Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s): | Name of each exchange on which registered | ||||||
None | None | None |
Large accelerated filer | o | Accelerated filer | o | |||||||||||||||||
x | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
Item | Page | |||||||
Part I | ||||||||
Item 1 | 4 - 10 | |||||||
Item 1A | 11 - 30 | |||||||
Item 1B | ||||||||
Item 2 | ||||||||
Item 3 | ||||||||
Item 4 | ||||||||
Part II | ||||||||
Item 5 | ||||||||
Item 6 | [Reserved] | |||||||
Item 7 | ||||||||
Item 7A | ||||||||
Item 8 | ||||||||
Item 9 | ||||||||
Item 9A | 53 - 54 | |||||||
Item 9B | ||||||||
Item 9C | ||||||||
Part III | ||||||||
Item 10 | ||||||||
Item 11 | ||||||||
Item 12 | ||||||||
Item 13 | ||||||||
Item 14 | 55 - 55 | |||||||
Part IV | ||||||||
Item 15 | 57 - 62 | |||||||
57 - 61 | ||||||||
Item 16 | ||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Beauty | 74 | % | 74 | % | 74 | % | ||||||||||||||
Fashion & Home | 26 | % | 26 | % | 26 | % |
Performance Metrics | Definition | |||||||
Change in Active Representatives | This metric is a measure of Representative activity based on the number of unique Representatives submitting at least one order in a sales campaign, totaled for all campaigns in the related period. To determine the change in Active Representatives, this calculation is compared to the same calculation in the corresponding period of the prior year. Orders in China are excluded from this metric as our business in China is predominantly retail. | |||||||
Change in Average Representative Sales | This metric is a measure of Representative productivity. The calculation is the difference of the year-over-year change in revenue on a Constant $ basis and the Change in Active Representatives. Change in Average Representative Sales may be impacted by a combination of factors such as inflation, units, product mix, and/or pricing. |
Increase/(Decrease) in Pension Expense | Increase/(Decrease) in Pension Obligation | |||||||||||||||||||||||||
50 Basis Point | 50 Basis Point | |||||||||||||||||||||||||
Increase | Decrease | Increase | Decrease | |||||||||||||||||||||||
Rate of return on assets | $ | (3.7) | $ | 3.7 | N/A | N/A | ||||||||||||||||||||
Discount rate | .5 | (.9) | $ | (53.5) | $ | 57.8 | ||||||||||||||||||||
Rate of compensation increase | .5 | (.5) | 2.5 | (2.4) |
Years ended December 31 | Percentage/Basis Point Change | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||
Select Consolidated Financial Information | ||||||||||||||||||||||||||||||||
Total revenue | $ | 3,404.5 | $ | 3,625.2 | $ | 4,763.2 | (6) | % | (24) | % | ||||||||||||||||||||||
Cost of sales | (1,439.1) | (1,588.6) | (2,010.1) | (9) | % | (21) | % | |||||||||||||||||||||||||
Cost of sales from affiliates of Natura &Co | (22.4) | (5.9) | — | * | * | |||||||||||||||||||||||||||
SG&A expenses | (2,001.4) | (2,152.9) | (2,627.5) | (7) | % | (18) | % | |||||||||||||||||||||||||
Operating (loss) profit | (58.4) | (122.2) | 125.6 | (52) | % | * | ||||||||||||||||||||||||||
Interest expense | (63.5) | (119.6) | (127.6) | (47) | % | (6) | % | |||||||||||||||||||||||||
Interest expense on Loan from affiliates of Natura &Co | (50.6) | (7.5) | — | * | * | |||||||||||||||||||||||||||
Loss on extinguishment of debt | — | (37.7) | (11.6) | * | * | |||||||||||||||||||||||||||
Interest income | 2.2 | 2.1 | 7.7 | 5 | % | (73) | % | |||||||||||||||||||||||||
Gain on sale of business / assets | 9.9 | 1.5 | 50.1 | * | (97) | % | ||||||||||||||||||||||||||
Other income (expense), net | 1.6 | (20.2) | 94.2 | * | * | |||||||||||||||||||||||||||
(Loss) Income from continuing operations, before taxes | (158.8) | (303.6) | 138.4 | (48) | % | * | ||||||||||||||||||||||||||
(Loss) Income from continuing operations, net of tax | (175.0) | (337.6) | 35.3 | (48) | % | * | ||||||||||||||||||||||||||
Net loss attributable to Avon | $ | (192.1) | $ | (362.8) | $ | (.3) | (47) | % | * | |||||||||||||||||||||||
* | ||||||||||||||||||||||||||||||||
Advertising expenses(1) | $ | 67.8 | $ | 59.9 | $ | 72.9 | 13 | % | (18) | % | ||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
Total revenue | $ | 3,404.5 | $ | 3,625.2 | $ | 4,763.2 | (6) | % | (24) | % | ||||||||||||||||||||||
Certain Brazil taxes | (21.5) | — | (67.7) | |||||||||||||||||||||||||||||
Adjusted revenue | $ | 3,383.0 | $ | 3,625.2 | $ | 4,695.5 | (7) | % | (23) | % | ||||||||||||||||||||||
Avon Luxembourg | (249.2) | (431.8) | (509.4) | * | (15) | % | ||||||||||||||||||||||||||
Adjusted revenue excluding Avon Luxembourg | 3,133.8 | $ | 3,193.4 | $ | 4,186.1 | (2) | % | (24) | % | |||||||||||||||||||||||
Gross margin | 57.1 | % | 56.0 | % | 57.8 | % | 110 | (180) | ||||||||||||||||||||||||
Certain Brazil taxes | (.3) | — | (.6) | (30) | 60 | |||||||||||||||||||||||||||
CTI restructuring | — | — | .3 | — | (30) | |||||||||||||||||||||||||||
Adjusted gross margin | 56.8 | % | 56.0 | % | 57.5 | % | 80 | (150) | ||||||||||||||||||||||||
Avon Luxembourg | .5 | % | .8 | % | 1.0 | % | (30) | (20) | ||||||||||||||||||||||||
Adjusted gross margin excluding Avon Luxembourg | 57.3 | % | 56.8 | % | 58.5 | % | 50 | (170) | ||||||||||||||||||||||||
SG&A as a % of total revenue | 58.8 | % | 59.4 | % | 55.2 | % | (60) | 420 | ||||||||||||||||||||||||
Certain Brazil taxes | .3 | .3 | .7 | — | (40) | |||||||||||||||||||||||||||
CTI restructuring | (2.0) | (.7) | (2.7) | (130) | 200 | |||||||||||||||||||||||||||
Costs related to the Transaction | — | (2.4) | (1.3) | 240 | (110) | |||||||||||||||||||||||||||
Adjusted SG&A as a % of total revenue | 57.1 | % | 56.6 | % | 51.9 | % | 50 | 470 | ||||||||||||||||||||||||
Avon Luxembourg | 1.2 | % | 1.7 | % | 1.1 | % | (50) | 60 | ||||||||||||||||||||||||
Adjusted selling, general and administrative expenses as a % of total revenue excluding Avon Luxembourg | 58.3 | % | 58.3 | % | 53.0 | % | — | 530 | ||||||||||||||||||||||||
Operating (loss) profit | $ | (58.4) | $ | (122.2) | $ | 125.6 | (52) | % | * | |||||||||||||||||||||||
Certain Brazil taxes | (19.8) | (10.6) | (67.7) | |||||||||||||||||||||||||||||
CTI restructuring | 68.7 | 23.7 | 139.3 | |||||||||||||||||||||||||||||
Costs related to the Transaction | — | 85.8 | 64.3 | |||||||||||||||||||||||||||||
Years ended December 31 | Percentage/Basis Point Change | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||||||||||||||
Adjusted operating (loss) profit | $ | (9.5) | $ | (23.3) | $ | 261.5 | (59) | % | * | |||||||||||||||||||||||
Avon Luxembourg | (21.3) | (27.6) | (32.9) | * | (16) | % | ||||||||||||||||||||||||||
Adjusted operating (loss) profit excluding Avon Luxembourg | $ | (30.8) | $ | (50.9) | $ | 228.6 | (39) | % | * | |||||||||||||||||||||||
Operating margin | (1.7) | % | (3.4) | % | 2.6 | % | 170 | (600) | ||||||||||||||||||||||||
Certain Brazil taxes | (.6) | (.3) | (1.2) | (30) | 90 | |||||||||||||||||||||||||||
CTI restructuring | 2.0 | .7 | 2.9 | 130 | (220) | |||||||||||||||||||||||||||
Costs related to the Transaction | — | 2.4 | 1.3 | (240) | 110 | |||||||||||||||||||||||||||
Adjusted operating margin | (.3) | % | (.6) | % | 5.6 | % | 30 | (620) | ||||||||||||||||||||||||
Avon Luxembourg | (.7) | % | (1.0) | % | (.1) | % | 30 | (90) | ||||||||||||||||||||||||
Adjusted operating margin excluding Avon Luxembourg | (1.0) | % | (1.6) | % | 5.5 | % | 60 | (710) | ||||||||||||||||||||||||
Change in Constant $ Adjusted operating margin(2) | 100 | (540) | ||||||||||||||||||||||||||||||
(Loss) income before taxes | $ | (158.8) | $ | (303.6) | $ | 138.4 | (48) | % | * | |||||||||||||||||||||||
Certain Brazil taxes | (23.6) | (10.6) | (118.3) | |||||||||||||||||||||||||||||
CTI restructuring | 58.8 | 22.2 | 116.0 | |||||||||||||||||||||||||||||
Costs related to the Transaction | — | 85.8 | 64.3 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt and credit facilities | — | 37.7 | 8.9 | |||||||||||||||||||||||||||||
Adjusted (loss) income before taxes | $ | (123.6) | $ | (168.5) | $ | 209.3 | (27) | % | * | |||||||||||||||||||||||
Effective tax rate | (10.2) | % | (11.2) | % | 74.5 | % | ||||||||||||||||||||||||||
Adjusted effective tax rate | (9.3) | % | (18.8) | % | 44.0 | % | ||||||||||||||||||||||||||
Performance Metrics | ||||||||||||||||||||||||||||||||
Change in Active Representatives | (15) | % | (14) | % | ||||||||||||||||||||||||||||
Change in units sold | (16) | % | (14) | % |
Years ended December 31 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Total revenue | Segment profit | Total revenue | Segment profit | Total revenue | Segment profit | |||||||||||||||||||||||||||||||||
Avon International | $ | 1,724.6 | $ | 49.9 | $ | 1,772.6 | $ | 27.4 | $ | 2,234.3 | $ | 170.9 | ||||||||||||||||||||||||||
Avon Latin America | 1,654.7 | (10.9) | 1,845.9 | (39.1) | 2,528.9 | 194.1 | ||||||||||||||||||||||||||||||||
Total from reportable segments | $ | 3,379.3 | $ | 39.0 | $ | 3,618.5 | $ | (11.7) | $ | 4,763.2 | $ | 365.0 |
%/Point Change | ||||||||||||||||||||||||||
2021 | 2020 | US$ | Constant $ | |||||||||||||||||||||||
Total revenue | $ | 1,724.6 | $ | 1,772.6 | (3) | % | (4) | % | ||||||||||||||||||
Segment profit | 49.9 | 27.4 | 82 | % | 131 | % | ||||||||||||||||||||
Segment margin | 2.9 | % | 1.5 | % | 140 | 200 | ||||||||||||||||||||
Change in Active Representatives | (15) | % | ||||||||||||||||||||||||
Change in units sold | (10) | % |
%/Point Change | ||||||||||||||||||||||||||
2020 | 2019 | US$ | Constant $ | |||||||||||||||||||||||
Total revenue | 1,772.6 | 2,234.3 | (21) | % | (18) | % | ||||||||||||||||||||
Segment profit | 27.4 | 170.9 | (84) | % | (79) | % | ||||||||||||||||||||
Segment margin | 1.5 | % | 7.6 | % | (610) | (570) | ||||||||||||||||||||
Change in Active Representatives | (19) | % | ||||||||||||||||||||||||
Change in units sold | (19) | % | ||||||||||||||||||||||||
%/Point Change | ||||||||||||||||||||||||||
2021 | 2020 | US$ | Constant $ | |||||||||||||||||||||||
Total revenue | $ | 1,654.7 | $ | 1,845.9 | (10) | % | (8) | % | ||||||||||||||||||
Certain Brazil indirect taxes benefit | (21.5) | — | * | * | ||||||||||||||||||||||
Adjusted revenue | 1,633.2 | 1,845.9 | (12) | % | (9) | % | ||||||||||||||||||||
Avon Luxembourg | (249.2) | (431.8) | * | * | ||||||||||||||||||||||
Adjusted revenue excluding Avon Luxembourg | 1,384.0 | 1,414.1 | (2) | % | 2 | % | ||||||||||||||||||||
Segment profit | (10.9) | (39.1) | (72) | % | (45) | % | ||||||||||||||||||||
Certain Brazil indirect taxes benefit | (21.5) | — | * | * | ||||||||||||||||||||||
Adjusted segment profit | (32.4) | (39.1) | (17) | % | 3 | % | ||||||||||||||||||||
Avon Luxembourg | (21.4) | (27.7) | * | * | ||||||||||||||||||||||
Adjusted profit excluding Avon Luxembourg | (53.8) | (66.8) | (19) | % | (13) | % | ||||||||||||||||||||
Segment margin | (.7) | % | (2.1) | % | 140 | 30 | ||||||||||||||||||||
Certain Brazil indirect taxes benefit | 1.3 | — | * | * | ||||||||||||||||||||||
Adjusted segment margin | (2.0) | % | (2.1) | % | 10 | (20) | ||||||||||||||||||||
Avon Luxembourg | (1.9) | % | (2.6) | % | * | * | ||||||||||||||||||||
Adjusted segment margin excluding Avon Luxembourg | (3.9) | % | (4.7) | % | 80 | 60 | ||||||||||||||||||||
Change in Active Representatives | (16) | % | ||||||||||||||||||||||||
Change in units sold | (20) | % |
%/Point Change | ||||||||||||||||||||||||||
2020 | 2019 | US$ | Constant $ | |||||||||||||||||||||||
Total revenue | $ | 1,845.9 | $ | 2,528.9 | (27) | % | (13) | % | ||||||||||||||||||
Certain Brazil taxes | — | (67.7) | * | |||||||||||||||||||||||
Adjusted revenue | 1,845.9 | 2,461.2 | (25) | % | (10) | % | ||||||||||||||||||||
Segment profit | (39.1) | 194.1 | (120) | % | (102) | % | ||||||||||||||||||||
Certain Brazil taxes | — | (67.7) | * | |||||||||||||||||||||||
Adjusted segment profit | (39.1) | 126.4 | (131) | % | (103) | % | ||||||||||||||||||||
Segment margin | (2.1) | % | 7.7 | % | (980) | (850) | ||||||||||||||||||||
Certain Brazil taxes | — | 2.6 | * | |||||||||||||||||||||||
Adjusted segment margin | (2.1) | % | 5.1 | % | (720) | (580) | ||||||||||||||||||||
Change in Active Representatives | (10) | % | ||||||||||||||||||||||||
Change in units sold | (9) | % |
2021 | 2020 | |||||||||||||
Cash and cash equivalents | $ | 251.5 | $ | 364.9 | ||||||||||
Restricted cash | — | 7.8 | ||||||||||||
Total debt | $ | 1,816.6 | $ | 1,712.0 | ||||||||||
Working capital | 66.2 | 56.9 |
2021 | 2020 | 2019 | ||||||||||||||||||
Net cash (used) provided by continuing operating activities (1) | $ | (260.4) | $ | (270.1) | $ | 56.9 | ||||||||||||||
Net cash (used) provided by continuing investing activities | (48.1) | (20.5) | 50.2 | |||||||||||||||||
Net cash from continuing financing activities (1) | 222.6 | 39.1 | 38.5 | |||||||||||||||||
Effect of exchange rate changes on cash and equivalents | (22.0) | (19.5) | (.3) |
2021 | 2020 | |||||||||||||
Audit Fees | $ | 7.2 | $ | 8.4 | ||||||||||
Audit-Related Fees | — | — | ||||||||||||
Tax Fees | — | — | ||||||||||||
All Other Fees | — | — | ||||||||||||
Total | $ | 7.2 | $ | 8.4 |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULE |
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* | ||||||||
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10* | ||||||||
10.11* | ||||||||
10.12* |
10.13* | ||||||||
10.14* | ||||||||
10.15* | ||||||||
10.16* | ||||||||
10.17* | ||||||||
10.18* | ||||||||
10.19* | ||||||||
10.20* | ||||||||
10.21* | ||||||||
10.22* | ||||||||
10.23* | ||||||||
10.24* | ||||||||
10.25* | ||||||||
10.26* | ||||||||
10.27* | ||||||||
10.28* | ||||||||
10.29* | ||||||||
10.30* | ||||||||
10.31* |
10.32* | ||||||||
10.33* | ||||||||
10.34* | ||||||||
10.35* | ||||||||
10.36* | ||||||||
10.37* | ||||||||
10.38* | ||||||||
10.39* | ||||||||
10.40* | ||||||||
10.41* | ||||||||
10.42* | ||||||||
10.43* | ||||||||
10.44* | ||||||||
10.45* | ||||||||
10.46* | ||||||||
10.47* | ||||||||
10.48* | ||||||||
10.49* | ||||||||
10.50* | ||||||||
10.51* |
10.52* | ||||||||
10.53* | ||||||||
10.54* | ||||||||
10.55* | ||||||||
10.56* | ||||||||
10.57* | ||||||||
10.58* | ||||||||
10.59* | ||||||||
10.60* | ||||||||
10.61 | ||||||||
10.62 | ||||||||
10.63 | ||||||||
10.64 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
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, (v) Consolidated Statements of Changes in Shareholders’ Equity (Deficit), (vi) Notes to Consolidated Financial Statements and (vi) Schedule of Valuation and Qualifying Accounts. | |||||||
104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101). | |||||||
* | The Exhibits identified above with an asterisk (*) are management contracts or compensatory plans or arrangements. |
ITEM 16. | FORM 10-K SUMMARY |
Avon Products, Inc. | |||||
/s/ Samantha Hutchison | |||||
Samantha Hutchison | |||||
Controller - Principal Accounting Officer | |||||
Signature | Title | Date | ||||||||||||
/s/ Angela Cretu | Chief Executive Officer - Principal Executive Officer | March 10, 2022 | ||||||||||||
Angela Cretu | ||||||||||||||
/s/ Carl Rogberg | Vice President Finance - Principal Financial Officer | March 10, 2022 | ||||||||||||
Carl Rogberg | ||||||||||||||
/s/ Itamar Gaino Filho | Director | March 10, 2022 | ||||||||||||
Itamar Gaino Filho | ||||||||||||||
/s/ Guilherme Castellan | Director | March 10, 2022 | ||||||||||||
Guilherme Castellan | ||||||||||||||
/s/ Roberto de Oliveira Marques | Director | March 10, 2022 | ||||||||||||
Roberto de Oliveira Marques | ||||||||||||||
Page | ||||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID | ||||||||
Consolidated Financial Statements: | ||||||||
Consolidated Statements of Changes in Shareholders’ Deficit for each of the three years ended December 31, 2021, 2020 and 2019 | ||||||||
Financial Statement Schedule: | ||||||||
Schedule II – Valuation and Qualifying Accounts for each of the three years ended December 31, 2021, 2020 and 2019 |
/s/ | ||
March 10, 2022 |
(In millions) | ||||||||||||||||||||
Years ended December 31 | 2021 | 2020 | 2019 | |||||||||||||||||
Net sales | $ | $ | $ | |||||||||||||||||
Other revenue | ||||||||||||||||||||
Revenue from affiliates of Natura &Co | ||||||||||||||||||||
Total revenue | ||||||||||||||||||||
Costs, expenses and other: | ||||||||||||||||||||
Cost of sales | ( | ( | ( | |||||||||||||||||
Cost of sales from affiliates of Natura &Co | ( | ( | ||||||||||||||||||
Selling, general and administrative expenses (inclusive of provision for doubtful accounts of $ | ( | ( | ( | |||||||||||||||||
Operating (loss) profit | ( | ( | ||||||||||||||||||
Interest expense | ( | ( | ( | |||||||||||||||||
Interest expense on Loan from affiliates of Natura &Co | ( | ( | ||||||||||||||||||
Loss on extinguishment of debt and credit facilities | ( | ( | ||||||||||||||||||
Interest income | ||||||||||||||||||||
Other income (expense), net | ( | |||||||||||||||||||
Gain on sale of business | ||||||||||||||||||||
Total other (expenses) income | ( | ( | ||||||||||||||||||
(Loss) Income from continuing operations, before taxes | ( | ( | ||||||||||||||||||
Income taxes | ( | ( | ( | |||||||||||||||||
Loss from continuing operations, net of tax | ( | ( | ||||||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | ( | |||||||||||||||||
Net loss | ( | ( | ( | |||||||||||||||||
Net loss attributable to noncontrolling interests | ||||||||||||||||||||
Net loss attributable to Avon | $ | ( | $ | ( | $ | ( | ||||||||||||||
(In millions) | ||||||||||||||||||||
Years ended December 31 | 2021 | 2020 | 2019 | |||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | |||||||||||||||||
Unrealized (losses) gains on revaluation of long-term intercompany balances | ( | ( | ||||||||||||||||||
Change in derivative gains (losses) on cash flow hedges | ( | |||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of taxes of $ | ||||||||||||||||||||
Adjustments of net actuarial loss and prior service cost, net of taxes of $ | ( | ( | ||||||||||||||||||
Sale of New Avon | ( | |||||||||||||||||||
Total other comprehensive income (loss), net of taxes | ( | ( | ||||||||||||||||||
Comprehensive loss | ( | ( | ( | |||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | ||||||||||||||||||||
Comprehensive loss attributable to Avon | $ | ( | $ | ( | $ | ( |
(In millions, except per share data and share numbers) | ||||||||||||||
December 31 | 2021 | 2020 | ||||||||||||
Assets | ||||||||||||||
Current Assets | ||||||||||||||
Cash, including cash equivalents of $ | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable (less allowances of $ | ||||||||||||||
Receivables from affiliates of Natura &Co | ||||||||||||||
Loans to affiliates of Natura &Co | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses and other | ||||||||||||||
Held for sale assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, at cost | ||||||||||||||
Land | ||||||||||||||
Buildings and improvements | ||||||||||||||
Equipment | ||||||||||||||
Less accumulated depreciation | ( | ( | ||||||||||||
Property, plant and equipment, net | ||||||||||||||
Right-of-use assets | ||||||||||||||
Goodwill | ||||||||||||||
Deferred tax asset | ||||||||||||||
Loans to affiliates of Natura &Co | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Shareholders’ Deficit | ||||||||||||||
Current Liabilities | ||||||||||||||
Debt maturing within one year | $ | $ | ||||||||||||
Loans from affiliates of Natura &Co | ||||||||||||||
Accounts payable | ||||||||||||||
Payables to affiliates of Natura &Co | ||||||||||||||
Accrued compensation | ||||||||||||||
Other accrued liabilities | ||||||||||||||
Sales and taxes other than income | ||||||||||||||
Income taxes | ||||||||||||||
Current liabilities of discontinued operations | ||||||||||||||
Liabilities held for sale | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Loans from affiliates of Natura &Co | ||||||||||||||
Long-term operating lease liability | ||||||||||||||
Employee benefit plans | ||||||||||||||
Long-term income taxes | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Leases and Commitments and contingencies (Notes 15 and 18) | ||||||||||||||
Shareholders’ Deficit | ||||||||||||||
Common stock, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total Avon shareholders’ deficit | ( | ( | ||||||||||||
Noncontrolling interests | ||||||||||||||
Total shareholders’ deficit | ( | ( | ||||||||||||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | $ | $ |
(In millions) | ||||||||||||||||||||
Years ended December 31 | 2021 | 2020 | 2019 | |||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | ( | |||||||||||||||||
(Loss) income from continuing operations | ( | ( | ||||||||||||||||||
Adjustments to reconcile net (loss) income from continuing operations to net cash (used) provided by operating activities: | ||||||||||||||||||||
Depreciation | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Provision for doubtful accounts | ||||||||||||||||||||
Provision for inventory obsolescence | ||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||
Foreign exchange (gains) losses | ( | ( | ( | |||||||||||||||||
Deferred income taxes | ( | ( | ||||||||||||||||||
Impairment loss on assets | ||||||||||||||||||||
Gain on sale of business / assets | ( | ( | ( | |||||||||||||||||
Certain Brazil indirect taxes | ( | |||||||||||||||||||
Other | ||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Accounts receivable | ( | ( | ( | |||||||||||||||||
Inventories | ( | ( | ||||||||||||||||||
Prepaid expenses and other | ( | |||||||||||||||||||
Accounts payable and accrued liabilities | ( | ( | ( | |||||||||||||||||
Income and other taxes | ( | |||||||||||||||||||
Noncurrent assets and liabilities | ( | ( | ||||||||||||||||||
Net cash (used) provided by operating activities of continuing operations | ( | ( | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||
Capital expenditures | ( | ( | ( | |||||||||||||||||
Disposal of assets | ||||||||||||||||||||
Net proceeds from sale of business / assets | ||||||||||||||||||||
Cash receipts from the settlement of corporate-owned life insurance policies | ||||||||||||||||||||
Other investing activities | ||||||||||||||||||||
Net cash (used) provided by investing activities of continuing operations | ( | ( | ||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||
Cash dividend | ( | |||||||||||||||||||
Debt, net (maturities of three months or less) | ( | ( | ||||||||||||||||||
Proceeds from debt | ||||||||||||||||||||
Repayment of debt | ( | ( | ( | |||||||||||||||||
Repayment of debt to affiliates of Natura &Co(2) | ( | |||||||||||||||||||
Repayment of debt from affiliates of Natura &Co | ||||||||||||||||||||
Repurchase of common stock | ( | ( | ||||||||||||||||||
Net proceeds from exercise of stock options | ||||||||||||||||||||
Settlement of stock options | ( | |||||||||||||||||||
Settlement of derivative operations | ( | |||||||||||||||||||
Costs associated with debt issue / repayment | ( | ( | ||||||||||||||||||
Proceeds from monetization of COFINS tax credits | ( | |||||||||||||||||||
Other financing activities | ( | |||||||||||||||||||
Net cash provided by financing activities of continuing operations(2) | ||||||||||||||||||||
Cash Flows from Discontinued Operations | ||||||||||||||||||||
Net cash used by operating activities of discontinued operations | ( | ( | ( | |||||||||||||||||
Net cash used by discontinued operations | ( | ( | ( | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ( | ( | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | ( | ( |
Cash and cash equivalents and restricted cash at beginning of year(1) | ||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of year(1) | $ | $ | $ | |||||||||||||||||
Cash paid for: | ||||||||||||||||||||
Interest | $ | $ | $ | |||||||||||||||||
Income taxes, net of refunds received | $ | $ | $ |
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Restricted cash | ||||||||||||||||||||
Long-term restricted cash | ||||||||||||||||||||
Held for sale cash and cash equivalents | ||||||||||||||||||||
Cash and cash equivalents, and restricted cash at end of period per the statement of cash flows | $ | $ | $ |
(In millions, except per | Common Stock | Additional | Retained | Accumulated Other | Treasury Stock | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||||
share data) | Shares | Amount | Paid-In Capital | Earnings | Comprehensive Loss | Shares | Amount | Interests | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2018 | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued - Series C convertible preferred stock | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends accrued- common stock | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of Series C convertible preferred stock | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales of noncontrolling interests, net of dividends paid of $ | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain on common control transaction | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization of payable(1) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series C convertible preferred stock(2) | — | — | — | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | — | ( | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Exchange of common stock (3) | ( | ( | ( | ( | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020(4) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Avon Luxembourg(5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales of noncontrolling interests | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021(4) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 21, 2019 | ||||||||||||||||||
Selling, general and administrative expenses | $ | ( | $ | ( | $ | ( | ||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Loss from discontinued operations, net of tax | $ | ( | $ | ( | $ | ( |
Year ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Current held for sale assets | ||||||||||||||
Inventories | $ | $ | ||||||||||||
Property, Plant & Equipment (net) | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Other assets | ||||||||||||||
$ | $ | |||||||||||||
Current held for sale liabilities | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Other liabilities | ||||||||||||||
$ | $ |
Year Ended December 31, | Year Ended December 31, | |||||||||||||
2021 | 2020 | |||||||||||||
Statement of Operations Data | ||||||||||||||
Revenue from affiliates of Natura &Co(2)(3) | $ | $ | ||||||||||||
Cost of sales from affiliaties of Natura &Co(2)(3) | $ | ( | $ | ( | ||||||||||
Gross profit from affiliates of Natura &Co(2)(3) | $ | $ | ||||||||||||
Interest income from Instituto Avon(1) | $ | $ | ||||||||||||
Interest expense on Loan from affiliates of Natura &Co(5) | $ | ( | $ | ( | ||||||||||
Interest income on Loan to affiliates of Natura &Co(5) | $ | $ | ||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||
Balance Sheet Data | ||||||||||||||
Receivables due from Instituto Avon(1) | $ | $ | ||||||||||||
Trade Receivables due from affiliates of Natura &Co(2) | $ | $ | ||||||||||||
Other receivables due from affiliates of Natura &Co(7) | $ | $ | ||||||||||||
Loans to affiliates of Natura &Co maturing within one year(7) | $ | $ | ||||||||||||
Loans to affiliates of Natura &Co maturing after one year(7) | $ | $ | ||||||||||||
Trade Payables due to affiliates of Natura &Co(7) | $ | ( | $ | |||||||||||
Other payables due to affiliates of Natura &Co(4) | $ | ( | $ | |||||||||||
Loans from affiliates of Natura &Co maturing within one year(5) | $ | ( | $ | ( | ||||||||||
Loans from affiliates of Natura &Co maturing after one year(5) | $ | ( | $ | |||||||||||
Investments in affiliates of Natura &Co(6) | $ | $ |
Twelve Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||
Reportable segments | ||||||||||||||||||||||||||||||||
Avon International | Avon LATAM | Total reportable segments | Affiliates of Natura | Total | ||||||||||||||||||||||||||||
Beauty: | ||||||||||||||||||||||||||||||||
Skincare | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Fragrance | — | |||||||||||||||||||||||||||||||
Color | — | |||||||||||||||||||||||||||||||
Total Beauty | — | |||||||||||||||||||||||||||||||
Fashion & Home: | ||||||||||||||||||||||||||||||||
Fashion | — | |||||||||||||||||||||||||||||||
Home | — | |||||||||||||||||||||||||||||||
Total Fashion & Home | — | |||||||||||||||||||||||||||||||
Certain Brazil taxes* | — | |||||||||||||||||||||||||||||||
Product sales | — | |||||||||||||||||||||||||||||||
Representative fees | — | |||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other revenue | ||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ |
Twelve Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||
Reportable segments | ||||||||||||||||||||||||||||||||
Avon International | Avon LATAM | Total reportable segments | Affiliates of Natura | Total | ||||||||||||||||||||||||||||
Beauty: | ||||||||||||||||||||||||||||||||
Skincare | $ | $ | $ | $ | — | $ | ||||||||||||||||||||||||||
Fragrance | — | |||||||||||||||||||||||||||||||
Color | — | |||||||||||||||||||||||||||||||
Total Beauty | — | |||||||||||||||||||||||||||||||
Fashion & Home: | ||||||||||||||||||||||||||||||||
Fashion | — | |||||||||||||||||||||||||||||||
Home | — | |||||||||||||||||||||||||||||||
Total Fashion & Home | — | |||||||||||||||||||||||||||||||
Product sales | — | |||||||||||||||||||||||||||||||
Representative fees | — | |||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Other revenue | ||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ |
Twelve Months Ended December 31, 2019 | ||||||||||||||||||||
Reportable segments | ||||||||||||||||||||
Avon International | Avon LATAM | Total | ||||||||||||||||||
Beauty: | ||||||||||||||||||||
Skincare | $ | $ | $ | |||||||||||||||||
Fragrance | ||||||||||||||||||||
Color | ||||||||||||||||||||
Total Beauty | ||||||||||||||||||||
Fashion & Home: | ||||||||||||||||||||
Fashion | ||||||||||||||||||||
Home | ||||||||||||||||||||
Total Fashion & Home | ||||||||||||||||||||
Certain Brazil taxes** | ||||||||||||||||||||
Product sales | ||||||||||||||||||||
Representative fees | ||||||||||||||||||||
Other | ||||||||||||||||||||
Other revenue | ||||||||||||||||||||
Total revenue | $ | $ | $ |
December 31, 2021 | December 31, 2020 | |||||||||||||
Accounts receivable, net of allowances of $ | $ | $ | ||||||||||||
Contract liabilities | $ | $ |
2021 | 2020 | |||||||||||||
Raw materials | $ | $ | ||||||||||||
Finished goods | ||||||||||||||
Total | $ | $ |
2021 | 2020 | |||||||||||||
Debt maturing within one year: | ||||||||||||||
Short term debt | $ | $ | ||||||||||||
Loans from affiliates of Natura &Co | ||||||||||||||
Total | $ | $ | ||||||||||||
Long-term debt: | ||||||||||||||
Finance lease liabilities | ||||||||||||||
Loans from affiliates of Natura &Co, due 2028 | ||||||||||||||
Total | ||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Remaining Principal | Unamortized Discounts | Unamortized Debt Issuance Costs | Total | Remaining Principal | Unamortized Discounts | Unamortized Debt Issuance Costs | Total | ||||||||||||||||||||||||||||||||||||||||
( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
( | ( | ( | ( |
2022 | 2023 | 2024 | 2025 | 2026 | 2027 and Beyond | Total | ||||||||||||||||||||||||||||||||||||||
Maturities | $ | $ | $ | $ | $ | $ | $ |
Foreign Currency Translation Adjustments | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) other than reclassifications | ( | |||||||||||||||||||||||||
Sale of Avon Luxembourg | ( | |||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $ | ||||||||||||||||||||||||||
Total reclassifications into earnings | ||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||
Other comprehensive loss other than reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||
Reclassifications into earnings: | ||||||||||||||||||||||||||||||||
Derivative gains on cash flow hedges, net of tax of $ | ||||||||||||||||||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $ | ||||||||||||||||||||||||||||||||
Total reclassifications into earnings | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
2021 | 2020 | 2019 | ||||||||||||||||||
United States | $ | $ | ( | $ | ( | |||||||||||||||
Foreign | ( | ( | ||||||||||||||||||
Total | $ | ( | $ | ( | $ |
2021 | 2020 | 2019 | ||||||||||||||||||
Federal: | ||||||||||||||||||||
Current | $ | $ | ( | $ | ( | |||||||||||||||
Deferred | ||||||||||||||||||||
Total Federal | ( | ( | ||||||||||||||||||
Foreign: | ||||||||||||||||||||
Current | ||||||||||||||||||||
Deferred | ( | |||||||||||||||||||
Total Foreign | ||||||||||||||||||||
State and Local: | ||||||||||||||||||||
Current | ( | |||||||||||||||||||
Deferred | ||||||||||||||||||||
Total State and other | ( | |||||||||||||||||||
Total | $ | $ | $ |
2021 | 2020 | 2019 | ||||||||||||||||||
Statutory federal rate | % | % | % | |||||||||||||||||
State and local taxes, net of federal tax benefit | ( | ( | ( | |||||||||||||||||
Tax on foreign income | ( | |||||||||||||||||||
Tax on uncertain tax positions | ||||||||||||||||||||
Reorganizations | ( | |||||||||||||||||||
Net change in valuation allowances | ( | ( | ( | |||||||||||||||||
Other | ( | |||||||||||||||||||
Effective tax rate | ( | % | ( | % | % |
2021 | 2020 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Tax loss and deduction carryforwards | $ | $ | ||||||||||||
Intangibles | ||||||||||||||
Tax credit carryforwards | ||||||||||||||
Interest carryforwards | ||||||||||||||
All other future deductions | ||||||||||||||
Valuation allowance | ( | ( | ||||||||||||
Total deferred tax assets | ||||||||||||||
Deferred tax liabilities | $ | ( | $ | ( | ||||||||||
Net deferred tax assets | $ | $ |
2021 | 2020 | |||||||||||||
Deferred tax assets: | ||||||||||||||
Other assets | $ | $ | ||||||||||||
Total deferred tax assets | ||||||||||||||
Deferred tax liabilities: | ||||||||||||||
Long-term income taxes | $ | ( | $ | ( | ||||||||||
Total deferred tax liabilities | ( | ( | ||||||||||||
Net deferred tax assets | $ | $ |
Balance at December 31, 2018 | |||||
Additions based on tax positions related to the current year | |||||
Additions for tax positions of prior years | |||||
Reductions for tax positions of prior years | ( | ||||
Reductions due to lapse of statute of limitations | ( | ||||
Reductions due to settlements with tax authorities | ( | ||||
Balance at December 31, 2019 | |||||
Additions based on tax positions related to the current year | |||||
Additions for tax positions of prior years | |||||
Reductions for tax positions of prior years | ( | ||||
Reductions due to lapse of statute of limitations | ( | ||||
Reductions due to settlements with tax authorities | ( | ||||
Balance at December 31, 2020 | |||||
Additions based on tax positions related to the current year | |||||
Additions for tax positions of prior years | |||||
Reductions for tax positions of prior years | ( | ||||
Reductions due to lapse of statute of limitations | ( | ||||
Reductions due to settlements with tax authorities | ( | ||||
Balance at December 31, 2021 | $ |
Jurisdiction | Open Years | |||||||
Brazil | 2016-2021 | |||||||
Philippines | 2017-2021 | |||||||
Poland | 2014-2021 | |||||||
Russia | 2019-2021 | |||||||
United Kingdom | 2019-2021 | |||||||
United States (Federal) | 2017-2021 |
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 | $ | |||||||||||||||||||
Total derivatives | $ | $ |
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 | $ | |||||||||||||||||||
Total derivatives | $ | $ |
Level 1 | Level 2 | Total | |||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ |
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | $ | $ | ||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ |
2021 | 2020 | |||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
Available-for-sale securities | $ | $ | $ | $ | ||||||||||||||||||||||
Loans to affiliates of Natura &Co maturing within one year | ||||||||||||||||||||||||||
Loans to affiliates of Natura &Co maturing after one year | ||||||||||||||||||||||||||
Debt maturing within one year | ( | ( | ( | ( | ||||||||||||||||||||||
Loans from affiliates of Natura &Co maturing within one year | ( | ( | ( | ( | ||||||||||||||||||||||
Long-term debt(1) | ( | ( | ( | ( | ||||||||||||||||||||||
Loans from affiliates of Natura &Co maturing after one year | ( | ( | ||||||||||||||||||||||||
Foreign exchange forward contracts | ( | ( | ( | ( |
2021 | 2020 | 2019 | ||||||||||||||||||
Compensation cost for stock-based compensation | $ | $ | $ | |||||||||||||||||
Total income tax (cost)/ benefit recognized for share-based arrangements | ( |
2019 | ||||||||
Risk-free rate(1) | ||||||||
Expected term(2) | ||||||||
Expected Avon volatility(3) | ||||||||
Expected dividends |
2019 PRSUs | ||||||||
Risk-free rate(1) | ||||||||
Expected Avon volatility(2) | ||||||||
Expected average volatility(3) | ||||||||
Expected dividends |
Nominal cost options (in 000’s) | Weighted-Average Modification-Date Fair Value | |||||||||||||
January 1, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Exercised | ( | ( | ||||||||||||
Forfeited | ( | ( | ||||||||||||
Outstanding at December 31, 2021 | $ |
Performance Share Units (in 000’s) | Weighted-Average Modification-Date Fair Value | |||||||||||||
January 1, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Exercised | ||||||||||||||
Forfeited | ( | ( | ||||||||||||
Outstanding at December 31, 2021 | $ |
Pension Plans | ||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
Service cost | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Interest cost | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Actuarial gain (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Benefits paid | ||||||||||||||||||||||||||||||||||||||
Actual expenses and taxes | ||||||||||||||||||||||||||||||||||||||
Plan amendments | ||||||||||||||||||||||||||||||||||||||
Curtailments | ||||||||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||||||||
Special termination benefits | ( | |||||||||||||||||||||||||||||||||||||
Transfers | ||||||||||||||||||||||||||||||||||||||
Foreign currency changes and other | ( | |||||||||||||||||||||||||||||||||||||
Sale of Avon Luxembourg | ||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Actual return on plan assets | ||||||||||||||||||||||||||||||||||||||
Company contributions | ||||||||||||||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Actual expenses and taxes | ( | |||||||||||||||||||||||||||||||||||||
Settlements | ( | ( | ||||||||||||||||||||||||||||||||||||
Transfers | ( | |||||||||||||||||||||||||||||||||||||
Foreign currency changes and other | ( | |||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Funded Status: | ||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Amount Recognized in Balance Sheet: | ||||||||||||||||||||||||||||||||||||||
Other assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Accrued compensation | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Employee benefit plans liability | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net amount recognized | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Prior service (credit) cost | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total pretax amount recognized | $ | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||||
Supplemental Information: | ||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | $ | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | ||||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | $ | $ | $ | N/A | N/A | ||||||||||||||||||||||||||||||||
