, we review the recoverability expectations of our financial and non-financial assets in the preparation of these financial statements, considering the most recent information available and reflected in the Company’s business plans. In addition, we also consider possible effects on the financial statements including revenues and the continued transition to the digital environment, allowances for doubtful accounts receivable, impairment of non-financial assets, leases, liquidity and capital resources and going concern.

As of the date of this report, we are unable to estimate the longer-term economic impact of both the war in Russia / Ukraine and the Global pandemic on our business. 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 the war and 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 2021 Annual Report.

Going Concern

Considering the uncertain nature of any possible future COVID-19 impacts which are beyond the Company’s control and the ongoing war between Russia and Ukraine, we expect some negative impact on revenue in 2022, 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.

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 obligations as they come due in the normal course of business. This commitment is effective through to March 31, 2024 and so is therefore for a period of not less than 12 months from the date of issuance of the Consolidated Financial Statements.

Turkey Currency

During the quarter ended March 31, 2022, published official exchange rates for Turkey indicated that the three-year cumulative inflation rate has exceeded 100%. As a result, we concluded that Turkey has become a highly inflationary economy. From April 1, 2022, we have applied inflationary accounting for our Turkish subsidiary. As such, the functional currency for Turkey has changed to the U.S. dollar, which is the consolidated group's reporting currency.

As a result of highly inflationary accounting for our Turkish subsidiary, the most significant impacts in our Consolidated Statement of Operations, are in cost of sales, primarily due to inventory being accounted for at its historical dollar cost, and in other (expense) income, net, primarily associated with the net monetary position of Turkey. However, these impacts are not considered material to our Consolidated Income Statements.

Accounting Standards Implemented

ASU 2021-08, Business Combinations (Topic 805)

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will be effective for our fiscal year beginning after December 15, 2022. The adoption is not expected to 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, 2022

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, 2022 and 2021, respectively, are shown below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Selling, general and administrative expenses	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
Operating (loss) income	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
(Loss) income from discontinued operations, net of tax	$	(12.9)	$	(4.1)	$	(20.7)	$	.9

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, 2022 and December 31, 2021 are shown in the following table:

	June 30, 2022		December 31, 2021
Current held for sale assets
Property, Plant & Equipment (net)	8.7		2.8
	$	8.7	$	2.8

At June 30, 2022, assets held for sale included one property and land in the Avon International segment. At December 31, 2021, assets held for sale included one property in the Avon Latin America Segment.

Divestitures

There were no divestitures during the quarter ended June 30, 2022. The divestitures below took place during 2021.

Disposal of Avon Beauty Arabia in Saudi Arabia

On December 23, 2021, the Company completed the sale of its 51% share of the business and assets of Avon Beauty Arabia in exchange for converting the business to a distributorship model together with the write off of a $3.9 loan balance. In the fourth quarter of 2021 we recognized a loss of $1.1 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the write off of the loan balance, the carrying value of the business and assets of the Avon Beauty Arabia on the date of sale, and associated disposal costs.

Disposal of Cosmetics Manufacturing Operations in India

On November 17, 2021, the Company completed the sale of the business and assets of the Cosmetics Manufacturing Operation in India for a total selling price of $2.9, the proceeds of which are presented as investing activities in the Consolidated Statement of Cash Flows. In the fourth quarter of 2021 we recognized a gain of $1.1 before and after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds, the carrying value of the business and assets of the Cosmetics Manufacturing Operation in India on the date of sale, and associated disposal costs.

Sale of Avon Luxembourg Holdings S.à r.l

On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding 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. The sale was accounted for as a transaction under common control in accordance with ASC805 - Business Combinations, with the resulting gain of $148, representing the difference between the proceeds, the net assets of Avon Luxembourg on the date of sale and the cumulative foreign currency translation adjustment, taken directly to Retained Earnings. For additional information, see the Consolidated Statements of Changes in Shareholders' Deficit.

Sale of a Branch of our Italian Business

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 quarter ended June 30, 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 this branch of out Italian business on the date of sale.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2022

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. On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, beginning on July 1, 2021, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

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,
	2022		2021		2022		2021
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)(1)	$	7.9	$	8.7	$	11.6	$	16.4
Cost of sales from affiliates of Natura &Co(2)(1)	$	(7.8)	$	(8.2)	$	(12.0)	$	(15.3)
Gross profit from affiliates of Natura &Co(2)(1)	$	.1	$	.5	$	(.4)	$	1.1
Interest expense on Loan from affiliates of Natura &Co(4)	$	(19.9)	$	(9.8)	$	(35.2)	$	(18.5)
Interest income on Loan to affiliates of Natura &Co(5)	$	.9	$	—	$	1.6	$	—

	June 30, 2022		December 31, 2021
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co(1)	$	31.7	$	32.7
Derivative Receivables due from affiliates of Natura &Co(7)	$	1.8	$	—
Other receivables due from affiliates of Natura &Co(6)	$	5.1	$	1.4
Loans to affiliates of Natura &Co maturing within one year(6)	$	40.8	$	46.6
Loans to affiliates of Natura &Co maturing after one year(6)	$	51.0	$	46.7
Trade Payables due to affiliates of Natura &Co(6)	$	(29.2)	$	(24.5)
Derivative Payables due to affiliates of Natura &Co(6)	$	(.6)	$	—
Other payables due to affiliates of Natura &Co(3)	$	(8.9)	$	(4.9)
Loans from affiliates of Natura &Co maturing within one year(4)	$	(265.1)	$	(371.7)
Loans from affiliates of Natura &Co maturing after one year(4)	$	(1,422.4)	$	(736.3)
Investments in affiliates of Natura &Co(5)	$	.1	$	.1

(1) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $7.9 and $8.7 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded gross profit from related party of $.1 and $.5 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded revenue from related party of $11.6 and $16.4 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. The Company recorded gross loss from related party of $.4 and gross profit from related party of $1.1 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(2) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue and gross profit from related party of $(.2) and $(.2) associated with these agreements during the three months ended June 30, 2022, respectively. The Company did not record any revenue or gross profit from related parties associated with these agreements during the six months ended June 30, 2022.

(3) The amount payable to Natura &Co mainly relates to the vesting and settlement of share-based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 and 2019 long-term employee incentive program which vested and were automatically exercised in March 2021 and March 2022 respectively.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 include $682.0 outstanding under a Promissory Note with Avon Beauty Limited with a maturity date of December 6, 2028, $408.4 outstanding under a Promissory Note with Avon Products, Inc. with a maturity date of May 17, 2029 and $331.8 outstanding under two Promissory Notes with Avon

Cosmetics Limited with maturity dates of May 17, 2029 and June 28, 2029. In addition, loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 includes a number of intercompany loans between Natura &Co Luxembourg, Natura Cosméticos and Avon Products, Inc. and its affiliates. Loans from affiliates of Natura &Co Holding at December 31, 2021 of $1,108.0 include $736.3 outstanding under a Promissory Note with Avon Beauty Limited and $207.3 outstanding under a Promissory Note with an affiliate of the Company. In addition loans from affiliates of Natura &Co Holding at December 31, 2021 include $164.4 of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$.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.

(6) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

(7) During the first half of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At June 30, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $221 for various currencies, all of which were designated as cash flow hedges. In addition we had $1.8 of Accounts Receivable and $.6 of Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions.

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REVENUE

6 Months Ended

Jun. 30, 2022

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, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	112.4	$	101.3	$	213.7	$	—	$	213.7
Fragrance	96.8		92.0		188.8		—		188.8
Color	47.3		47.0		94.3		—		94.3
Total Beauty	256.5		240.3		496.8		—		496.8
Fashion & Home:
Fashion	51.2		26.2		77.4		—		77.4
Home	12.3		57.6		69.9		—		69.9
Total Fashion & Home	63.5		83.8		147.3		—		147.3
Product sales	320.0		324.1		644.1		—		644.1
Representative fees	37.8		20.6		58.4		—		58.4
Other	(.2)		3.0		2.8		7.9		10.7
Other revenue	37.6		23.6		61.2		7.9		69.1
Total revenue	$	357.6	$	347.7	$	705.3	$	7.9	$	713.2

	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

	Six Months Ended June 30, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	229.0	$	197.9	$	426.9	$	—	$	426.9
Fragrance	200.9		172.9		373.8		—		373.8
Color	98.8		85.2		184.0		—		184.0
Total Beauty	528.7		456.0		984.7		—		984.7
Fashion & Home:							—
Fashion	105.0		49.4		154.4		—		154.4
Home	24.9		114.0		138.9		—		138.9
Total Fashion & Home	129.9		163.4		293.3		—		293.3
Product sales	658.6		619.4		1,278.0		—		1,278.0
Representative fees	52.2		34.1		86.3		—		86.3
Other	.1		.5		.6		11.6		12.2
Other revenue	52.3		34.6		86.9		11.6		98.5
Total revenue	$	710.9	$	654.0	$	1,364.9	$	11.6	$	1,376.5

	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

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

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, the impact of COVID-19 and the ongoing war between Russia and Ukraine. 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, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
Accounts receivable, net of allowances of $44.8 and $37.1	$	201.1	$	198.7
Contract liabilities	$	39.4	$	37.1

The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the six months ended June 30, 2022, we recognized $27.0 of revenue related to the contract liability balance at the beginning of

the six-month period ended June 30, 2022, as the result of performance obligations satisfied. In addition, we deferred an additional $30.2 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, 2022 as compared with December 31, 2021.

