Earnings per Share and Share Repurchases

3 Months Ended

Mar. 31, 2013

Earnings Per Share Reconciliation [Abstract]

Earnings per Share and Share Repurchases

EARNINGS PER SHARE AND SHARE REPURCHASES

We compute (loss) earnings per share ("EPS") using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net income allocated to common shareholders by the weighted-average number of shares outstanding during the year. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the period.

	Three Months Ended
	March 31,
(Shares in millions)	2013			2012
Numerator:
Net (loss) income attributable to Avon	$	(13.7	)	$	26.5
Less: Loss (earnings) allocated to participating securities	.1			(.8		)
(Loss) income allocated to common shareholders	(13.6		)	25.7
Denominator:
Basic EPS weighted-average shares outstanding	432.5			431.3
Diluted effect of assumed conversion of stock options	—			.8
Diluted EPS adjusted weighted-average shares outstanding	432.5			432.1
(Loss) Earnings per Common Share attributable to Avon:
Basic	$	(.03	)	$	.06
Diluted	$	(.03	)	$	.06

At March 31, 2013 and 2012, we did not include stock options to purchase 20.0 million shares and 22.0 million shares of Avon common stock, respectively, in the calculations of diluted EPS because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would have been anti-dilutive. We also did not include stock options to purchase .7 million shares for the three months ended March 31, 2013, as we had a net loss attributable to Avon and the inclusion of these shares would decrease the net loss per share. Since this would be anti-dilutive, such shares are excluded from the calculation.

We purchased approximately .4 million shares of Avon common stock for $6.7 during the first three months of 2013, as compared to approximately .4 million shares of Avon common stock for $7.4 during the first three months of 2012, primarily through acquisition of stock from employees in connection with tax payments upon vesting of restricted stock units and private transactions with a broker in connection with stock based obligations under our Deferred Compensation Plan. During the first three months of 2012, shares were also purchased under our previously announced share repurchase program, which expired in the fourth quarter of 2012.