Fair value plan assets | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | ||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Fair value plan assets | N/A | N/A |
Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of transition obligation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements/curtailments | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial losses (gains) | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Prior service cost (credit) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial losses | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency changes | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in other comprehensive loss* | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive loss | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | $ |
Pension Benefits | Postretirement | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | ||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Rate of compensation increase | % | % | % | % | N/A | N/A | ||||||||||||||||||||||||||||||||
Interest crediting rate | % | % | % | % | N/A | N/A |
Pension Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | % | % | % | % | % | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | % | % | % | % | % | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Rate of return on assets | % | % | % | % | % | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Interest crediting rate | % | % | % | % | % | % | N/A | N/A | N/A |
U.S. Pension Plan | Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||
% of Plan Assets | % of Plan Assets | |||||||||||||||||||||||||||||||||||||
Target | at Year-End | Target | at Year-End | |||||||||||||||||||||||||||||||||||
Asset Category | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Equity securities | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||
Total | % | % | % | % | % | % |
U.S. Pension Plan | ||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||
Equity Securities: | ||||||||||||||||||||
Domestic equity | $ | $ | $ | |||||||||||||||||
International equity | ||||||||||||||||||||
Emerging markets | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||
Government securities | ||||||||||||||||||||
Other | ||||||||||||||||||||
Other | ||||||||||||||||||||
Cash | ||||||||||||||||||||
Total | $ | $ | $ |
Non-U.S. Pension Plans | ||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||
Domestic equity | $ | $ | $ | $ | ||||||||||||||||||||||
International equity | ||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Government securities | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Cash | ||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
U.S. Pension Plan | ||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||
Equity Securities: | ||||||||||||||||||||
Domestic equity | $ | $ | $ | |||||||||||||||||
International equity | ||||||||||||||||||||
Emerging markets | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||
Government securities | ||||||||||||||||||||
Other | ||||||||||||||||||||
Total | $ | $ | $ |
Non-U.S. Pension Plans | ||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||
Domestic equity | $ | $ | $ | $ | ||||||||||||||||||||||
International equity | ||||||||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
Government securities | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Cash | ||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Amount | |||||
Balance at January 1, 2020 | $ | ||||
Balance at December 31, 2020 | |||||
Actual return on plan assets held | |||||
Balance at December 31, 2021 |
Pension Benefits | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Total | Postretirement Benefits | |||||||||||||||||||||||
2022 | $ | $ | $ | $ | ||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
2024 | ||||||||||||||||||||||||||
2025 | ||||||||||||||||||||||||||
2026 | ||||||||||||||||||||||||||
2027-2031 |
2021 | 2020 | |||||||||||||
Corporate-owned life insurance policies | $ | $ | ||||||||||||
Cash and cash equivalents | ||||||||||||||
Total | $ | $ |
Total Revenue | 2021 | 2020 | 2019 | |||||||||||||||||
Avon International | $ | $ | $ | |||||||||||||||||
Avon Latin America (1) | ||||||||||||||||||||
Total revenue from reportable segments (2) | ||||||||||||||||||||
Revenue from affiliates to Natura &Co | ||||||||||||||||||||
Total revenue | $ | $ | $ |
Operating (Loss) Profit | 2021 | 2020 | 2019 | |||||||||||||||||
Segment Profit | ||||||||||||||||||||
Avon International | $ | $ | $ | |||||||||||||||||
Avon Latin America (1) | ( | ( | ||||||||||||||||||
Total (loss) profit from reportable segments (3) | ( | |||||||||||||||||||
Unallocated global expenses(4) | ( | ( | ( | |||||||||||||||||
Certain Brazil Indirect taxes (5) | ( | |||||||||||||||||||
CTI restructuring initiatives | ( | ( | ( | |||||||||||||||||
Costs related to the Transaction (6) | ( | ( | ||||||||||||||||||
Operating (loss) profit | $ | ( | $ | ( | $ |
Total Assets | 2021 | 2020 | 2019 | |||||||||||||||||
Avon International (1) | $ | $ | $ | |||||||||||||||||
Avon Latin America (2) | ||||||||||||||||||||
Total assets | $ | $ | $ |
Capital Expenditures | 2021 | 2020 | 2019 | |||||||||||||||||
Avon International (1) | $ | $ | $ | |||||||||||||||||
Avon Latin America (2) | ||||||||||||||||||||
Total capital expenditures | $ | $ | $ |
Depreciation and Amortization | 2021 | 2020 | 2019 | |||||||||||||||||
Avon International (1) | $ | $ | $ | |||||||||||||||||
Avon Latin America (2) | ||||||||||||||||||||
Total depreciation and amortization | $ | $ | $ |
2021 | 2020 | 2019 | ||||||||||||||||||
Brazil | $ | $ | $ | |||||||||||||||||
Mexico(1) | ||||||||||||||||||||
All other | ||||||||||||||||||||
Total | $ | $ | $ |
2021 | 2020 | 2019 | ||||||||||||||||||
U.S. | $ | $ | $ | |||||||||||||||||
Brazil | ||||||||||||||||||||
Poland | ||||||||||||||||||||
Mexico(1)(2) | ||||||||||||||||||||
All other | ||||||||||||||||||||
Total | $ | $ | $ |
2019 | ||||||||||||||
Brazil | $ | |||||||||||||
U.S. | ||||||||||||||
Poland | ||||||||||||||
All other | ||||||||||||||
Total |
Classification | 2021 | 2020 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Operating right-of-use assets | Right-of-use asset | $ | $ | |||||||||||||||||
Finance right-of-use assets | ||||||||||||||||||||
Total right-of-use assets | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating lease liabilities | $ | $ | ||||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||
Total current lease liabilities | ||||||||||||||||||||
Noncurrent | ||||||||||||||||||||
Operating lease liabilities | Long-term operating lease liability | $ | $ | |||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||
Total noncurrent lease liabilities | $ | $ | ||||||||||||||||||
Total lease liability | $ | $ |
Lease Costs | Classification | 2021 | 2020 | |||||||||||||||||
Operating lease cost (1) | Selling, general and administrative expenses | $ | $ | |||||||||||||||||
Finance lease cost | ||||||||||||||||||||
Amortization of right-of-use assets | Selling, general and administrative expenses | |||||||||||||||||||
Interest on lease liabilities | Interest Expense | |||||||||||||||||||
Short-term leases costs | Selling, general and administrative expenses | |||||||||||||||||||
Sublease income (2) | Selling, general and administrative expenses | ( | ( | |||||||||||||||||
Net lease cost | $ | $ |
Maturity of Lease Liabilities | Operating Leases | Finance Leases | Total | |||||||||||||||||
2022 | ||||||||||||||||||||
2023 | ||||||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
2026 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total lease payments | $ | $ | $ | |||||||||||||||||
Less: Interest | ||||||||||||||||||||
Present value of lease liabilities | $ | $ | $ |
Lease Term and Discount Rate | 2021 | 2020 | ||||||||||||
Weighted-average remaining lease term (years) | ||||||||||||||
Operating leases | ||||||||||||||
Finance leases | ||||||||||||||
Weighted-average discount rate | ||||||||||||||
Operating leases | % | % | ||||||||||||
Finance leases | % | % |
Other Information | 2021 | 2020 | ||||||||||||
Operating Cash Flows From Operating Leases | $ | $ | ||||||||||||
Operating Cash Flows From Finance Leases | ||||||||||||||
Financing Cash Flows From Finance Leases | ||||||||||||||
Cash Paid For Amounts Included In Measurement of Liabilities | $ | $ | ||||||||||||
Right-of-use Assets Obtained In Exchange For New Finance Liabilities | $ | $ | ||||||||||||
Right-of-use Assets Obtained In Exchange For New Operating Liabilities | $ | $ |
Year | Purchase Obligations | |||||||
2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Later years | ||||||||
Total | $ |
Year ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
CTI recorded in operating profit - COGS | ||||||||||||||||||||
Manufacturing asset write-offs | $ | $ | $ | |||||||||||||||||
Inventory write-off | ( | |||||||||||||||||||
( | ||||||||||||||||||||
CTI recorded in operating profit - SG&A | ||||||||||||||||||||
Net charges for employee-related costs, including severance benefits | ||||||||||||||||||||
Implementation costs, primarily related to professional service fees | ||||||||||||||||||||
Dual running costs | ||||||||||||||||||||
Contract termination and other net costs | ||||||||||||||||||||
Impairment of other assets | ||||||||||||||||||||
Accelerated depreciation | ||||||||||||||||||||
Variable lease charges | ||||||||||||||||||||
Foreign Currency Translation Adjustment Write-offs | ||||||||||||||||||||
CTI recorded in operating profit | ||||||||||||||||||||
CTI recorded in other (income) expense | ||||||||||||||||||||
Gain on sale of business / assets | ( | ( | ( | |||||||||||||||||
Total CTI | $ | $ | $ | |||||||||||||||||
Avon Integration | $ | $ | $ | |||||||||||||||||
Open Up & Grow | $ | $ | $ | |||||||||||||||||
Transformation Plan & Other | $ | ( | $ | ( | $ |
Employee-Related Costs | Inventory/ Asset Write-offs | Contract Terminations/Other | Total | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | ||||||||||||||||||||||
2020 charges | ||||||||||||||||||||||||||
Adjustments | ( | ( | ( | |||||||||||||||||||||||
Cash payments | ( | ( | ( | |||||||||||||||||||||||
Non-cash write-offs | ||||||||||||||||||||||||||
Foreign exchange | ( | ( | ||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ||||||||||||||||||||||
2021 charges | ||||||||||||||||||||||||||
Adjustments | ( | ( | ||||||||||||||||||||||||
Cash payments | ( | ( | ( | |||||||||||||||||||||||
Non-cash write-offs | ( | ( | ||||||||||||||||||||||||
Foreign exchange | ( | ( | ||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ |
Employee- Related Costs | Inventory/ Asset Write-offs | Contract Terminations/Other | Foreign Currency Translation Adjustment Write-offs | Total | ||||||||||||||||||||||||||||
Avon Integration | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | |||||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Open Up & Grow | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | $ | $ | ||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
Transformation Plan | ||||||||||||||||||||||||||||||||
Charges incurred to-date | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | $ | $ |
Avon International | Avon LATAM | Total | ||||||||||||||||||
Avon Integration | ||||||||||||||||||||
2020 | $ | |||||||||||||||||||
2021 | ( | $ | ||||||||||||||||||
Charges incurred to-date | ||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ | |||||||||||||||||
Open Up & Grow | ||||||||||||||||||||
2018 | $ | |||||||||||||||||||
2019 | ||||||||||||||||||||
2020 | ( | |||||||||||||||||||
2021 | ||||||||||||||||||||
Charges incurred to-date | ||||||||||||||||||||
Estimated charges to be incurred on approved initiatives | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | $ | $ |
Avon International | Avon LATAM | Total | |||||||||||||||
Gross balance at December 31, 2020 | $ | $ | $ | ||||||||||||||
Accumulated impairments | ( | ( | |||||||||||||||
Net balance at December 31, 2020 | $ | $ | $ | ||||||||||||||
Changes during the period ended December 31, 2021: | |||||||||||||||||
Foreign exchange | ( | ( | ( | ||||||||||||||
Gross balance at December 31, 2021 | $ | $ | $ | ||||||||||||||
Accumulated impairments | ( | ( | |||||||||||||||
Net balance at December 31, 2021 | $ | $ | $ |
Components of Prepaid expenses and other | 2021 | 2020 | ||||||||||||
Prepaid taxes and tax refunds receivable | $ | $ | ||||||||||||
Receivables other than trade | ||||||||||||||
Prepaid brochure costs, paper and other literature | ||||||||||||||
Other | ||||||||||||||
Prepaid expenses and other | $ | $ |
Components of Other assets | 2021 | 2020 | ||||||||||||
Capitalized software (Note 1) | ||||||||||||||
Judicial deposits | ||||||||||||||
Net overfunded pension plans (Note 13) | ||||||||||||||
Long-term receivables including taxes | ||||||||||||||
Trust assets associated with supplemental benefit plans (Note 13) | ||||||||||||||
Other | ||||||||||||||
Other assets | $ | $ |
Additions | |||||||||||||||||||||||||||||||||||||||||
(In millions) Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Revenue | Deductions | Balance at End of Period | ||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | $ | $ | $ | ( | (1) | $ | ||||||||||||||||||||||||||||||||||
Refund liability | ( | (2) | |||||||||||||||||||||||||||||||||||||||
Allowance for inventory obsolescence | ( | (3) | |||||||||||||||||||||||||||||||||||||||
Deferred tax asset valuation allowance | ( | (4) | |||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | $ | $ | $ | ( | (1) | $ | ||||||||||||||||||||||||||||||||||
Refund liability | ( | (2) | |||||||||||||||||||||||||||||||||||||||
Allowance for inventory obsolescence | ( | (3) | |||||||||||||||||||||||||||||||||||||||
Deferred tax asset valuation allowance | ( | ||||||||||||||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | $ | $ | $ | ( | (1) | $ | ||||||||||||||||||||||||||||||||||
Refund liability | ( | (2) | |||||||||||||||||||||||||||||||||||||||
Allowance for inventory obsolescence | ( | (3) | |||||||||||||||||||||||||||||||||||||||
Deferred tax asset valuation allowance | ( |
/s/ Angela Cretu | |||||
Angela Cretu | |||||
Chief Executive Officer |
/s/ Carl Rogberg | ||
Carl Rogberg | ||
Vice President Finance | ||
/s/ Angela Cretu | |||||
Angela Cretu | |||||
Chief Executive Officer |
/s/ Carl Rogberg | ||
Carl Rogberg | ||
Vice President Finance | ||
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | London, United Kingdom |
Auditor Firm ID | 876 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Statement [Abstract] | |||
Provision for doubtful accounts | $ 62.4 | $ 78.3 | $ 115.4 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (193.5) | $ (365.5) | $ (1.3) |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (0.9) | (162.9) | (0.6) |
Unrealized (losses) gains on revaluation of long-term intercompany balances | (21.3) | 67.6 | (5.7) |
Change in derivative gains (losses) on cash flow hedges | 0.0 | 0.6 | (1.1) |
Amortization of net actuarial loss and prior service cost, net of taxes of $0.8, $0.8 and $0.4 | 5.1 | 8.2 | 9.4 |
Adjustments of net actuarial loss and prior service cost, net of taxes of $3.2, $3.8 and $2.9 | 67.3 | (7.1) | (8.0) |
Sale of New Avon | 0.0 | 0.0 | (3.4) |
Total other comprehensive income (loss), net of taxes | 50.2 | (93.6) | (9.4) |
Comprehensive loss | (143.3) | (459.1) | (10.7) |
Less: comprehensive loss attributable to noncontrolling interests | 0.5 | 2.5 | 0.9 |
Comprehensive loss attributable to Avon | $ (142.8) | $ (456.6) | $ (9.8) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statement of Comprehensive Income [Abstract] | |||
Amortization of net actuarial loss and prior service cost, taxes | $ 0.8 | $ 0.8 | $ 0.4 |
Adjustments of net actuarial losses and prior service cost, taxes | $ 3.2 | $ 3.8 | $ 2.9 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Current Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, including cash equivalents of $15.5 and $51.0 | $ 251.5 | [1] | $ 364.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 0.0 | 7.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable (less allowances of $37.1 and $51.1) | 198.7 | 259.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables from affiliates of Natura &Co | 34.1 | 6.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to affiliates of Natura &Co | 46.6 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | 384.1 | 459.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other | 165.6 | 204.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for sale assets | 2.8 | 13.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | 1,083.4 | 1,315.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, at cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land | 18.5 | 20.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings and improvements | 374.5 | 447.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment | 549.5 | 680.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, at cost | 942.5 | 1,148.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less accumulated depreciation | (578.8) | (709.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, net | 363.7 | 438.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Right-of-use assets | 111.1 | 153.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 72.1 | 83.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax asset | 121.4 | 135.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to affiliates of Natura &Co | 46.7 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 509.4 | 438.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 2,307.8 | 2,564.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturing within one year | 32.6 | 28.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans from affiliates of Natura &Co | 371.7 | 1,008.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | 522.8 | 709.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables to affiliates of Natura &Co | 29.4 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued compensation | 81.5 | 89.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other accrued liabilities | 273.4 | 334.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and taxes other than income | 66.8 | 89.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | 11.6 | 5.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | 1,421.5 | 2,294.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 676.0 | 675.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans from affiliates of Natura &Co | 736.3 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term operating lease liability | 87.5 | 120.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee benefit plans | 84.6 | 133.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term income taxes | 81.5 | 101.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 75.1 | 106.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 3,162.5 | 3,431.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases and Commitments and contingencies (Notes 15 and 18) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ Deficit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock, par value $0.01 - authorized 1,000 shares; issued 101.34 (2019: par value $0.25 - authorized 1,500 shares; issued 770 shares) | [2] | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 631.2 | 622.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained earnings | (404.2) | (360.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (1,085.5) | (1,133.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Avon shareholders’ deficit | (858.5) | (871.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 3.8 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ deficit | [3] | (854.7) | (867.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | 2,307.8 | 2,564.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities of discontinued operations and liabilities held for sale | 31.7 | 27.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities of discontinued operations and liabilities held for sale | $ 0.0 | $ 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Cash equivalents | $ 15.5 | $ 51.0 |
Allowances | $ 37.1 | $ 51.1 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 101.34 | 101.34 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Cash Flows from Operating Activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | $ (193.5) | $ (365.5) | $ (1.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of tax | (18.5) | (27.9) | (36.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | (175.0) | (337.6) | 35.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net (loss) income from continuing operations to net cash (used) provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 50.4 | 57.3 | 68.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization | 22.4 | 24.5 | 24.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for doubtful accounts | 62.4 | 78.3 | 115.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for inventory obsolescence | 26.8 | 37.9 | 37.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 6.9 | 26.4 | 15.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange (gains) losses | (5.2) | (5.1) | (51.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes | (20.2) | (0.4) | 37.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment loss on assets | 1.0 | 3.1 | 17.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of business / assets | (9.9) | (1.5) | (50.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain Brazil indirect taxes | 0.0 | 0.0 | (118.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 5.9 | 54.2 | 12.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | (60.1) | (81.5) | (55.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | (53.0) | (65.9) | 56.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses and other | (14.9) | 1.2 | 25.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | (35.1) | (61.7) | (145.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income and other taxes | (13.1) | 2.5 | 28.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets and liabilities | (49.7) | (1.8) | 3.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash (used) provided by operating activities of continuing operations | (260.4) | (270.1) | 56.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | (68.3) | (44.6) | (58.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal of assets | 3.3 | 2.6 | 7.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | 16.9 | 11.3 | 99.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash receipts from the settlement of corporate-owned life insurance policies | 0.0 | 9.9 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities | 0.0 | 0.3 | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash (used) provided by investing activities of continuing operations | (48.1) | (20.5) | 50.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividend | 0.0 | (8.6) | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, net (maturities of three months or less) | (11.1) | 13.6 | (9.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from debt | 297.0 | 1,039.7 | 400.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of debt | (68.5) | (956.9) | (388.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of debt to affiliates of Natura &Co | [1] | (38.0) | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of debt from affiliates of Natura &Co | 58.7 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | 0.0 | (0.4) | (9.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from exercise of stock options | 0.0 | 0.0 | 15.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of stock options | 0.0 | (25.8) | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of derivative operations | 0.0 | (0.8) | 37.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs associated with debt issue / repayment | 0.0 | (21.7) | (26.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from monetization of COFINS tax credits | (15.5) | 0.0 | 19.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financing activities | 0.0 | 0.0 | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by financing activities of continuing operations(2) | [1] | 222.6 | 39.1 | 38.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Flows from Discontinued Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used by operating activities of discontinued operations | (14.0) | (16.7) | (20.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used by discontinued operations | (14.0) | (16.7) | (20.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (22.0) | (19.5) | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (121.9) | (287.7) | 124.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of year | [2] | 373.4 | 661.1 | 536.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of year | 251.5 | 373.4 | [2] | 661.1 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest | 50.1 | 133.5 | 122.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes, net of refunds received | $ 37.0 | $ 21.3 | $ 55.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Millions |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Cash and cash equivalents | $ 251.5 | [1] | $ 364.9 | $ 650.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 0.0 | 7.8 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term restricted cash | 0.0 | 0.0 | 7.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held for sale cash and cash equivalents | 0.0 | 0.7 | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash | 251.5 | 373.4 | [1] | 661.1 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 16.9 | $ 11.3 | $ 99.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) shares in Millions, $ in Millions |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Loss |
Treasury Stock |
Noncontrolling Interests |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2018 | $ (896.8) | $ 190.3 | $ 2,303.6 | $ 2,234.3 | $ (1,030.4) | $ (4,602.3) | $ 7.7 | |||||||||||||
Balance (in shares) at Dec. 31, 2018 | 761.8 | 319.4 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | |||||||||||||||||||
Net income (loss) | $ (1.3) | (0.3) | (1.0) | |||||||||||||||||
Other comprehensive income (loss) | (9.4) | (9.6) | 0.2 | |||||||||||||||||
Dividends accrued - Series C convertible preferred stock | (25.5) | (25.5) | ||||||||||||||||||
Dividends accrued- common stock | (8.7) | (8.7) | ||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation (in shares) | 9.9 | |||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | 28.5 | $ 2.6 | 25.9 | |||||||||||||||||
Repurchase of common stock (in shares) | (1.7) | (0.5) | ||||||||||||||||||
Repurchase of common stock | (9.6) | $ (0.3) | (8.3) | $ (1.0) | ||||||||||||||||
Increase in Carrying Amount of Redeemable Preferred Stock | (60.9) | (60.9) | ||||||||||||||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (0.1) | (0.1) | ||||||||||||||||||
Balance at Dec. 31, 2019 | (983.8) | $ (2.0) | $ 192.6 | 2,321.2 | 2,138.9 | $ (2.0) | (1,040.0) | $ (4,603.3) | 6.8 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 770.0 | 319.9 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Gain on common control transaction | 1.4 | 1.4 | ||||||||||||||||||
Capitalization of payable | [1] | 91.5 | 91.5 | |||||||||||||||||
Net income (loss) | (365.5) | (362.8) | (2.7) | |||||||||||||||||
Other comprehensive income (loss) | (93.6) | (93.8) | 0.2 | |||||||||||||||||
Conversion of Series C convertible preferred stock | [2] | 486.8 | (710.8) | $ 1,197.6 | ||||||||||||||||
Conversion of Series C convertible preferred stock (in shares) | [2] | (87.0) | ||||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | (2.0) | $ (0.2) | (1.8) | |||||||||||||||||
Repurchase of common stock (in shares) | [3] | (770.0) | (232.9) | |||||||||||||||||
Repurchase of common stock | [3] | 0.0 | $ (192.4) | (1,788.1) | (1,425.2) | $ 3,405.7 | ||||||||||||||
Balance at Dec. 31, 2020 | [4] | (867.2) | $ 0.0 | 622.8 | (360.5) | (1,133.8) | $ 0.0 | 4.3 | ||||||||||||
Balance (in shares) at Dec. 31, 2020 | [4] | 0.0 | 0.0 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Sale on Avon Luxembourg | 148.4 | 148.4 | [5] | |||||||||||||||||
Net income (loss) | (193.5) | (192.1) | (1.4) | |||||||||||||||||
Other comprehensive income (loss) | 50.2 | 48.3 | 1.9 | |||||||||||||||||
Exercise/ vesting/ expense of share-based compensation | 8.4 | 8.4 | ||||||||||||||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (1.0) | (1.0) | ||||||||||||||||||
Balance at Dec. 31, 2021 | [4] | $ (854.7) | $ 0.0 | $ 631.2 | $ (404.2) | $ (1,085.5) | $ 0.0 | $ 3.8 | ||||||||||||
Balance (in shares) at Dec. 31, 2021 | [4] | 0.0 | 0.0 | |||||||||||||||||
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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT (Parenthetical) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |
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Dec. 30, 2019 |
Jan. 31, 2020 |
Dec. 31, 2019 |
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Purchases and sales of noncontrolling interests, dividends paid | $ 0.1 | ||
Payment of accrued preferred stock dividends | $ 91.5 | ||
Conversion of stock (in shares) | 435,000 | ||
Temporary equity, conversion, common stock equivalent (in shares) | 87,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.01 | $ 0.25 |
Shares authorized (in shares) | 1,525,000,000 | ||
Common stock, shares authorized (in shares) | 1,000 | 1,500,000,000 | |
Preferred stock, shares authorized (in shares) | 25,000,000 | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 1.00 | |
Shares canceled (in shares) | 550,890,788 | ||
Common stock shares outstanding (in shares) | 101.34 | ||
Net proceeds from sale of business / assets | $ 99.9 | ||
Series C Preferred Stock | |||
Conversion of stock (in shares) | 435,000 |
Description of the Business and Summary of Significant Accounting Policies |
12 Months Ended |
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Dec. 31, 2021 | |
Description Of The Business And Summary Of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Business When used in these notes, the terms "Avon," "Company," "we," "our" or "us" mean Avon Products, Inc. We are a global manufacturer and marketer of beauty and related products. Our business is conducted primarily in one channel, direct selling. 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 jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Sales are made to the ultimate consumer principally by independent Representatives. In December 2015, we entered into definitive agreements with affiliates of Cerberus Capital Management L.P. ("Cerberus"), which included a $435 investment in Avon by an affiliate of Cerberus through the purchase of our convertible preferred stock and the separation of the North America business (including approximately $100 of cash, subject to certain adjustments) from Avon into New Avon LLC ("New Avon"), a privately-held company that is majority-owned and managed by an affiliate of Cerberus. These transactions closed in March 2016 and Avon retained approximately 20% ownership in New Avon. In April 2019, Avon and Cerberus signed an agreement with LG Household & Health Care Ltd. for the sale of New Avon, including our 20% ownership interest. This transaction closed on August 14, 2019. See Note 3, Discontinued Operations and Assets and Liabilities Held for Sale, for additional information. The North American business, which represented the Company's operations in the United States ("U.S."), Canada and Puerto Rico, was previously its own reportable segment and has been presented as discontinued operations for all periods. As a result of this transaction, all of our consolidated revenue is derived from operations of subsidiaries outside of the U.S. On May 22, 2019, we entered into an 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"), and two subsidiaries of Natura &Co Holding ("Natura &Co") pursuant to which, in a series of transactions, Avon and Natura Cosméticos became direct wholly owned subsidiaries of Natura &Co (the "Transaction"). On January 3, 2020, the Company consummated the Transaction and became a fully owned subsidiary of Natura &Co Holding. In connection with the consummation of the Transaction, the Company notified the NYSE that trading of their stock should be suspended, the Company's common stock was subsequently delisted and deregistered. The Company files these financial statements with the SEC, as a voluntary filer, to comply with the terms of certain debt instruments. For additional information, see Note 21, Agreement and Plan of Mergers with Natura Cosméticos S.A.,. In December 2019, the Company declared a dividend of $0.016 per share equating to $9, this dividend was subsequently paid in January 2020 by the Company. Principles of Consolidation The consolidated financial statements include the accounts of Avon and our majority and wholly-owned subsidiaries. Intercompany balances and transactions are eliminated. Basis of Presentation and Use of Estimates We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America, or GAAP. In preparing these statements, we are required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, we review our estimates, including those related to stand-alone selling prices ("SSP") of promised goods or services delivered under sales incentives, allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment. 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. Under the terms of the transaction and the associated Direction and Settlement Agreement, no cash flows in either investing or financing activities arose as a result of the transaction and it has been treated as a non cash flow item in the Consolidated Statements of Cash Flows. For additional information, see the Consolidated Statements of Changes in Shareholders' Deficit and the Consolidated Statements of Cash Flows. Reclassifications During the third quarter of 2020, we identified an immaterial classification error in the Consolidated Statement of Cash Flows relating to the year ended December 31, 2019 with respect to cash flows from the settlement of derivative contracts. Our accounting policy is to classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. However, we have identified that cash flows relating to derivative contracts that economically hedge foreign exchange gains and losses on intercompany loans have been incorrectly classified as operating activities rather than financing activities. We have corrected this reclassification error through a revision to the Consolidated Statement of Cash Flows for the year ended December 31, 2019 to reclassify cash inflows of $37.4 from the settlement of derivative contracts from operating activities to financing activities. COVID-19 pandemic A novel strain of coronavirus (COVID-19) was first identified in Wuhan, China in December 2019, and subsequently declared a pandemic by the World Health Organization. Due to the uncertain and rapidly evolving nature of current conditions around the world, the impacts of COVID-19 most of which are beyond the Company’s control, continue to evolve, and the outcome is uncertain. We are therefore unable to predict accurately the impact that COVID-19 will have on our business going forward. In 2020, the most significant impact of the COVID-19 pandemic was felt during the second quarter of 2020, as many markets were subject to lockdown restrictions to varying degrees, which limited our ability to recruit and enroll Representatives, operate manufacturing facilities and distribution centers and to process and deliver orders. The pandemic primarily resulted in reduced revenue, which in turn impacted profitability and cash generation. The third quarter of 2020 showed signs of recovery in most markets. The fourth quarter of 2020 has again been impacted by the new lockdown measures imposed in parts of Europe, although not to the extent felt during the second quarter of 2020 as we were able to continue normal operations in our manufacturing facilities and distribution centers. In 2021, 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 disruptions in global supply chains and climate events that hit electricity generation globally, among others. Moreover, novel strains and variants of COVID-19 emerged in 2021, 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. We continue to monitor the evolution of the Covid-19 pandemic in the markets in which we operate, especially with regard to restrictive measures adopted by these jurisdictions. 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 (see below). As of the date of this report, we are unable to estimate the long-term economic impact arising from efforts to curb the spread of the COVID-19 virus and the expected reduction in activity on our business, results of operations and financial condition. 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 COVID-19. Going concern Considering the uncertain nature of any possible future COVID-19 impacts which are beyond the Company’s control and the ongoing military conflicts 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. This includes the obligations related to the $461m 5.00% Notes, which are due to be repaid in March 2023. See Note 7, Debt and Other Financing, and Note 15, Leases and Commitments, respectively, for information on our debt and contractual financial obligations and commitments, including the loans from Natura &Co and its affiliates maturing within 1 year. Foreign Currency Financial statements of foreign subsidiaries operating in other than highly inflationary economies are translated at year-end exchange rates for assets and liabilities and average exchange rates during the year for income and expense accounts. The resulting translation adjustments are recorded within accumulated other comprehensive income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the U.S. dollar is required to be used as the functional currency. Highly inflationary accounting requires monetary assets and liabilities, such as cash, receivables and payables, to be remeasured into U.S. dollars at the current exchange rate at the end of each period with the impact of any changes in exchange rates being recorded in income. We record the impact of changes in exchange rates on monetary assets and liabilities in other expense, net. Similarly, deferred tax assets and liabilities are remeasured into U.S. dollars at the current exchange rates; however, the impact of changes in exchange rates is recorded in income taxes in our Consolidated Statements of Operations. Non-monetary assets and liabilities, such as inventory, property, plant and equipment and prepaid expenses are carried forward at their historical dollar cost, which was calculated using the exchange rate at the date which hyperinflationary accounting is implemented. Argentina Currency During the quarter ended June 30, 2018, based on published official exchange rates which indicate that Argentina's three-year cumulative inflation rate has exceeded 100%, we concluded that Argentina had become a highly inflationary economy. From July 1, 2018, we have applied highly inflationary accounting for our Argentinian subsidiary. As such, the functional currency for Argentina has changed to the U.S. dollar, which is the consolidated group's reporting currency. As a result of highly inflationary accounting for our Argentinian subsidiary, the most significant impacts in our Consolidated Income Statements 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 Argentina. However, these impacts are not considered material to our Consolidated Income Statements. Revenue Recognition Nature of goods and services We are a global manufacturer and marketer of beauty and related products. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Our business is conducted primarily in one channel, direct selling. Our reportable segments are based on geographic operations in two regions: Avon International and Avon Latin America. We primarily sell our products to the ultimate consumer through the direct selling channel principally through Representatives, who are independent contractors and not our employees. Revenue recognition Revenue is recognized when control of a product or service is transferred to a customer, which is generally the Representative. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties, such as Value Added Taxes ("VAT") collected for taxing authorities. Principal revenue streams and significant judgments Our principal revenue streams can be distinguished into: i) the sale of Beauty and Fashion & Home products to Representatives (recorded in net sales); ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract, which include fees for shipping and handling (recorded in other revenue); and iii) other, which includes the sale of products to New Avon LLC ("New Avon") and royalties from the licensing of our name and products (recorded in other revenue). i) Sale of Beauty and Fashion & Home products to Representatives We generate the majority of our revenue through the sale of Beauty and Fashion & Home products. A Representative contacts her customers directly, selling primarily through our brochure (whether paper or online), which highlights new products and special promotions (or incentives) for each sales campaign. In this sense, the Representative, together with the brochure, are the "store" through which our products are sold. A brochure introducing a new sales campaign is typically generated every three to four weeks. A purchase order is processed, and the products are picked at a distribution center and delivered to the Representative usually through a combination of local and national delivery companies. Generally, the Representative then delivers the merchandise and collects payment from the customer for her or his own account. A Representative generally receives a refund of the price the Representative paid for a product if the Representative chooses to return it. A Representative Agreement, which outlines the basic terms of the agreement between Avon and the Representative, combined with a purchase order, constitutes a contract for the purposes of Accounting Standards Codification Topic ("ASC"), Revenue from Contracts with Customers ("ASC 606"). Revenue from Contracts with Customers We account for individual products and services separately in the contract if they are distinct (i.e., if a product or service is separately identifiable from the other items in the contract and if a Representative can benefit from the product or service on its own or with other resources that are readily available), which is recognized at a point in time, when control of a product is transferred to a Representative. In addition, we offer incentives to Representatives to support sales growth. Certain of these sales incentives are distinct promises to a Representative, and therefore are a separate performance obligation. As a result, revenue is allocated to the performance obligation for sales incentives and is deferred on the balance sheet until the associated performance obligations are satisfied. Typically included within a contract is variable consideration, such as sales returns and late payment fees. Revenue is only recorded to the extent it is probable that it will not be reversed, and therefore revenue is adjusted for variable consideration. Variable consideration is generally estimated using the expected value method, which considers possible outcomes weighted by their probability. Specifically for sales returns, a refund liability will be recorded for the estimated cash to be refunded for the products expected to be returned, and a returns asset will be recorded for the products which we expect to be returned and re-sold, each of these based on historical experience. The estimate of sales returns as well as the measurement of the returns asset and the refund liability is updated at the end of each month for changes in expectations regarding the amount of salvageable returns, reconditioning costs and any additional decreases in the value of the returned products. Late payment fees are recorded when the uncertainty associated with collecting such fees are resolved (i.e., when collected). The Representative generally receives a credit period of one sales campaign if they meet certain criteria; however, the specific credit terms are outlined in the Representative Agreement. Generally, the Representative remits payment during each sales campaign, which relates to the prior campaign cycle. The Representative is generally precluded from submitting an order for the current sales campaign until the accounts receivable balance past due for prior campaigns is paid; however, there are circumstances where the Representative fails to make the required payment. Our contracts with Representatives often include multiple promises to transfer products and/or services to the Representative, and determining which of these products and/or services are considered distinct performance obligations that should be accounted for separately. In addition, in assessing the recognition of revenue for the following performance obligations, management has exercised significant judgment in the following areas: estimation of variable consideration and the stand-alone selling prices ("SSP") of promised goods or services in order to determine and allocate the transaction price. Performance obligation - Avon products and appointment kits The Representative purchases Avon products and appointment kits through a purchase order. Avon offers appointment kits for purchase to Representatives, which may contain various Avon products. We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration as discussed above and the estimated SSP of other performance obligations as discussed below. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Performance obligation - Sales incentives Types of sales incentives include status programs, loyalty points, prospective discounts, and gift with purchase, among others. A Representative is eligible for certain status programs if specified sales levels are met. Status programs offer additional benefits such as free or discounted products and services. Loyalty points offer the option to redeem for additional Avon or other products or services. Prospective discounts are offered in some countries when certain sales levels are reached in a given time period. The revenue attributable to the prospective discount performance obligation is for the option to purchase additional product at a discounted amount. Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right (performance obligation) based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales in our Consolidated Statements of Operations at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. SSP represents the estimated market value, or the estimated amount that could be charged for that material right when the entity sells it separately in similar circumstances to similar customers. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, including for certain sales incentives, we determine the SSP using information that may include market prices and other observable inputs. ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract ("Representative fees") The purchase order in the contract with the Representative explicitly identifies activities that we will perform. This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees (discussed above). Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and we allocate consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in selling, general and administrative expenses in our Consolidated Statements of Operations. We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations. iii) Other revenue We also recognize revenue from the sale of products to New Avon, as part of a manufacturing and supply agreement, since the separation of the Company's North America business into New Avon on March 1, 2016, and royalties from the licensing of our name and products, in other revenue in our Consolidated Statements of Operations. Contract costs Incremental costs to obtain contracts, such as bonuses or commissions, are recognized as an asset if the entity expects to recover them. However, ASC 340-40, Other Assets and Deferred Costs, offers a practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. We elected the practical expedient and expense costs to obtain contracts when incurred because our amortization period is one year or less. Costs to fulfill contracts with Representatives are comprised of shipping and handling (including order processing) and payment processing services, which are expensed as incurred. The fees for these services are included in the transaction price. Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are generally high-quality, short-term money market instruments with an original maturity of three months or less and consist of time deposits with a number of U.S. and non-U.S. commercial banks and money market fund investments. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We classify inventory into various categories based upon its stage in the product life cycle, future marketing sales plans and the disposition process. We assign a degree of obsolescence risk to products based on this classification to estimate the level of obsolescence provision. Brochure Costs Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations. Brochure costs and associated fees that are presented as inventory were $4.1 at December 31, 2021 and $7.6 at December 31, 2020. Brochure costs and associated fees that are presented as prepaid expenses and other were $4.0 at December 31, 2021 and $6.7 at December 31, 2020. Brochure costs expensed to COGS and SG&A in 2021 amounted to $54.8 and $72.6, respectively. In 2020 brochure costs expensed to COGS and SG&A were $75.8 and $77.1, respectively. In 2019 brochure costs expensed to COGS and SG&A were of $101.1 and $93.9, respectively. The fees charged to Representatives for brochures sold recorded in Other revenue in 2021, 2020 and 2019 amounted to $49.3, $66.8 and $96.9, respectively. Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, to ten years. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Upon disposal of property, plant and equipment, the cost of the assets and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in earnings. Costs associated with repair and maintenance activities are expensed as incurred. Certain systems development costs related to the purchase, development and installation of computer software, and implementation costs incurred in a hosting arrangement that is a service contract, are capitalized and amortized over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. The other assets balance included unamortized capitalized software costs of $74.9 at December 31, 2021 and $76.0 at December 31, 2020. The amortization expense associated with capitalized software was $22.4, $24.5 and $24.7 for the years ended December 31, 2021, 2020 and 2019, respectively. We evaluate our property, plant and equipment and capitalized software for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated pre-tax undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate. Leases We determine if an arrangement is a lease at the lease commencement date. In addition to our lease agreements, we review all material new vendor arrangements for potential embedded lease obligations. The asset balance related to operating and finance leases is presented within right-of-use (ROU) asset and property, plant and equipment, respectively, on our Consolidated Balance Sheet. The short-term liability balance related to operating and finance leases is presented within other accrued liabilities on our Consolidated Balance Sheets. The long-term liability balance is presented within long-term operating lease liability and long-term debt on our Consolidated Balance Sheets for operating and finance leases, respectively. The lease liability is recognized based on the present value of the remaining fixed or in-substance fixed lease payments discounted using our incremental borrowing rates. We use a specific incremental borrowing rate for our material leases, which is determined based on the geography, nature of the asset and term of the lease. These rates are determined based on inputs provided by external banks and updated periodically. The lease liability includes the exercise of a purchase option only if we are reasonably certain to exercise as of the commencement date of the lease. The residual value guarantee amount is only included in the lease liability calculation to the extent payment is probable to the lessor as of the commencement of the lease. The ROU asset is calculated based on the lease liability adjusted for any lease payments paid to the lessor at or before the commencement date (i.e. prepaid rent) and initial direct costs incurred by Avon and excluding any lease incentives received from the Lessor. Variable lease payments are payments to the lessor not included in the lease liability calculation. We define variable lease payments as payments made by Avon to the lessor for the right to use a leased asset that vary because of changes in facts or circumstances (such as changes in an index rate, volume, usage, etc.) occurring after the lease commencement date, other than predetermined contractual changes due to the passage of time (for example, predetermined rent increase amounts that are set out in the contract). Variable lease payments or charges are accounted for as incurred. The lease term for purposes of lease accounting may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option as of the commencement date of the lease. For operating leases, the lease expense is recognized on a straight-line basis over the lease term. For finance leases, the Company amortizes the ROU asset on a straight-line basis and records interest expense on the lease liability created at lease commencement over the lease term. We account for our lease and non-lease components as a single component for most of our asset classes, and therefore both are included in the calculation of lease liability recognized on the Consolidated Balance Sheets. However, for certain lease asset classes related to identified embedded leases we account for the lease and non-lease components separately, and therefore, the non-lease component is not included in the lease liability. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet; we recognize lease expense for these leases over their lease term. Assets and Liabilities Held for Sale A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition. Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the quantitative test, as described below, is required. We perform the quantitative test to evaluate goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, that difference represents an impairment; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a discounted cash flow ("DCF") approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of to ten years and include an estimated terminal value at the end of the forecasted period. When determining the appropriate forecast period for the DCF approach, we consider the amount of time required before the reporting unit achieves what we consider a normalized, sustainable level of cash flows. The estimation of fair value utilizing a DCF approach includes numerous uncertainties which require significant judgment when making assumptions of expected growth rates and the selection of discount rates, as well as assumptions regarding general economic and business conditions, and the structure that would yield the highest economic value, among other factors. Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: •Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. •Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. •Changes in the fair value of a derivative that is designated as a hedge of a net investment in a foreign operation are recorded in foreign currency translation adjustments within AOCI. •Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized in earnings in other expense, net in our Consolidated Statements of Operations. We present the earnings effect of the hedging instrument in our Consolidated Statements of Operations in the same income statement line item in which the earnings effect of the hedged item is reported. We classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. For derivatives designated as cash flow hedges, if we conclude that the hedging relationship is perfectly effective at inception, a detailed effectiveness assessment in each period is not required as long as (i) the critical terms of the hedging instrument completely match the related terms of the hedged item (ii) it is considered probable that the counterparties to the hedging instrument and the hedged item will not default, and (iii) the hedged cash flows remain probable. If the conditions above are not met, we will assess prospective and retrospective effectiveness using the cumulative dollar-offset method, which compares the change in fair value or present value of cash flows of the hedging instrument to the changes in the fair value or present value of the cash flows of the hedged item. If the result of the quantification demonstrates that the hedge is still highly effective (meaning that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item), we will revert to qualitative assessments of hedge effectiveness in subsequent periods if an expectation of high effectiveness on a qualitative basis for subsequent periods can be reasonably supported. If effectiveness is not within the 80% to 125% range, hedge accounting will be discontinued, and changes in the fair value of the hedging instrument will be recorded in earnings from the date the hedge is no longer considered highly effective. Deferred Income Taxes Deferred income taxes have been provided on items recognized for financial reporting purposes in different periods than for income tax purposes using tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to reduce our deferred tax assets to an amount that is "more likely than not" to be realized. The ultimate realization of our deferred tax assets depends upon generating sufficient future taxable income during the periods in which our temporary differences become deductible or before our net operating loss and tax credit carryforwards expire. See Note 9, Income Taxes for more information. In accordance with guidance issued by the Financial Accounting Standards Board ("FASB"), we are choosing to treat the U.S. income tax consequences of Global Intangible Low-Taxed Income ("GILTI") as a period cost. As a result, at December 31, 2021, no deferred income taxes have been provided. Uncertain Tax Positions We recognize the benefit of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. We record interest expense and penalties payable to relevant tax authorities in income taxes in our Consolidated Statements of Operations. SG&A Expenses SG&A expenses include costs associated with selling; marketing; distribution, including shipping and handling costs; advertising; net brochure costs; research and development; information technology; and other administrative costs, including finance, legal and human resource functions. Shipping and Handling Shipping and handling costs are expensed as incurred and amounted to $339.4 in 2021, $373.1 in 2020 and $432.1 in 2019. Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $67.8 in 2021, $59.9 in 2020 and $72.9 in 2019. Research and Development Research and development costs are expensed as incurred and amounted to $39.3 in 2021, $36.5 in 2020 and $40.6 in 2019. Research and development costs include all costs related to the design and development of new products such as salaries and benefits, supplies and materials and facilities costs. Share-based Compensation Where applicable, share-based payments to employees are recognized in the financial statements based on their fair value at the date of grant. If applicable, we use a Monte-Carlo simulation to calculate the fair value of performance restricted stock units with market conditions and the fair value of premium-priced stock options. We account for forfeitures on share-based payments as they occur. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment. Where an award is cancelled, any unamortized compensation cost is expensed immediately. Subsequent to the Transaction with Natura &Co, our employees are considered employees of the parent company for purposes of applying ASC 718 Compensation—Stock Compensation. Share-based payments made by Natura &Co to our employees are recognized in the financial statements based on their fair value at the date of grant. Restructuring Expense We record the estimated expense for our restructuring initiatives, such as our Transformation Plan, Open Up & Grow and Avon Integration, when such costs are deemed probable and estimable, when approved by the appropriate corporate authority and by accumulating detailed estimates of costs for such plans. These expenses include the estimated costs of employee severance and related benefits, inventory write-offs, impairment or accelerated depreciation of property, plant and equipment and capitalized software, and any other qualifying exit costs. Such costs represent our best estimate, but require assumptions about the programs that may change over time, including attrition rates. Estimates are evaluated periodically to determine whether an adjustment is required. Pension and Postretirement Expense Pension and postretirement expense is determined based on a number of actuarial assumptions, which are generally reviewed and determined on an annual basis. These assumptions include the discount rate applied to plan obligations, the expected rate of return on plan assets, the rate of compensation increase of plan participants, price inflation, cost-of-living adjustments, mortality rates and certain other demographic assumptions, and other factors. Actual results that differ from assumptions are accumulated and amortized to expense over future periods and, therefore, generally affect recognized expense in future periods. We recognize the funded status of pension and other postretirement benefit plans in our Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over - and five-year periods. We use a December 31 measurement date for all of our employee benefit plans. Service cost is presented in SG&A in our Consolidated Statements of Operations. The components of net periodic benefit costs other than service cost are presented in other expense, net in our Consolidated Statements of Operations. Contingencies We determine whether to disclose and/or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable. We record loss contingencies when it is probable that a liability has been incurred and the amount of loss is reasonably estimable.
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New Accounting Standards |
12 Months Ended |
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Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards New Accounting Standards Implemented Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements. ASU 2016-13, Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held. We adopted this new accounting guidance effective January 1, 2020, using a modified retrospective transition approach. The adoption did not have a material impact on our condensed consolidated financial statements and disclosures and did not significantly impact the Company’s accounting policies or estimation methods related to the allowance for doubtful accounts. The adoption resulted in a cumulative effect decrease to retained earnings of approximately $2 to reflect a change in the allowance for doubtful accounts. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Early adoption is permitted. The amendments in this Update are effective for fiscal years ending after December 15, 2020, therefore we adopted this standard effective December 31, 2020. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2017-04, Intangibles - Goodwill and other (Topic 350) In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-04 Intangibles - Goodwill and other, which simplifies the test for goodwill impairment. This Update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The guidance requires prospective adoption. We adopted the guidance for the goodwill impairment test that we have conducted since 2020, and adoption of the guidance did not have a significant impact on our financial statements. ASU 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes, which is intended to simplify the accounting standard and improve the usefulness of information provided in the financial statements. We adopted this new accounting guidance as of January 1, 2021. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company has implemented a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR and, as a result, has elected to apply the optional expedient included in ASU 2020-04 to account for modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, to be accounted for by prospectively adjusting the effective interest rate. Accounting Standards to be 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 is 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 and Assets and Liabilities Held for Sale |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Assets and Liabilities Held for Sale | Discontinued Operations and Assets and Liabilities Held for Sale Discontinued Operations On December 17, 2015, the Company entered into definitive agreements with affiliates controlled by Cerberus. The agreements resulted in the separation of the Company's North America business, which represented the Company's operations in the United States, Canada and Puerto Rico, from the Company into The Avon Company, formerly New Avon, ("New Avon") a privately-held company majority-owned and managed by Cerberus NA Investor LLC (an affiliate of Cerberus). The Company retained an investment of 19.9% ownership interest in New Avon. These transactions closed on March 1, 2016; from that date, resolution of contingent liabilities 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. In April 2019, we signed an agreement with LG Household & Health Care Ltd. to sell our 19.9% ownership interest in New Avon, which was completed during August 2019. Refer to the Divestitures section below for information relating to the sale of New Avon. The Company incurred costs during the years ended December 31, 2021, 2020 and 2019 following the resolution of certain contingent liabilities related to its ownership and operation of the North America business prior to its separation into New Avon. The major classes of financial statement components comprising the loss on discontinued operations, net of tax for New Avon are shown below:
Assets and Liabilities Held for Sale The major classes of assets and liabilities comprising held for sale assets and held for sale liabilities on the Consolidated Balance Sheet at December 31, 2021 and December 31, 2020 are shown in the following table.
At December 31, 2020, assets held for sale include one property and one business in Avon International segment and one property in the Avon Latin America Segment. At December 31, 2021, assets held for sale include one property in the Avon Latin America Segment. Divestitures 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. Spanish Distribution Center In September 2021, we completed the sale of our Spanish Distribution Center for a total selling price of $14.7, the proceeds of which are presented as investing activities in the Consolidated Statement of Cash Flows. In the third quarter of 2021 we recognized a gain of $8.3 before and $6.2 after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds, the carrying value of the branch of the Spanish Distribution Center on the date of sale, and associated disposal costs. Italy Branch 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 second quarter of 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 the branch of the Italian business on the date of sale. Avon Shanghai In August 2020, we signed an agreement to sell Avon Management Shanghai ("Avon Shanghai") to an affiliate of Natura &Co for a selling price of $2.9. In August 2020, we completed the sale of the entity and received proceeds of $2.9. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows as the sale was to an affiliate under common control by Natura &Co. The gain on sale of $1.4 was recorded directly to Retained earnings. Hungary Distribution Center in Gödöllő In April 2020, we signed an agreement to sell the Hungary Distribution Center in Gödöllő for a selling price of $3.4 and received a deposit of $.3. In June 2020, we completed the sale of the asset and the remaining proceeds of $3.1 were received. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2020, we recorded a gain of $.1 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the proceeds and the carrying value of the Hungary Distribution Center on the date of sale. China Wellness Plant In March 2020, we signed an agreement to sell the China Wellness Plant for a total selling price of $6.6 before expenses. In the six-month period ended June 30, 2020, we received a cash deposit for the selling price of $6.6, which included $3.3 of restricted cash held in escrow. In August 2020, we completed the sale of the China Wellness Plant and $3.3 of restricted cash in escrow was transferred to Avon. In the third quarter of 2020, we recorded a gain of $1.4 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the net proceeds (after associated expenses) and the carrying value of the China Wellness Plant on the date of sale. Rye Office On June 26, 2019, we completed the sale of the Rye office for a selling price of $23.2, less expenses of approximately $.8, resulting in proceeds of $22.4. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2019, we recorded a gain on sale of $9.9 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain recorded represents the difference between the proceeds and the carrying value of the Rye office on the date of sale. Malaysia Maximin On May 9, 2019, we completed the sale of all of our equity interests in Maximin Corporation Sdn Bhd ("Malaysia Maximin") for a total selling price of $7.8. The cash proceeds of $7.6, net of expenses, are presented within investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2019, we recorded a gain on sale of $3.3 before tax, which is reported separately in the Consolidated Statements of Operations, and $3.0 after tax. The gain recorded represents the difference between the proceeds and the carrying value of Malaysia Maximin on the date of sale. China manufacturing On February 15, 2019, we completed the sale to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd. ("TheFaceShop"), of all of the equity interests in Avon Manufacturing (Guangzhou), Ltd. for a total selling price of $71.0, less expenses of approximately $1.1. The selling price included $23.5 relating to outstanding intercompany loans payable to Avon Manufacturing (Guangzhou), Ltd. from other Avon subsidiaries that was presented as financing activities in the Consolidated Statement of Cash Flows, this was subsequently settled in April 2019. The cash proceeds of $46.4, net of loan amounts, are presented as investing activities in the Consolidated Statement of Cash Flows, which includes $7.6 of restricted cash as of December 31, 2019. This was subsequently reclassified to short-term restricted cash in the three month period ended March 31, 2020. The restriction on this cash was removed in the three-month period ended March 31, 2021. In the first quarter of 2019, we recorded a gain on sale of $10.3 before tax, which is reported separately in the Consolidated Statements of Operations, and $8.2 after tax, representing the difference between the proceeds, including the settlement of the intercompany loans, and the carrying value of Avon Manufacturing (Guangzhou), Ltd. on the date of sale. New Avon In April 2019, we signed an agreement with LG Household & Health Care Ltd. to sell our 19.9% ownership interest in New Avon. During August 2019, we completed the sale of New Avon for a selling price of $24.5. Expenses were approximately $1.1, resulting in cash proceeds of $23.4. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the third quarter of 2019, we recorded a gain on sale of $26.8 before and after tax, which is reported in the Consolidated Statements of Operations as Gain on sale of business/asset. The gain recorded represents the total proceeds and the release of AOCI of $3.4. Our recorded investment balance in New Avon at August 14, 2019 was zero. Merger with Natura Cosméticos S.A.,On May 22, 2019, the Company entered into the Agreement and Plan of Mergers (as amended by Amendment Number One to Agreement and Plant of Mergers, dated as of October 3, 2019, and as further amended by Amendment Number Two to Agreement and Plan of Mergers, dated as of November 5, 2019, the "Merger Agreement") among the Company, Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) ("Natura Cosméticos"), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima), Nectarine Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Natura &Co Holding ("Merger Sub I"), and Nectarine Merger Sub II, Inc., a Delaware corporation and a direct wholly owned subsidiary of Merger Sub I ("Merger Sub II"), pursuant to which (i) Natura &Co Holding, after the completion of certain restructuring steps, holds all issued and outstanding shares of Natura Cosméticos, (ii) Merger Sub II merged with and into the Company, with the Company surviving the merger (the "First Merger") and (iii) Merger Sub I merged with and into Natura &Co Holding (the "Second Merger"), with Natura &Co Holding surviving the merger and as a result of which the Company and Natura Cosméticos became wholly owned direct subsidiaries of Natura &Co Holding (collectively, the "Transaction"). The Transaction was consummated on January 3, 2020, and at this time, the Company became a wholly owned direct subsidiary of Natura &Co Holding. In connection with the Transaction, trading of the Company’s stock was suspended by the NYSE, and the Company’s common stock was subsequently delisted and deregistered. On completion of the Transaction, each share of the Company’s common stock issued and outstanding immediately prior to the consummation of the Transaction was converted into the ultimate right to receive, (i) 0.300 validly issued and allotted, fully paid-up American Depositary Shares of Natura &Co Holding, ("Natura &Co Holding ADSs") against the deposit of two shares of common stock of Natura &Co Holding ("Natura &Co Holding Shares", subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding ADSs or (ii) 0.600 validly issued and allotted, fully paid-up Natura &Co Holding Shares, subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding Shares. The Company’s Series C Preferred Stock held by Cerberus Investor were converted to common stock prior to consummation of the Transaction and were therefore automatically converted into common stock of Natura &Co; see Note 17, Series C Convertible Preferred Stock. Natura &Co Holding Shares are listed on the B3 S.A. - Brasil, Bolsa, Balcão stock exchange, and Natura &Co Holding ADSs are listed on the NYSE. Additionally, upon the consummation of the Transaction, Avon common stock ceased to be traded on the NYSE. In January 2020, subsequent to the Transaction, the Company restated the certificate of incorporation. The certificate of incorporation was restated to effect a change in capitalization of the Company by changing the number of authorized shares of stock from 1,525,000,000 shares (of which (i) 1,500,000,000 shares, par value $0.25 per share, are common stock and (ii) 25,000,000 shares, par value $1.00 per share, are preferred stock) to 1,000 shares of common stock, par value $0.01 per share. As a result, all of the issued and outstanding common stock of the Company, being 550,890,788 were canceled and converted into 101.34 common stock, par value $0.01 per share, and all outstanding treasury shares were canceled. The Company incurred costs of $46 and $44 in relation to the Transaction, primarily professional fees during the years ended December 31, 2020 and 2019, respectively. During January 2020, it was announced that the employment of certain senior officers of the Company would be terminated, in connection with the Transaction. The Company incurred severance of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. As a result of the Transaction, the Company made payments of approximately $26 related to the settlement of stock options. In addition, any remaining restricted stock units and performance restricted stock units were exchanged for awards of Natura &Co Holding. The replacement awards contain substantially the same terms and conditions of the original awards except for the removal of the performance conditions. As such, the replacement awards contain only a service vesting condition. On consummation of the Transaction, a deferred compensation scheme relating to former employees of the Company became payable which resulted in extinguishing the liability and a cash outflow of approximately $12. In January 2020, upon completion of the Transaction, the Company’s revolving credit facility was canceled, triggered by change in control provisions. As a result, debt issuance costs of $7.8 were written off. As a result of the Transaction, the Company will no longer have access to certain tax attributes of approximately $546 to approximately $616 in certain taxing jurisdictions. These tax attributes had been formerly reflected as deferred tax assets which were subject to a full valuation allowance and as a result, there was no impact to net income in 2020 from the write-off of the deferred tax asset and the associated valuation allowances.
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Related Party Transactions |
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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, all of which were on an arm's-length basis. There are no other related party transactions.