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INVENTORIES

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Components of Inventories	June 30, 2022		December 31, 2021
Raw materials	$	102.0	$	103.4
Finished goods	306.0		280.7
Total	$	408.0	$	384.1

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LEASES

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2022	2021	2022	2021
Sublease income	Selling, general and administrative expenses	3.7	3.0	7.4	7.3

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, 2022 and 2021:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2022	2021	2022	2021
Sublease income	Selling, general and administrative expenses	3.7	3.0	7.4	7.3

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CONTINGENCIES

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

Brazilian Tax Assessments

Tax on Manufactured Products – minimum pricing rules

In December 2021, October 2017 and June 2022, our Brazilian subsidiary, Avon Industrial LTDA (Avon Brazil Manufacturing), received excise tax ("IPI") assessments notices for the years 2008, 2014 and 2018.

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, 2022, the total disputed amount classified as a remote risk of loss was $463. As of December 31, 2021, the total disputed amount of $360 was classified as a reasonably possible risk of loss. The change in classification was a result of enactment of new legislation in Brazil in July 2022, whilst the change in the total amount was largely due to the new assessment received in June 2022 and movements in foreign exchange rates.

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, 2022 and December 31, 2021, the total amount under discussion classified as a reasonably possible risk of loss was $278 and $243, respectively, with the increase being largely a result of higher interest and taxes due, and movements in foreign exchange rates.

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, 2022 and December 31, 2021, there were 178 and 158 individual cases. respectively. pending against the Company. During the three months ended June 30, 2022, 38 new cases were filed and 18 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, 2022. 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, 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 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, 2022 and December 31, 2021 was approximately $12 and $11, respectively. Accordingly, we have recognized a liability for this amount.

Brazilian Financial Indemnities

As of June 30, 2022 and December 31, 2021, the Company has issued a number of guarantees totaling $181 and $157, respectively, which it could be required to make in the event of adverse judgments in a number of lawsuits in Brazil.

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, 2022 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, 2022

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, 2022 and 2021:

Three Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2022	$	(1,011.4)	$	(4.3)	$	0.1	$	(17.6)	$	(1,033.2)
Other comprehensive income other than reclassifications	14.2		—		.6		—		14.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		—		1.1		1.1
Total reclassifications into earnings	—		—		—		1.1		1.1
Balance at June 30, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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 loss 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)

Six Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2021	$	(1,062.2)	$	(4.3)	$	—	$	(19.0)	$	(1,085.5)
Other comprehensive income other than reclassifications	65.0		—		.7		—		65.7
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, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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)

For further details on Other Comprehensive income, (loss) other than reclassifications see the Consolidated Statements of Comprehensive Income (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 loss of $4.7 and net gain of $1.9 for the three months ended June 30, 2022 and 2021, respectively, and foreign exchange net losses of $7.2 and $.1 for the six months ended June 30, 2022 and 2021, 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 Income (Loss).

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

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

We determine segment profit by deducting the related costs and expenses from segment revenue. Segment profit includes an allocation of central expenses to the extent they support the operating activity of the segment. Segment profit excludes certain costs to implement ("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	2022		2021		2022		2021
Avon International**	$	357.6	$	416.4	$	710.9	$	847.3
Avon Latin America*	347.7		491.9		654.0		957.7
Total revenue from reportable segments*(1)	705.3		908.3		1,364.9		1,805.0
Revenue from affiliates to Natura &Co	7.9		8.7		11.6		16.4
Total revenue*(1)(4)	713.2		917.0		1,376.5		1,821.4

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2022		2021		2022		2021
Segment profit/(loss)
Avon International**	$	24.9	$	.6	$	24.0	$	(6.4)
Avon Latin America*	(32.3)		17.6		(76.9)		13.0
Total profit (loss) from reportable segments*(2)(4)	$	(7.4)	$	18.2	$	(52.9)	$	6.6
Unallocated global expenses(3)	(6.3)		(6.9)		(12.2)		(12.9)
CTI restructuring initiatives	(15.5)		(30.4)		(26.3)		(49.9)
Operating loss*(4)	$	(29.2)	$	(19.1)	$	(91.4)	$	(56.2)

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

(1)Total revenue also includes revenue from other business activities of $.2 and $2.4 for the three months ended June 30, 2022 and 2021, and $.3 and $4.3 for the six months ended June 30, 2022 and 2021, respectively, allocated to Avon International and Avon Latin America segments. Other business activities include revenue from the sale of products to New Avon since the separation of the Company’s North America business into New Avon on March 1, 2016 and ongoing royalties from the licensing of our name and products.

(2)Total loss from reportable segments also includes profit from other business activities and central expenses allocated to Avon International and Avon Latin America segments. Other business activities of $.1 and $.3 for the three months ended June 30, 2022 and 2021, and $.2 and $.4 for the six months ended June 30, 2022 and 2021 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 $27.2 and $55.7 for the three months ended June 30, 2022 and 2021, and $56.2 and $115.9 for the six months ended June 30, 2022 and 2021 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, 2022 and 2021, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, from the same date, the results of Avon Luxembourg are no longer included within Avon's consolidated results. The three and six-month period ended June 30, 2021 includes the results of Avon Luxembourg.

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SUPPLEMENTAL BALANCE SHEET INFORMATION

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL BALANCE SHEET INFORMATION

SUPPLEMENTAL BALANCE SHEET INFORMATION

At June 30, 2022 and December 31, 2021, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2022		December 31, 2021
Prepaid taxes and tax refunds receivable	$	79.8	$	84.0
Receivables other than trade	25.9		27.8
Prepaid brochure costs, paper and other literature	8.7		8.3
Other	42.1		45.5
Prepaid expenses and other	$	156.5	$	165.6

At June 30, 2022 and December 31, 2021, other assets included the following:

Components of Other Assets	June 30, 2022		December 31, 2021
Net overfunded pension plans	$	148.4	$	162.5
Capitalized software	72.2		74.9
Judicial deposits	51.9		47.2
Long-term receivables including Taxes	195.2		180.2
Trust assets associated with supplemental benefit plans	28.3		30.4
Other	12.9		14.2
Other assets	$	508.9	$	509.4

Prepaid taxes and tax refunds receivable and long-term receivables include approximately $133 and $128 related to certain Brazil indirect taxes as of June 30, 2022 and December 31, 2021, respectively. During the second quarter of 2021, the Brazilian Supreme Federal Court ruled on a Motion of Clarification which supported the recognition of additional receivable balances related to certain Brazil indirect taxes.

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RESTRUCTURING INITIATIVES

6 Months Ended

Jun. 30, 2022

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.

CTI Restructuring Initiatives - Three Months Ended June 30, 2022 and 2021

During the three months ended June 30, 2022, we recorded net CTI of $15.5, of which $9.9 related to Avon Integration, and a net benefit of $5.2 related to Open Up & Grow and a net benefit of $.3 related to the Transformation Plan, in our Consolidated Statements of Operations. During the three months ended June 30, 2021, we recorded CTI 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 six months ended June 30, 2022, we recorded implementation costs in our Consolidated Statement of Operations of $26.3, of which $13.3 related to Avon Integration, $12.8 related to Open Up & Grow and a net benefit of $.2 related to the Transformation Plan. During the six months ended June 30, 2021, we recorded 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 $.5 related to the Transformation Plan, in our Consolidated Statements of Operations.

The costs during the three and six months ended June 30, 2022 and 2021 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
CTI recorded in operating profit - COGS
Inventory write-off	—		—		—		.2
	—		—		—		.2
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	9.2		21.1		11.6		30.4
Implementation costs, primarily related to professional service fees	5.6		6.1		11.7		10.2
Dual running costs	.4		.3		.8		0.6
Contract termination and other net benefits	.3		2.4		2.2		7.4
Accelerated depreciation	—		0.2		—		.2
Variable lease charges	—		.3		—		.9
	15.5		30.4		26.3		49.7
CTI recorded in operating profit	15.5		30.4		26.3		49.9
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	—		(1.5)				(1.5)
Total CTI	$	15.5	$	28.9	$	26.3	$	48.4
Avon Integration	$	9.9	$	3.8	$	13.3	$	9.9
Open Up & Grow	$	5.2	$	24.8	$	12.8	$	39.0
Transformation Plan	$	.3	$	.3	$	.2	$	(0.5)

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 CTI 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, 2022 and December 31, 2021 is $0.2 and $1.6, 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, 2022 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2021	$	14.0	$	—	$	1.2	$	15.2
2022 charges	4.4		—		1.5		5.9
Cash payments	(9.1)		—		(1.9)		(11.0)
Foreign exchange	(.6)		—		(.1)		(.7)
Balance at June 30, 2022	$	8.7	$	—	$	.7	$	9.4

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, 2022 and December 31, 2021 is $1.3 and $1.5, 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 2022.

