DISCONTINUED OPERATIONS AND DIVESTITURES

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS 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 Company incurred costs and recognized contingent liabilities during the quarters ended March 31, 2023 and 2022 related to its ownership and operation of the North America business prior to its separation into New Avon, including talc-related and environmental related litigation as well as other costs as detailed in Note 7, Contingencies, to the Consolidated Financial Statements.

The major classes of financial statement components comprising the loss on discontinued operations, net of tax for New Avon during the three-month periods ended March 31, 2023 and 2022, respectively, are shown below:


	Three Months Ended March 31,
	2023		2022
Selling, general and administrative expenses	$	(27.4)	$	(7.8)
Operating (loss) income	$	(27.4)	$	(7.8)
(Loss) income from discontinued operations, net of tax	$	(27.4)	$	(7.8)

Divestitures

There were no divestitures during the quarters ended March 31, 2023 and 2022. On April 1, 2023, the Company disposed of its investment in its Avon business operations in Peru, which was acquired by a wholly owned subsidiary of Natura &Co. The sale was accounted for as a common-control transaction with the resulting gain or loss taken directly to Retained Earnings.