(1) During the second quarter of 2018, the Company entered into an agreement to loan the Instituto Avon, an independent non-government charitable organization in Brazil, R$12 million (Brazilian real) for an unsecured 5-year term at a fixed interest rate of 7% per annum, to be paid back in five equal annual installments. The Instituto Avon was created by an Avon subsidiary in Brazil, with the board and executive team comprised of Avon Brazil management. The purpose of the loan was to provide the Instituto Avon with the means to donate funds to Fundação Pio XII (a leading cancer prevention and treatment organization in Brazil and owner of the Hospital do Câncer de Barretos), in order to invest in equipment with the objective of expanding breast cancer prevention and treatment. During the fourth quarter of 2021, the loan was repaid in full. (2) 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 $25.2 and $6.7 associated with these agreements during the years ended December 31, 2021 and 2020, respectively. The Company recorded gross profit from related party of $2.8 and $.8 associated with these agreements during the years ended December 31, 2021 and 2020, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements. (3) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue from related party of $1 associated with these agreements during the year ended December 31, 2021. The Company recorded gross profit from related party of $1 associated with these agreements during the year ended December 31, 2021. (4) The payable to Natura &Co relates to the vesting and settlement of share based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 long-term employee incentive program which vested and were automatically exercised in March 2021. (5) Loans from affiliates of Natura &Co Holding at December 31, 2021 of $1,108.0 include $736.3 outstanding under a Promissory Note between Avon Beauty Limited and a subsidiary of Natura &Co Holding, and $207.3 outstanding under a Promissory Note with a subsidiary of Natura &Co Holding and 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. Loans from affiliates of Natura &Co Holding at December 31, 2020 of $1,008.6 include $965 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding. Loans from affiliates of Natura &Co Holding at December 31, 2020 also include $41.6 outstanding under the Revolving Credit Facility between Avon Luxembourg and Natura &Co International S.à r.l.. See Note 15, Debt and Other Financing, for further information relating to these loans. (6) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$.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. (7) 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.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of revenue In the following tables, 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:
* 2021 includes approximately $22, to reflect the impact of certain Brazil indirect taxes which were recorded in product sales, in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information. ** 2019 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $68, in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information. 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, as applicable, current conditions and reasonable and supportable forecasts that affect collectability, including seasonality and changing trends and the impact of COVID-19. 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 December 31, 2021 and 2020:
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Inventories |
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Inventories | InventoriesInventories at December 31 consisted of the following:
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Debt and Other Financing |
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Debt and Other Financing | Debt and Other Financing Debt Debt at December 31 consisted of the following:
The carrying value of long-term debt is presented net of debt issuance costs and includes any related discount or premium, as applicable. Unsecured Notes In March 2013, we issued, in a public offering, $500.0 principal amount of 4.60% Notes due March 15, 2020 (the "4.60% Notes"), $500.0 principal amount of 5.00% Notes due March 15, 2023 (the "5.00% Notes") and $250.0 principal amount of 6.95% Notes due March 15, 2043 (the "6.95% Notes") (collectively, the "2013 Notes"). In March 2008, we issued $350.0 principal amount of 6.50% Notes due March 1, 2019 (the "6.50% Notes"). Interest on the 2013 Notes is payable semi-annually on March 15 and September 15 of each year. The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the credit ratings assigned to the 2013 Notes with 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. In August 2016, we completed cash tender offers which resulted in a reduction of principal of $68.1 of our 6.50% Notes and $50.1 of our 4.60% Notes. In the fourth quarter of 2016, we repurchased $44.0 of our 6.50% Notes, $40.0 of our 4.60% Notes, $11.1 of our 5.00% Notes and $6.2 of our 6.95% Notes. In June 2018, we prepaid the remaining principal amount of our 6.50% Notes. The prepayment price was equal to the remaining principal amount of $237.8, plus a make-whole premium of $6.2 and accrued interest of $4.6. In connection with the prepayment, we incurred a loss on extinguishment of debt of $2.9 before tax in the second quarter of 2018 consisting of the $6.2 make-whole premium, and the write-off of $.3 of debt issuance costs and discounts related to the initial issuances of the notes that were prepaid, partially offset by a write off of a deferred gain of $3.6 associated with the March 2012 interest-rate swap agreement termination. In the fourth quarter of 2018, we repurchased $23.0 of our 4.60% Notes and $27.0 of our 5.00% Notes. The aggregate repurchase price was equal to the principal amount of the notes, less a discount received of $2.4 and accrued interest of $.7. In connection with these repurchases of debt, we incurred a gain on extinguishment of debt of $2.1 before tax in the fourth quarter of 2018 consisting of the $2.4 discount received for the repurchases, partially offset by $.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased. In July 2019, we repurchased $274.8 of our 4.60% Notes by way of a tender offer. The aggregate repurchase price was equal to the principal amount of $274.8 less a discount received of $.6, plus an early tender premium of $8.2 and accrued interest of $5.4. In December 2019, we prepaid the remaining principal amount of our 4.6% Notes. The prepayment price was equal to the remaining principal amount of $112.2, plus a make-whole premium of $1.4 and accrued interest of $1.7. In connection with these repurchases of debt, we incurred a loss on extinguishment of debt of $8.1 before tax in the third quarter and $1.5 before tax in the fourth quarter of 2019. In September 2020, we repurchased $27.8 of our 6.95% Notes due March 15, 2043. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $3.8 and accrued interest of $1.2. In connection with the repurchase, we incurred a loss on extinguishment of debt of $4.1 before tax in the third quarter of 2020 consisting of the $3.8 premium paid for the repurchases, and $.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased. At December 31, 2021 and 2020, the carrying values of our unsecured notes were comprised of the following:
The indentures governing our outstanding notes described above contain certain customary covenants, customary events of default, cross-default provisions and change in control provisions. In July and September 2019, bondholder consents for the 5% Notes and the 6.95% Notes, respectively, were obtained to amend the definition of "change of control" to permit the acquisition of Avon by Natura. No repayment of notes was triggered by the Transaction with Natura &Co. At December 31, 2021 and 2020, we had recorded accrued interest on our unsecured notes of $14.7 and $15.2, respectively, which is classified within other accrued liabilities in our Consolidated Balance Sheets. Senior Secured Notes In August 2016, Avon International Operations, Inc. ("AIO"), a wholly-owned subsidiary of the Company, issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $500.0 in aggregate principal amount of 7.875% Senior Secured Notes, with a maturity date of August 15, 2022 (the "2016 Notes"). In July 2019, Avon International Capital, p.l.c. ("AIC"), a wholly-owned subsidiary of the Company, issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $400.0 in aggregate principal amount of 6.5% Senior Secured Notes, with a maturity date August 15, 2022 (the "2019 Notes"). In November 2020, in connection with the Natura & Co Promissory Note, we redeemed the outstanding principal amount of our 2016 Notes due August 15, 2022 and the outstanding principal amount of our 2019 Notes due August 15, 2022. With respect to the 2016 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $500, plus a premium of $9.8 and accrued interest of $8.4. With respect to the 2019 Notes, the aggregate redemption amount paid was equal to the outstanding principal amount of $400, plus a premium of $7.9 and accrued interest of $5.6. In connection with the redemption, we incurred a loss on extinguishment of debt of $25.6 before tax in the fourth quarter of 2020 consisting of the $17.7 premiums, and the write-off of $7.9 of debt issuance costs related to the initial issuances of the notes that were redeemed. Certain hedging and cash management obligations of the Company and certain subsidiaries are secured by first priority security interests in substantially all of its assets, subject to certain exceptions. At December 31, 2021 and 2020, the carrying values of our senior secured notes was nil. Maturities of Long-Term Debt Annual maturities of long-term debt, which includes our notes, loans from affiliates of Natura &Co and capital leases outstanding at December 31, 2021, are as follows:
Other Financing 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 may be used for working capital and other general corporate purposes (the "Facility"). Borrowings under the Facility bear interest at a rate per annum of LIBOR plus a margin determined on an arm's length basis, and the Facility is to mature on May 31, 2022. On July 1, 2021, the Company sold Avon Luxembourg to a subsidiary of Natura &Co Holding and the Company no longer has access to this facility. Related Party loans In November 2020, AIO entered into a Promissory Note with a subsidiary of Natura &Co Holding S.A. 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 (“the Natura &Co Loan”). 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. As at December 31, 2021, $207 was outstanding under the Natura &Co Loan and $736 was outstanding under the loan maturing in 2028 which is between Avon Beauty Limited, and Natura &Co Luxembourg Holdings S.à r.l. ("Natura &Co Lux Loan"). In addition, loans from affiliates of Natura &Co Holding at December 31, 2021 of $164 includes a number 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 S.A. on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding. Other short-term financing At December 31, 2021, we utilized approximately $33 of short-term financing from third-party banks across multiple markets bearing an average interest rate of per annum of 7.7%. Revolving Credit Facility In June 2015, AIO, a wholly-owned subsidiary of the Company, entered into a five-year $400.0 senior secured revolving credit facility (the "2015 facility"). In February 2019, AIC, a wholly-owned subsidiary of the Company, entered into a three-year €200.0 senior secured revolving credit facility (the "2019 facility"). The 2019 facility replaced the 2015 facility and the 2015 facility was terminated at such time. In the first quarter of 2019, $2.0 was recorded for the write-off of unamortized issuance costs related to the 2015 revolving credit facility. In the first quarter of 2019, the Company capitalized $11.0 of issue costs relating to the new revolving credit facility; the cash outflow is presented in other financing activities within the Consolidated Statement of Cash Flows. As of December 31, 2019, there were no amounts outstanding under the 2019 facility and on January 3, 2020, the facility was automatically cancelled upon change of control, and as a result $7.8 was of unamortized issuance costs were written off, see Note 21, Agreement and Plan of Mergers with Natura Cosméticos S.A., to the Consolidated Financial Statements included herein. Letters of Credit At December 31, 2021 and 2020, we also had letters of credit outstanding totaling $11.3 and $16.9, respectively. These balances primarily relate to a letter of credit issued to a lessor of certain equipment, a lease which was transferred to New Avon in connection with the separation of the Company's North America business, and letters of credit which guarantee various insurance activities. Long-Term Credit Ratings Our long-term credit ratings are: Moody’s ratings of Stable Outlook with Ba3 for corporate family debt; S&P ratings of Stable Outlook with BB- for corporate family debt and senior unsecured debt; and Fitch rating of Stable Outlook with BB for corporate family and unsecured debt. Our credit ratings remain below investment grade which may impact our ability to access financing transactions on favorable terms.
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Accumulated Other Comprehensive Income (Loss) |
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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 during 2021 and 2020:
(1) Gross amount reclassified to other expense, net, and related taxes reclassified to income taxes. A foreign exchange net loss of $5.3 for 2021, a net gain of $8.8 for 2020, and a net gain of $.8 for 2019, resulting from the translation of actuarial losses and prior service cost recorded in AOCI, are included in changes in foreign currency translation adjustments in our Consolidated Statements of Comprehensive Income (Loss).
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income from continuing operations, before taxes for the years ended December 31 was as follows:
The provision for income taxes for the years ended December 31 was as follows:
The continuing operations effective tax rate for the years ended December 31 was as follows:
In 2021, the Company’s effective tax rate continues to be impacted by the country mix of earnings. The country mix includes losses in certain jurisdictions that cannot be benefited and income tax expense in certain jurisdictions where taxable income is generated. In 2021, the Company adjusted its reserves for uncertain tax positions associated with current year activity and events, primarily due to the expiration of statutes of limitation. Included in Tax on Foreign Income is the effect of tax rate changes including the increase in the United Kingdom tax rate from 19% to 25% which resulted in a deferred tax benefit of $89. In 2021, the Net Change in Valuation Allowances line in the rate reconciliation above includes $164 of net benefits that could not be recognized. The $164 of benefits which were not recognized consisted of the following key items: 1) $71 of increased Valuation Allowances due to additional Deferred Tax Assets generated during 2021 which cannot be benefitted; 2) $89 of increased Valuation Allowances on Deferred Tax Assets due to a tax rate change offsetting equivalent and associated accruals of deferred tax benefits reflected in the “Tax on Foreign Income” line above; and 3) $4 of increased Valuation Allowances due to changes in judgment regarding the ability to use certain Deferred Tax Assets which existed at the beginning of 2021. In 2020, the Company’s effective tax rate continues to be impacted by the country mix of earnings. The country mix includes losses in certain jurisdictions that cannot be benefited and income tax expense in certain jurisdictions where taxable income is generated. In 2020, the Company adjusted its reserves for uncertain tax positions associated with current year activity and events, primarily due to the expiration of statutes of limitation. Included in Tax on Foreign Income is the effect of tax rate changes including the increase in the United Kingdom tax rate from 17% to 19% which resulted in a deferred tax benefit of $21.0. Included in the Re-organizations line is the effect of a true-up for a change in estimate of $30.5 regarding the amount of net operating losses generated as part of the 2018 restructuring transactions. In 2020, the Net Change in Valuation Allowances line in the rate reconciliation above includes $65.1 of net benefits that could not be recognized. The $65.1 of benefits which were not recognized consisted of the following key items: 1) $69.9 of increased Valuation Allowances due to additional Deferred Tax Assets generated during 2020 which cannot be benefitted; 2) $21.0 of increased Valuation Allowances on Deferred Tax Assets due to a tax rate change offsetting equivalent and associated accruals of deferred tax benefits reflected in the “Tax on Foreign Income” line above; 3) $4.7 of increased Valuation Allowances due to changes in judgment regarding the ability to use certain Deferred Tax Assets which existed at the beginning of 2020; and 4) $30.5 decrease which offsets the true-up effect for the change in estimate of the benefit of net operating losses generated as part of the 2018 restructuring transactions. In 2019, as a result of continued business model changes related to the move of the Company’s headquarters from the US to the UK, the Company recognized one-time tax charges of $256.9 reflected in the "Reorganizations" line above associated primarily with the rationalization and re-alignment of the Company’s legal entity structure which resulted in the use of approximately $256.9 of Foreign Tax Credits, deferred tax assets and other tax attributes. In 2019, the Net Change in Valuation Allowances line in the rate reconciliation above includes: 1) $232.5 of decreases to the Valuation Allowances primarily associated with the utilization of Foreign Tax Credits and deferred tax assets offsetting the one-time tax charges of $256.9 noted in the "Reorganizations" line above; and 2) $66.5 of decreases due to a tax rate change offsetting equivalent and associated write-offs of deferred tax assets reflected in the “Tax on Foreign Income” line above. Deferred tax assets (liabilities) at December 31 consisted of the following:
As of December 31, 2021, excluded from the above table are approximately $1,638 of deferred tax assets for Avon Luxembourg Holdings S.à r.l. and subsidiaries that previously were offset with a full valuation allowance. As discussed in Note 3. Discontinued Operations and Assets and Liabilities Held for Sale, Avon Luxembourg Holdings S.à r.l. and subsidiaries were divested as of July 1, 2021. 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 $67 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. As of December 31, 2020, excluded from the above table are approximately $635 of worthless deferred tax assets that previously were offset with a full valuation allowance. Approximately $465 of these deferred tax assets cannot be used due to change of control limitation resulting from the merger with Natura. The remaining $170 is primarily associated with U.S. foreign tax credits of $70 and state net operating/capital losses of $100 which the Company has determined that use of such deferred tax assets would be remote. Deferred tax assets (liabilities) at December 31 were classified as follows:
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 December 31, 2021, the COVID-19 pandemic is negative evidence the Company must consider. As of December 31, 2021, the increase in negative evidence due to COVID-19, primarily lower revenue and profit performance, resulted in approximately $8 of valuation allowances being recorded against deferred tax assets. 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. During 2021, excluding the reductions associated with the divested deferred tax assets noted above, the Company recorded a net increase in its valuation allowances of $126. The $126 of benefits primarily relates to current year losses that could not be benefitted and the effects of currency translation. During 2020, excluding the reductions associated with the worthless deferred tax assets noted above, the Company recorded a net increase in its valuation allowances of $2.6. The $2.6 includes the effect of $65.1 of benefits related to operations and other activity which could not be recognized as noted in the rate reconciliation above offset with the write-off of $81.8 of Valuation Allowance associated with Deferred Tax Assets which can no longer be utilized due to change of control restrictions resulting from the Natura merger and $19.4 of increases primarily driven by currency translation and other miscellaneous effects. At December 31, 2021, the valuation allowance primarily represents amounts for certain foreign tax loss carryforwards, substantially all U.S. deferred tax assets and certain other foreign deferred tax assets. The recognition of deferred tax assets was based on the evaluation of current and estimated future profitability of the operations, reversal of deferred tax liabilities and the likelihood of utilizing tax credit and/or loss carryforwards. Tax planning strategies were also considered and evaluated as support for the realization of deferred tax assets. Where these sources of income existed along with sufficient positive evidence that indicated it was more likely than not that such sources of income could be relied upon, then the deferred tax assets were not reduced by a valuation allowance. At December 31, 2021, we had recognized deferred tax assets of $119.7 relating to tax credit carryforwards (U.S. foreign tax credits, research and experimentation credits and other tax credits) for which a valuation allowance of $119.7 has been provided. The tax credit carryforwards consist of U.S. foreign tax credits of $87.6 which are subject to expiration between 2022 and 2027; U.S. research and experimentation credits of $23.7 which are subject to expiration between 2027 and 2042 and other tax credits of $8.4 which are subject to expiration between 2022 and 2033. At December 31, 2021, we had recognized deferred tax assets of $393.7 relating to foreign loss carryforwards for which a valuation allowance of $322.4 has been provided and for which $22.4 has also been offset in accordance with ASU2013-11. At December 31, 2021, we had recognized deferred tax assets of $31.4 relating to federal loss carryforwards for which a valuation allowance of $31.4 has been provided At December 31, 2021 we had foreign tax loss carryforwards of $2,599.0, of which $1,059.2 are not subject to expiration and $1,539.8 are subject to expiration between 2022 and 2051. At December 31, 2021, we had federal tax loss carryforwards of $149.3 which are not subject to expiration. At December 31, 2021, we continue to assert that substantially all of our foreign earnings are indefinitely reinvested. At December 31, 2021 the company’s undistributed foreign earnings of approximately $1.2 billion and would generate an approximate $7.9 of income tax if repatriated from the local subsidiaries. Uncertain Tax Positions At December 31, 2021, we had $251.7 of total gross unrecognized tax benefits of which approximately $95.8 would favorably impact the provision for income taxes, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. We accrued interest and penalties, net of taxes of $0.5 and $1.0, for the years ended December 31, 2021 and 2020, respectively, and reversed previously recorded expenses for interest and penalties, net of tax of $1.0 for the year ended December 31, 2019. At December 31, 2021 and 2020 we had $7.1 and $6.8, respectively, recorded for interest and penalties, net of tax benefit. The unrecognized tax benefits, including interest and penalties, were classified within long-term income taxes in our Consolidated Balance Sheets. We file income tax returns in the U.S. and foreign jurisdictions. As of December 31, 2021, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows:
We anticipate that it is reasonably possible that the total amount of unrecognized tax benefits could increase in the range of $5 to $10 within the next twelve months.
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Financial Instruments and Risk Management |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Risk Management | Financial Instruments and Risk Management 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. The master agreements governing our derivative contracts generally contain standard provisions that could trigger early termination of the contracts in certain circumstances. 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:
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, 2020:
Interest Rate Risk Approximately 5% and 4% of our debt portfolio at December 31, 2021 and 2020, 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 December 31, 2021, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $171 for various currencies, none of which were designated as cash flow hedges. We may use foreign exchange forward contracts to manage foreign currency exposure of certain intercompany loans. The change in fair value of these contracts is immediately recognized in earnings and substantially offsets the foreign currency impact recognized in earnings relating to the associated intercompany loans. During the years ended December 31, 2021 and 2020, we recorded losses of $.3 and $5.7, respectively, in other expense, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. Credit Risk of Financial Instruments Our foreign currency derivatives are typically comprised of over-the-counter forward contracts, swaps or options with major international financial institutions. Although our theoretical credit risk is the replacement cost at the then estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote and that such losses, if any, would not be material. Non-performance of the counterparties on the balance of all the foreign exchange agreements would not have resulted in any write-off at December 31, 2021. In addition, in the event of non-performance by such counterparties, we would be exposed to market risk on the underlying items being hedged as a result of changes in foreign exchange rates.
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Fair Value |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Assets and Liabilities Recorded at Fair Value The fair value measurement provisions required by GAAP establish a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: •Level 1 - Quoted prices in active markets for identical assets or liabilities. •Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. •Level 3 - Unobservable inputs based on our own assumptions. 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 at December 31, 2021:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2020:
Other than our defined benefit pension and postretirement plan assets, the assets and liabilities measured at fair value on a recurring basis are comprised of foreign exchange forward contracts (see Note 10, Financial Instruments and Risk Management) and available-for-sale securities, which were immaterial at December 31, 2021 and 2020. See Note 13, Employee Benefit Plans, for the fair value hierarchy for our plan assets. The available-for-sale securities include securities held in a trust in order to fund future benefit payments for non-qualified retirement plans (see Note 13, Employee Benefit Plans). 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 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 December 31 consisted of the following:
(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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Share-Based Compensation Plans |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans The Avon Products, Inc. 2013 Stock Incentive Plan, as amended and restated (the "2013 Plan") and the Avon Products, Inc. 2016 Omnibus Incentive Plan (the "2016 Plan"), which are shareholder-approved plans, provide for several types of share-based incentive compensation awards including stock options, restricted stock, restricted stock units and performance restricted stock units. Following shareholder approval of the 2016 Plan in May 2016, there were no further awards made under the 2013 Plan. The 2016 Plan was amended and restated (the “Amended and Restated 2016 Plan”) following shareholder approval in May 2019. Under the Amended and Restated 2016 Plan, the maximum number of shares was amended to 20,451,976 shares of common stock, which includes 5,000,000 additional shares and 15,451,976 unused shares under the 2016 Plan as of March 15, 2019, where the maximum number of shares are reduced as follows: (i) in the case of the grant of an award of an option or SAR, by each share subject to such an award and (ii) in the case of the grant of an award payable in shares other than an option or SAR by 1.35 multiplied by each share subject to such an award. Shares issued under share-based awards will be primarily funded with issuance of new shares. We issued stock options and restricted stock under the 2016 Plan (including under the Amended and Restated 2016 Plan), and restricted stock units and performance restricted stock units under the 2013 Plan and the 2016 Plan (including under the Amended and Restated 2016 Plan). We also have outstanding stock options under our prior shareholder-approved plans. Stock option awards were granted with an exercise price generally at a premium to the closing market price of our stock at the date of grant. Stock options generally vest in thirds over the three-year period following each option grant date and have ten-year contractual terms. Restricted stock units granted to Associates generally vest and settle after three years. Restricted stock units awarded to non-management directors vest in approximately one year and settle upon a director's departure from the Board of Directors. Performance restricted stock units generally vest after three years only upon the satisfaction of certain market or performance conditions. On January 3, 2020, upon the completion of the Transaction with Natura &Co, our share-based compensation awards were either cancelled in exchange for the right to receive an amount in cash or converted into an award denominated in Natura &Co shares. Subsequent to the Transaction, the 2013 Plan and the 2016 Plan (including under the Amended and Restated 2016 Plan) were replaced by the Natura &Co Stock-Based Compensation Plan. Under the Natura &Co Stock-Based Compensation Plan, Natura has issued nominal cost options and performance share units ("performance shares" or "PSUs"). Nominal cost options were granted in exchange for Avon restricted stock units and performance restricted stock units and vest as a single tranche in line with the vesting date of the original Avon awards. Nominal cost options will automatically exercise on vest date. Performance share units generally vest after three years only upon the satisfaction of certain market and/or performance conditions. For the years ended December 31:
All of the compensation cost for share based compensation for 2021, 2020 and 2019 was recorded in SG&A expenses in our Consolidated Statements of Operations. Stock Options During 2019 we granted premium-priced stock options, in which the exercise price was equal to a 25% premium from the closing market price of our stock price at the date of grant. The premium-priced stock options vest on a three-year graded vesting schedule. The fair value of each premium-priced stock option is estimated on the date of grant using a Monte-Carlo simulation. When estimating the fair value of each option, we used the following weighted-average assumptions for options granted during the year ended December 31, 2019:
(1)The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. (2)The expected term of the option was based on the vesting terms of the respective option and a contractual life of 10 years. (3)Expected Avon volatility was based on the daily historical volatility of our stock price, over a period similar to the expected life of the option. The weighted-average grant-date fair value per share of options granted was $1.13. On January 3, 2020, upon the completion of the Transaction with Natura &Co, each of the approximately 14.9 million outstanding stock options, whether or not then vested or exercisable, was automatically canceled in exchange for the right to receive an amount in cash, without interest, equal to the number of Avon Common Shares underlying such stock option immediately prior to the effective time of the Transaction multiplied by the excess, if any, of the per share cash-out price over the exercise price per share. The “per share cash out price” was the closing price of an Avon Common Share on the NYSE on the closing date of the Transaction. No amount was payable upon cancellation of stock option with an exercise price per share that is greater than the per share cash-out price. In accordance with ASC 718, Stock-based compensation, we have accounted for the cash settlement as a repurchase of an equity instrument concurrent with the acceleration of vesting of the award. Options that were cancelled without compensation were treated as a repurchase of equity for no consideration. The cash settlement value of $20.5 was recognized through equity and $3.5 of unrecognized compensation expense of the unvested options was accelerated and recorded in SG&A expenses in our Consolidated Statements of Operations. We recognized expense on stock options using a graded vesting method, which recognizes the associated expense based on the timing of option vesting dates. At December 31, 2021 and 2020, there were no outstanding stock options as they were cancelled as per above. Restricted Stock Units and Performance Restricted Stock Units During 2019 we granted performance restricted stock units that would vest and settle after three years based on the relative total shareholder return of our common stock against companies included in the S&P 400 index as of the date of grant over a three year performance period ("2019 PRSUs"). The grant date fair value per share of these awards already reflects the estimated probability of achieving the market condition, and therefore we record the expense ratably over the performance period. The fair value of the PRSUs was estimated on the date of grant using a Monte-Carlo simulation that estimates the fair value based on the Company's share price activity, expected term of the award, risk-free interest rate, expected dividends and the expected volatility of the stock of the Company. When estimating the fair value of the PRSUs, we used the following weighted-average assumptions:
(1)The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. (2)Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2019 PRSUs. (3)Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2019 PRSUs. The weighted-average grant-date fair value per share of the 2019 PRSUs was $2.63. On January 3, 2020, upon the completion of the Transaction with Natura &Co, each of the approximately 4.4 million outstanding Restricted Stock Units ("RSU") was converted into Natura &Co Holding nominal cost options equal to the number of Avon Common Shares subject to each RSU immediately prior to the Transaction multiplied by the Exchange Ratio of 0.30. In addition, each of the approximately 3.0 million outstanding PRSUs was converted into an award denominated in Natura &Co Holding Shares, that is subject only to time-based vesting, equal to the number of Avon Common Shares subject to each PRSU immediately prior to the Transaction, giving effect to market conditions that are deemed to be attained, multiplied by the Exchange Ratios of 0.30. The terms and conditions, including service conditions but excluding market conditions, applicable to each RSU and PRSU will continue in full force and effect with respect to the nominal cost options as described below. In accordance with ASC 718, Stock-based compensation, we accounted for the modification as a Type I (probable-to-probable) modification and the incremental fair value of approximately $3.4 will be recognized over the remaining service period of the awards. At December 31, 2021 and 2020, there were no outstanding RSUs and PRUs as they were exchanged for Natura &Co Holding Nominal Cost Options. Natura &Co Holding Nominal cost options As discussed above, each outstanding Avon RSU and PRSU at the time of the Transaction was exchanged for Natura &Co Holding Nominal Cost Options. These nominal cost options vest in a single tranche in line with the original vesting schedule of three years and will automatically exercise on the vest date. We accounted for the exchange as a Type I (probable-to-probable) modification where the cumulative amount of the compensation cost that should be recognized over the vesting period is the original grant-date fair value plus incremental fair value of $3.4 resulting from the modification. During 2021, Natura &Co granted employees of the Company and its subsidiaries a further 1,660,941 nominal cost options with a weighted-average grant date fair value of $9.72 per unit. These 2021 nominal cost options normally vest in a single tranche in line with the original vesting schedule of three years and will automatically exercise on the vest date. For certain participants, vesting automatically occurs either 50% on both the 3rd and 4th anniversary of the grant date or 50% on both the 4th and 5th anniversary of the grant date. A summary of nominal cost options at December 31, 2021 and changes during 2021, is as follows:
The total fair value of restricted stock units and performance restricted stock units that vested during 2021 was $10.5 based upon market prices on the vesting dates. We recognize expense over the requisite service period. At December 31, 2021, there was $11.4 of unrecognized compensation cost related to nominal cost options outstanding. That cost is expected to be recognized over a weighted-average period of 3.0 years. Natura &Co Holding Performance Share Units (PSUs) On March 27, 2020, Natura &Co’s Board of Directors approved the new long-term stock-based incentive plan (the “Long-Term Incentive Plan”) for 2020. The Long-Term Incentive Plan consists of the granting of PSUs, the rights of participants in relation to the PSUs will only be fully acquired to the extent that (i) the participant remains continuously linked as an employee of the Company and its subsidiaries until the 3rd anniversary of the grant date; and (ii) performance conditions are met. For certain participants, there is a different condition for item (i) above, in which 50% of the PSUs granted will be acquired on the 3rd anniversary of the grant date and the remaining 50% will be acquired on the 4th anniversary of the grant date. During 2021 and 2020, Natura &Co granted 627,983 and 1,543,244 PSUs respectively with a weighted-average grant date fair value of $17.32 and $20.91 per unit respectively. A summary of performance share units at December 31, 2021 and changes during 2021, is as follows:
We recognize expense over the requisite service period to the extent that it is expected that the performance conditions are probable of being achieved. At December 31, 2021, there was $27.5 of unrecognized compensation cost related to the PSUs outstanding. That cost is expected to be recognized over a weighted-average period of 1.6 years. Restricted Stock In December 2019, 2,083,872 RSUs and 3,276,774 PRSUs were exchanged for 4,808,534 Restricted Stock. The exchange was done in advance of the Transaction with Natura &Co Holding. The Company accounted for the modification as a Type I (probable-to-probable) modification and the incremental fair value of approximately $1.5 will be recognized over the remaining service period of the awards. The Restricted Stock would vest and settle after three years from the grant date of the original award. The Company retained and cancelled 1,400,010 Restricted Stock to satisfy withholding tax obligations of the grantees. The cancellation resulted in the acceleration and recognition of $1.7 of compensation cost for the year ended December 31, 2019 and was included as part of the $44 of Transaction related costs. On January 3, 2020, upon the completion of the Transaction with Natura & Co, the 3,408,524 Restricted Stock outstanding was converted at the exchange ratio of 0.30 into an award denominated in Natura &Co Holding equity. The terms and conditions, including service-based vesting conditions, continue in full force and effect with respect to such award of Natura &Co Holding Restricted Stock. During January 2020, it was announced that the employment of certain senior officers of the Company would be terminated, in connection with the Transaction. As a result, Restricted Stock held by these senior officers immediately vested and we recognized approximately $10 relating to the acceleration of unamortized expense. Restricted Stock Units and Performance Restricted Stock Units Funded With Treasury Shares In March 2019 and March 2018, we granted 200,000 and 200,000 performance restricted stock units, respectively, that will be funded with treasury shares, outside of the 2016 Plan, in reliance upon the NYSE rules. These performance restricted stock units have a weighted-average grant-date fair value of $2.98 and $2.79 for the 2019 and 2018 grants respectively, and would vest and settle at the end of 2020 only upon the satisfaction of certain performance conditions over a one year performance period. During 2019 none of these performance restricted stock units vested, and 400,000 performance restricted stock units were outstanding at December 31, 2019. During 2019 we recognized compensation cost of $.5, for these performance restricted stock units. In February 2018 we granted 600,000 restricted stock units that will be funded from treasury shares, outside of our shareholder-approved plans, in reliance upon the NYSE rules. The restricted stock units granted in February 2018 have a weighted-average grant-date fair value of $2.25 and vest and settle in full after three years. During 2019 none of these restricted stock units vested, and there were 600,000 restricted stock units outstanding at December 31, 2019. During 2019 we recognized compensation cost of $.4 for these restricted stock units. As at December 31, 2019, there were no outstanding RSUs or PRSUs funded with Treasury Shares as they were all exchanged for Avon Restricted Stock. During 2020 all Avon Restricted Stock was exchanged for Natura Restricted Stock, as described above.
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Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans We offer a defined contribution plan for employees in the United Kingdom ("UK"), which allows eligible participants to contribute eligible compensation through payroll deductions. We double employee contributions up to the first 5% of eligible compensation and therefore the maximum level provided by Avon is 10% of eligible compensation. We made matching contributions in cash to the UK defined contribution plan of $8.1 in 2021, $7.6 in 2020 and $7.5 in 2019, which follow the same investment allocation that the participant has selected for his or her own contributions. We also offer a qualified defined contribution plan for U.S.-based employees, the Avon Personal Savings Account Plan (the "PSA"), which allows eligible participants to contribute up to 25% of eligible compensation through payroll deductions. We match employee contributions dollar for dollar up to the first 3% of eligible compensation and fifty cents for each dollar contributed from 4% to 6% of eligible compensation. We made matching contributions in cash to the PSA of $.9 in 2021, $1.0 in 2020 and $1.3 in 2019, which follow the same investment allocation that the participant has selected for his or her own contributions. Prior to the separation of the North America business, the costs associated with the contributions to the PSA were allocated between Discontinued Operations and Global as the plan included both North America and U.S. Corporate Avon associates. See Note 3, Discontinued Operations and Assets and Liabilities Held for Sale. For U.S.-based employees hired on or after January 1, 2015, we made additional contributions to a Retirement Savings Account ("RSA") within the PSA. Such contributions will range from 3% to 6% of a participant's eligible compensation depending on the sum of the participant's age and length of service (as of December 31 of the prior year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own contributions to the PSA. A participant will be vested in the RSA generally after full years of applicable service. Defined Benefit Pension and Postretirement Plans Avon and certain subsidiaries have contributory and noncontributory defined benefit retirement plans for substantially all employees of those subsidiaries. Benefits under these plans are generally based on an employee’s length of service and average compensation near retirement, and certain plans have vesting requirements. Plans are funded based on legal requirements and cash flow. Our largest non-U.S. defined benefit pension plan is in the UK. The UK defined benefit pension plan was frozen for future accruals as of April 1, 2013. The U.S. defined benefit pension plan, the Avon Products, Inc. Personal Retirement Account Plan (the "PRA"), is closed to employees hired on or after January 1, 2015. Qualified retirement benefits for U.S.-based employees hired on or after January 1, 2015 will be provided solely through the PSA, as described above. Following the separation of the North America business (see further Note 3, Discontinued Operations and Assets and Liabilities Held for Sale), we continue to retain certain U.S. pension and other postretirement liabilities primarily associated with employees who are actively employed by Avon in the U.S. providing services other than with respect to the North America business. We recognize the funded status of defined benefit pension and other postretirement benefit plans on the balance sheet. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over - and five-year periods. Reconciliation of Benefit Obligations, Plan Assets and Funded Status The following table summarizes changes in the benefit obligation, plan assets and the funded status of our significant defined benefit pension and postretirement plans. We use a December 31 measurement date for all of our employee benefit plans.