The following table presents the restructuring charges incurred to date under Avon Integration and Open Up & Grow (formerly Open Up Avon) 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	$	19.5	$	—	$	.9	$	—	$	20.4
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	19.5	$	—	$	.9	$	—	$	20.4
Open Up & Grow
Charges incurred to date	$	120.2	$	107.4	$	17.4	$	(10.9)	$	234.1
Estimated charges to be incurred on approved initiatives			—		.8		—		.8
Total expected charges on approved initiatives	$	120.2	$	107.4	$	18.2	$	(10.9)	$	234.9

The charges, net of adjustments, of initiatives under the Avon Integration and Open Up & Grow 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
2021	(1.2)		3.0		$	1.8
First quarter 2022	.1		1.5		1.6
Second quarter 2022	.2		6.0		6.2
Charges incurred to date	5.3		15.1		20.4
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.3	$	15.1	$	20.4
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
2021	36.9		.2		37.1
First quarter 2022	2.7		—		2.7
Second quarter 2022	3.2		—		3.2
Charges incurred to date	133.5		100.6		234.1
Estimated charges to be incurred on approved initiatives	.8		—		.8
Total expected charges on approved initiatives	$	134.3	$	100.6	$	234.9

The charges above are not included in segment profit/(loss), as this excludes CTI restructuring initiatives. The amounts shown in the tables above as charges incurred 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, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

	Avon International		Avon Latin America		Total
Net balance at December 31, 2021	$	17.6	$	54.5	$	72.1
Changes during the period ended June 30, 2022:
Foreign exchange	(1.4)		(2.2)		(3.6)
Net balance at June 30, 2022	$	16.2	$	52.3	$	68.5

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FAIR VALUE

6 Months Ended

Jun. 30, 2022

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, 2022:

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	1.0	$	1.0
Total	$	—	$	1.0	$	1.0
Liabilities:
Foreign exchange forward contracts	$	—	$	—	$	—
Total	$	—	$	—	$	—

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, 2021:

	Level 1		Level 2		Total
Liabilities:
Foreign exchange forward contracts	$	—	$	2.7	$	2.7
Total	$	—	$	2.7	$	2.7

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, 2022 and December 31, 2021, respectively, consisted of the following:

	June 30, 2022		December 31, 2021
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Loans to affiliates of Natura &Co maturing within one year	40.8	40.8	46.6	46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	51.0	46.7	46.7
Debt maturing within one year	(31.7)	(31.7)	(32.6)	(32.6)
Loans from affiliates of Natura &Co maturing within one year	(265.1)	(265.1)	(371.7)	(371.7)
Long-term debt(1)	(215.1)	(211.3)	(676.0)	(754.2)
Loans from affiliates of Natura &Co maturing after one year	(1,422.4)	(1,422.4)	(736.3)	(736.3)
Foreign exchange forward contracts	1.0	1.0	(2.7)	(2.7)

(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, 2022

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, 2022:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.8	Accounts payable	$	.6
Derivatives not designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.0	Accounts payable	$	—
Total derivatives		$	2.8		$	.6

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, 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	$	—	Accounts payable	$	2.7
Total derivatives		$	—		$	2.7

Interest Rate Risk

Approximately 13% and 5% of our debt portfolio at June 30, 2022 and December 31, 2021, 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, 2022, we had outstanding third-party foreign exchange forward contracts with notional amounts totaling approximately $182 for various currencies, $30 of which were designated as cash flow hedges.

During the first half of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At June 30, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $221 for various currencies for up to 6 months, all of which were designated as cash flow hedges. In addition we had $1.8 Accounts Receivable and $.6 Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions, all of which are expected to be reclassified into earnings within the next 12 months.

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, 2022 and 2021, we recorded a gain of $8.8 and a loss $.6, 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, 2022 and 2021, we recorded a gain of $12.3 and a loss of $1.3, 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, 2022

Debt Disclosure [Abstract]

DEBT

DEBT

Natura Revolving Credit Facility

In May 2020, the Company’s subsidiary, Avon Luxembourg entered into a Revolving Credit Facility Agreement with Natura &Co International S.à r.l., a subsidiary of Natura &Co Holding and an affiliate of the Company, in the initial amount of $100, increased to $250 in March 2021, which could be used for working capital and other general corporate purposes. Borrowings under this Facility bore interest at a rate per annum of LIBOR plus a margin determined on an arm's length basis, and the Facility was to mature on May 31, 2022. On July 1, 2021, the Company sold Avon Luxembourg to a subsidiary of Natura &Co Holding and therefore Company no longer has access to this facility.

Other Loans from Affiliates of Natura &Co

In November 2020, Avon International Operations, Inc. ("AIO") entered into a Promissory Note with a subsidiary of Natura &Co Holding 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, 2022. On July 1, 2021, as part of the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding, the $960 loan was partially repaid with the proceeds from a loan maturing in 2028. The loan was fully repaid in the quarter ended June 30, 2022 as part of a refinancing and the subsequent repurchase of Unsecured Notes (see below). As at June 30, 2022, $682 was outstanding under the loan maturing in 2028 which is between Avon Beauty Limited and a subsidiary of Natura &Co Holding.

In May 2022, Avon Products, Inc and Avon Cosmetics Limited entered into Promissory Notes with a subsidiary of Natura &Co Holding in the amount of $405 and $215 respectively. The Promissory Notes bear interest at a rate per annum of 6.71% and mature on May 17, 2029. In addition, in June 2022 Avon Cosmetics Limited entered into an additional Promissory Note with a subsidiary of Natura &Co Holding in the amount of $115. This Promissory Note bears interest at a rate per annum of 6.51% and matures on June 28, 2029.

In addition, loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 includes a number of intercompany loans between Natura &Co Luxembourg, Natura Cosméticos and Avon Products, Inc. affiliates.

Other Short-Term Financing

In addition, at June 30, 2022, we utilized approximately $32 of short-term financing from third-party banks across multiple markets.

Unsecured Notes

In March 2013, we issued a series of unsecured notes (the "2013 Notes"). As of June 30, 2022, following the repurchase of the 5% Notes due March 15, 2023 (see below), $216.1 aggregate principal amount of 6.95% Notes due March 15, 2043 remained outstanding.

In May 2022, we repurchased $461.9 of our 5% Notes due 15 March, 2023. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $15.0 and accrued interest of $5.4. In connection with the repurchase, we incurred a loss on extinguishment of debt of $15.7 before tax in the quarter ended June 30, 2022 consisting of the $15.0 premium paid for the repurchase and $.7 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased.

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.

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, 2021.

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INCOME TAXES

6 Months Ended

Jun. 30, 2022

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, 2022, our annual effective tax rate, excluding discrete items, is 26.2%, as compared to 27.1% as of June 30, 2021. 

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 2022 and 2021 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 costs incurred in the U.S. and U.K., 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, 2022 and 2021 was $(3.6) and $18.8, respectively. Our effective tax rates for the three months ended June 30, 2022 and 2021 were 5.5% and (48.0)%, respectively. The provision for income taxes for the six months ended June 30, 2022 and 2021 was $1.2 and $25.9, respectively. Our effective tax rates for the six months ended June 30, 2022 and 2021 were (.8)% and (25.6)%, respectively.

The effective tax rates for the three months ended June 30, 2022 and 2021 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 2022 was unfavorably impacted by other miscellaneous net tax expense of $.4. 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 rates for the six months ended June 30, 2022 and 2021 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 2022 was unfavorably impacted by the recording of valuation allowance of $3.8 and other miscellaneous net tax expense of $3.8. 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.

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 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, 2022, the COVID-19 pandemic is an example of negative evidence the Company must consider. As of June 30, 2022, 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.

We monitor the realizability of our deferred tax assets on a continuous basis. Should macroeconomic and socio-political conditions change or our business operations do not improve, approximately $75 of deferred tax assets could potentially need to be offset with the recording of a valuation allowance during the next 12 months. The deferred tax assets are associated with Avon subsidiary operations that suffered a loss in earnings before tax during 2021.

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SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSAs set out in Note 7, Contingencies, following the enactment in Brazil of Law No 14,395 by the National Congress on 8 July 2022, the total disputed IPI assessments of $463 as of June 30, 2022 are now classified as a remote risk of loss whereas previously they were classified as a reasonably possible risk of loss.

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ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

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 2021 Annual Report on Form 10-K ("2021 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" or "Natura &Co), and two subsidiaries of Natura &Co Holding 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 contained in our 2021 Form 10-K.

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 2021 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.