For the year ended December 31, 2021, actuarial gains on benefit obligations were primarily due to a increase in discount rates for all plans. For the years ended December 31, 2020 and 2019, actuarial losses on the benefit obligations were primarily due to a decrease in discount rates for all plans. The U.S. pension plans include a funded qualified plan (the PRA) and unfunded non-qualified plans. At December 31, 2021, the PRA had benefit obligations of $53.6 and plan assets of $54.3. At December 31, 2020, the PRA had benefit obligations of $60.4 and plan assets of $59.7. We believe we have adequate investments and cash flows to fund the liabilities associated with the unfunded non-qualified plans. The Non-U.S. pension plans include a funded qualified pension plan in the UK. At December 31, 2021, the UK qualified pension plan had benefit obligations of $492.0 and plan assets of $653.6. At December 31, 2020, the UK qualified pension plan had benefit obligations of $545.5 and plan assets of $648.4. Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss
* Amounts represent the pre-tax effect classified within other comprehensive loss. The net of tax amounts are classified within our Consolidated Statements of Comprehensive Loss. Assumptions Weighted-average assumptions used to determine benefit obligations recorded in our Consolidated Balance Sheets as of December 31 were as follows:
The discount rate used for determining the present value of future pension obligations for each individual defined benefit pension plan is based on a review of bonds that receive a high-quality rating from a recognized rating agency. The discount rates for our more significant plans, including the UK defined benefit pension plan and the PRA, were based on the internal rates of return for a portfolio of high-quality bonds with maturities that are consistent with the projected future benefit payment obligations of each plan. The weighted-average discount rate for U.S. and non-U.S. defined benefit pension plans determined on this basis has increased to 2.15% at December 31, 2021, from 1.53% at December 31, 2020. Weighted-average assumptions used to determine net benefit cost recorded in our Consolidated Statements of Operations for the years ended December 31 were as follows:
In determining the long-term rates of return, we consider the nature of each plan’s investments, an expectation for each plan’s investment strategies, historical rates of return and current economic forecasts, among other factors. We generally evaluate the expected rate of return on plan assets annually and adjust as necessary. In determining the net cost for the year ended December 31, 2021, the assumed rate of return on assets globally was 2.45%, which represents the weighted-average rate of return on all plan assets. A significant portion of our pension plan assets relate to the UK defined benefit pension plan. The assumed rate of return for determining 2021 net periodic benefit cost for the UK defined benefit pension plan was 2.10%. In addition, the 2021 rate of return assumption for the UK defined benefit pension plan was based on an asset allocation of approximately 76% in liability driven investments, and approximately 24% in equity securities, emerging market debt and high yield securities. In addition to the physical assets, the asset portfolio for the UK defined benefit pension plan has derivative instruments which increase our exposure to fixed income (in order to better match liabilities). Similar assessments were performed in determining rates of return on other non-U.S. defined benefit pension plan assets, to arrive at our weighted-average assumed rate of return of 2.32% for determining 2021 net cost for all non-US defined benefit pension plan assets. Plan Assets Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2021 and 2020, by asset category were as follows:
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis at December 31, 2021 :
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis at December 31, 2020:
A reconciliation of the beginning and ending balances for our Level 3 investments is provided in the table below:
Investments in equity securities classified as Level 1 in the fair value hierarchy are valued at quoted market prices. Investments in equity securities classified as Level 2 in the fair value hierarchy include collective funds that are valued at quoted market prices for non-active securities. Fixed income securities are based on broker quotes for non-active securities. Mutual funds are valued at quoted market prices. Real estate is valued by reference to investment and leasing transactions at similar types of property, supplemented by third party appraisals. Derivative instruments are not publicly traded, and each derivative contract is specifically negotiated with a unique financial counterparty. The derivative instruments are valued based upon valuation statements received from the financial counterparties, which use underlying yield curves or market indices. The overall objective of the plan assets associated with the PRA and the UK defined benefit pension plan is to provide the means to pay benefits to participants and their beneficiaries in the amounts and at the times called for by the plan. This is expected to be achieved through the investment of our contributions and other trust assets and by utilizing investment policies designed to achieve adequate funding over a reasonable period of time. In some of our defined benefit pension plans, we have adopted investment strategies which are designed to match the movements in the pension liability through an increased allocation towards debt securities. In addition, we also utilize derivative instruments in our UK defined benefit pension plans to hedge certain risks. Derivative instruments may include, but are not limited to, futures, options, swaps or swaptions. Investment types, including the use of derivatives are based on written guidelines established for each investment manager and monitored by the plan's investment committee. Pension trust assets are invested so as to achieve a return on investment, based on levels of liquidity and investment risk that are prudent and reasonable as circumstances change from time to time. While we recognize the importance of the preservation of capital, we also adhere to the theory of capital market pricing which maintains that varying degrees of investment risk should be rewarded with compensating returns. Consequently, prudent risk-taking is justifiable. The asset allocation decision includes consideration of the non-investment aspects of the PRA and the UK defined benefit pension plan, including future retirements, lump-sum elections, growth in the number of participants, company contributions, and cash flow. These characteristics of the plan place certain demands upon the level, risk, and required growth of trust assets. We regularly conduct analyses of the plan’s current and likely future financial status by forecasting assets, liabilities, benefits and company contributions over time. In so doing, the impact of alternative investment policies upon the plan’s financial status is measured and an asset mix which balances asset returns and risk is selected. Our decision with regard to asset mix is reviewed periodically. Asset mix guidelines include target allocations and permissible ranges for each asset category. Assets are monitored on an ongoing basis and rebalanced as required to maintain an asset mix within the permissible ranges. The guidelines will change from time to time, based on an ongoing evaluation of the factors discussed above. Cash flows We expect to make contributions related to continuing operations in the range of $10 to $15 to our defined benefit pension and postretirement plans during 2022. Total benefit payments expected to be paid from the plans are as follows:
Postemployment Benefits We provide postemployment benefits, which include salary continuation, severance benefits, disability benefits and continuation of health care benefits to eligible former employees. The accrued cost for such postemployment benefits was $6.5 at December 31, 2021 and $9.1 at December 31, 2020 and was included in employee benefit plans in our Consolidated Balance Sheets. Supplemental Retirement Programs In the U.S., in addition to qualified retirement plans (i.e., the PSA and the PRA), we also maintain unfunded non-qualified plans. We offer a non-qualified deferred compensation plan, the Avon Products, Inc. Deferred Compensation Plan (the "DCP"), for certain higher paid key employees. The DCP is an unfunded, unsecured plan for which obligations are paid to participants out of our general assets. The DCP allows for the deferral of up to 50% of a participant’s base salary, the deferral of up to 100% of incentive compensation bonuses, and the deferral of contributions that would normally have been made to the PSA but are not deferred because the amount was in excess of U.S. Internal Revenue Code limits on contributions to the PSA. Participants may elect to have their deferred compensation invested in one or more of three permitted investment alternatives. Expense associated with the DCP was zero in 2021, $.1 in 2020 and $.8 in 2019. The benefit obligation under the DCP was $.7 at December 31, 2021 and $.8 at December 31, 2020 and was included in other liabilities and accrued compensation in our Consolidated Balance Sheets. The Transaction triggered a change of control provision in the DCP, resulting in the settlement of the majority of the obligation in 2020. We maintain supplemental retirement programs consisting of the Supplemental Executive Retirement Plan of Avon Products, Inc. ("SERP") and the Benefit Restoration Pension Plan of Avon Products, Inc. ("BRP") under which non-qualified supplemental pension benefits are paid to higher paid key employees in addition to amounts received under our qualified defined benefit retirement plan, which is subject to IRS limitations on covered compensation. The SERP has not been offered to new employees in the last ten years, and the BRP is closed to employees hired on or after January 1, 2015 in conjunction with the closure of the PRA. The annual cost of these programs has been included in the determination of the net periodic benefit cost shown previously and amounted to $1.0 in 2021, $1.2 in 2020 and $1.3 in 2019. The benefit obligation under these programs was $6.7 at December 31, 2021 and $7.6 at December 31, 2020 and was included in employee benefit plans and accrued compensation in our Consolidated Balance Sheets. We also maintain a Supplemental Life Plan ("SLIP") under which additional death benefits are provided to certain active and retired officers. The SLIP has not been offered to new officers in over ten years. We established a grantor trust to provide assets that may be used for the benefits payable under the SERP and SLIP. The trust is irrevocable and, although subject to creditors’ claims, assets contributed to the trust can only be used to pay such benefits with certain exceptions. The assets held in the trust are included in other assets and at December 31 consisted of the following:
The assets are recorded at fair market value, except for investments in corporate-owned life insurance policies which are recorded at their cash surrender values as of each balance sheet date, which is a proxy of fair value. Changes in the cash surrender value during the period are recorded as a gain or loss within SG&A expenses in our Consolidated Statements of Operations.
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Segment Information |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We determine segment profit by deducting the related costs and expenses from segment revenue. Segment profit includes an allocation of central expenses to the extent they support the operating activity of the segment. Segment profit excludes certain CTI restructuring initiatives, certain significant asset impairment charges, and other expenses, which are not allocated to a particular segment, if applicable. This is consistent with the manner in which we assess our performance and allocate resources. Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables:
(1)2021 includes the impact of certain Brazil indirect taxes, which was recorded in product sales in the amount of approximately $21 in our Consolidated Income Statements. 2019 includes the impact of certain Brazil indirect taxes, which was recorded in product sales in the amount of approximately $68 in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information. (2)Total revenue from reportable segments also includes revenue from other business activities of $4.7, $14.5 and $18.1 for the years ended December 31, 2021, 2020 and 2019, 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. Previously reported amounts have been allocated to Avon International and Avon Latin America segments to conform to the current year presentation. (3)Total profit 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 $1.5, $7.3, and $2.4 for the years ended December 31, 2021, 2020 and 2019, 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 $206.7, $197.6, and $214.7 for the years ended December 31, 2021, 2020 and 2019, 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. Previously reported amounts have been allocated to segments to conform to the current year presentation. (4)For the years ended December 31, 2021, 2020 and 2019, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments. (5)The year ended December 31, 2021 includes the impact of certain Brazil taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $2. The year ended December 31, 2020 includes the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11. (6)For the year ended December 31, 2020, costs related to the Transaction primarily include professional fees of approximately $46, severance payments of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. For the year ended 31 December 2019, costs related to the Transaction primarily include professional fees and impairment losses on assets. Refer to Note 21, Merger with Natura Cosméticos S.A. for more information relating to the Natura transaction. (7)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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
(1) Avon International includes assets of $420.7 at December 31, 2019, that were not previously allocated to our reportable segments. (2) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, balances at December 31, 2021 do not include the assets of Avon Luxembourg. Balances at December 31, 2020 and 2019 include the assets of Avon Luxembourg.
(1) Avon International includes capital expenditures of $13.8 for the year ended December 31, 2019, that were not previously allocated to our reportable segments. (2) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
(1) Avon International includes depreciation and amortization of $19.9 for the year ended December 31, 2019 that was not previously allocated to our reportable segments. (2) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg. Total Revenue by Major Country A major country is defined as one with total revenues greater than 10% of consolidated total revenues.
(1) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg. Long-Lived Assets by Major Country A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets, and also includes our country of domicile (the U.S.). Long-lived assets primarily include property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil, Poland and Mexico consist primarily of property, plant and equipment related to manufacturing and distribution facilities, long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility and right-of-use assets related to equipment.
(1) Mexico's long-lived assets are greater than 10% of total long-lived assets in 2019 only (2) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, balances at December 31, 2021 do not include the assets of Avon Luxembourg. Balances at December 31, 2020 and 2019 include the assets of Avon Luxembourg. In the above table, long lived assets have been calculated by including property, plant and equipment, net and right-of-use assets which are difficult to move and are relatively illiquid. In 2019, our definition of long lived assets also included certain intangible assets and other long term receivables and excluded right-of use assets which resulted in the following disclosure in previous filings.
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Leases and Commitments |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases and Commitments | Leases and Commitments In February 2016, the FASB issued ASU 2016-02, Leases, which requires all assets and liabilities arising from leases to be recognized in our Consolidated Balance Sheets. We adopted this new accounting guidance effective January 1, 2019. We have operating and finance leases for corporate and market offices, warehouses, automotive and other equipment. Some of our leases may include options to extend or terminate the lease. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
The table below shows the lease income and expenses recorded in the Consolidated Statement of Operations incurred during the years ended December 31:
(1) Includes variable lease costs which are immaterial. These are presented in selling, general and administrative expenses in our Consolidated Statements of Operations. (2) Sublease portfolio consists of the sublease of our previous principal executive office located at 777 Third Avenue, New York, NY. The maturity analysis of the finance and operating lease liabilities is reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted finance and operating lease liabilities as recognized in the December 31, 2021 Consolidated Balance Sheet:
The Company has calculated the weighted-average remaining lease term, presented in years below, and the weighted-average discount rate for our operating and finance lease population. As noted in our lease accounting policy (See Note 1, Description of the Business and Summary of Significant Accounting Policies), the Company uses the incremental borrowing rate as the lease discount rate.
The table below sets out the classification of lease payments in the Consolidated Statement of Cash Flows. The ROU assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the years ended December 31.
Purchase obligations include commitments to purchase paper, inventory and other services. At December 31, 2021, our purchase obligations by due date were as follows:
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Restructuring Initiatives |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Initiatives | Restructuring Initiatives Transformation Plan and Open Up Avon 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 is 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. These savings have been and are expected to continue to be achieved through restructuring actions (that have may continue to result in charges related to severance, contract terminations and inventory and other asset write-offs), as well as other cost-savings strategies that would not result in restructuring charges. 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. Costs to Implement Restructuring Initiatives - Twelve Months Ended December 31, 2021 , 2020 and 2019 During the twelve months ended December 31, 2021, we recorded net costs to implement of $58.8, of which $15.4 related to Avon Integration, $44.0 related to Open Up & Grow, and a net benefit of $0.6 related to the Transformation Plan and other restructuring initiatives, in our Consolidated Statements of Operations. During the twelve months ended December 31, 2020, we recorded costs to implement of $22.2 of which $16.1 related to Avon Integration, $10.9 related to Open Up Avon, and a net benefit of $4.8 related to the Transformation Plan and other restructuring initiatives, in our Consolidated Statements of Operations. During the twelve months ended December 31, 2019, we recorded costs to implement of $116.7 of which $106.6 related to Open Up Avon, and $9.4 related to the Transformation Plan and other restructuring initiatives. The costs during the twelve months ended December 31, 2021, 2020 and 2019 consisted of the following:
The tables below 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 costs to implement 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 December 31, 2021 and 2020 is $1.6 and $.7, 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 December 31, 2021 is as follows:
The liability balance included in other accrued liabilities in our Consolidated Balance Sheet for the restructuring actions associated with our Transformation Plan at December 31, 2021 and 2020 is $1.5 and $3.5, 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 the Avon Integration , Open Up & Grow and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans:
The charges, net of adjustments, of initiatives under the Open Up & Grow and the Transformation Plan, 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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Series C Convertible Preferred Stock |
12 Months Ended |
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Dec. 31, 2021 | |
Equity [Abstract] | |
Series C Convertible Preferred Stock | Series C Convertible Preferred Stock On March 1, 2016, the Company issued and sold to Cerberus Investor 435,000 shares of newly issued series C preferred stock for an aggregate purchase price of $435 pursuant to an Investment Agreement, dated as of December 17, 2015, between the Company and Cerberus Investor. In connection with the issuance of the series C preferred stock, the Company incurred direct and incremental expenses of $8.7, comprised of financial advisory fees and legal expenses, which reduced the carrying value of the series C preferred stock. Cumulative preferred dividends accrue daily on the series C preferred stock at a rate of 1.25% per quarter. The series C preferred stock had accrued unpaid dividends of $91.3 at December 31, 2019. On December 19, 2019, the Company and Natura &Co Holding announced that as of such date, all regulatory approvals required by the Merger Agreement to complete the Transactions have been obtained. As a result, the series C preferred stock were probable of becoming redeemable and the redemption value was adjusted. Subsequently, on December 30, 2019, Cerberus elected to convert the series C preferred stock, as described below, and the series C preferred stock was no longer probable of becoming redeemable. We recognize changes in redemption value immediately as they occur and the carrying value of the security is adjusted to equal what the redemption amount would be as if redemption were to occur at the end of the reporting date based on the conditions that exist as of that date. As a result, we recognized an increase of $60.9 in the carrying value of the series C preferred stock for the year ended December 31, 2019. On December 30, 2019, Cerberus elected to convert 435,000 shares of series C preferred stock, representing all shares of series C preferred stock outstanding, into shares of the Company’s common stock, par value U.S.$0.25 per share, pursuant to the holder of the Company’s Series C Preferred Stock’s rights under the Company’s certificate of incorporation. The foregoing election is conditioned upon the filing of the certificates of merger with respect to the First Merger (the "Conversion Condition"). On January 3, 2020, the Company consummated a transaction to become a wholly owned subsidiary of Natura &Co Holding. Upon consummation of the transaction, the Company's common stock was converted to Natura &Co Holding common stock. Natura &Co Holding subsequently paid the accrued dividend of $91.5 to Cerberus in January 2020. See Note 21, Agreement and Plan of Mergers with Natura Cosméticos S.A.,.
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Contingencies |
12 Months Ended |
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Dec. 31, 2021 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Brazilian Tax Assessments Tax on Manufactured Products – minimum pricing rules In December 2012 and in October 2017, our Brazilian subsidiary, Avon Industrial LTDA (Avon Brazil Manufacturing) received excise tax ("IPI") assessments for the years 2008 and 2014. 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 level, where proceedings are currently in progress. As of December 31, 2021 and 2020, the total amount under discussion classified as reasonably possible was $360 and $378, respectively. 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 Brazilian federal tax authority. At December 31, 2021 and 2020, the total amount under discussion classified as reasonably possible was $243 and $231, respectively. Brazilian Financial Indemnities As of December 31, 2021 and 2020, the Company has issued a number of guarantees totaling $157 and $185, respectively, which it could be required to make in the event of adverse judgments in a number of lawsuits in Brazil. 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 December 31, 2021, there were 151 individual cases pending against the Company. During the three months ended December 31, 2021, 19 new cases were filed and 20 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 year ended December 31, 2021. 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 accruals currently recorded on the Company’s balance sheet with respect to these cases are not material. However, 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 December 31, 2021 and 2020 was approximately $11 and $8, respectively. Accordingly, we have recognized a liability for this amount. Shareholder Litigation On February 14, 2019, a purported shareholder’s class action complaint (Bevinal v. Avon Products, Inc., et al., No. 19-cv-1420) was filed in the United States District Court for the Southern District of New York against the Company and certain former officers of the Company. The complaint was subsequently amended and recaptioned "In re Avon Products, Inc. Securities Litigation". The amended complaint is brought on behalf of a purported class consisting of all purchasers or acquirers of Avon common stock between January 21, 2016 and November 1, 2017, inclusive. The complaint asserts violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") based on allegedly false or misleading statements and alleged market manipulation with respect to, among other things, changes made to Avon’s credit terms for Representatives in Brazil. Avon and the individual defendants filed a motion to dismiss which the court denied. During 2020, the parties reached an agreement on a settlement of this class action. The terms of settlement include releases by members of the class of claims against the Company and the individual defendants and payment of $14.5 million. Approximately $2 million of the settlement was paid by the Company (which represented the remaining deductible under the Company’s applicable insurance policies) and the remainder of the settlement was paid by the Company’s insurers. On August 31, 2020, the court granted preliminary approval of the settlement, and on February 3, 2021, the court entered an order and judgment granting final approval of the settlement. This judgment is now final. 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 December 31, 2021, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows.
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Goodwill | Goodwill Goodwill
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information At December 31, 2021 and 2020, prepaid expenses and other included the following:
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Merger with Natura Cosméticos S.A. |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger with Natura Cosméticos S.A. | Discontinued Operations and Assets and Liabilities Held for Sale Discontinued Operations On December 17, 2015, the Company entered into definitive agreements with affiliates controlled by Cerberus. The agreements resulted in the separation of the Company's North America business, which represented the Company's operations in the United States, Canada and Puerto Rico, from the Company into The Avon Company, formerly New Avon, ("New Avon") a privately-held company majority-owned and managed by Cerberus NA Investor LLC (an affiliate of Cerberus). The Company retained an investment of 19.9% ownership interest in New Avon. These transactions closed on March 1, 2016; from that date, resolution of contingent liabilities 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. In April 2019, we signed an agreement with LG Household & Health Care Ltd. to sell our 19.9% ownership interest in New Avon, which was completed during August 2019. Refer to the Divestitures section below for information relating to the sale of New Avon. The Company incurred costs during the years ended December 31, 2021, 2020 and 2019 following the resolution of certain contingent liabilities related to its ownership and operation of the North America business prior to its separation into New Avon. The major classes of financial statement components comprising the loss on discontinued operations, net of tax for New Avon are shown below:
Assets and Liabilities Held for Sale The major classes of assets and liabilities comprising held for sale assets and held for sale liabilities on the Consolidated Balance Sheet at December 31, 2021 and December 31, 2020 are shown in the following table.
At December 31, 2020, assets held for sale include one property and one business in Avon International segment and one property in the Avon Latin America Segment. At December 31, 2021, assets held for sale include one property in the Avon Latin America Segment. Divestitures 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. Spanish Distribution Center In September 2021, we completed the sale of our Spanish Distribution Center for a total selling price of $14.7, the proceeds of which are presented as investing activities in the Consolidated Statement of Cash Flows. In the third quarter of 2021 we recognized a gain of $8.3 before and $6.2 after tax, which is reported separately in the Consolidated Statements of Operations representing the difference between the proceeds, the carrying value of the branch of the Spanish Distribution Center on the date of sale, and associated disposal costs. Italy Branch 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 second quarter of 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 the branch of the Italian business on the date of sale. Avon Shanghai In August 2020, we signed an agreement to sell Avon Management Shanghai ("Avon Shanghai") to an affiliate of Natura &Co for a selling price of $2.9. In August 2020, we completed the sale of the entity and received proceeds of $2.9. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows as the sale was to an affiliate under common control by Natura &Co. The gain on sale of $1.4 was recorded directly to Retained earnings. Hungary Distribution Center in Gödöllő In April 2020, we signed an agreement to sell the Hungary Distribution Center in Gödöllő for a selling price of $3.4 and received a deposit of $.3. In June 2020, we completed the sale of the asset and the remaining proceeds of $3.1 were received. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2020, we recorded a gain of $.1 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the proceeds and the carrying value of the Hungary Distribution Center on the date of sale. China Wellness Plant In March 2020, we signed an agreement to sell the China Wellness Plant for a total selling price of $6.6 before expenses. In the six-month period ended June 30, 2020, we received a cash deposit for the selling price of $6.6, which included $3.3 of restricted cash held in escrow. In August 2020, we completed the sale of the China Wellness Plant and $3.3 of restricted cash in escrow was transferred to Avon. In the third quarter of 2020, we recorded a gain of $1.4 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain represents the difference between the net proceeds (after associated expenses) and the carrying value of the China Wellness Plant on the date of sale. Rye Office On June 26, 2019, we completed the sale of the Rye office for a selling price of $23.2, less expenses of approximately $.8, resulting in proceeds of $22.4. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2019, we recorded a gain on sale of $9.9 before and after tax, which is reported separately in the Consolidated Statements of Operations. The gain recorded represents the difference between the proceeds and the carrying value of the Rye office on the date of sale. Malaysia Maximin On May 9, 2019, we completed the sale of all of our equity interests in Maximin Corporation Sdn Bhd ("Malaysia Maximin") for a total selling price of $7.8. The cash proceeds of $7.6, net of expenses, are presented within investing activities in the Consolidated Statement of Cash Flows. In the second quarter of 2019, we recorded a gain on sale of $3.3 before tax, which is reported separately in the Consolidated Statements of Operations, and $3.0 after tax. The gain recorded represents the difference between the proceeds and the carrying value of Malaysia Maximin on the date of sale. China manufacturing On February 15, 2019, we completed the sale to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd. ("TheFaceShop"), of all of the equity interests in Avon Manufacturing (Guangzhou), Ltd. for a total selling price of $71.0, less expenses of approximately $1.1. The selling price included $23.5 relating to outstanding intercompany loans payable to Avon Manufacturing (Guangzhou), Ltd. from other Avon subsidiaries that was presented as financing activities in the Consolidated Statement of Cash Flows, this was subsequently settled in April 2019. The cash proceeds of $46.4, net of loan amounts, are presented as investing activities in the Consolidated Statement of Cash Flows, which includes $7.6 of restricted cash as of December 31, 2019. This was subsequently reclassified to short-term restricted cash in the three month period ended March 31, 2020. The restriction on this cash was removed in the three-month period ended March 31, 2021. In the first quarter of 2019, we recorded a gain on sale of $10.3 before tax, which is reported separately in the Consolidated Statements of Operations, and $8.2 after tax, representing the difference between the proceeds, including the settlement of the intercompany loans, and the carrying value of Avon Manufacturing (Guangzhou), Ltd. on the date of sale. New Avon In April 2019, we signed an agreement with LG Household & Health Care Ltd. to sell our 19.9% ownership interest in New Avon. During August 2019, we completed the sale of New Avon for a selling price of $24.5. Expenses were approximately $1.1, resulting in cash proceeds of $23.4. These proceeds are presented as investing activities in the Consolidated Statement of Cash Flows. In the third quarter of 2019, we recorded a gain on sale of $26.8 before and after tax, which is reported in the Consolidated Statements of Operations as Gain on sale of business/asset. The gain recorded represents the total proceeds and the release of AOCI of $3.4. Our recorded investment balance in New Avon at August 14, 2019 was zero. Merger with Natura Cosméticos S.A.,On May 22, 2019, the Company entered into the Agreement and Plan of Mergers (as amended by Amendment Number One to Agreement and Plant of Mergers, dated as of October 3, 2019, and as further amended by Amendment Number Two to Agreement and Plan of Mergers, dated as of November 5, 2019, the "Merger Agreement") among the Company, Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) ("Natura Cosméticos"), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima), Nectarine Merger Sub I, Inc., a Delaware corporation and a direct wholly owned subsidiary of Natura &Co Holding ("Merger Sub I"), and Nectarine Merger Sub II, Inc., a Delaware corporation and a direct wholly owned subsidiary of Merger Sub I ("Merger Sub II"), pursuant to which (i) Natura &Co Holding, after the completion of certain restructuring steps, holds all issued and outstanding shares of Natura Cosméticos, (ii) Merger Sub II merged with and into the Company, with the Company surviving the merger (the "First Merger") and (iii) Merger Sub I merged with and into Natura &Co Holding (the "Second Merger"), with Natura &Co Holding surviving the merger and as a result of which the Company and Natura Cosméticos became wholly owned direct subsidiaries of Natura &Co Holding (collectively, the "Transaction"). The Transaction was consummated on January 3, 2020, and at this time, the Company became a wholly owned direct subsidiary of Natura &Co Holding. In connection with the Transaction, trading of the Company’s stock was suspended by the NYSE, and the Company’s common stock was subsequently delisted and deregistered. On completion of the Transaction, each share of the Company’s common stock issued and outstanding immediately prior to the consummation of the Transaction was converted into the ultimate right to receive, (i) 0.300 validly issued and allotted, fully paid-up American Depositary Shares of Natura &Co Holding, ("Natura &Co Holding ADSs") against the deposit of two shares of common stock of Natura &Co Holding ("Natura &Co Holding Shares", subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding ADSs or (ii) 0.600 validly issued and allotted, fully paid-up Natura &Co Holding Shares, subject to adjustment in accordance with the terms of the Merger Agreement, and any cash in lieu of fractional Natura &Co Holding Shares. The Company’s Series C Preferred Stock held by Cerberus Investor were converted to common stock prior to consummation of the Transaction and were therefore automatically converted into common stock of Natura &Co; see Note 17, Series C Convertible Preferred Stock. Natura &Co Holding Shares are listed on the B3 S.A. - Brasil, Bolsa, Balcão stock exchange, and Natura &Co Holding ADSs are listed on the NYSE. Additionally, upon the consummation of the Transaction, Avon common stock ceased to be traded on the NYSE. In January 2020, subsequent to the Transaction, the Company restated the certificate of incorporation. The certificate of incorporation was restated to effect a change in capitalization of the Company by changing the number of authorized shares of stock from 1,525,000,000 shares (of which (i) 1,500,000,000 shares, par value $0.25 per share, are common stock and (ii) 25,000,000 shares, par value $1.00 per share, are preferred stock) to 1,000 shares of common stock, par value $0.01 per share. As a result, all of the issued and outstanding common stock of the Company, being 550,890,788 were canceled and converted into 101.34 common stock, par value $0.01 per share, and all outstanding treasury shares were canceled. The Company incurred costs of $46 and $44 in relation to the Transaction, primarily professional fees during the years ended December 31, 2020 and 2019, respectively. During January 2020, it was announced that the employment of certain senior officers of the Company would be terminated, in connection with the Transaction. The Company incurred severance of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. As a result of the Transaction, the Company made payments of approximately $26 related to the settlement of stock options. In addition, any remaining restricted stock units and performance restricted stock units were exchanged for awards of Natura &Co Holding. The replacement awards contain substantially the same terms and conditions of the original awards except for the removal of the performance conditions. As such, the replacement awards contain only a service vesting condition. On consummation of the Transaction, a deferred compensation scheme relating to former employees of the Company became payable which resulted in extinguishing the liability and a cash outflow of approximately $12. In January 2020, upon completion of the Transaction, the Company’s revolving credit facility was canceled, triggered by change in control provisions. As a result, debt issuance costs of $7.8 were written off. As a result of the Transaction, the Company will no longer have access to certain tax attributes of approximately $546 to approximately $616 in certain taxing jurisdictions. These tax attributes had been formerly reflected as deferred tax assets which were subject to a full valuation allowance and as a result, there was no impact to net income in 2020 from the write-off of the deferred tax asset and the associated valuation allowances.
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 24, 2022, Russia launched a military invasion of Ukraine. The ongoing military conflict between Ukraine and Russia has provoked strong reactions from the United States, the UK, the EU and various other countries around the world, including the imposition of broad financial and economic sanctions against Russia. The Company has sales operations in multiple countries including in Russia and Ukraine. While as of the date of this report there have not been any material impacts from the above mentioned matter, management is continuously monitoring the developments to assess any potential future impacts that may arise as a result of the ongoing crisis.
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VALUATION AND QUALIFYING ACCOUNTS |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | AVON PRODUCTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2021, 2020 and 2019
(1)Accounts written off, net of recoveries and foreign currency translation adjustment. (2)Returned product reused or destroyed and foreign currency translation adjustment. (3)Obsolete inventory destroyed and foreign currency translation adjustment. (4)Deductions associated with divestiture of Luxembourg Holdings and subsidiaries.
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Description of the Business and Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2021 | |
Description Of The Business And Summary Of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Avon and our majority and wholly-owned subsidiaries. Intercompany balances and transactions are eliminated.
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Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America, or GAAP. In preparing these statements, we are required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, we review our estimates, including those related to stand-alone selling prices ("SSP") of promised goods or services delivered under sales incentives, allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment.
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Reclassifications | Reclassifications During the third quarter of 2020, we identified an immaterial classification error in the Consolidated Statement of Cash Flows relating to the year ended December 31, 2019 with respect to cash flows from the settlement of derivative contracts. Our accounting policy is to classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. However, we have identified that cash flows relating to derivative contracts that economically hedge foreign exchange gains and losses on intercompany loans have been incorrectly classified as operating activities rather than financing activities. We have corrected this reclassification error through a revision to the Consolidated Statement of Cash Flows for the year ended December 31, 2019 to reclassify cash inflows of $37.4 from the settlement of derivative contracts from operating activities to financing activities.
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Foreign Currency | Foreign Currency Financial statements of foreign subsidiaries operating in other than highly inflationary economies are translated at year-end exchange rates for assets and liabilities and average exchange rates during the year for income and expense accounts. The resulting translation adjustments are recorded within accumulated other comprehensive income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the U.S. dollar is required to be used as the functional currency. Highly inflationary accounting requires monetary assets and liabilities, such as cash, receivables and payables, to be remeasured into U.S. dollars at the current exchange rate at the end of each period with the impact of any changes in exchange rates being recorded in income. We record the impact of changes in exchange rates on monetary assets and liabilities in other expense, net. Similarly, deferred tax assets and liabilities are remeasured into U.S. dollars at the current exchange rates; however, the impact of changes in exchange rates is recorded in income taxes in our Consolidated Statements of Operations. Non-monetary assets and liabilities, such as inventory, property, plant and equipment and prepaid expenses are carried forward at their historical dollar cost, which was calculated using the exchange rate at the date which hyperinflationary accounting is implemented. Argentina Currency During the quarter ended June 30, 2018, based on published official exchange rates which indicate that Argentina's three-year cumulative inflation rate has exceeded 100%, we concluded that Argentina had become a highly inflationary economy. From July 1, 2018, we have applied highly inflationary accounting for our Argentinian subsidiary. As such, the functional currency for Argentina has changed to the U.S. dollar, which is the consolidated group's reporting currency. As a result of highly inflationary accounting for our Argentinian subsidiary, the most significant impacts in our Consolidated Income Statements 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 Argentina. However, these impacts are not considered material to our Consolidated Income Statements.
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Revenue Recognition | Revenue Recognition Nature of goods and services We are a global manufacturer and marketer of beauty and related products. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Our business is conducted primarily in one channel, direct selling. Our reportable segments are based on geographic operations in two regions: Avon International and Avon Latin America. We primarily sell our products to the ultimate consumer through the direct selling channel principally through Representatives, who are independent contractors and not our employees. Revenue recognition Revenue is recognized when control of a product or service is transferred to a customer, which is generally the Representative. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties, such as Value Added Taxes ("VAT") collected for taxing authorities. Principal revenue streams and significant judgments Our principal revenue streams can be distinguished into: i) the sale of Beauty and Fashion & Home products to Representatives (recorded in net sales); ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract, which include fees for shipping and handling (recorded in other revenue); and iii) other, which includes the sale of products to New Avon LLC ("New Avon") and royalties from the licensing of our name and products (recorded in other revenue). i) Sale of Beauty and Fashion & Home products to Representatives We generate the majority of our revenue through the sale of Beauty and Fashion & Home products. A Representative contacts her customers directly, selling primarily through our brochure (whether paper or online), which highlights new products and special promotions (or incentives) for each sales campaign. In this sense, the Representative, together with the brochure, are the "store" through which our products are sold. A brochure introducing a new sales campaign is typically generated every three to four weeks. A purchase order is processed, and the products are picked at a distribution center and delivered to the Representative usually through a combination of local and national delivery companies. Generally, the Representative then delivers the merchandise and collects payment from the customer for her or his own account. A Representative generally receives a refund of the price the Representative paid for a product if the Representative chooses to return it. A Representative Agreement, which outlines the basic terms of the agreement between Avon and the Representative, combined with a purchase order, constitutes a contract for the purposes of Accounting Standards Codification Topic ("ASC"), Revenue from Contracts with Customers ("ASC 606"). Revenue from Contracts with Customers We account for individual products and services separately in the contract if they are distinct (i.e., if a product or service is separately identifiable from the other items in the contract and if a Representative can benefit from the product or service on its own or with other resources that are readily available), which is recognized at a point in time, when control of a product is transferred to a Representative. In addition, we offer incentives to Representatives to support sales growth. Certain of these sales incentives are distinct promises to a Representative, and therefore are a separate performance obligation. As a result, revenue is allocated to the performance obligation for sales incentives and is deferred on the balance sheet until the associated performance obligations are satisfied. Typically included within a contract is variable consideration, such as sales returns and late payment fees. Revenue is only recorded to the extent it is probable that it will not be reversed, and therefore revenue is adjusted for variable consideration. Variable consideration is generally estimated using the expected value method, which considers possible outcomes weighted by their probability. Specifically for sales returns, a refund liability will be recorded for the estimated cash to be refunded for the products expected to be returned, and a returns asset will be recorded for the products which we expect to be returned and re-sold, each of these based on historical experience. The estimate of sales returns as well as the measurement of the returns asset and the refund liability is updated at the end of each month for changes in expectations regarding the amount of salvageable returns, reconditioning costs and any additional decreases in the value of the returned products. Late payment fees are recorded when the uncertainty associated with collecting such fees are resolved (i.e., when collected). The Representative generally receives a credit period of one sales campaign if they meet certain criteria; however, the specific credit terms are outlined in the Representative Agreement. Generally, the Representative remits payment during each sales campaign, which relates to the prior campaign cycle. The Representative is generally precluded from submitting an order for the current sales campaign until the accounts receivable balance past due for prior campaigns is paid; however, there are circumstances where the Representative fails to make the required payment. Our contracts with Representatives often include multiple promises to transfer products and/or services to the Representative, and determining which of these products and/or services are considered distinct performance obligations that should be accounted for separately. In addition, in assessing the recognition of revenue for the following performance obligations, management has exercised significant judgment in the following areas: estimation of variable consideration and the stand-alone selling prices ("SSP") of promised goods or services in order to determine and allocate the transaction price. Performance obligation - Avon products and appointment kits The Representative purchases Avon products and appointment kits through a purchase order. Avon offers appointment kits for purchase to Representatives, which may contain various Avon products. We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration as discussed above and the estimated SSP of other performance obligations as discussed below. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Performance obligation - Sales incentives Types of sales incentives include status programs, loyalty points, prospective discounts, and gift with purchase, among others. A Representative is eligible for certain status programs if specified sales levels are met. Status programs offer additional benefits such as free or discounted products and services. Loyalty points offer the option to redeem for additional Avon or other products or services. Prospective discounts are offered in some countries when certain sales levels are reached in a given time period. The revenue attributable to the prospective discount performance obligation is for the option to purchase additional product at a discounted amount. Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right (performance obligation) based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales in our Consolidated Statements of Operations at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. SSP represents the estimated market value, or the estimated amount that could be charged for that material right when the entity sells it separately in similar circumstances to similar customers. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, including for certain sales incentives, we determine the SSP using information that may include market prices and other observable inputs. ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract ("Representative fees") The purchase order in the contract with the Representative explicitly identifies activities that we will perform. This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees (discussed above). Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and we allocate consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in selling, general and administrative expenses in our Consolidated Statements of Operations. We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations.
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Other Revenue | Other revenue We also recognize revenue from the sale of products to New Avon, as part of a manufacturing and supply agreement, since the separation of the Company's North America business into New Avon on March 1, 2016, and royalties from the licensing of our name and products, in other revenue in our Consolidated Statements of Operations. Contract costs Incremental costs to obtain contracts, such as bonuses or commissions, are recognized as an asset if the entity expects to recover them. However, ASC 340-40, Other Assets and Deferred Costs, offers a practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. We elected the practical expedient and expense costs to obtain contracts when incurred because our amortization period is one year or less. Costs to fulfill contracts with Representatives are comprised of shipping and handling (including order processing) and payment processing services, which are expensed as incurred. The fees for these services are included in the transaction price.
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are generally high-quality, short-term money market instruments with an original maturity of three months or less and consist of time deposits with a number of U.S. and non-U.S. commercial banks and money market fund investments.
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Inventories | InventoriesInventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We classify inventory into various categories based upon its stage in the product life cycle, future marketing sales plans and the disposition process. We assign a degree of obsolescence risk to products based on this classification to estimate the level of obsolescence provision. |
Brochure Costs | Brochure Costs Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations.
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Property, Plant and Equipment and Capitalized Software | Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, to ten years. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Upon disposal of property, plant and equipment, the cost of the assets and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in earnings. Costs associated with repair and maintenance activities are expensed as incurred. Certain systems development costs related to the purchase, development and installation of computer software, and implementation costs incurred in a hosting arrangement that is a service contract, are capitalized and amortized over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. The other assets balance included unamortized capitalized software costs of $74.9 at December 31, 2021 and $76.0 at December 31, 2020. The amortization expense associated with capitalized software was $22.4, $24.5 and $24.7 for the years ended December 31, 2021, 2020 and 2019, respectively. We evaluate our property, plant and equipment and capitalized software for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated pre-tax undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate.
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Leases | Leases We determine if an arrangement is a lease at the lease commencement date. In addition to our lease agreements, we review all material new vendor arrangements for potential embedded lease obligations. The asset balance related to operating and finance leases is presented within right-of-use (ROU) asset and property, plant and equipment, respectively, on our Consolidated Balance Sheet. The short-term liability balance related to operating and finance leases is presented within other accrued liabilities on our Consolidated Balance Sheets. The long-term liability balance is presented within long-term operating lease liability and long-term debt on our Consolidated Balance Sheets for operating and finance leases, respectively. The lease liability is recognized based on the present value of the remaining fixed or in-substance fixed lease payments discounted using our incremental borrowing rates. We use a specific incremental borrowing rate for our material leases, which is determined based on the geography, nature of the asset and term of the lease. These rates are determined based on inputs provided by external banks and updated periodically. The lease liability includes the exercise of a purchase option only if we are reasonably certain to exercise as of the commencement date of the lease. The residual value guarantee amount is only included in the lease liability calculation to the extent payment is probable to the lessor as of the commencement of the lease. The ROU asset is calculated based on the lease liability adjusted for any lease payments paid to the lessor at or before the commencement date (i.e. prepaid rent) and initial direct costs incurred by Avon and excluding any lease incentives received from the Lessor. Variable lease payments are payments to the lessor not included in the lease liability calculation. We define variable lease payments as payments made by Avon to the lessor for the right to use a leased asset that vary because of changes in facts or circumstances (such as changes in an index rate, volume, usage, etc.) occurring after the lease commencement date, other than predetermined contractual changes due to the passage of time (for example, predetermined rent increase amounts that are set out in the contract). Variable lease payments or charges are accounted for as incurred. The lease term for purposes of lease accounting may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option as of the commencement date of the lease. For operating leases, the lease expense is recognized on a straight-line basis over the lease term. For finance leases, the Company amortizes the ROU asset on a straight-line basis and records interest expense on the lease liability created at lease commencement over the lease term. We account for our lease and non-lease components as a single component for most of our asset classes, and therefore both are included in the calculation of lease liability recognized on the Consolidated Balance Sheets. However, for certain lease asset classes related to identified embedded leases we account for the lease and non-lease components separately, and therefore, the non-lease component is not included in the lease liability. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet; we recognize lease expense for these leases over their lease term.
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Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition. Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.
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Goodwill | Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the quantitative test, as described below, is required. We perform the quantitative test to evaluate goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, that difference represents an impairment; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a discounted cash flow ("DCF") approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of to ten years and include an estimated terminal value at the end of the forecasted period. When determining the appropriate forecast period for the DCF approach, we consider the amount of time required before the reporting unit achieves what we consider a normalized, sustainable level of cash flows. The estimation of fair value utilizing a DCF approach includes numerous uncertainties which require significant judgment when making assumptions of expected growth rates and the selection of discount rates, as well as assumptions regarding general economic and business conditions, and the structure that would yield the highest economic value, among other factors.
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Financial Instruments | Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: •Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. •Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. •Changes in the fair value of a derivative that is designated as a hedge of a net investment in a foreign operation are recorded in foreign currency translation adjustments within AOCI. •Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized in earnings in other expense, net in our Consolidated Statements of Operations. We present the earnings effect of the hedging instrument in our Consolidated Statements of Operations in the same income statement line item in which the earnings effect of the hedged item is reported. We classify derivative cash flows as operating, investing or financing consistent with the nature of the underlying hedged item. For derivatives designated as cash flow hedges, if we conclude that the hedging relationship is perfectly effective at inception, a detailed effectiveness assessment in each period is not required as long as (i) the critical terms of the hedging instrument completely match the related terms of the hedged item (ii) it is considered probable that the counterparties to the hedging instrument and the hedged item will not default, and (iii) the hedged cash flows remain probable. If the conditions above are not met, we will assess prospective and retrospective effectiveness using the cumulative dollar-offset method, which compares the change in fair value or present value of cash flows of the hedging instrument to the changes in the fair value or present value of the cash flows of the hedged item. If the result of the quantification demonstrates that the hedge is still highly effective (meaning that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item), we will revert to qualitative assessments of hedge effectiveness in subsequent periods if an expectation of high effectiveness on a qualitative basis for subsequent periods can be reasonably supported. If effectiveness is not within the 80% to 125% range, hedge accounting will be discontinued, and changes in the fair value of the hedging instrument will be recorded in earnings from the date the hedge is no longer considered highly effective.
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Deferred Income Taxes | Deferred Income Taxes Deferred income taxes have been provided on items recognized for financial reporting purposes in different periods than for income tax purposes using tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is provided to reduce our deferred tax assets to an amount that is "more likely than not" to be realized. The ultimate realization of our deferred tax assets depends upon generating sufficient future taxable income during the periods in which our temporary differences become deductible or before our net operating loss and tax credit carryforwards expire. See Note 9, Income Taxes for more information. In accordance with guidance issued by the Financial Accounting Standards Board ("FASB"), we are choosing to treat the U.S. income tax consequences of Global Intangible Low-Taxed Income ("GILTI") as a period cost. As a result, at December 31, 2021, no deferred income taxes have been provided.
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Uncertain Tax Positions | Uncertain Tax Positions We recognize the benefit of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. We record interest expense and penalties payable to relevant tax authorities in income taxes in our Consolidated Statements of Operations.
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SG&A Expenses | SG&A Expenses SG&A expenses include costs associated with selling; marketing; distribution, including shipping and handling costs; advertising; net brochure costs; research and development; information technology; and other administrative costs, including finance, legal and human resource functions.
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Shipping and Handling | Shipping and HandlingShipping and handling costs are expensed as incurred |
Advertising | AdvertisingAdvertising costs, excluding brochure preparation costs, are expensed as incurred |
Research and Development | Research and Development Research and development costs are expensed as incurred and amounted to $39.3 in 2021, $36.5 in 2020 and $40.6 in 2019. Research and development costs include all costs related to the design and development of new products such as salaries and benefits, supplies and materials and facilities costs.
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Share-based Compensation | Share-based Compensation Where applicable, share-based payments to employees are recognized in the financial statements based on their fair value at the date of grant. If applicable, we use a Monte-Carlo simulation to calculate the fair value of performance restricted stock units with market conditions and the fair value of premium-priced stock options. We account for forfeitures on share-based payments as they occur. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment. Where an award is cancelled, any unamortized compensation cost is expensed immediately. Subsequent to the Transaction with Natura &Co, our employees are considered employees of the parent company for purposes of applying ASC 718 Compensation—Stock Compensation. Share-based payments made by Natura &Co to our employees are recognized in the financial statements based on their fair value at the date of grant.
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Restructuring Expense | Restructuring Expense We record the estimated expense for our restructuring initiatives, such as our Transformation Plan, Open Up & Grow and Avon Integration, when such costs are deemed probable and estimable, when approved by the appropriate corporate authority and by accumulating detailed estimates of costs for such plans. These expenses include the estimated costs of employee severance and related benefits, inventory write-offs, impairment or accelerated depreciation of property, plant and equipment and capitalized software, and any other qualifying exit costs. Such costs represent our best estimate, but require assumptions about the programs that may change over time, including attrition rates. Estimates are evaluated periodically to determine whether an adjustment is required.
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Pension and Postretirement Expense | Pension and Postretirement ExpensePension and postretirement expense is determined based on a number of actuarial assumptions, which are generally reviewed and determined on an annual basis. These assumptions include the discount rate applied to plan obligations, the expected rate of return on plan assets, the rate of compensation increase of plan participants, price inflation, cost-of-living adjustments, mortality rates and certain other demographic assumptions, and other factors. Actual results that differ from assumptions are accumulated and amortized to expense over future periods and, therefore, generally affect recognized expense in future periods. We recognize the funded status of pension and other postretirement benefit plans in our Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over | - and five-year periods. We use a December 31 measurement date for all of our employee benefit plans. Service cost is presented in SG&A in our Consolidated Statements of Operations. The components of net periodic benefit costs other than service cost are presented in other expense, net in our Consolidated Statements of Operations
Contingencies | Contingencies We determine whether to disclose and/or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable. We record loss contingencies when it is probable that a liability has been incurred and the amount of loss is reasonably estimable.
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New Accounting Standards Implemented | New Accounting Standards Implemented Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements. ASU 2016-13, Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held. We adopted this new accounting guidance effective January 1, 2020, using a modified retrospective transition approach. The adoption did not have a material impact on our condensed consolidated financial statements and disclosures and did not significantly impact the Company’s accounting policies or estimation methods related to the allowance for doubtful accounts. The adoption resulted in a cumulative effect decrease to retained earnings of approximately $2 to reflect a change in the allowance for doubtful accounts. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General. ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Early adoption is permitted. The amendments in this Update are effective for fiscal years ending after December 15, 2020, therefore we adopted this standard effective December 31, 2020. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2017-04, Intangibles - Goodwill and other (Topic 350) In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-04 Intangibles - Goodwill and other, which simplifies the test for goodwill impairment. This Update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The guidance requires prospective adoption. We adopted the guidance for the goodwill impairment test that we have conducted since 2020, and adoption of the guidance did not have a significant impact on our financial statements. ASU 2019-12, Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes, which is intended to simplify the accounting standard and improve the usefulness of information provided in the financial statements. We adopted this new accounting guidance as of January 1, 2021. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company has implemented a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR and, as a result, has elected to apply the optional expedient included in ASU 2020-04 to account for modifications of contracts within the scope of Topics 310, Receivables, and 470, Debt, to be accounted for by prospectively adjusting the effective interest rate. Accounting Standards to be 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 is 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 and Assets and Liabilities Held for Sale (Tables) |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 are shown below:
The major classes of assets and liabilities comprising held for sale assets and held for sale liabilities on the Consolidated Balance Sheet at December 31, 2021 and December 31, 2020 are shown in the following table.
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions |
(1) During the second quarter of 2018, the Company entered into an agreement to loan the Instituto Avon, an independent non-government charitable organization in Brazil, R$12 million (Brazilian real) for an unsecured 5-year term at a fixed interest rate of 7% per annum, to be paid back in five equal annual installments. The Instituto Avon was created by an Avon subsidiary in Brazil, with the board and executive team comprised of Avon Brazil management. The purpose of the loan was to provide the Instituto Avon with the means to donate funds to Fundação Pio XII (a leading cancer prevention and treatment organization in Brazil and owner of the Hospital do Câncer de Barretos), in order to invest in equipment with the objective of expanding breast cancer prevention and treatment. During the fourth quarter of 2021, the loan was repaid in full. (2) 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 $25.2 and $6.7 associated with these agreements during the years ended December 31, 2021 and 2020, respectively. The Company recorded gross profit from related party of $2.8 and $.8 associated with these agreements during the years ended December 31, 2021 and 2020, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements. (3) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue from related party of $1 associated with these agreements during the year ended December 31, 2021. The Company recorded gross profit from related party of $1 associated with these agreements during the year ended December 31, 2021. (4) The payable to Natura &Co relates to the vesting and settlement of share based compensation awards denominated in Natura &Co American Depository Receipts including the 2018 long-term employee incentive program which vested and were automatically exercised in March 2021. (5) Loans from affiliates of Natura &Co Holding at December 31, 2021 of $1,108.0 include $736.3 outstanding under a Promissory Note between Avon Beauty Limited and a subsidiary of Natura &Co Holding, and $207.3 outstanding under a Promissory Note with a subsidiary of Natura &Co Holding and 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. Loans from affiliates of Natura &Co Holding at December 31, 2020 of $1,008.6 include $965 outstanding under a Promissory Note between Avon International Operations Inc. and a subsidiary of Natura &Co Holding. Loans from affiliates of Natura &Co Holding at December 31, 2020 also include $41.6 outstanding under the Revolving Credit Facility between Avon Luxembourg and Natura &Co International S.à r.l.. See Note 15, Debt and Other Financing, for further information relating to these loans. (6) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$.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. (7) 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.
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Revenue (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disaggregation of Revenue by Product and Service | In the following tables, 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:
* 2021 includes approximately $22, to reflect the impact of certain Brazil indirect taxes which were recorded in product sales, in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information. ** 2019 includes the impact of certain Brazil indirect taxes which was recorded in product sales of approximately $68, in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information.
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Summary of Receivables and Contract Liabilities | The following table provides information about receivables and contract liabilities from contracts with customers at December 31, 2021 and 2020:
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Inventories (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | Inventories at December 31 consisted of the following:
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Debt and Other Financing (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt at December 31 consisted of the following:
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Schedule of Carrying Values of Debt Instrument | At December 31, 2021 and 2020, the carrying values of our unsecured notes were comprised of the following:
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Schedule of Maturities of Long-term Debt | Annual maturities of long-term debt, which includes our notes, loans from affiliates of Natura &Co and capital leases outstanding at December 31, 2021, are as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below present the changes in AOCI by component and the reclassifications out of AOCI during 2021 and 2020:
(1) Gross amount reclassified to other expense, net, and related taxes reclassified to income taxes.
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income from Continuing Operations before Taxes | Income from continuing operations, before taxes for the years ended December 31 was as follows:
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Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31 was as follows:
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Schedule of Effective Tax Rate | The continuing operations effective tax rate for the years ended December 31 was as follows:
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Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) at December 31 consisted of the following:
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Reconciliation of Beginning and Ending Amount of Unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Tax Years Remaining | As of December 31, 2021, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows:
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Financial Instruments and Risk Management (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | The following table presents the fair value of derivative instruments at December 31, 2021:
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, 2020:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2021:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2020:
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Fair Value (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Hierarchy | The following table presents the fair value of derivative instruments at December 31, 2021:
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, 2020:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2021:
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December 31, 2020:
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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 December 31 consisted of the following:
(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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Share-Based Compensation Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Share-based Compensation Costs | For the years ended December 31:
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Schedule of Valuation Assumptions | When estimating the fair value of each option, we used the following weighted-average assumptions for options granted during the year ended December 31, 2019:
(1)The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. (2)The expected term of the option was based on the vesting terms of the respective option and a contractual life of 10 years. (3)Expected Avon volatility was based on the daily historical volatility of our stock price, over a period similar to the expected life of the option.
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Schedule of Share-based Payment Award, Performance Restricted Stock Units, Valuation Assumptions | When estimating the fair value of the PRSUs, we used the following weighted-average assumptions:
(1)The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. (2)Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2019 PRSUs. (3)Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2019 PRSUs.
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Schedule of Options Activity During Period | A summary of nominal cost options at December 31, 2021 and changes during 2021, is as follows:
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Schedule of Share-Based Compensation Performance Restricted Stock Units Activity | A summary of performance share units at December 31, 2021 and changes during 2021, is as follows:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Defined Benefit Pension and Postretirement Plans | The following table summarizes changes in the benefit obligation, plan assets and the funded status of our significant defined benefit pension and postretirement plans. We use a December 31 measurement date for all of our employee benefit plans.
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Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss
* Amounts represent the pre-tax effect classified within other comprehensive loss. The net of tax amounts are classified within our Consolidated Statements of Comprehensive Loss.
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Weighted-Average Assumptions Used to Determine Benefit Obligations | Weighted-average assumptions used to determine benefit obligations recorded in our Consolidated Balance Sheets as of December 31 were as follows:
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Weighted-Average Assumptions Used to Determine Net Benefit Cost | Weighted-average assumptions used to determine net benefit cost recorded in our Consolidated Statements of Operations for the years ended December 31 were as follows:
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Pension and Postretirement Plans Target and Weighted-Average Asset Allocations | Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2021 and 2020, by asset category were as follows:
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Schedule Of Fair Value Hierarchy For Pension And Postretirement Assets | The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis at December 31, 2021 :
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis at December 31, 2020:
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Reconciliation of Beginning and Ending Balance For Our Level 3 Investments | A reconciliation of the beginning and ending balances for our Level 3 investments is provided in the table below:
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Schedule of Expected Benefit Payments | Total benefit payments expected to be paid from the plans are as follows:
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Schedule of Assets Held in Trust | The assets held in the trust are included in other assets and at December 31 consisted of the following:
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Segment Information (Tables) |
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Segment Reporting, Measurement Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Revenue |
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Schedule of Operating Profit |
was recorded in product sales in the amount of approximately $68 in our Consolidated Income Statements. See Note 20 Supplemental Balance Sheet Information. (2)Total revenue from reportable segments also includes revenue from other business activities of $4.7, $14.5 and $18.1 for the years ended December 31, 2021, 2020 and 2019, 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. Previously reported amounts have been allocated to Avon International and Avon Latin America segments to conform to the current year presentation. (3)Total profit 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 $1.5, $7.3, and $2.4 for the years ended December 31, 2021, 2020 and 2019, 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 $206.7, $197.6, and $214.7 for the years ended December 31, 2021, 2020 and 2019, 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. Previously reported amounts have been allocated to segments to conform to the current year presentation. (4)For the years ended December 31, 2021, 2020 and 2019, unallocated global expenses primarily include stewardship and other expenses not directly attributable to reportable segments. (5)The year ended December 31, 2021 includes the impact of certain Brazil taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $2. The year ended December 31, 2020 includes the impact of certain Brazil indirect taxes, which were recorded in selling, general and administrative expenses, net in the amounts of approximately $11. (6)For the year ended December 31, 2020, costs related to the Transaction primarily include professional fees of approximately $46, severance payments of approximately $25 and acceleration of share based compensation of approximately $10 relating to these terminations triggered by change in control provisions. For the year ended 31 December 2019, costs related to the Transaction primarily include professional fees and impairment losses on assets. Refer to Note 21, Merger with Natura Cosméticos S.A. for more information relating to the Natura transaction. (7)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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
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Schedule of Total Assets |
(1) Avon International includes assets of $420.7 at December 31, 2019, that were not previously allocated to our reportable segments. (2) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, balances at December 31, 2021 do not include the assets of Avon Luxembourg. Balances at December 31, 2020 and 2019 include the assets of Avon Luxembourg.
(1) Avon International includes capital expenditures of $13.8 for the year ended December 31, 2019, that were not previously allocated to our reportable segments. (2) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
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Schedule of Depreciation and Amortization |
(1) Avon International includes depreciation and amortization of $19.9 for the year ended December 31, 2019 that was not previously allocated to our reportable segments. (2) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
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Schedule of Total Revenue by Major Country | A major country is defined as one with total revenues greater than 10% of consolidated total revenues.
(1) 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 year ended December 31, 2021 includes the results of Avon Luxembourg for the period from January 1 to June 30, 2021. The years ended December 31, 2020 and 2019 include the results of Avon Luxembourg.
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Schedule of Long-Lived Assets by Major Country | Long-lived assets in Brazil, Poland and Mexico consist primarily of property, plant and equipment related to manufacturing and distribution facilities, long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility and right-of-use assets related to equipment.
(1) Mexico's long-lived assets are greater than 10% of total long-lived assets in 2019 only (2) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, balances at December 31, 2021 do not include the assets of Avon Luxembourg. Balances at December 31, 2020 and 2019 include the assets of Avon Luxembourg. In the above table, long lived assets have been calculated by including property, plant and equipment, net and right-of-use assets which are difficult to move and are relatively illiquid. In 2019, our definition of long lived assets also included certain intangible assets and other long term receivables and excluded right-of use assets which resulted in the following disclosure in previous filings.
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Leases and Commitments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities, Lessee |
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Lease Cost | The table below shows the lease income and expenses recorded in the Consolidated Statement of Operations incurred during the years ended December 31:
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Operating Lease Maturity Analysis | The maturity analysis of the finance and operating lease liabilities is reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted finance and operating lease liabilities as recognized in the December 31, 2021 Consolidated Balance Sheet:
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Finance Lease Maturity Analysis | The maturity analysis of the finance and operating lease liabilities is reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted finance and operating lease liabilities as recognized in the December 31, 2021 Consolidated Balance Sheet:
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Lease Terms | As noted in our lease accounting policy (See Note 1, Description of the Business and Summary of Significant Accounting Policies), the Company uses the incremental borrowing rate as the lease discount rate.
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Cash Flow Classification | The table below sets out the classification of lease payments in the Consolidated Statement of Cash Flows. The ROU assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the years ended December 31.