Accounting Standards Implemented

Accounting Standards Implemented

ASU 2021-08, Business Combinations (Topic 805)

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. ASU 2021-08 will be effective for our fiscal year beginning after December 15, 2022. The adoption is not expected to 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, 2022

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, 2022 and 2021, respectively, are shown below:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Selling, general and administrative expenses	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
Operating (loss) income	$	(12.9)	$	(4.1)	$	(20.7)	$	.9
(Loss) income from discontinued operations, net of tax	$	(12.9)	$	(4.1)	$	(20.7)	$	.9

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, 2022 and December 31, 2021 are shown in the following table:

	June 30, 2022		December 31, 2021
Current held for sale assets
Property, Plant & Equipment (net)	8.7		2.8
	$	8.7	$	2.8

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2022

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,
	2022		2021		2022		2021
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)(1)	$	7.9	$	8.7	$	11.6	$	16.4
Cost of sales from affiliates of Natura &Co(2)(1)	$	(7.8)	$	(8.2)	$	(12.0)	$	(15.3)
Gross profit from affiliates of Natura &Co(2)(1)	$	.1	$	.5	$	(.4)	$	1.1
Interest expense on Loan from affiliates of Natura &Co(4)	$	(19.9)	$	(9.8)	$	(35.2)	$	(18.5)
Interest income on Loan to affiliates of Natura &Co(5)	$	.9	$	—	$	1.6	$	—

	June 30, 2022		December 31, 2021
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co(1)	$	31.7	$	32.7
Derivative Receivables due from affiliates of Natura &Co(7)	$	1.8	$	—
Other receivables due from affiliates of Natura &Co(6)	$	5.1	$	1.4
Loans to affiliates of Natura &Co maturing within one year(6)	$	40.8	$	46.6
Loans to affiliates of Natura &Co maturing after one year(6)	$	51.0	$	46.7
Trade Payables due to affiliates of Natura &Co(6)	$	(29.2)	$	(24.5)
Derivative Payables due to affiliates of Natura &Co(6)	$	(.6)	$	—
Other payables due to affiliates of Natura &Co(3)	$	(8.9)	$	(4.9)
Loans from affiliates of Natura &Co maturing within one year(4)	$	(265.1)	$	(371.7)
Loans from affiliates of Natura &Co maturing after one year(4)	$	(1,422.4)	$	(736.3)
Investments in affiliates of Natura &Co(5)	$	.1	$	.1

(1) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $7.9 and $8.7 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded gross profit from related party of $.1 and $.5 associated with these agreements during the three months ended June 30, 2022 and 2021, respectively. The Company recorded revenue from related party of $11.6 and $16.4 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. The Company recorded gross loss from related party of $.4 and gross profit from related party of $1.1 associated with these agreements during the six months ended June 30, 2022 and 2021, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(2) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue and gross profit from related party of $(.2) and $(.2) associated with these agreements during the three months ended June 30, 2022, respectively. The Company did not record any revenue or gross profit from related parties associated with these agreements during the six months ended June 30, 2022.

(3) The amount payable to Natura &Co mainly relates to the vesting and settlement of share-based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 and 2019 long-term employee incentive program which vested and were automatically exercised in March 2021 and March 2022 respectively.

(4) Loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 include $682.0 outstanding under a Promissory Note with Avon Beauty Limited with a maturity date of December 6, 2028, $408.4 outstanding under a Promissory Note with Avon Products, Inc. with a maturity date of May 17, 2029 and $331.8 outstanding under two Promissory Notes with Avon

Cosmetics Limited with maturity dates of May 17, 2029 and June 28, 2029. In addition, loans from affiliates of Natura &Co Holding at June 30, 2022 of $1,687.5 includes a number of intercompany loans between Natura &Co Luxembourg, Natura Cosméticos and Avon Products, Inc. and its affiliates. Loans from affiliates of Natura &Co Holding at December 31, 2021 of $1,108.0 include $736.3 outstanding under a Promissory Note with Avon Beauty Limited and $207.3 outstanding under a Promissory Note with an affiliate of the Company. In addition loans from affiliates of Natura &Co Holding at December 31, 2021 include $164.4 of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$.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.

(6) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

(7) During the first half of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At June 30, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $221 for various currencies, all of which were designated as cash flow hedges. In addition we had $1.8 of Accounts Receivable and $.6 of Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions.

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REVENUE (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	112.4	$	101.3	$	213.7	$	—	$	213.7
Fragrance	96.8		92.0		188.8		—		188.8
Color	47.3		47.0		94.3		—		94.3
Total Beauty	256.5		240.3		496.8		—		496.8
Fashion & Home:
Fashion	51.2		26.2		77.4		—		77.4
Home	12.3		57.6		69.9		—		69.9
Total Fashion & Home	63.5		83.8		147.3		—		147.3
Product sales	320.0		324.1		644.1		—		644.1
Representative fees	37.8		20.6		58.4		—		58.4
Other	(.2)		3.0		2.8		7.9		10.7
Other revenue	37.6		23.6		61.2		7.9		69.1
Total revenue	$	357.6	$	347.7	$	705.3	$	7.9	$	713.2

	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

	Six Months Ended June 30, 2022
	Avon International		Avon Latin America		Total reportable segments		Affiliates of Natura&Co		Total
Beauty:
Skincare	$	229.0	$	197.9	$	426.9	$	—	$	426.9
Fragrance	200.9		172.9		373.8		—		373.8
Color	98.8		85.2		184.0		—		184.0
Total Beauty	528.7		456.0		984.7		—		984.7
Fashion & Home:							—
Fashion	105.0		49.4		154.4		—		154.4
Home	24.9		114.0		138.9		—		138.9
Total Fashion & Home	129.9		163.4		293.3		—		293.3
Product sales	658.6		619.4		1,278.0		—		1,278.0
Representative fees	52.2		34.1		86.3		—		86.3
Other	.1		.5		.6		11.6		12.2
Other revenue	52.3		34.6		86.9		11.6		98.5
Total revenue	$	710.9	$	654.0	$	1,364.9	$	11.6	$	1,376.5

	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

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

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, 2022 and December 31, 2021:

	June 30, 2022		December 31, 2021
Accounts receivable, net of allowances of $44.8 and $37.1	$	201.1	$	198.7
Contract liabilities	$	39.4	$	37.1

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

Components of Inventories	June 30, 2022		December 31, 2021
Raw materials	$	102.0	$	103.4
Finished goods	306.0		280.7
Total	$	408.0	$	384.1

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LEASES (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021:

		Three Months Ended June 30,		Six Months Ended June 30,
Lease Costs	Classification	2022	2021	2022	2021
Sublease income	Selling, general and administrative expenses	3.7	3.0	7.4	7.3

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021:

Three Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at March 31, 2022	$	(1,011.4)	$	(4.3)	$	0.1	$	(17.6)	$	(1,033.2)
Other comprehensive income other than reclassifications	14.2		—		.6		—		14.8
Reclassifications into earnings:
Amortization of net actuarial loss and prior service cost, net of tax of $0.2(1)	—		—		—		1.1		1.1
Total reclassifications into earnings	—		—		—		1.1		1.1
Balance at June 30, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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 loss 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)

Six Months Ended June 30, 2022	Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Pension and Postretirement Benefits		Total
Balance at December 31, 2021	$	(1,062.2)	$	(4.3)	$	—	$	(19.0)	$	(1,085.5)
Other comprehensive income other than reclassifications	65.0		—		.7		—		65.7
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, 2022	$	(997.2)	$	(4.3)	$	.7	$	(16.5)	$	(1,017.3)

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)

For further details on Other Comprehensive income, (loss) other than reclassifications see the Consolidated Statements of Comprehensive Income (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, 2022

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	2022		2021		2022		2021
Avon International**	$	357.6	$	416.4	$	710.9	$	847.3
Avon Latin America*	347.7		491.9		654.0		957.7
Total revenue from reportable segments*(1)	705.3		908.3		1,364.9		1,805.0
Revenue from affiliates to Natura &Co	7.9		8.7		11.6		16.4
Total revenue*(1)(4)	713.2		917.0		1,376.5		1,821.4

Schedule of Operating Loss

	Three Months Ended June 30,				Six Months Ended June 30,
Operating Loss	2022		2021		2022		2021
Segment profit/(loss)
Avon International**	$	24.9	$	.6	$	24.0	$	(6.4)
Avon Latin America*	(32.3)		17.6		(76.9)		13.0
Total profit (loss) from reportable segments*(2)(4)	$	(7.4)	$	18.2	$	(52.9)	$	6.6
Unallocated global expenses(3)	(6.3)		(6.9)		(12.2)		(12.9)
CTI restructuring initiatives	(15.5)		(30.4)		(26.3)		(49.9)
Operating loss*(4)	$	(29.2)	$	(19.1)	$	(91.4)	$	(56.2)

* 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.

** In June 2022, an Avon subsidiary concluded the negotiation of a settlement agreement to resolve a breach of contract dispute in Japan. As a result, Avon received cash compensation in the amount of $27.0 million of which $3.3 million related to the settlement of historically recognized revenues and the remaining $23.7 million recognized as revenue in the quarter ended June 30, 2022.

(1)Total revenue also includes revenue from other business activities of $.2 and $2.4 for the three months ended June 30, 2022 and 2021, and $.3 and $4.3 for the six months ended June 30, 2022 and 2021, respectively, allocated to Avon International and Avon Latin America segments. Other business activities include revenue from the sale of products to New Avon since the separation of the Company’s North America business into New Avon on March 1, 2016 and ongoing royalties from the licensing of our name and products.