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Purchase Obligations | Purchase obligations include commitments to purchase paper, inventory and other services. At December 31, 2021, our purchase obligations by due date were as follows:
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Restructuring Initiatives (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The costs during the twelve months ended December 31, 2021, 2020 and 2019 consisted of the following:
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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 December 31, 2021 is as follows:
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Schedule of Restructuring Charges Reportable | The following table presents the restructuring charges incurred to date, under the Avon Integration , Open Up & Grow and the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plans:
The charges, net of adjustments, of initiatives under the Open Up & Grow and the Transformation Plan, 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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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill
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Supplemental Balance Sheet Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Prepaid Expenses and Other | At December 31, 2021 and 2020, prepaid expenses and other included the following:
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Components of Other Assets | At December 31, 2021 and 2020, other assets included the following:
|
Discontinued Operations and Assets and Liabilities Held for Sale (Narrative) (Details) |
1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 23, 2021
USD ($)
|
Nov. 17, 2021
USD ($)
|
Jul. 01, 2021
USD ($)
|
Jun. 26, 2019
USD ($)
|
May 09, 2019
USD ($)
|
Feb. 15, 2019
USD ($)
|
Sep. 30, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
Aug. 31, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
Apr. 30, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Aug. 31, 2019
USD ($)
|
Dec. 31, 2021
USD ($)
property
|
Sep. 30, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
Jun. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Aug. 31, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2021
USD ($)
property
|
Dec. 31, 2020
USD ($)
business
property
|
Dec. 31, 2019
USD ($)
|
Mar. 31, 2021
USD ($)
|
May 31, 2020
USD ($)
|
Aug. 14, 2019
USD ($)
|
Apr. 30, 2019 |
Mar. 01, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | $ 26,800,000 | $ 9,900,000 | $ 1,500,000 | $ 50,100,000 | |||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 23,400,000 | 16,900,000 | 11,300,000 | 99,900,000 | |||||||||||||||||||||||||||
Gain on sale of business | $ 148,000,000 | 148,400,000 | |||||||||||||||||||||||||||||
Restricted cash | $ 0 | 0 | 7,800,000 | 2,900,000 | |||||||||||||||||||||||||||
AOCI, Gain on sale of business/asset | $ 3,400,000 | $ 0 | $ 0 | (3,400,000) | |||||||||||||||||||||||||||
Natura Revolving Facility | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Amount repaid | 150,000,000 | ||||||||||||||||||||||||||||||
Maximum borrowing capacity | $ 250,000,000 | $ 100,000,000 | |||||||||||||||||||||||||||||
Avon International | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Number of properties held for sale | property | 1 | ||||||||||||||||||||||||||||||
Number of businesses held for sale | business | 1 | ||||||||||||||||||||||||||||||
Avon LATAM | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
Avon Beauty Arabia | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Write-off of loan balance | $ 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 | ||||||||||||||||||||||||||||||
Spanish Distribution Center | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | $ 8,300,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 14,700,000 | ||||||||||||||||||||||||||||||
Gain on sale | $ 6,200,000 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Avon Shanghai | |||||||||||||||||||||||||||||||
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 | 2,900,000 | ||||||||||||||||||||||||||||||
Hungary Distribution Center in Gödöllő | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | $ 100,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 3,100,000 | $ 3,400,000 | |||||||||||||||||||||||||||||
Deposit | $ 300,000 | ||||||||||||||||||||||||||||||
China Wellness Plant | |||||||||||||||||||||||||||||||
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 | $ 6,600,000 | $ 6,600,000 | |||||||||||||||||||||||||||||
Restricted cash | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | $ 3,300,000 | |||||||||||||||||||||||||||
Rye Office | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | $ 9,900,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 22,400,000 | ||||||||||||||||||||||||||||||
Selling price | 23,200,000 | ||||||||||||||||||||||||||||||
Disposal costs | $ 800,000 | ||||||||||||||||||||||||||||||
Malaysia Maximin | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | 3,300,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 7,600,000 | ||||||||||||||||||||||||||||||
Gain on sale | $ 3,000,000.0 | ||||||||||||||||||||||||||||||
Consideration transferred | $ 7,800,000 | ||||||||||||||||||||||||||||||
New Avon | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Ownership | 19.90% | 19.90% | |||||||||||||||||||||||||||||
Consideration transferred | $ 24,500,000 | ||||||||||||||||||||||||||||||
Transaction costs | $ 1,100,000 | ||||||||||||||||||||||||||||||
Investment in New Avon | 0 | $ 0 | |||||||||||||||||||||||||||||
Avon Beauty Arabia | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Ownership | 51.00% | ||||||||||||||||||||||||||||||
Avon Manufacturing (Guangzhou), Ltd. | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Gain on sale of business | $ 10,300,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | $ 46,400,000 | ||||||||||||||||||||||||||||||
Gain on sale | $ 8,200,000 | ||||||||||||||||||||||||||||||
Restricted cash | $ 7,600,000 | ||||||||||||||||||||||||||||||
Avon Manufacturing (Guangzhou), Ltd. | TheFaceShop Co., LTd. | |||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||
Net proceeds from sale of business / assets | 71,000,000.0 | ||||||||||||||||||||||||||||||
Disposal costs | 1,100,000 | ||||||||||||||||||||||||||||||
Cash payment for outstanding loans | $ 23,500,000 |
Discontinued Operations and Assets and Liabilities Held for Sale (Financial Components of Discontinued Operations) (Details) - Discontinued Operations - North America Segment - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Selling, general and administrative expenses | $ (18.5) | $ (27.9) | $ (36.6) |
Operating loss | (18.5) | (27.9) | (36.6) |
Loss from discontinued operations, net of tax | $ (18.5) | $ (27.9) | $ (36.6) |
Discontinued Operations and Assets and Liabilities Held for Sale (Assets and Liabilities Held For Sale) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Held for sale cash and cash equivalents | $ 0.0 | $ 0.7 | $ 0.0 |
Held-for-sale | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Inventories | 0.0 | 2.6 | |
Property, Plant & Equipment (net) | 2.8 | 9.2 | |
Held for sale cash and cash equivalents | 0.0 | 0.7 | |
Other assets | 0.0 | 1.4 | |
Held for sale assets | 2.8 | 13.9 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Accounts payable | 0.0 | 0.5 | |
Other liabilities | 0.0 | 1.8 | |
Held for sale liabilities | $ 0.0 | $ 2.3 |
Related Party Transactions (Details) R$ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018
BRL (R$)
installment
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jun. 30, 2021
USD ($)
|
|
Related Party Transaction [Line Items] | |||||
Revenue from affiliates of Natura &Co | $ 25,200,000 | $ 6,700,000 | $ 0 | ||
Cost of sales from affiliates of Natura &Co | (22,400,000) | (5,900,000) | 0 | ||
Interest expense on Loan from affiliates of Natura &Co | (50,600,000) | (7,500,000) | 0 | ||
Loans to affiliates of Natura &Co maturing within one year | 46,600,000 | 0 | |||
Loans to affiliates of Natura &Co maturing after one year | 46,700,000 | 0 | |||
Other payables due to affiliates of Natura &Co | (4,900,000) | 0 | |||
Loans from affiliates of Natura &Co maturing within one year | (1,108,000,000) | ||||
Loans from affiliates of Natura &Co maturing after one year | (736,300,000) | 0 | |||
Debt outstanding | $ 0 | ||||
Loans from affiliates of Natura &Co | 371,700,000 | 1,008,600,000 | |||
Natura &Co Pay Holding Financeira S.A. | Avon Cosmeticos LTDA | |||||
Related Party Transaction [Line Items] | |||||
Ownership | 10.00% | ||||
Natura Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Debt outstanding | 736,300,000 | 965,000,000 | |||
Natura And Affiliate Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Debt outstanding | 207,300,000 | ||||
Natura Revolving Facility | |||||
Related Party Transaction [Line Items] | |||||
Debt outstanding | 41,600,000 | ||||
Licensing Agreements | |||||
Related Party Transaction [Line Items] | |||||
Gross profit from affiliates of Natura &Co | 1,000,000 | ||||
Natura & Co | |||||
Related Party Transaction [Line Items] | |||||
Interest income from related parties | 1,600,000 | 0 | |||
Interest expense on Loan from affiliates of Natura &Co | (50,600,000) | (7,500,000) | |||
Receivables due from related parties | 32,700,000 | 6,100,000 | |||
Other receivables due from affiliates of Natura &Co | 1,400,000 | 0 | |||
Loans to affiliates of Natura &Co maturing within one year | 46,600,000 | 0 | |||
Trade Payables due to affiliates of Natura &Co | (24,500,000) | 0 | |||
Loans from affiliates of Natura &Co maturing within one year | (371,700,000) | (1,008,600,000) | |||
Loans from affiliates of Natura &Co maturing after one year | (736,300,000) | 0 | |||
Investments in affiliates of Natura &Co | 100,000 | 0 | $ 500,000 | ||
Loans from affiliates of Natura &Co | 164,400,000 | ||||
Natura & Co | Manufacturing and Supply Agreement | |||||
Related Party Transaction [Line Items] | |||||
Revenue from affiliates of Natura &Co | 25,200,000 | 6,700,000 | |||
Cost of sales from affiliates of Natura &Co | (22,400,000) | (5,900,000) | |||
Gross profit from affiliates of Natura &Co | 2,800,000 | 800,000 | |||
Natura & Co | Licensing Agreements | |||||
Related Party Transaction [Line Items] | |||||
Revenue from affiliates of Natura &Co | 1,000,000 | ||||
Instituto Avon | |||||
Related Party Transaction [Line Items] | |||||
Interest income from related parties | 0 | 100,000 | |||
Receivables due from related parties | $ 0 | $ 800,000 | |||
Affiliated Entity | Loan To Related Party | Instituto Avon | |||||
Related Party Transaction [Line Items] | |||||
Loan amount | R$ | R$ 12 | ||||
Loan term | 5 years | ||||
Loan interest rate | 7.00% | ||||
Loan annual installments | installment | 5 |
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 3,202.9 | $ 3,431.2 | $ 4,494.1 |
Other | 27.4 | 18.9 | 24.9 |
Total Revenues | 3,404.5 | 3,625.2 | 4,763.2 |
Revenue from affiliates of Natura &Co | 25.2 | 6.7 | 0.0 |
Total Beauty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,353.3 | 2,546.3 | 3,337.6 |
Skincare | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,043.4 | 1,110.6 | 1,371.4 |
Fragrance | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 890.0 | 972.4 | 1,244.6 |
Color | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 419.9 | 463.3 | 721.6 |
Total Fashion & Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 828.1 | 884.9 | 1,088.8 |
Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 418.1 | 459.9 | 618.8 |
Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 410.0 | 425.0 | 470.0 |
Certain Brazil taxes | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 21.5 | 67.7 | |
Total Revenues | 21.0 | 68.0 | |
Net sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,202.9 | 3,431.2 | 4,494.1 |
Representative fees | |||
Disaggregation of Revenue [Line Items] | |||
Representative fees | 174.2 | 175.1 | 244.2 |
Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other revenue | 201.6 | 194.0 | 269.1 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Other | 2.2 | 12.2 | |
Total Revenues | 3,379.3 | 3,618.5 | 4,763.2 |
Operating Segments | Total Beauty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,353.3 | 2,546.3 | |
Operating Segments | Skincare | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,043.4 | 1,110.6 | |
Operating Segments | Fragrance | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 890.0 | 972.4 | |
Operating Segments | Color | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 419.9 | 463.3 | |
Operating Segments | Total Fashion & Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 828.1 | 884.9 | |
Operating Segments | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 418.1 | 459.9 | |
Operating Segments | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 410.0 | 425.0 | |
Operating Segments | Certain Brazil taxes | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 21.5 | ||
Operating Segments | Net sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,202.9 | 3,431.2 | |
Operating Segments | Representative fees | |||
Disaggregation of Revenue [Line Items] | |||
Representative fees | 174.2 | 175.1 | |
Operating Segments | Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other revenue | 176.4 | 187.3 | |
Other reconciling items | |||
Disaggregation of Revenue [Line Items] | |||
Other | 25.2 | 6.7 | |
Total Revenues | 25.2 | 6.7 | 0.0 |
Revenue from affiliates of Natura &Co | 25.2 | 6.7 | |
Other reconciling items | Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other revenue | 25.2 | 6.7 | |
Avon International | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Other | 0.5 | 6.4 | 4.3 |
Total Revenues | 1,724.6 | 1,772.6 | 2,234.3 |
Avon International | Operating Segments | Total Beauty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,329.8 | 1,376.5 | 1,693.0 |
Avon International | Operating Segments | Skincare | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 577.6 | 594.7 | 671.5 |
Avon International | Operating Segments | Fragrance | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 514.2 | 516.0 | 639.9 |
Avon International | Operating Segments | Color | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 238.0 | 265.8 | 381.6 |
Avon International | Operating Segments | Total Fashion & Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 327.9 | 323.0 | 445.5 |
Avon International | Operating Segments | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 258.3 | 267.4 | 383.8 |
Avon International | Operating Segments | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 69.6 | 55.6 | 61.7 |
Avon International | Operating Segments | Certain Brazil taxes | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0.0 | 0.0 | |
Avon International | Operating Segments | Net sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,657.7 | 1,699.5 | 2,138.5 |
Avon International | Operating Segments | Representative fees | |||
Disaggregation of Revenue [Line Items] | |||
Representative fees | 66.4 | 66.7 | 91.5 |
Avon International | Operating Segments | Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other revenue | 66.9 | 73.1 | 95.8 |
Avon LATAM | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Other | 1.7 | 5.8 | 20.6 |
Total Revenues | 1,654.7 | 1,845.9 | 2,528.9 |
Avon LATAM | Operating Segments | Total Beauty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,023.5 | 1,169.8 | 1,644.6 |
Avon LATAM | Operating Segments | Skincare | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 465.8 | 515.9 | 699.9 |
Avon LATAM | Operating Segments | Fragrance | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 375.8 | 456.4 | 604.7 |
Avon LATAM | Operating Segments | Color | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 181.9 | 197.5 | 340.0 |
Avon LATAM | Operating Segments | Total Fashion & Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 500.2 | 561.9 | 643.3 |
Avon LATAM | Operating Segments | Fashion | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 159.8 | 192.5 | 235.0 |
Avon LATAM | Operating Segments | Home | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 340.4 | 369.4 | 408.3 |
Avon LATAM | Operating Segments | Certain Brazil taxes | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 21.5 | 67.7 | |
Avon LATAM | Operating Segments | Net sales | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,545.2 | 1,731.7 | 2,355.6 |
Avon LATAM | Operating Segments | Representative fees | |||
Disaggregation of Revenue [Line Items] | |||
Representative fees | 107.8 | 108.4 | 152.7 |
Avon LATAM | Operating Segments | Other revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other revenue | $ 109.5 | $ 114.2 | $ 173.3 |
Revenue (Summary of Receivables and Contract Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net of allowances of $37.1 and $51.1 | $ 198.7 | $ 259.1 |
Contract liabilities | 37.1 | 52.1 |
Allowances | $ 37.1 | $ 51.1 |
Revenue (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized related to contract liability | $ 39.5 |
Deferred revenue related to contract liability | $ 29.9 |
Inventories (Components of Inventories) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 103.4 | $ 131.3 |
Finished goods | 280.7 | 327.8 |
Total | $ 384.1 | $ 459.1 |
Debt and Other Financing (Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Jul. 31, 2019 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Mar. 31, 2013 |
---|---|---|---|---|---|---|---|---|
Debt maturing within one year: | ||||||||
Short term debt | $ 32.6 | $ 28.0 | ||||||
Loans from affiliates of Natura &Co | 371.7 | 1,008.6 | ||||||
Total | 404.3 | 1,036.6 | ||||||
Long-term debt: | ||||||||
Finance lease liabilities | 1.3 | 1.5 | ||||||
Loans from affiliates of Natura &Co, due 2028 | 736.3 | 0.0 | ||||||
Total | 1,412.3 | 675.4 | ||||||
5.00% Notes, due March 2023 | ||||||||
Long-term debt: | ||||||||
Notes | $ 460.8 | 460.1 | ||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||
6.95% Notes, due March 2043 | ||||||||
Long-term debt: | ||||||||
Notes | $ 213.9 | $ 213.8 | ||||||
Interest rate, stated percentage | 6.95% | 6.95% | 6.95% | 6.95% | 6.95% |
Debt and Other Financing (Narrative) (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Jul. 31, 2019 |
Jun. 30, 2018 |
Aug. 31, 2016 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Mar. 31, 2013 |
Mar. 31, 2008 |
|
Debt Instrument [Line Items] | |||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (25,600,000) | $ 0 | $ (37,700,000) | $ (11,600,000) | |||||||||||||||
Write off of debt issuance cost | 7,900,000 | ||||||||||||||||||
Loss on debt extinguishment | 17,700,000 | ||||||||||||||||||
Senior notes | 0 | 0 | 0 | ||||||||||||||||
Loans from affiliates of Natura &Co maturing within one year | 1,008,600,000 | 371,700,000 | 1,008,600,000 | ||||||||||||||||
Loans from affiliates of Natura &Co maturing after one year | 0 | 736,300,000 | 0 | ||||||||||||||||
Loans Payable | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Short-term debt, interest rate | 7.70% | ||||||||||||||||||
Natura & Co | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Loans from affiliates of Natura &Co maturing within one year | 164,400,000 | ||||||||||||||||||
Loans from affiliates of Natura &Co maturing after one year | 0 | $ 736,300,000 | 0 | ||||||||||||||||
Fourth Quarter 2018 Repurchase | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Payments for debt extinguishment accrued interest | $ 700,000 | ||||||||||||||||||
Gain (loss) on extinguishment of debt | 2,100,000 | ||||||||||||||||||
Write off of debt issuance cost | 300,000 | ||||||||||||||||||
Debt repurchase discount received | 2,400,000 | ||||||||||||||||||
4.60% Notes, due March 2020 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 274,800,000 | $ 500,000,000.0 | |||||||||||||||||
Interest rate, stated percentage | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | ||||||||||||
Repayments of debt | $ 50,100,000 | ||||||||||||||||||
Repurchase amount | $ 274,800,000 | 23,000,000.0 | $ 40,000,000.0 | ||||||||||||||||
Repayments of long-term debt | $ 112,200,000 | ||||||||||||||||||
Payments for debt extinguishment accrued interest | 1,700,000 | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (1,500,000) | $ (8,100,000) | |||||||||||||||||
Debt repurchase discount received | 600,000 | ||||||||||||||||||
Debt repurchase, premium paid | 8,200,000 | ||||||||||||||||||
Accrued interest paid on extinguishment of debt | $ 5,400,000 | ||||||||||||||||||
Make whole premium | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||||||||||||||||
5.00% Notes, due March 2023 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 500,000,000.0 | ||||||||||||||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||
Repurchase amount | $ 27,000,000.0 | $ 11,100,000 | |||||||||||||||||
6.95% Notes, due March 2043 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 250,000,000.0 | ||||||||||||||||||
Interest rate, stated percentage | 6.95% | 6.95% | 6.95% | 6.95% | 6.95% | 6.95% | |||||||||||||
Repurchase amount | $ 27,800,000 | $ 27,800,000 | $ 6,200,000 | ||||||||||||||||
Gain (loss) on extinguishment of debt | (4,100,000) | ||||||||||||||||||
Write off of debt issuance cost | 300,000 | ||||||||||||||||||
Make whole premium | 3,800,000 | $ 3,800,000 | |||||||||||||||||
Accrued interest | $ 1,200,000 | ||||||||||||||||||
6.50% Notes, due March 2019 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 350,000,000.0 | ||||||||||||||||||
Interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | ||||||||||||||
Repayments of debt | 68,100,000 | ||||||||||||||||||
Repurchase amount | $ 44,000,000.0 | ||||||||||||||||||
Repayments of long-term debt | $ 237,800,000 | ||||||||||||||||||
Payment for debt extinguishment or debt prepayment cost | 6,200,000 | $ 6,200,000 | |||||||||||||||||
Payments for debt extinguishment accrued interest | $ 4,600,000 | ||||||||||||||||||
Gain (loss) on extinguishment of debt | (2,900,000) | ||||||||||||||||||
Write off of debt issuance cost | 300,000 | ||||||||||||||||||
2013 Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Increase in interest rate for every one-notch downgrade of long-term credit ratings below investment grade | 0.25% | ||||||||||||||||||
Maximum aggregate increase in interest rate related to downgrade of long-term credit ratings below investment grade | 2.00% | ||||||||||||||||||
7.875% Senior Secured Notes Due August 2022 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 500,000,000.0 | ||||||||||||||||||
Interest rate, stated percentage | 7.875% | ||||||||||||||||||
Repayment of principal | $ 500,000,000 | ||||||||||||||||||
Payment of premium | 9,800,000 | ||||||||||||||||||
Payment of accrued interest | 8,400,000 | ||||||||||||||||||
6.50% Senior Secured Notes, Due August 2022 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount of debt | $ 400,000,000.0 | ||||||||||||||||||
Repayment of principal | 400,000,000 | ||||||||||||||||||
Payment of premium | 7,900,000 | ||||||||||||||||||
Payment of accrued interest | $ 5,600,000 | ||||||||||||||||||
Unsecured Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Accrued interest | $ 15,200,000 | $ 14,700,000 | $ 15,200,000 | ||||||||||||||||
Interest Rate Swap | 6.50% Notes, due March 2019 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Deferred gain on termination of contract | $ 3,600,000 |
Debt and Other Financing (Schedule of Public Notes) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
5.00% Notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | $ 461.9 | $ 461.9 |
Unamortized Discounts | (0.5) | (1.0) |
Unamortized Debt Issuance Costs | (0.6) | (0.8) |
Total | 460.8 | 460.1 |
6.95% Notes, due March 2043 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 216.1 | 216.1 |
Unamortized Discounts | (1.7) | (0.5) |
Unamortized Debt Issuance Costs | (0.5) | (1.8) |
Total | $ 213.9 | $ 213.8 |
Debt and Other Financing (Maturities of Long-Term Debt) (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2022 | $ 0.0 |
2023 | 462.7 |
2024 | 0.3 |
2025 | 0.2 |
2026 | 0.1 |
2027 and Beyond | 952.4 |
Total | $ 1,415.7 |
Debt and Other Financing (Other Financing) (Details) |
1 Months Ended | 3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 03, 2020
USD ($)
|
Feb. 28, 2019
EUR (€)
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2020
USD ($)
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2021
USD ($)
|
Mar. 31, 2021
USD ($)
|
Nov. 30, 2020
USD ($)
|
May 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||||
Loans from affiliates of Natura &Co maturing within one year | $ 1,008,600,000 | $ 371,700,000 | ||||||||
Loans from affiliates of Natura &Co | 0 | 736,300,000 | ||||||||
Short term debt | 28,000,000.0 | 32,600,000 | ||||||||
Write off of debt issuance cost | 7,900,000 | |||||||||
Amount outstanding under the revolving credit facility | $ 0 | |||||||||
Letters of credit outstanding | 16,900,000 | 11,300,000 | ||||||||
Natura Revolving Facility Due May 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 250,000,000 | $ 100,000,000 | ||||||||
Amount outstanding under the revolving credit facility | $ 41,600,000 | |||||||||
3.13% related party loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans from affiliates of Natura &Co maturing within one year | 207,000,000 | $ 960,000,000 | ||||||||
Interest rate, stated percentage | 3.13% | |||||||||
Loans from affiliates of Natura &Co | $ 736,000,000 | |||||||||
2015 Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 400,000,000.0 | |||||||||
Debt instrument term | 5 years | |||||||||
Write off of debt issuance cost | $ 7,800,000 | $ 2,000,000.0 | ||||||||
2019 Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | € | € 200,000,000.0 | |||||||||
Debt instrument term | 3 years | |||||||||
4.60% Notes, due February 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | $ 11,000,000.0 |
Accumulated Other Comprehensive Income (Loss) (Components of Comprehensive Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | $ (871.5) | |||
Other comprehensive income (loss) other than reclassifications | 43.2 | $ (102.6) | ||
Sale of New Avon | $ 3.4 | 0.0 | 0.0 | $ (3.4) |
Derivative gains on cash flow hedges, net of tax of $0 | 0.6 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 5.1 | 8.2 | ||
Total reclassifications into earnings | 5.1 | 8.8 | ||
Accumulated other comprehensive income, ending balance | (858.5) | (871.5) | ||
Derivative gains on cash flow hedges, tax | 0.0 | |||
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (1,133.8) | (1,040.0) | ||
Accumulated other comprehensive income, ending balance | (1,085.5) | (1,133.8) | (1,040.0) | |
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (1,038.2) | (942.7) | ||
Other comprehensive income (loss) other than reclassifications | (24.1) | (95.5) | ||
Sale of New Avon | 0.1 | |||
Derivative gains on cash flow hedges, net of tax of $0 | 0.0 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 0.0 | 0.0 | ||
Total reclassifications into earnings | 0.0 | 0.0 | ||
Accumulated other comprehensive income, ending balance | (1,062.2) | (1,038.2) | (942.7) | |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | 0.0 | (0.6) | ||
Other comprehensive income (loss) other than reclassifications | 0.0 | |||
Derivative gains on cash flow hedges, net of tax of $0 | 0.6 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 0.0 | |||
Total reclassifications into earnings | 0.6 | |||
Accumulated other comprehensive income, ending balance | 0.0 | (0.6) | ||
Net Investment Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (4.3) | (4.3) | ||
Other comprehensive income (loss) other than reclassifications | 0.0 | 0.0 | ||
Sale of New Avon | ||||
Derivative gains on cash flow hedges, net of tax of $0 | 0.0 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 0.0 | 0.0 | ||
Total reclassifications into earnings | 0.0 | 0.0 | ||
Accumulated other comprehensive income, ending balance | (4.3) | (4.3) | (4.3) | |
Pension and Postretirement Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (91.3) | (92.4) | ||
Other comprehensive income (loss) other than reclassifications | 67.3 | (7.1) | ||
Sale of New Avon | (0.1) | |||
Derivative gains on cash flow hedges, net of tax of $0 | 0.0 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 5.1 | 8.2 | ||
Total reclassifications into earnings | 5.1 | 8.2 | ||
Accumulated other comprehensive income, ending balance | (19.0) | (91.3) | $ (92.4) | |
Amortization of net actuarial loss and prior service cost, tax | $ 0.8 | $ 0.8 |
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign exchange gains (losses) | $ (5.3) | $ 8.8 | $ 0.8 |
Income Taxes (Income from Continuing Operations before Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 19.3 | $ (89.6) | $ (108.3) |
Foreign | (178.1) | (214.0) | 246.7 |
(Loss) Income from continuing operations, before taxes | $ (158.8) | $ (303.6) | $ 138.4 |
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Federal: | |||
Current | $ 0.2 | $ (9.5) | $ (9.0) |
Deferred | 0.0 | 8.9 | 8.5 |
Total Federal | 0.2 | (0.6) | (0.5) |
Foreign: | |||
Current | 35.5 | 31.4 | 79.0 |
Deferred | (20.0) | 2.6 | 28.9 |
Total Foreign | 15.5 | 34.0 | 107.9 |
State and Local: | |||
Current | 0.5 | 0.6 | (4.3) |
Deferred | 0.0 | 0.0 | 0.0 |
Total State and other | 0.5 | 0.6 | (4.3) |
Total | $ 16.2 | $ 34.0 | $ 103.1 |
Income Taxes (Effective Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 21.00% | 21.00% |
State and local taxes, net of federal tax benefit | (0.30%) | (0.20%) | (2.70%) |
Tax on foreign income | 67.10% | (1.80%) | 62.10% |
Tax on uncertain tax positions | 3.70% | 1.10% | 16.60% |
Reorganizations | 0.00% | (10.00%) | 185.60% |
Net change in valuation allowances | (103.10%) | (21.40%) | (208.00%) |
Other | 1.40% | 0.10% | (0.10%) |
Effective tax rate | (10.20%) | (11.20%) | 74.50% |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Tax Credit Carryforward [Line Items] | ||||
Change in estimate related to restructuring transactions | $ 30.5 | |||
One-time tax reserves | $ 256.9 | |||
Deferred tax assets with full valuation allowance | $ 1,638.0 | 635.0 | ||
Deferred tax asset, potential valuation allowance | 67.0 | |||
Valuation allowance recorded against deferred tax assets | 8.0 | |||
Deferred tax asset, valuation allowance, excluding de-valued deferred tax assets | 126.0 | 2.6 | ||
Deferred tax assets, tax credit carryforwards, excluding adoption of ASU 2013-11 | 119.7 | |||
Tax credit carryforward, valuation allowance | 119.7 | |||
Foreign tax credit carryforwards | 87.6 | |||
Tax credit carryforwards, research | 23.7 | |||
Tax credit carryforward | 8.4 | |||
Deferred tax assets, net operating loss | 393.7 | |||
Operating loss carryforwards, valuation allowance | 322.4 | |||
Operating loss carryforwards subject to offset in accordance with ASU 2013--11 | 22.4 | |||
Tax loss and deduction carryforwards | 425.0 | 1,997.5 | ||
Valuation allowance | 815.4 | 2,327.6 | ||
Undistributed earnings of foreign subsidiaries | 1,200.0 | |||
Decrease in deferred tax liability associated with undistributed earnings of foreign subsidiaries | 7.9 | |||
Total gross unrecognized tax benefits | 251.7 | 372.1 | 331.7 | $ 137.6 |
Unrecognized tax benefits that would impact effective tax rate | 95.8 | |||
Expense (reversal of expense) for interest and penalties | 0.5 | 1.0 | (1.0) | |
Accrued interest and penalties | 7.1 | 6.8 | ||
Minimum | ||||
Tax Credit Carryforward [Line Items] | ||||
Increase in unrecognized tax benefits is reasonably possible | 5.0 | |||
Maximum | ||||
Tax Credit Carryforward [Line Items] | ||||
Increase in unrecognized tax benefits is reasonably possible | 10.0 | |||
United Kingdom Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Foreign income tax benefit | 89.0 | 21.0 | ||
Foreign | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 2,599.0 | |||
Deferred tax asset, not subject to expiration | 1,059.2 | |||
Deferred tax assets, operating loss carryforwards, subject to expiration | 1,539.8 | |||
Domestic | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss and deduction carryforwards | 31.4 | |||
Deferred tax asset, not subject to expiration | 149.3 | |||
Deferred Tax Assets That Cannot Be Benefitted | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | 164.0 | 65.1 | ||
Deferred Tax Assets Generated In Current Year | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | 71.0 | 69.9 | ||
Deferred Tax Asset, Tax On Foreign Income | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | 89.0 | 21.0 | ||
Deferred Tax Assets, Change In Judgment | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | 4.0 | 4.7 | ||
Deferred Tax Assets, True-up Adjustment | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | (30.5) | |||
Deferred Tax Assets Utilization Of Foreign Tax Credits | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | (232.5) | |||
Deferred Tax Assets Tax Rate Change And Write Off | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | $ (66.5) | |||
Deferred Tax Asset Associated With Merger | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | (81.8) | |||
Deferred tax assets with full valuation allowance | 465.0 | |||
Deferred Tax Asset Realization Remote | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets with full valuation allowance | 170.0 | |||
Deferred Tax Asset Realization Remote | Foreign | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets with full valuation allowance | 70.0 | |||
Deferred Tax Asset Realization Remote | State and Local Jurisdiction | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets with full valuation allowance | 100.0 | |||
Deferred Tax Asset, Currency Translation And Other | ||||
Tax Credit Carryforward [Line Items] | ||||
Net increase (decrease) in valuation allowance | $ 19.4 | |||
Valuation Allowance, Federal Loss Carryforwards | Domestic | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 31.4 |
Income Taxes (Deferred Tax Assets (Liabilities) Resulting From Temporary Differences) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred tax assets: | ||
Tax loss and deduction carryforwards | $ 425.0 | $ 1,997.5 |
Intangibles | 218.5 | 188.3 |
Tax credit carryforwards | 119.7 | 119.0 |
Interest carryforwards | 76.3 | 48.3 |
All other future deductions | 199.8 | 199.1 |
Valuation allowance | (815.4) | (2,327.6) |
Total deferred tax assets | 223.9 | 224.6 |
Deferred tax liabilities: | ||
Total deferred tax liabilities | (105.0) | (90.8) |
Net deferred tax assets | $ 118.9 | $ 133.8 |
Income Taxes (Deferred Tax Assets (Liabilities) Classification) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred tax assets: | ||
Deferred tax asset | $ 121.4 | $ 135.8 |
Deferred tax liabilities: | ||
Long-term income taxes | (2.5) | (2.0) |
Net deferred tax assets | 118.9 | 133.8 |
Other Assets | ||
Deferred tax assets: | ||
Deferred tax asset | 121.4 | 135.8 |
Long Term Income Taxes | ||
Deferred tax liabilities: | ||
Long-term income taxes | $ (2.5) | $ (2.0) |
Income Taxes (Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 372.1 | $ 331.7 | $ 137.6 |
Additions based on tax positions related to the current year | 6.8 | 90.6 | 13.3 |
Additions for tax positions of prior years | 24.1 | 0.6 | 186.6 |
Reductions for tax positions of prior years | (136.8) | (34.1) | (3.0) |
Reductions due to lapse of statute of limitations | (11.2) | (16.5) | (0.6) |
Reductions due to settlements with tax authorities | (3.3) | (0.2) | (2.2) |
Unrecognized tax benefits, ending balance | $ 251.7 | $ 372.1 | $ 331.7 |
Financial Instruments and Risk Management (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Derivative [Line Items] | ||
Asset | $ 0.0 | $ 2.8 |
Liability | 2.7 | 6.0 |
Prepaid expenses and other | Derivatives not designated as hedges: | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Asset | 0.0 | 2.8 |
Accounts payable | Derivatives not designated as hedges: | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Liability | $ 2.7 | $ 6.0 |
Financial Instruments and Risk Management (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Derivative [Line Items] | ||
Total exposure to floating rate interest rates | 5.00% | 4.00% |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Notional amounts of derivative contracts | $ 171.0 | |
Losses in other expense from undesignated foreign currency exchange contracts | $ 0.3 | $ 5.7 |
Fair Value Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets: | ||
Foreign exchange forward contracts | $ 0.0 | $ 2.8 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange forward contracts | 2.7 | 6.0 |
Fair Value | ||
Assets: | ||
Available-for-sale securities | 4.2 | |
Foreign exchange forward contracts | 2.8 | |
Total | 7.0 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange forward contracts | 2.7 | 6.0 |
Total | 2.7 | 6.0 |
Fair Value | Level 1 | ||
Assets: | ||
Available-for-sale securities | 4.2 | |
Foreign exchange forward contracts | 0.0 | |
Total | 4.2 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange forward contracts | 0.0 | 0.0 |
Total | 0.0 | 0.0 |
Fair Value | Level 2 | ||
Assets: | ||
Available-for-sale securities | 0.0 | |
Foreign exchange forward contracts | 2.8 | |
Total | 2.8 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange forward contracts | 2.7 | 6.0 |
Total | $ 2.7 | $ 6.0 |
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans to affiliates of Natura &Co maturing within one year | $ 46.6 | $ 0.0 |
Loans to affiliates of Natura &Co maturing after one year | 46.7 | 0.0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.0 | 4.2 |
Loans to affiliates of Natura &Co maturing within one year | 46.6 | 0.0 |
Loans to affiliates of Natura &Co maturing after one year | 46.7 | 0.0 |
Debt maturing within one year | (32.6) | (28.0) |
Loans from affiliates of Natura &Co maturing within one year | (371.7) | (1,008.6) |
Long-term debt | (676.0) | (675.4) |
Loans from affiliates of Natura &Co maturing after one year | (736.3) | 0.0 |
Carrying Amount | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange forward contracts | (2.7) | (3.2) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0.0 | 4.2 |
Loans to affiliates of Natura &Co maturing within one year | 46.6 | 0.0 |
Loans to affiliates of Natura &Co maturing after one year | 46.7 | 0.0 |
Debt maturing within one year | (32.6) | (28.0) |
Loans from affiliates of Natura &Co maturing within one year | (371.7) | (1,008.6) |
Long-term debt | (754.2) | (782.4) |
Loans from affiliates of Natura &Co maturing after one year | (736.3) | 0.0 |
Fair Value | Foreign exchange forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign exchange forward contracts | $ (2.7) | $ (3.2) |
Share-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 27, 2020 |
Jan. 03, 2020 |
Jan. 31, 2020 |
Dec. 31, 2019 |
May 31, 2019 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Feb. 28, 2018 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Weighted-average grant-date fair value per share (in dollars per share) | $ 1.13 | |||||||||||