(2)Total loss from reportable segments also includes profit from other business activities and central expenses allocated to Avon International and Avon Latin America segments. Other business activities of $.1 and $.3 for the three months ended June 30, 2022 and 2021, and $.2 and $.4 for the six months ended June 30, 2022 and 2021 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 $27.2 and $55.7 for the three months ended June 30, 2022 and 2021, and $56.2 and $115.9 for the six months ended June 30, 2022 and 2021 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, 2022 and 2021, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments.

(4)On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, from the same date, the results of Avon Luxembourg are no longer included within Avon's consolidated results. The three and six-month period ended June 30, 2021 includes the results of Avon Luxembourg.

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SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Components of Prepaid Expenses and Other

At June 30, 2022 and December 31, 2021, prepaid expenses and other included the following:

Components of Prepaid Expenses and Other	June 30, 2022		December 31, 2021
Prepaid taxes and tax refunds receivable	$	79.8	$	84.0
Receivables other than trade	25.9		27.8
Prepaid brochure costs, paper and other literature	8.7		8.3
Other	42.1		45.5
Prepaid expenses and other	$	156.5	$	165.6

Schedule of Components of Other Assets

At June 30, 2022 and December 31, 2021, other assets included the following:

Components of Other Assets	June 30, 2022		December 31, 2021
Net overfunded pension plans	$	148.4	$	162.5
Capitalized software	72.2		74.9
Judicial deposits	51.9		47.2
Long-term receivables including Taxes	195.2		180.2
Trust assets associated with supplemental benefit plans	28.3		30.4
Other	12.9		14.2
Other assets	$	508.9	$	509.4

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RESTRUCTURING INITIATIVES (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Summary of Restructuring and Related Costs

The costs during the three and six months ended June 30, 2022 and 2021 consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
CTI recorded in operating profit - COGS
Inventory write-off	—		—		—		.2
	—		—		—		.2
CTI recorded in operating profit - SG&A
Net charges for employee-related costs, including severance benefits	9.2		21.1		11.6		30.4
Implementation costs, primarily related to professional service fees	5.6		6.1		11.7		10.2
Dual running costs	.4		.3		.8		0.6
Contract termination and other net benefits	.3		2.4		2.2		7.4
Accelerated depreciation	—		0.2		—		.2
Variable lease charges	—		.3		—		.9
	15.5		30.4		26.3		49.7
CTI recorded in operating profit	15.5		30.4		26.3		49.9
CTI recorded in other (expense) income
(Gain) loss on sale of business / assets	—		(1.5)				(1.5)
Total CTI	$	15.5	$	28.9	$	26.3	$	48.4
Avon Integration	$	9.9	$	3.8	$	13.3	$	9.9
Open Up & Grow	$	5.2	$	24.8	$	12.8	$	39.0
Transformation Plan	$	.3	$	.3	$	.2	$	(0.5)

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, 2022 is as follows:

	Employee-Related Costs		Inventory/Assets Write-offs		Contract Terminations/Other		Total
Balance at December 31, 2021	$	14.0	$	—	$	1.2	$	15.2
2022 charges	4.4		—		1.5		5.9
Cash payments	(9.1)		—		(1.9)		(11.0)
Foreign exchange	(.6)		—		(.1)		(.7)
Balance at June 30, 2022	$	8.7	$	—	$	.7	$	9.4

Schedule of Restructuring Charges Reportable by Business Segment

The following table presents the restructuring charges incurred to date under Avon Integration and Open Up & Grow (formerly Open Up Avon) 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	$	19.5	$	—	$	.9	$	—	$	20.4
Estimated charges to be incurred on approved initiatives	—		—		—		—		—
Total expected charges on approved initiatives	$	19.5	$	—	$	.9	$	—	$	20.4
Open Up & Grow
Charges incurred to date	$	120.2	$	107.4	$	17.4	$	(10.9)	$	234.1
Estimated charges to be incurred on approved initiatives			—		.8		—		.8
Total expected charges on approved initiatives	$	120.2	$	107.4	$	18.2	$	(10.9)	$	234.9

The charges, net of adjustments, of initiatives under the Avon Integration and Open Up & Grow 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
2021	(1.2)		3.0		$	1.8
First quarter 2022	.1		1.5		1.6
Second quarter 2022	.2		6.0		6.2
Charges incurred to date	5.3		15.1		20.4
Estimated charges to be incurred on approved initiatives	—		—		—
Total expected charges on approved initiatives	$	5.3	$	15.1	$	20.4
Open Up & Grow
2018	$	52.8	$	64.3	$	117.1
2019	34.7		36.9		71.6
2020	3.2		(.8)		2.4
2021	36.9		.2		37.1
First quarter 2022	2.7		—		2.7
Second quarter 2022	3.2		—		3.2
Charges incurred to date	133.5		100.6		234.1
Estimated charges to be incurred on approved initiatives	.8		—		.8
Total expected charges on approved initiatives	$	134.3	$	100.6	$	234.9

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

	Avon International		Avon Latin America		Total
Net balance at December 31, 2021	$	17.6	$	54.5	$	72.1
Changes during the period ended June 30, 2022:
Foreign exchange	(1.4)		(2.2)		(3.6)
Net balance at June 30, 2022	$	16.2	$	52.3	$	68.5

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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022:

	Level 1		Level 2		Total
Assets:
Foreign exchange forward contracts	$	—	$	1.0	$	1.0
Total	$	—	$	1.0	$	1.0
Liabilities:
Foreign exchange forward contracts	$	—	$	—	$	—
Total	$	—	$	—	$	—

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, 2021:

	Level 1		Level 2		Total
Liabilities:
Foreign exchange forward contracts	$	—	$	2.7	$	2.7
Total	$	—	$	2.7	$	2.7

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, 2022 and December 31, 2021, respectively, consisted of the following:

	June 30, 2022		December 31, 2021
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Loans to affiliates of Natura &Co maturing within one year	40.8	40.8	46.6	46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	51.0	46.7	46.7
Debt maturing within one year	(31.7)	(31.7)	(32.6)	(32.6)
Loans from affiliates of Natura &Co maturing within one year	(265.1)	(265.1)	(371.7)	(371.7)
Long-term debt(1)	(215.1)	(211.3)	(676.0)	(754.2)
Loans from affiliates of Natura &Co maturing after one year	(1,422.4)	(1,422.4)	(736.3)	(736.3)
Foreign exchange forward contracts	1.0	1.0	(2.7)	(2.7)

(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, 2022

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, 2022:

	Asset			Liability
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
Derivatives designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.8	Accounts payable	$	.6
Derivatives not designated as hedges:
Foreign exchange forward contracts	Prepaid expenses and other	$	1.0	Accounts payable	$	—
Total derivatives		$	2.8		$	.6

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, 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	$	—	Accounts payable	$	2.7
Total derivatives		$	—		$	2.7

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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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Selling, general and administrative expenses	$ (12.9)	$ (4.1)	$ (20.7)	$ 0.9
Operating (loss) income	(12.9)	(4.1)	(20.7)	0.9
(Loss) income from discontinued operations, net of tax	$ (12.9)	$ (4.1)	$ (20.7)	$ 0.9

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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, 2022	Dec. 31, 2021
Current held for sale assets
Property, Plant & Equipment (net)	$ 8.7	$ 2.8
Held for sale assets	$ 8.7	$ 2.8

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DISCONTINUED OPERATIONS, ASSETS AND LIABILITIES HELD FOR SALE AND DIVESTITURES - Narrative (Details)				1 Months Ended	3 Months Ended			6 Months Ended
	Dec. 23, 2021 USD ($)	Nov. 17, 2021 USD ($)	Jul. 01, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) property	Dec. 31, 2021 USD ($) property	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) property	Jun. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	May 31, 2020 USD ($)
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
Gain on sale of business					$ 0		$ 1,500,000	$ 0	$ 1,500,000
Sale of Avon Luxembourg			$ 148,000,000
Avon Beauty Arabia
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of ownership	51.00%
Natura Revolving Facility Due May 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of lines of credit			150,000,000
Line of credit facility										$ 250,000,000	$ 250,000,000	$ 100,000,000
Avon Beauty Arabia
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Allowance for loan and lease losses, write-offs	$ 3,900,000
Gain on sale of business						$ 1,100,000
Cosmetics Manufacturing Operations In India
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business						$ 1,100,000
Net proceeds from sale of business / assets		$ 2,900,000
Avon Luxembourg Holdings
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds from sale of business / assets			$ 150,000,000
Italy Branch
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of business							$ 1,400,000
Net proceeds from sale of business / assets				$ 1,700,000

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RELATED PARTY TRANSACTIONS - Summary of Related Parties (Details) R$ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) promissory_note	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) promissory_note	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2021 BRL (R$)	Nov. 30, 2020 USD ($)
Statement of Operations Data
Revenue from affiliates of Natura &Co	$ 7,900,000	$ 8,700,000	$ 11,600,000	$ 16,400,000
Cost of sales from affiliates of Natura &Co	(7,800,000)	(8,100,000)	(12,000,000.0)	(15,200,000)
Interest expense on Loan from affiliates of Natura &Co	(19,900,000)	(9,700,000)	(35,200,000)	(18,500,000)
Interest income on Loan to affiliates of Natura &Co	900,000	0	1,600,000	0
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co	38,600,000		38,600,000		$ 34,100,000
Loans to affiliates of Natura &Co maturing within one year	40,800,000		40,800,000		46,600,000
Loans to affiliates of Natura &Co maturing after one year	51,000,000.0		51,000,000.0		46,700,000
Trade Payables due to affiliates of Natura &Co.	(38,700,000)		(38,700,000)		(29,400,000)
Loans from affiliates of Natura &Co maturing within one year	(265,100,000)		(265,100,000)		(371,700,000)
Loans from affiliates of Natura &Co maturing after one year	(1,422,400,000)		(1,422,400,000)		(736,300,000)
Loans payable	1,687,500,000		1,687,500,000		1,108,000,000
Notional amount	221,000,000		221,000,000
3.13% Promissory Notes due November 2022
Balance Sheet Data
Loans from affiliates of Natura &Co maturing within one year					(207,300,000)
Loans payable							$ 960,000,000
6.71% Promissory Notes due May 2029
Balance Sheet Data
Loans from affiliates of Natura &Co maturing after one year	(408,400,000)		(408,400,000)
6.51% Promissory Notes due June 2029
Balance Sheet Data
Loans from affiliates of Natura &Co maturing after one year	$ (331,800,000)		$ (331,800,000)
Number of promissory notes | promissory_note	2		2
November 2, 2028 | 3.13% Promissory Notes due November 2022
Balance Sheet Data
Loans from affiliates of Natura &Co maturing after one year	$ (682,000,000)		$ (682,000,000)		(736,300,000)
Avon Cosmeticos LTDA | Natura &Co Pay Holding Financeira S.A.
Balance Sheet Data
Percentage of ownership						10.00%
Affiliates of Natura&Co
Statement of Operations Data
Revenue from affiliates of Natura &Co	7,900,000	8,700,000	11,600,000	16,400,000
Gross profit from affiliates of Natura &Co	100,000	500,000	(400,000)	1,100,000
Interest expense on Loan from affiliates of Natura &Co	(19,900,000)	(9,800,000)	(35,200,000)	(18,500,000)
Interest income on Loan to affiliates of Natura &Co	900,000	0	1,600,000	0
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co	31,700,000		31,700,000		32,700,000
Derivative receivables due from affiliates of Natura &Co	1,800,000		1,800,000		0
Other receivables due from affiliates of Natura &Co	5,100,000		5,100,000		1,400,000
Loans to affiliates of Natura &Co maturing within one year	40,800,000		40,800,000		46,600,000
Loans to affiliates of Natura &Co maturing after one year	51,000,000.0		51,000,000.0		46,700,000
Trade Payables due to affiliates of Natura &Co.	(29,200,000)		(29,200,000)		(24,500,000)
Derivative payables due to affiliates of Natura &Co	(600,000)		(600,000)		0
Other payables due to affiliates of Natura &Co	(8,900,000)		(8,900,000)		(4,900,000)
Loans from affiliates of Natura &Co maturing within one year	(265,100,000)		(265,100,000)		(371,700,000)
Loans from affiliates of Natura &Co maturing after one year	(1,422,400,000)		(1,422,400,000)		(736,300,000)
Investments in affiliates of Natura & Co	100,000		100,000		100,000	R$ 0.5
Loans payable	1,687,500,000		1,687,500,000		$ 164,400,000
Affiliates of Natura&Co | Manufacturing and Supply Agreement
Statement of Operations Data
Revenue from affiliates of Natura &Co	7,900,000	8,700,000	11,600,000	16,400,000
Cost of sales from affiliates of Natura &Co	(7,800,000)	(8,200,000)	(12,000,000.0)	(15,300,000)
Gross profit from affiliates of Natura &Co	100,000	$ 500,000	400,000	$ 1,100,000
Affiliates of Natura&Co | License Agreement
Statement of Operations Data
Revenue from affiliates of Natura &Co	(200,000)		0
Gross profit from affiliates of Natura &Co	$ (200,000)		$ 0

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REVENUE - Disaggregation of Revenues (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Product sales		$ 644.1	$ 864.8	$ 1,278.0	$ 1,715.2
Representative fees		58.4	43.3	86.3	89.4
Other		10.7	8.9	12.2	16.8
Other revenue		69.1	52.2	98.5	106.2
Total revenue		713.2	917.0	1,376.5	1,821.4	$ 9.0
Revenue from affiliates of Natura &Co		7.9	8.7	11.6	16.4
Proceeds from legal settlements	$ 27.0
Settlement of historically recognized revenues				27.0
Collectibility of Receivables
Disaggregation of Revenue [Line Items]
Settlement of historically recognized revenues	$ 3.3	23.7
Beauty
Disaggregation of Revenue [Line Items]
Product sales		496.8	610.7	984.7	1,218.9
Skincare
Disaggregation of Revenue [Line Items]
Product sales		213.7	281.0	426.9	553.3
Fragrance
Disaggregation of Revenue [Line Items]
Product sales		188.8	220.5	373.8	442.5
Color
Disaggregation of Revenue [Line Items]
Product sales		94.3	109.2	184.0	223.1
Fashion And Home
Disaggregation of Revenue [Line Items]
Product sales		147.3	244.7	293.3	486.9
Fashion
Disaggregation of Revenue [Line Items]
Product sales		77.4	113.9	154.4	232.4
Home
Disaggregation of Revenue [Line Items]
Product sales		69.9	130.8	138.9	254.5
Certain Brazil indirect taxes
Disaggregation of Revenue [Line Items]
Product sales			9.4		9.4
Operating Segments
Disaggregation of Revenue [Line Items]
Product sales		644.1	864.8	1,278.0	1,715.2
Representative fees		58.4	43.3	86.3	89.4
Other		2.8	0.2	0.6	0.4
Other revenue		61.2	43.5	86.9	89.8
Total revenue		705.3	908.3	1,364.9	1,805.0
Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Product sales		496.8	610.7	984.7	1,218.9
Operating Segments | Skincare
Disaggregation of Revenue [Line Items]
Product sales		213.7	281.0	426.9	553.3
Operating Segments | Fragrance
Disaggregation of Revenue [Line Items]
Product sales		188.8	220.5	373.8	442.5
Operating Segments | Color
Disaggregation of Revenue [Line Items]
Product sales		94.3	109.2	184.0	223.1
Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Product sales		147.3	244.7	293.3	486.9
Operating Segments | Fashion
Disaggregation of Revenue [Line Items]
Product sales		77.4	113.9	154.4	232.4
Operating Segments | Home
Disaggregation of Revenue [Line Items]
Product sales		69.9	130.8	138.9	254.5
Operating Segments | Certain Brazil indirect taxes
Disaggregation of Revenue [Line Items]
Product sales			9.4		9.4
Revenue from affiliates to Natura &Co
Disaggregation of Revenue [Line Items]
Other		7.9	8.7	11.6	16.4
Other revenue		7.9	8.7	11.6	16.4
Total revenue		7.9	8.7	11.6	16.4
Revenue from affiliates of Natura &Co		7.9	8.7	11.6	16.4
Avon International | Operating Segments
Disaggregation of Revenue [Line Items]
Product sales		320.0	399.8	658.6	812.9
Representative fees		37.8	16.5	52.2	34.3
Other		(0.2)	0.1	0.1	0.1
Other revenue		37.6	16.6	52.3	34.4
Total revenue		357.6	416.4	710.9	847.3
Avon International | Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Product sales		256.5	320.5	528.7	649.1
Avon International | Operating Segments | Skincare
Disaggregation of Revenue [Line Items]
Product sales		112.4	147.0	229.0	292.3
Avon International | Operating Segments | Fragrance
Disaggregation of Revenue [Line Items]
Product sales		96.8	114.5	200.9	234.4
Avon International | Operating Segments | Color
Disaggregation of Revenue [Line Items]
Product sales		47.3	59.0	98.8	122.4
Avon International | Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Product sales		63.5	79.3	129.9	163.8
Avon International | Operating Segments | Fashion
Disaggregation of Revenue [Line Items]
Product sales		51.2	64.7	105.0	132.4
Avon International | Operating Segments | Home
Disaggregation of Revenue [Line Items]
Product sales		12.3	14.6	24.9	31.4
Avon International | Operating Segments | Certain Brazil indirect taxes
Disaggregation of Revenue [Line Items]
Product sales			0.0		0.0
Avon Latin America | Operating Segments
Disaggregation of Revenue [Line Items]
Product sales		324.1	465.0	619.4	902.3
Representative fees		20.6	26.8	34.1	55.1
Other		3.0	0.1	0.5	0.3
Other revenue		23.6	26.9	34.6	55.4
Total revenue		347.7	491.9	654.0	957.7
Avon Latin America | Operating Segments | Beauty
Disaggregation of Revenue [Line Items]
Product sales		240.3	290.2	456.0	569.8
Avon Latin America | Operating Segments | Skincare
Disaggregation of Revenue [Line Items]
Product sales		101.3	134.0	197.9	261.0
Avon Latin America | Operating Segments | Fragrance
Disaggregation of Revenue [Line Items]
Product sales		92.0	106.0	172.9	208.1
Avon Latin America | Operating Segments | Color
Disaggregation of Revenue [Line Items]
Product sales		47.0	50.2	85.2	100.7
Avon Latin America | Operating Segments | Fashion And Home
Disaggregation of Revenue [Line Items]
Product sales		83.8	165.4	163.4	323.1
Avon Latin America | Operating Segments | Fashion
Disaggregation of Revenue [Line Items]
Product sales		26.2	49.2	49.4	100.0
Avon Latin America | Operating Segments | Home
Disaggregation of Revenue [Line Items]
Product sales		$ 57.6	116.2	$ 114.0	223.1
Avon Latin America | Operating Segments | Certain Brazil indirect taxes
Disaggregation of Revenue [Line Items]
Product sales			$ 9.4		$ 9.4	$ 9.0

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REVENUE - Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable, net of allowances of $44.8 and $37.1	$ 201.1	$ 198.7
Contract liabilities	39.4	37.1
Accounts receivable, allowances	$ 44.8	$ 37.1

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REVENUE - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations satisfied	$ 27.0
Material rights	$ 30.2

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INVENTORIES - Components of Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 102.0	$ 103.4
Finished goods	306.0	280.7
Total	$ 408.0	$ 384.1

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LEASES - Schedule of Sublease Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Sublease income	$ 3.7	$ 3.0	$ 7.4	$ 7.3

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CONTINGENCIES (Details) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) lawsuit	Jun. 30, 2022 USD ($) lawsuit	Dec. 31, 2021 USD ($) lawsuit
Loss Contingencies [Line Items]
Number of litigation suits | lawsuit		178	158
Number of litigation suits, new | lawsuit	38
Number of litigation suits, dismissed | lawsuit	18
Financial indemnity	$ 181	$ 181	$ 157
Brazilian Tax Assessments
Loss Contingencies [Line Items]
Possible loss	463	463	360
IPI Tax on Cosmetics
Loss Contingencies [Line Items]
Possible loss	278	278	243
Brazil labor-related
Loss Contingencies [Line Items]
Estimated litigation liability	$ 12	$ 12	$ 11

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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, 2022		Jun. 30, 2021		Jun. 30, 2022		Jun. 30, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ (897.1)	[1]	$ (973.8)	[2]	$ (854.7)		$ (867.2)
Reclassifications into earnings:
Ending balance	(955.9)	[1]	(999.5)	[2]	(955.9)	[1]	(999.5)	[2]
Amortization of net actuarial loss and prior service cost, tax	0.2		0.2		0.4		0.4
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,033.2)	[1]	(1,177.1)	[2]	(1,085.5)		(1,133.8)
Other comprehensive income other than reclassifications	14.8		30.8		65.7		(13.7)
Reclassifications into earnings:
Total reclassifications into earnings	1.1		1.3		2.5		2.5
Ending balance	(1,017.3)	[1]	(1,145.0)	[2]	(1,017.3)	[1]	(1,145.0)	[2]
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,011.4)		(1,082.7)		(1,062.2)		(1,038.2)
Other comprehensive income other than reclassifications	14.2		30.8		65.0		(13.7)
Reclassifications into earnings:
Total reclassifications into earnings	0.0		0.0		0.0		0.0
Ending balance	(997.2)		(1,051.9)		(997.2)		(1,051.9)
Net Investment Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4.3)		(4.3)		(4.3)		(4.3)
Other comprehensive income other than reclassifications	0.0		0.0		0.0		0.0
Reclassifications into earnings:
Total reclassifications into earnings	0.0		0.0		0.0		0.0
Ending balance	(4.3)		(4.3)		(4.3)		(4.3)
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	0.1				0.0
Other comprehensive income other than reclassifications	0.6				0.7
Reclassifications into earnings:
Total reclassifications into earnings	0.0				0.0
Ending balance	0.7				0.7
Pension and Postretirement Benefits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(17.6)		(90.1)		(19.0)		(91.3)
Other comprehensive income other than reclassifications	0.0		0.0		0.0		0.0
Reclassifications into earnings:
Total reclassifications into earnings	1.1		1.3		2.5		2.5
Ending balance	$ (16.5)		$ (88.8)		$ (16.5)		$ (88.8)

[1] The number of shares of Common Stock (par value $0.01 per share) outstanding at June 30, 2022 was 101.34.

[2] 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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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Equity [Abstract]
Foreign exchange losses	$ 4.7	$ 1.9	$ 7.2	$ 0.1

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SEGMENT INFORMATION - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 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
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenue		$ 713.2	$ 917.0	$ 1,376.5	$ 1,821.4	$ 9.0
Operating loss		(29.2)	(19.1)	(91.4)	(56.2)
CTI restructuring initiatives		(15.5)	(28.9)	(26.3)	(48.4)
Cash compensation amount	$ 27.0
Settlement of historically recognized revenues	3.3
Remaining recognized amount of revenue	$ 23.7
Royalty expense		27.2	55.7	56.2	115.9
Reportable Segments
Segment Reporting Information [Line Items]
Total revenue		705.3	908.3	1,364.9	1,805.0
Operating loss		(7.4)	18.2	(52.9)	6.6
All Other
Segment Reporting Information [Line Items]
Total revenue		0.2	2.4	0.3	4.3
Operating loss		0.1	0.3	0.2	0.4
Unallocated global expenses		(6.3)	(6.9)	(12.2)	(12.9)
CTI restructuring initiatives		(15.5)	(30.4)	(26.3)	(49.9)
Revenue from affiliates to Natura &Co
Segment Reporting Information [Line Items]
Total revenue		7.9	8.7	11.6	16.4
Avon International | Reportable Segments
Segment Reporting Information [Line Items]
Total revenue		357.6	416.4	710.9	847.3
Operating loss		24.9	0.6	24.0	(6.4)
Avon Latin America | Reportable Segments
Segment Reporting Information [Line Items]
Total revenue		347.7	491.9	654.0	957.7
Operating loss		$ (32.3)	$ 17.6	$ (76.9)	$ 13.0

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Prepaid Expenses and Other (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid taxes and tax refunds receivable	$ 79.8	$ 84.0
Receivables other than trade	25.9	27.8
Prepaid brochure costs, paper and other literature	8.7	8.3
Other	42.1	45.5
Prepaid expenses and other	$ 156.5	$ 165.6

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Components of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net overfunded pension plans	$ 148.4	$ 162.5
Capitalized software	72.2	74.9
Judicial deposits	51.9	47.2
Long-term receivables including Taxes	195.2	180.2
Trust assets associated with supplemental benefit plans	28.3	30.4
Other	12.9	14.2
Other assets	$ 508.9	$ 509.4

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SUPPLEMENTAL BALANCE SHEET INFORMATION - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Brazil indirect taxes	$ 133	$ 128

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RESTRUCTURING INITIATIVES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	May 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and related activities, return to growth period						3 years
Restructuring charges and other costs	$ 15.5	$ 28.9	$ 26.3	$ 48.4
Avon Integration
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	9.9	3.8	13.3	9.9
Employee-related liabilities	0.2		0.2		$ 1.6
Open Up & Grow
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	5.2	24.8	12.8	39.0
Transformation Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges and other costs	0.3	$ 0.3	0.2	$ (0.5)
Employee-related liabilities	$ 1.3		$ 1.3		$ 1.5

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RESTRUCTURING INITIATIVES - Summary (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	$ 15.5	$ 28.9	$ 26.3	$ 48.4
Selling, General and Administrative Expense
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	15.5	30.4	26.3	49.7
Operating Profit
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	15.5	30.4	26.3	49.9
Avon Integration
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	9.9	3.8	13.3	9.9
Open Up & Grow
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	5.2	24.8	12.8	39.0
Transformation Plan
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.3	0.3	0.2	(0.5)
Inventory write-off
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	0.0	0.0	0.2
Net charges for employee-related costs, including severance benefits
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	9.2	21.1	11.6	30.4
Implementation costs, primarily related to professional service fees
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	5.6	6.1	11.7	10.2
Dual running costs
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.4	0.3	0.8	0.6
Contract termination and other net benefits
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.3	2.4	2.2	7.4
Accelerated depreciation
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	0.2	0.0	0.2
Variable lease charges
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	0.0	0.3	0.0	0.9
(Gain) loss on sale of business / assets
Restructuring Cost and Reserve [Line Items]
CTI restructuring initiatives	$ 0.0	$ (1.5)		$ (1.5)

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RESTRUCTURING INITIATIVES - Open Up Avon (Details) - Open Up & Grow $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 15.2
2022 charges	5.9
Cash payments	(11.0)
Foreign exchange	(0.7)
Ending balance	9.4
Employee-Related Costs
Restructuring Reserve [Roll Forward]
Beginning balance	14.0
2022 charges	4.4
Cash payments	(9.1)
Foreign exchange	(0.6)
Ending balance	8.7
Inventory/Assets Write-offs
Restructuring Reserve [Roll Forward]
Beginning balance	0.0
2022 charges	0.0
Cash payments	0.0
Foreign exchange	0.0
Ending balance	0.0
Contract Terminations/Other
Restructuring Reserve [Roll Forward]
Beginning balance	1.2
2022 charges	1.5
Cash payments	(1.9)
Foreign exchange	(0.1)
Ending balance	$ 0.7

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RESTRUCTURING INITIATIVES - Restructuring Initiatives by Charge Type (Details) $ in Millions	Jun. 30, 2022 USD ($)
Avon Integration
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	$ 20.4
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	20.4
Avon Integration | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	19.5
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	19.5
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	0.9
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	0.9
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	234.1
Estimated charges to be incurred on approved initiatives	0.8
Total expected charges on approved initiatives	234.9
Open Up & Grow | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	120.2
Estimated charges to be incurred on approved initiatives
Total expected charges on approved initiatives	120.2
Open Up & Grow | Inventory/Assets Write-offs
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	107.4
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	107.4
Open Up & Grow | Contract Terminations/Other
Restructuring Cost and Reserve [Line Items]
Charges incurred to-date	17.4
Estimated charges to be incurred on approved initiatives	0.8
Total expected charges on approved initiatives	18.2
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, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Avon Integration
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	$ 6.2	$ 1.6	$ 1.8	$ 10.8
Charges incurred to-date	20.4
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	20.4
Avon Integration | Avon International
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	0.2	0.1	(1.2)	6.2
Charges incurred to-date	5.3
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	5.3
Avon Integration | Avon Latin America
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	6.0	1.5	3.0	4.6
Charges incurred to-date	15.1
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	15.1
Open Up & Grow
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	3.2	2.7	37.1	2.4	$ 71.6	$ 117.1
Charges incurred to-date	234.1
Estimated charges to be incurred on approved initiatives	0.8
Total expected charges on approved initiatives	234.9
Open Up & Grow | Avon International
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	3.2	2.7	36.9	3.2	34.7	52.8
Charges incurred to-date	133.5
Estimated charges to be incurred on approved initiatives	0.8
Total expected charges on approved initiatives	134.3
Open Up & Grow | Avon Latin America
Restructuring Cost and Reserve [Line Items]
Restructuring charges and adjustments incurred	0.0	$ 0.0	$ 0.2	$ (0.8)	$ 36.9	$ 64.3
Charges incurred to-date	100.6
Estimated charges to be incurred on approved initiatives	0.0
Total expected charges on approved initiatives	$ 100.6

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GOODWILL - Schedule of Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Net balance at beginning	$ 72.1
Foreign exchange	(3.6)
Net balance at ending	68.5
Avon International
Goodwill [Roll Forward]
Net balance at beginning	17.6
Foreign exchange	(1.4)
Net balance at ending	16.2
Avon Latin America
Goodwill [Roll Forward]
Net balance at beginning	54.5
Foreign exchange	(2.2)
Net balance at ending	$ 52.3

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FAIR VALUE- Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Assets:
Foreign exchange forward contracts	$ 2.8
Liabilities:
Foreign exchange forward contracts	0.6
Fair Value, Measurements, Recurring
Assets:
Foreign exchange forward contracts	1.0	$ 0.0
Total	1.0
Liabilities:
Foreign exchange forward contracts	0.0	2.7
Total	0.0	2.7
Fair Value, Measurements, Recurring | Level 1
Assets:
Foreign exchange forward contracts	0.0
Total	0.0
Liabilities:
Foreign exchange forward contracts	0.0	0.0
Total	0.0	0.0
Fair Value, Measurements, Recurring | Level 2
Assets:
Foreign exchange forward contracts	1.0
Total	1.0
Liabilities:
Foreign exchange forward contracts	0.0	2.7
Total	$ 0.0	$ 2.7

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FAIR VALUE - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans to affiliates of Natura &Co maturing within one year	$ 40.8	$ 46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	46.7
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans to affiliates of Natura &Co maturing within one year	40.8	46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	46.7
Debt maturing within one year	(31.7)	(32.6)
Loans from affiliates of Natura &Co maturing within one year	(265.1)	(371.7)
Long-term debt	(215.1)	(676.0)
Loans from affiliates of Natura &Co maturing after one year	(1,422.4)	(736.3)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans to affiliates of Natura &Co maturing within one year	40.8	46.6
Loans to affiliates of Natura &Co maturing after one year	51.0	46.7
Debt maturing within one year	(31.7)	(32.6)
Loans from affiliates of Natura &Co maturing within one year	(265.1)	(371.7)
Long-term debt	(211.3)	(754.2)
Loans from affiliates of Natura &Co maturing after one year	(1,422.4)	(736.3)
Foreign exchange forward contracts | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts	1.0	(2.7)
Foreign exchange forward contracts | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign exchange forward contracts	$ 1.0	$ (2.7)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Asset	$ 2.8
Liability	0.6
Fair Value, Measurements, Recurring
Derivative [Line Items]
Asset	1.0	$ 0.0
Liability	0.0	2.7
Fair Value, Measurements, Recurring | Designated as Hedging Instrument
Derivative [Line Items]
Asset	1.8	0.0
Liability	0.6	$ 2.7
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument
Derivative [Line Items]
Asset	1.0
Liability	$ 0.0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Derivative [Line Items]
Total exposure to floating rate interest rates	13.00%		13.00%		5.00%
Notional amount	$ 221.0		$ 221.0
Affiliates of Natura&Co
Derivative [Line Items]
Derivative receivables due from affiliates of Natura &Co	1.8		1.8		$ 0.0
Derivative payables, related parties	0.6		0.6		$ 0.0
Foreign Exchange Contract
Derivative [Line Items]
Notional amount	182.0		182.0
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments	8.8	$ (0.6)	12.3	$ (1.3)
Foreign Exchange Contract | Cash Flow Hedging
Derivative [Line Items]
Notional amount	$ 30.0		$ 30.0

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DEBT (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Nov. 30, 2020	May 31, 2020
Debt Instrument [Line Items]
Loans payable		$ 1,687,500,000		$ 1,687,500,000		$ 1,108,000,000
Loans from affiliates of Natura &Co maturing after one year		1,422,400,000		1,422,400,000		736,300,000
Short-term financing		32,000,000		32,000,000
Loss on extinguishment of debt		15,700,000	$ 0	15,700,000	$ 0
Affiliates of Natura&Co
Debt Instrument [Line Items]
Loans payable		1,687,500,000		1,687,500,000		164,400,000
Loans from affiliates of Natura &Co maturing after one year		1,422,400,000		$ 1,422,400,000		736,300,000
Natura Revolving Facility Due May 2022
Debt Instrument [Line Items]
Line of credit facility							$ 250,000,000	$ 250,000,000		$ 100,000,000
2013 Notes
Debt Instrument [Line Items]
Percent change per each one-notch movement in ratings				0.25%
Maximum aggregate increase in interest rate related to downgrade of long-term credit ratings below investment grade				2.00%
3.13% Promissory Notes due November 2022
Debt Instrument [Line Items]
Loans payable									$ 960,000,000
Interest rate									3.13%
3.13% Promissory Notes due November 2022 | November 2, 2028
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co maturing after one year		682,000,000		$ 682,000,000		$ 736,300,000
6.71% Promissory Notes due May 2029
Debt Instrument [Line Items]
Interest rate	6.71%
Loans from affiliates of Natura &Co maturing after one year		408,400,000		408,400,000
6.71% Promissory Notes due May 2029 | Avon Products, Inc
Debt Instrument [Line Items]
Loans payable	$ 405,000,000
6.71% Promissory Notes due May 2029 | Avon Cosmetics Limited
Debt Instrument [Line Items]
Loans payable	$ 215,000,000
6.51% Promissory Notes Due May 2022 | Avon Cosmetics Limited
Debt Instrument [Line Items]
Loans payable		115,000,000		115,000,000
6.51% Promissory Notes due June 2029
Debt Instrument [Line Items]
Loans from affiliates of Natura &Co maturing after one year		$ 331,800,000		$ 331,800,000
6.51% Promissory Notes due June 2029 | Avon Cosmetics Limited
Debt Instrument [Line Items]
Interest rate		6.51%		6.51%
5.0% Notes due March 2023 | 2013 Notes
Debt Instrument [Line Items]
Interest rate	5.00%	5.00%		5.00%
Repurchase of debt	$ 461,900,000
Debt premium	15,000,000.0
Accrued interest	5,400,000
Loss on extinguishment of debt	15,700,000
Write off debt issuance costs	$ 700,000
6.95% Notes due March 2043 | 2013 Notes
Debt Instrument [Line Items]
Interest rate		6.95%		6.95%
Principal amount		$ 216,100,000		$ 216,100,000

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate, excluding discrete items			26.20%	27.10%
Income taxes provision	$ (3.6)	$ 18.8	$ 1.2	$ 25.9
Effective income tax rate	5.50%	(48.00%)	(0.80%)	(25.60%)
Effective income tax rate reconciliation, expense	$ 0.4	$ 1.4	$ 3.8	$ 2.6
Effective income tax rate reconciliation amount		7.0		9.4
Valuation allowance		6.0	3.8	6.0
Miscellaneous income tax expense		$ 0.4
Legislative changes				$ 0.8
Potential offset to valuation allowance	$ 75.0		$ 75.0

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SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Brazilian Tax Assessments
Subsequent Event [Line Items]
Possible loss	$ 463	$ 360