Outstanding stock options (in shares) | 14,900,000 | 0 | 0 | |||||||||
Cash settlement of options, recorded to equity | $ 20.5 | |||||||||||
Cash settlement of options, recorded to SG&A expenses | $ 3.5 | |||||||||||
Share modification and incremental fair value expense | $ 1.5 | |||||||||||
Accelerated costs | 1.7 | |||||||||||
Compensation cost for share-based payments | 0.5 | $ 13.4 | $ 24.9 | $ 15.6 | ||||||||
Merger Agreement | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exchange ratio | 30.00% | |||||||||||
Share modification and incremental fair value expense | $ 3.4 | |||||||||||
Accelerated costs | $ 10.0 | $ 10.0 | ||||||||||
Transaction costs | $ 44.0 | $ 44.0 | ||||||||||
Stock Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Contractual term | 10 years | 10 years | ||||||||||
Stock Options | 2019 Award Date | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Options, grant date premium on exercise price | 25.00% | |||||||||||
Performance Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | 3 years | ||||||||||
Granted (in dollars per share) | $ 2.98 | $ 2.79 | ||||||||||
Outstanding shares (in shares) | 3,000,000 | 400,000 | 0 | 0 | 400,000 | |||||||
Granted (in shares) | 200,000 | 200,000 | ||||||||||
Shares exchanged (in shares) | 3,276,774 | |||||||||||
Vested (in shares) | 0 | |||||||||||
Nonvested, ending balance (in shares) | 3,000,000 | 400,000 | 0 | 0 | 400,000 | |||||||
Performance Restricted Stock Units (PRSUs) | 2019 Award Date | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Granted (in dollars per share) | $ 2.63 | |||||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding shares (in shares) | 4,400,000 | 0 | 0 | |||||||||
Shares exchanged (in shares) | 2,083,872 | |||||||||||
Nonvested, ending balance (in shares) | 4,400,000 | 0 | 0 | |||||||||
Restricted Stock Units (RSUs) | Director | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 1 year | |||||||||||
Performance Share Units (PSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Granted (in dollars per share) | $ 17.32 | |||||||||||
Outstanding shares (in shares) | 1,854,000 | 1,543,000 | ||||||||||
Granted (in shares) | 628,000 | |||||||||||
Unrecognized compensation cost | $ 27.5 | |||||||||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 7 months 6 days | |||||||||||
Nonvested, ending balance (in shares) | 1,854,000 | 1,543,000 | ||||||||||
Restricted Stock Units - Treasury Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Granted (in dollars per share) | $ 2.25 | |||||||||||
Outstanding shares (in shares) | 600,000 | 600,000 | ||||||||||
Granted (in shares) | 600,000 | |||||||||||
Nonvested, ending balance (in shares) | 600,000 | 600,000 | ||||||||||
Compensation cost for share-based payments | $ 0.4 | |||||||||||
Restricted Stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Shares exchanged (in shares) | 4,808,534 | |||||||||||
Shares cancelled to satisfy withholding tax obligations (in shares) | 1,400,010 | |||||||||||
Restricted Stock | Merger Agreement | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Outstanding awards converted (in shares) | 3,408,524 | |||||||||||
Nominal Cost Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Outstanding stock options (in shares) | 2,326,000 | 1,547,000 | ||||||||||
Fair value | $ 10.5 | |||||||||||
Unrecognized compensation cost | $ 11.4 | |||||||||||
Unrecognized compensation costs, recognized over a weighted average period | 3 years | |||||||||||
2016 Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum award (in shares) | 20,451,976 | |||||||||||
Additional shares (in shares) | 5,000,000 | |||||||||||
Unused shares (in shares) | 15,451,976 | |||||||||||
Multiplier for grant award | 135.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Performance Share Units (PSUs) | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in dollars per share) | $ 17.32 | $ 20.91 | ||||||||||
Granted (in shares) | 627,983 | 1,543,244 | ||||||||||
Employment period | 3 years | |||||||||||
Natura & Co Long Term Incentive Plan | Performance Share Units (PSUs) | Share-based Payment Arrangement, Tranche One | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Performance Share Units (PSUs) | Share-based Payment Arrangement, Tranche Two | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Nominal Cost Options | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in dollars per share) | $ 9.72 | |||||||||||
Granted (in shares) | 1,660,941 | |||||||||||
Natura & Co Long Term Incentive Plan | Nominal Cost Options | Share-based Payment Arrangement, Tranche One | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Nominal Cost Options | Share-based Payment Arrangement, Tranche Two | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Nominal Cost Options | Share-based Payment Arrangement, Tranche Three | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% | |||||||||||
Natura & Co Long Term Incentive Plan | Nominal Cost Options | Share-Based Payment Arrangement, Tranche Four | Natura & Co | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 50.00% |
Share-Based Compensation Plans (Schedule of Compensation Cost and Income Tax Benefit) (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Payment Arrangement [Abstract] | ||||
Compensation cost for stock-based compensation | $ 0.5 | $ 13.4 | $ 24.9 | $ 15.6 |
Total income tax (cost)/ benefit recognized for share-based arrangements | $ (0.2) | $ 1.9 | $ 1.3 |
Share-Based Compensation Plans (Schedule of Weighted-Average Assumptions for Stock Options) (Details) - Stock Options |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate | 2.40% | |
Expected term | 7 years | |
Expected Avon volatility | 45.00% | |
Expected dividends | 0.00% | |
Contractual term | 10 years | 10 years |
Share-Based Compensation Plans (Schedule of Weighted Average Assumptions (PRSUs)) (Details) - Performance Restricted Stock Units (PRSUs) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | 3 years |
2019 Award Date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate | 2.40% | |
Expected Avon volatility | 54.80% | |
Expected average volatility | 29.90% | |
Expected dividends | 0.00% | |
Vesting period | 3 years |
Share-Based Compensation Plans (Schedule of Nominal Cost Option) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Nominal Cost Options | |
Outstanding, beginning balance (in shares) | 0 |
Outstanding, ending balance (in shares) | 0 |
Nominal Cost Options | |
Nominal Cost Options | |
Outstanding, beginning balance (in shares) | 1,547,000 |
Granted (in shares) | 1,661,000 |
Exercised (in shares) | (600,000) |
Forfeited (in shares) | (282,000) |
Outstanding, ending balance (in shares) | 2,326,000 |
Weighted-Average Modification-Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 11.51 |
Exercised (in dollars per share) | $ / shares | 9.72 |
Exercised (in dollars per share) | $ / shares | (12.12) |
Forfeited (in dollars per share) | $ / shares | (12.10) |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 10.00 |
Share-Based Compensation Plans (Schedule of Summary of Performance Restricted Stock Units) (Details) - Performance Share Units (PSUs) shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Performance Restricted Stock Units | |
Nonvested, beginning balance (in shares) | shares | 1,543 |
Granted (in shares) | shares | 628 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | (317) |
Nonvested, ending balance (in shares) | shares | 1,854 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 20.91 |
Granted (in dollars per share) | $ / shares | 17.32 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | (20.45) |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 19.78 |
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization period for gains and losses, period 1 | 3 years | ||
Amortization period for gains and losses, period 2 | 5 years | ||
Postemployment benefits liability | $ 6.5 | $ 9.1 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rate | 2.15% | 1.53% | |
Rate of return on assets | 2.45% | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualified pension plans, benefit obligations | $ 6.7 | $ 7.6 | |
Minimum | U.S. Pension and Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions related to continuing operations | 10.0 | ||
Maximum | U.S. Pension and Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions related to continuing operations | 15.0 | ||
Non-U.S. Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualified pension plans, benefit obligations | 671.2 | 767.5 | $ 685.9 |
Qualified pension plans, plan assets | $ 764.4 | $ 762.0 | $ 695.4 |
Weighted average discount rate | 2.09% | 1.45% | |
Rate of return on assets | 2.32% | 2.55% | 5.27% |
UK Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer match toward contributions, doubled | 5.00% | ||
Maximum contribution percent of eligible compensation | 10.00% | ||
Employer contribution | $ 8.1 | $ 7.6 | $ 7.5 |
Personal Savings Account Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 0.9 | 1.0 | $ 1.3 |
Maximum employee contribution to plan | 25.00% | ||
Maximum contribution for eligible participants | 3.00% | ||
Employer match toward contributions, fifty cents for dollar, minimum | 4.00% | ||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | ||
Retirement Savings Account Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer match toward contributions, fifty cents for dollar, minimum | 3.00% | ||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | ||
Vesting period | 3 years | ||
U.S. Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualified pension plans, benefit obligations | $ 53.6 | 60.4 | |
Qualified pension plans, plan assets | 54.3 | 59.7 | |
UK Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Qualified pension plans, benefit obligations | 492.0 | 545.5 | |
Qualified pension plans, plan assets | $ 653.6 | $ 648.4 | |
Rate of return on assets | 2.10% | ||
UK Pension Plan | Liability Driven Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability driven investments allocation | 76.00% | ||
UK Pension Plan | Equity Securities, Emerging Market Debt and High Yield Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Equity securities allocation | 24.00% |
Employee Benefit Plans (Reconciliation of Benefit Obligations, Plan Assets and Funded Status) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Amount Recognized in Balance Sheet: | |||
Other assets | $ 509.4 | $ 438.5 | |
Accrued compensation | (81.5) | (89.4) | |
Other Postretirement Benefits Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (7.7) | (26.8) | |
Service cost | 0.0 | 0.0 | $ (0.1) |
Interest cost | (0.3) | (0.7) | (1.2) |
Actuarial gain (loss) | 0.4 | (1.5) | |
Benefits paid | 0.6 | 5.4 | |
Actual expenses and taxes | 0.0 | 0.0 | |
Plan amendments | 0.0 | 4.1 | |
Curtailments | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Special termination benefits | (3.0) | 5.8 | |
Transfers | 0.0 | 4.9 | |
Foreign currency changes and other | 0.3 | 1.1 | |
Sale of Avon Luxembourg | 0.0 | 0.0 | |
Ending balance | (9.7) | (7.7) | (26.8) |
Change in Plan Assets: | |||
Beginning balance | 0.0 | 0.0 | |
Actual return on plan assets | 0.0 | 0.0 | |
Company contributions | 0.6 | 10.2 | |
Benefits paid | (0.6) | (5.3) | |
Actual expenses and taxes | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Transfers | 0.0 | (4.9) | |
Foreign currency changes and other | 0.0 | 0.0 | |
Ending balance | 0.0 | 0.0 | 0.0 |
Funded Status: | |||
Funded status at end of year | (9.7) | (7.7) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0.0 | 0.0 | |
Accrued compensation | (6.3) | (3.6) | |
Employee benefit plans liability | (3.4) | (4.1) | |
Net amount recognized | (9.7) | (7.7) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 0.8 | 1.9 | |
Prior service (credit) cost | (0.8) | (5.3) | |
Total pretax amount recognized | 0.0 | (3.4) | |
U.S. | Pension Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (67.9) | (71.7) | |
Service cost | (0.9) | (1.2) | (1.7) |
Interest cost | (1.0) | (1.4) | (2.3) |
Actuarial gain (loss) | 1.8 | (6.2) | |
Benefits paid | 7.7 | 12.6 | |
Actual expenses and taxes | 0.0 | 0.0 | |
Plan amendments | 0.0 | 0.0 | |
Curtailments | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Special termination benefits | 0.0 | 0.0 | |
Transfers | 0.0 | 0.0 | |
Foreign currency changes and other | 0.0 | 0.0 | |
Sale of Avon Luxembourg | 0.0 | 0.0 | |
Ending balance | (60.3) | (67.9) | (71.7) |
Change in Plan Assets: | |||
Beginning balance | 59.7 | 63.3 | |
Actual return on plan assets | 1.6 | 8.0 | |
Company contributions | 0.7 | 1.0 | |
Benefits paid | (7.7) | (12.6) | |
Actual expenses and taxes | 0.0 | 0.0 | |
Settlements | 0.0 | 0.0 | |
Transfers | 0.0 | 0.0 | |
Foreign currency changes and other | 0.0 | 0.0 | |
Ending balance | 54.3 | 59.7 | 63.3 |
Funded Status: | |||
Funded status at end of year | (6.0) | (8.2) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0.0 | 0.0 | |
Accrued compensation | (0.7) | (0.9) | |
Employee benefit plans liability | (5.3) | (7.4) | |
Net amount recognized | (6.0) | (8.3) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 14.7 | 19.6 | |
Prior service (credit) cost | 0.0 | (0.1) | |
Total pretax amount recognized | 14.7 | 19.5 | |
Supplemental Information: | |||
Accumulated benefit obligation | 59.5 | 66.8 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 60.3 | 67.9 | |
Fair value plan assets | 54.3 | 59.7 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Accumulated benefit obligation | 59.5 | 7.3 | |
Fair value plan assets | 54.3 | 0.0 | |
Non-U.S. Plans | Pension Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (767.5) | (685.9) | |
Service cost | (4.3) | (4.3) | (4.0) |
Interest cost | (8.7) | (11.7) | (15.3) |
Actuarial gain (loss) | 54.6 | (61.8) | |
Benefits paid | 25.7 | 27.8 | |
Actual expenses and taxes | 0.4 | 0.5 | |
Plan amendments | 0.0 | 0.0 | |
Curtailments | 0.2 | 0.0 | |
Settlements | 1.8 | 1.1 | |
Special termination benefits | 0.0 | 0.0 | |
Transfers | 0.0 | 0.0 | |
Foreign currency changes and other | 13.5 | (33.2) | |
Sale of Avon Luxembourg | 13.1 | 0.0 | |
Ending balance | (671.2) | (767.5) | (685.9) |
Change in Plan Assets: | |||
Beginning balance | 762.0 | 695.4 | |
Actual return on plan assets | 29.3 | 62.0 | |
Company contributions | 10.1 | 3.3 | |
Benefits paid | (25.7) | (27.8) | |
Actual expenses and taxes | (0.4) | 0.0 | |
Settlements | (1.8) | (1.1) | |
Transfers | 0.0 | 0.0 | |
Foreign currency changes and other | (9.1) | 30.2 | |
Ending balance | 764.4 | 762.0 | $ 695.4 |
Funded Status: | |||
Funded status at end of year | 93.2 | (5.5) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 162.4 | 103.1 | |
Accrued compensation | (1.2) | (2.1) | |
Employee benefit plans liability | (68.0) | (106.5) | |
Net amount recognized | 93.2 | (5.5) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 122.8 | 204.7 | |
Prior service (credit) cost | 2.0 | 1.5 | |
Total pretax amount recognized | 124.8 | 206.2 | |
Supplemental Information: | |||
Accumulated benefit obligation | 159.4 | 200.6 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 170.0 | 220.1 | |
Fair value plan assets | 100.8 | 111.5 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Accumulated benefit obligation | 153.6 | 190.1 | |
Fair value plan assets | $ 91.7 | $ 98.3 |
Employee Benefit Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Pension Plan | U.S. | |||
Net Periodic Benefit Cost: | |||
Service cost | $ 0.9 | $ 1.2 | $ 1.7 |
Interest cost | 1.0 | 1.4 | 2.3 |
Expected return on plan assets | (2.0) | (2.6) | (3.4) |
Amortization of prior service credit | 0.0 | 0.0 | 0.0 |
Amortization of net actuarial losses | 2.4 | 2.9 | 2.8 |
Amortization of transition obligation | 0.0 | 0.0 | 0.0 |
Settlements/curtailments | 1.0 | 2.6 | 3.0 |
Special termination benefits | 0.0 | 0.0 | 0.0 |
Other | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost | 3.3 | 5.5 | 6.4 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial losses (gains) | (1.4) | 0.8 | (3.0) |
Prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Amortization of prior service credit | 0.0 | 0.0 | 0.0 |
Amortization of net actuarial losses | (3.4) | (5.5) | (5.7) |
Foreign currency changes | 0.0 | 0.0 | 0.0 |
Total recognized in other comprehensive loss | (4.8) | (4.7) | (8.7) |
Total recognized in net periodic benefit cost and other comprehensive loss | (1.5) | 0.8 | (2.3) |
Pension Plan | Non-U.S. Plans | |||
Net Periodic Benefit Cost: | |||
Service cost | 4.3 | 4.3 | 4.0 |
Interest cost | 8.7 | 11.7 | 15.3 |
Expected return on plan assets | (16.0) | (16.0) | (31.0) |
Amortization of prior service credit | 0.0 | (0.1) | 0.0 |
Amortization of net actuarial losses | 7.5 | 6.3 | 4.9 |
Amortization of transition obligation | 0.0 | 0.0 | 0.0 |
Settlements/curtailments | 0.1 | 0.1 | (0.6) |
Special termination benefits | 0.0 | 0.0 | 0.0 |
Other | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost | 4.6 | 6.3 | (7.4) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial losses (gains) | (68.1) | 15.9 | 13.1 |
Prior service cost (credit) | 0.0 | 0.0 | 0.0 |
Amortization of prior service credit | 0.0 | 0.0 | 0.0 |
Amortization of net actuarial losses | (7.6) | (6.4) | (4.6) |
Foreign currency changes | (5.9) | 11.6 | 1.7 |
Total recognized in other comprehensive loss | (81.6) | 21.1 | 10.2 |
Total recognized in net periodic benefit cost and other comprehensive loss | (77.0) | 27.4 | 2.8 |
Other Postretirement Benefits Plan | |||
Net Periodic Benefit Cost: | |||
Service cost | 0.0 | 0.0 | 0.1 |
Interest cost | 0.3 | 0.7 | 1.2 |
Expected return on plan assets | 0.0 | 0.0 | 0.0 |
Amortization of prior service credit | (4.5) | (0.2) | (0.2) |
Amortization of net actuarial losses | 0.7 | 0.0 | 0.0 |
Amortization of transition obligation | 0.0 | 0.0 | 0.0 |
Settlements/curtailments | 0.0 | 0.0 | 0.0 |
Special termination benefits | 3.0 | (4.2) | 0.0 |
Other | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost | (0.5) | (3.7) | 1.1 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial losses (gains) | (0.4) | 1.5 | 2.5 |
Prior service cost (credit) | 4.5 | (4.1) | (1.3) |
Amortization of prior service credit | 0.0 | 0.2 | 0.2 |
Amortization of net actuarial losses | (0.7) | (1.6) | 0.0 |
Foreign currency changes | 0.0 | 0.0 | 0.0 |
Total recognized in other comprehensive loss | 3.4 | (4.0) | 1.4 |
Total recognized in net periodic benefit cost and other comprehensive loss | $ 2.9 | $ (7.7) | $ 2.5 |
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.15% | 1.53% |
Pension Plan | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.81% | 2.43% |
Rate of compensation increase | 4.00% | 4.00% |
Interest crediting rate | 1.78% | 1.62% |
Pension Plan | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.09% | 1.45% |
Rate of compensation increase | 2.56% | 2.51% |
Interest crediting rate | 2.75% | 2.68% |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.61% | 3.95% |
Employee Benefit Plans (Weighted-Average Assumptions used to Determine Net Benefit Cost) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of return on assets | 2.45% | ||
Pension Plan | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.42% | 3.16% | 4.24% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Rate of return on assets | 4.15% | 4.90% | 5.50% |
Interest crediting rate | 1.49% | 2.49% | 3.36% |
Pension Plan | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.45% | 2.05% | 2.92% |
Rate of compensation increase | 2.51% | 2.54% | 2.69% |
Rate of return on assets | 2.32% | 2.55% | 5.27% |
Interest crediting rate | 2.74% | 2.69% | 2.69% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.95% | 3.66% | 5.17% |
Employee Benefit Plans (Pension and Postretirement Plans Target and Weighted-Average Asset Allocations) (Details) - Pension Plan |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 100.00% | |
Defined benefit plan, actual plan asset allocation | 100.00% | 100.00% |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 30.00% | |
Defined benefit plan, actual plan asset allocation | 30.00% | 31.00% |
U.S. | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 70.00% | |
Defined benefit plan, actual plan asset allocation | 70.00% | 69.00% |
U.S. | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 0.00% | |
Defined benefit plan, actual plan asset allocation | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 100.00% | |
Defined benefit plan, actual plan asset allocation | 100.00% | 100.00% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 23.00% | |
Defined benefit plan, actual plan asset allocation | 23.00% | 21.00% |
Non-U.S. Plans | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 72.00% | |
Defined benefit plan, actual plan asset allocation | 72.00% | 74.00% |
Non-U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations | 5.00% | |
Defined benefit plan, actual plan asset allocation | 5.00% | 5.00% |
Employee Benefit Plans (Fair Value Hierarchy for Pension and Postretirement Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2.3 | $ 1.6 | $ 1.6 |
U.S. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54.3 | 59.7 | 63.3 |
U.S. | Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16.5 | 18.7 | |
U.S. | Pension Plan | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.3 | 9.3 | |
U.S. | Pension Plan | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.6 | 7.5 | |
U.S. | Pension Plan | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1.9 | |
U.S. | Pension Plan | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.7 | 40.9 | |
U.S. | Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21.6 | 23.7 | |
U.S. | Pension Plan | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.8 | 9.4 | |
U.S. | Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.3 | 7.8 | |
U.S. | Pension Plan | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | ||
U.S. | Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | ||
U.S. | Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
U.S. | Pension Plan | Level 1 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | ||
U.S. | Pension Plan | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | ||
U.S. | Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54.3 | 59.7 | |
U.S. | Pension Plan | Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16.5 | 18.7 | |
U.S. | Pension Plan | Level 2 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.3 | 9.3 | |
U.S. | Pension Plan | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.6 | 7.5 | |
U.S. | Pension Plan | Level 2 | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1.9 | |
U.S. | Pension Plan | Level 2 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.7 | 40.9 | |
U.S. | Pension Plan | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21.6 | 23.7 | |
U.S. | Pension Plan | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.8 | 9.4 | |
U.S. | Pension Plan | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.3 | 7.8 | |
U.S. | Pension Plan | Level 2 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | ||
U.S. | Pension Plan | Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | ||
Non-U.S. Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 764.4 | 762.0 | $ 695.4 |
Non-U.S. Plans | Pension Plan | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 174.6 | 158.0 | |
Non-U.S. Plans | Pension Plan | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29.4 | 26.0 | |
Non-U.S. Plans | Pension Plan | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 145.2 | 132.0 | |
Non-U.S. Plans | Pension Plan | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 551.0 | 567.1 | |
Non-U.S. Plans | Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 257.6 | 32.4 | |
Non-U.S. Plans | Pension Plan | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 256.9 | 497.4 | |
Non-U.S. Plans | Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36.5 | 37.3 | |
Non-U.S. Plans | Pension Plan | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38.8 | 36.9 | |
Non-U.S. Plans | Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34.3 | 33.3 | |
Non-U.S. Plans | Pension Plan | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.0 | |
Non-U.S. Plans | Pension Plan | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.3 | 1.6 | |
Non-U.S. Plans | Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34.3 | 33.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34.3 | 33.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34.3 | 33.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 727.8 | 727.1 | |
Non-U.S. Plans | Pension Plan | Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 174.6 | 158.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29.4 | 26.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 145.2 | 132.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 551.0 | 567.1 | |
Non-U.S. Plans | Pension Plan | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 257.6 | 32.4 | |
Non-U.S. Plans | Pension Plan | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 256.9 | 497.4 | |
Non-U.S. Plans | Pension Plan | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36.5 | 37.3 | |
Non-U.S. Plans | Pension Plan | Level 2 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.2 | 2.0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.3 | 1.6 | |
Non-U.S. Plans | Pension Plan | Level 3 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2.3 | 1.6 | |
Non-U.S. Plans | Pension Plan | Level 3 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2.3 | $ 1.6 |
Employee Benefit Plans (Reconciliation of the Beginning and Ending Balances for Investments) (Details) - Level 3 - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Change in Plan Assets: | ||
Beginning balance | $ 1.6 | $ 1.6 |
Actual return on plan assets held | 0.7 | |
Ending balance | $ 2.3 | $ 1.6 |
Employee Benefit Plans (Total Benefit Payments) (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 31.9 |
2023 | 31.6 |
2024 | 32.9 |
2025 | 32.1 |
2026 | 31.6 |
2027-2031 | 164.3 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 6.3 |
2023 | 0.3 |
2024 | 0.3 |
2025 | 0.3 |
2026 | 0.3 |
2027-2031 | 1.4 |
U.S. | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 5.7 |
2023 | 4.8 |
2024 | 5.0 |
2025 | 4.1 |
2026 | 3.9 |
2027-2031 | 14.7 |
Non-U.S. Plans | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 26.2 |
2023 | 26.8 |
2024 | 27.9 |
2025 | 28.0 |
2026 | 27.7 |
2027-2031 | $ 149.6 |
Employee Benefit Plans (Supplemental Retirement Programs) (Narrative) (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021
USD ($)
investment
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum deferral of base salary | 50.00% | ||
Maximum deferral of incentive compensation bonuses | 100.00% | ||
Number of permitted investment alternatives | investment | 3 | ||
Expenses associated with deferred compensation plan | $ 0.0 | $ 0.1 | $ 0.8 |
Deferred compensation liability | 0.7 | 0.8 | |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost SERP Restoration | 1.0 | 1.2 | $ 1.3 |
Benefit obligation SERP Restoration | $ 6.7 | $ 7.6 |
Employee Benefit Plans (Assets Held In Trust) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 30.4 | $ 33.7 |
Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | 24.6 | 28.5 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 5.8 | $ 5.2 |
Segment Information (Total Revenue) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,404.5 | $ 3,625.2 | $ 4,763.2 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,379.3 | 3,618.5 | 4,763.2 |
Operating Segments | Avon International | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,724.6 | 1,772.6 | 2,234.3 |
Operating Segments | Avon LATAM | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,654.7 | 1,845.9 | 2,528.9 |
Other reconciling items | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 25.2 | $ 6.7 | $ 0.0 |
Segment Information (Operating Profit) (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||||
Operating (loss) profit | $ (58.4) | $ (122.2) | $ 125.6 | ||
Certain Brazil indirect taxes | 0.0 | 0.0 | (118.3) | ||
CTI restructuring initiatives | (68.7) | (23.7) | (139.3) | ||
Costs related to the Transaction | 0.0 | (85.8) | (64.3) | ||
Revenues | 3,404.5 | 3,625.2 | 4,763.2 | ||
Central expenses | 206.7 | 197.6 | 214.7 | ||
Accelerated costs | $ 1.7 | ||||
Merger Agreement | |||||
Segment Reporting Information [Line Items] | |||||
Acquisition related expense | 46.0 | 44.0 | |||
Severance costs | $ 25.0 | 25.0 | |||
Accelerated costs | $ 10.0 | 10.0 | |||
Brazil IPI tax release | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 21.0 | 68.0 | |||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss) profit | 39.0 | (11.7) | 365.0 | ||
Revenues | 3,379.3 | 3,618.5 | 4,763.2 | ||
Operating Segments | Avon International | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss) profit | 49.9 | 27.4 | 170.9 | ||
Revenues | 1,724.6 | 1,772.6 | 2,234.3 | ||
Operating Segments | Avon LATAM | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss) profit | (10.9) | (39.1) | 194.1 | ||
Revenues | 1,654.7 | 1,845.9 | 2,528.9 | ||
Other reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 25.2 | 6.7 | 0.0 | ||
Corporate, non-segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss) profit | 1.5 | 7.3 | 2.4 | ||
Unallocated global expenses | (27.0) | (11.6) | (35.8) | ||
Certain Brazil indirect taxes | 1.7 | (10.6) | 0.0 | ||
Revenues | $ 4.7 | $ 14.5 | $ 18.1 |
Segment Information (Total Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Segment Reporting Information [Line Items] | |||
Assets | $ 2,307.8 | $ 2,564.3 | $ 3,086.3 |
Avon International | |||
Segment Reporting Information [Line Items] | |||
Assets not previously allocated to segments | 420.7 | ||
Operating Segments | Avon International | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,362.0 | 1,364.4 | 1,712.4 |
Operating Segments | Avon LATAM | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 945.8 | $ 1,199.9 | $ 1,373.9 |
Segment Information (Capital Expenditures) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 68.3 | $ 44.6 | $ 58.5 |
Operating Segments | Avon International | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 53.3 | 36.0 | 39.6 |
Capital expenditures not previously allocated to segments | 13.8 | ||
Operating Segments | Avon LATAM | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 15.0 | $ 8.6 | $ 18.9 |
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 72.8 | $ 81.8 | $ 92.9 |
Avon International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 48.1 | 49.5 | 51.6 |
Depreciation and amortization not previously allocated to segments | 19.9 | ||
Avon LATAM | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 24.7 | $ 32.3 | $ 41.3 |
Segment Information (Total Revenue by Major Country) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,202.9 | $ 3,431.2 | $ 4,494.1 |
Revenues | 3,404.5 | 3,625.2 | 4,763.2 |
Brazil | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 627.0 | 729.9 | 1,034.4 |
Mexico | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 249.2 | 420.2 | 509.4 |
All other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,528.3 | $ 2,475.1 | $ 3,219.4 |
Segment Information (Long-Lived Assets by Major Country) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 477.0 | $ 594.5 | $ 570.2 |
U.S. | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 122.7 | 135.3 | 149.4 |
Brazil | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 75.4 | 86.4 | 116.1 |
Poland | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 95.0 | 96.8 | 99.3 |
Mexico | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 0.0 | 55.2 | 67.8 |
All other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 183.9 | $ 220.8 | $ 137.6 |
Segment Information (Long-Lived Assets, Net of Right-of-Use Assets) (Details) $ in Millions |
Dec. 31, 2019
USD ($)
|
---|---|
Segment Reporting Information [Line Items] | |
Long lived asset, including property, plant and equipment, net, certain intangible and other long-term receivables | $ 746.0 |
Brazil | |
Segment Reporting Information [Line Items] | |
Long lived asset, including property, plant and equipment, net, certain intangible and other long-term receivables | 203.3 |
U.S. | |
Segment Reporting Information [Line Items] | |
Long lived asset, including property, plant and equipment, net, certain intangible and other long-term receivables | 120.8 |
Poland | |
Segment Reporting Information [Line Items] | |
Long lived asset, including property, plant and equipment, net, certain intangible and other long-term receivables | 86.3 |
All other | |
Segment Reporting Information [Line Items] | |
Long lived asset, including property, plant and equipment, net, certain intangible and other long-term receivables | $ 335.6 |
Leases and Commitments - Balance Sheet Implication (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Right-of-use assets | $ 111.1 | $ 153.1 |
Finance right-of-use assets | $ 2.2 | $ 2.4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Total right-of-use assets | $ 113.3 | $ 155.5 |
Liabilities | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Operating lease liabilities | $ 37.1 | $ 46.2 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Finance lease liabilities | $ 1.2 | $ 1.1 |
Total current lease liabilities | 38.3 | 47.3 |
Noncurrent | ||
Operating lease liabilities | $ 87.5 | $ 120.9 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Finance lease liabilities | $ 1.3 | $ 1.5 |
Total noncurrent lease liabilities | 88.8 | 122.4 |
Total lease liability | $ 127.1 | $ 169.7 |
Leases and Commitments - Income and Expenses (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Operating lease cost | $ 51.7 | $ 63.6 |
Amortization of right-of-use assets | 1.3 | 1.2 |
Interest on lease liabilities | 0.2 | 0.3 |
Short-term leases costs | 11.0 | 2.3 |
Sublease Income | (14.5) | (15.3) |
Net lease cost | $ 49.7 | $ 52.1 |
Leases and Commitments - Maturity of Lease Liability (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 45.7 | |
2023 | 36.3 | |
2024 | 26.7 | |
2025 | 22.0 | |
2026 | 12.2 | |
Thereafter | 5.1 | |
Total lease payments | 148.0 | |
Less: Interest | 23.4 | |
Present value of lease liabilities | 124.6 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 | 1.3 | |
2023 | 0.8 | |
2024 | 0.3 | |
2025 | 0.2 | |
2026 | 0.1 | |
Thereafter | 0.0 | |
Total lease payments | 2.7 | |
Less: Interest | 0.2 | |
Present value of lease liabilities | 2.5 | |
Lease Liabilities, Payments Due [Abstract] | ||
2022 | 47.0 | |
2023 | 37.1 | |
2024 | 27.0 | |
2025 | 22.2 | |
2026 | 12.3 | |
Thereafter | 5.1 | |
Total lease payments | 150.7 | |
Less: Interest | 23.6 | |
Present value of lease liabilities | $ 127.1 | $ 169.7 |
Leases and Commitments - Lease Term and Discount Rate (Details) |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Weighted-average remaining lease term | ||
Operating leases | 4 years | 4 years 2 months 12 days |
Finance leases | 2 years 8 months 12 days | 2 years 6 months |
Weighted-average discount rate | ||
Operating leases | 8.30% | 8.50% |
Finance leases | 9.60% | 10.50% |
Leases and Commitments - Other Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Operating Cash Flows From Operating Leases | $ 54.0 | $ 63.7 |
Operating Cash Flows From Finance Leases | 0.2 | 0.3 |
Financing Cash Flows From Finance Leases | 1.3 | 1.3 |
Cash Paid For Amounts Included In Measurement of Liabilities | 55.5 | 65.3 |
Right-of-use Assets Obtained In Exchange For New Finance Liabilities | 1.4 | 0.9 |
Right-of-use Assets Obtained In Exchange For New Operating Liabilities | $ 8.8 | $ 24.9 |
Leases and Commitments - Schedule of Purchase Obligations (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
2022 | $ 159.2 |
2023 | 51.8 |
2024 | 21.9 |
2025 | 1.7 |
2026 | 1.7 |
Later years | 1.9 |
Total | $ 238.2 |
Restructuring Initiatives - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | $ 58.8 | $ 22.2 | $ 116.7 |
Avon Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 15.4 | 16.1 | 0.0 |
Employee-related liabilities | 1.6 | 0.7 | |
Open Up & Grow | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 44.0 | 10.9 | 106.6 |
Transformation Plan & Other | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | (0.6) | (4.8) | $ 9.4 |
Employee-related liabilities | $ 1.5 | $ 3.5 |
Restructuring Initiatives - Summary (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | $ 58.8 | $ 22.2 | $ 116.7 |
Avon Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 15.4 | 16.1 | 0.0 |
Open Up & Grow | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 44.0 | 10.9 | 106.6 |
Transformation Plan & Other | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | (0.6) | (4.8) | 9.4 |
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 0.0 | (1.8) | 12.5 |
Cost of Sales | Manufacturing asset write-offs | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 0.0 | 0.0 | 11.1 |
Cost of Sales | Inventory write-off | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 0.0 | (1.8) | 1.4 |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 68.7 | 25.5 | 127.5 |
Selling, General and Administrative Expenses | Employee-Related Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 36.7 | 5.2 | 56.4 |
Selling, General and Administrative Expenses | Implementation costs, primarily related to professional service fees | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 17.5 | 10.3 | 44.9 |
Selling, General and Administrative Expenses | Dual running costs | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 1.1 | 3.1 | 9.1 |
Selling, General and Administrative Expenses | Contract termination and other net costs | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 10.5 | 3.9 | 7.9 |
Selling, General and Administrative Expenses | Impairment of other assets | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 1.0 | 0.8 | 5.3 |
Selling, General and Administrative Expenses | Accelerated depreciation | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 0.3 | 0.4 | 1.3 |
Selling, General and Administrative Expenses | Variable lease charges | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 1.6 | 1.8 | 1.9 |
Selling, General and Administrative Expenses | Foreign Currency Translation Adjustment Write-offs | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 0.0 | 0.0 | 0.7 |
Operating Profit | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | 68.7 | 23.7 | 140.0 |
Other Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
CTI restructuring initiative | $ (9.9) | $ (1.5) | $ (23.3) |
Restructuring Initiatives - Open Up Avon (Details) - Open Up & Grow - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 11.8 | $ 24.2 |
Charges | 38.2 | 7.2 |
Adjustments | (1.3) | (4.8) |
Cash payments | (31.8) | (15.2) |
Non-cash write-offs | 1.0 | 1.1 |
Foreign exchange | (0.7) | (0.7) |
Ending Balance | 15.2 | 11.8 |
Employee-Related Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 9.0 | 17.8 |
Charges | 33.8 | 2.7 |
Adjustments | (1.3) | (3.0) |
Cash payments | (26.8) | (7.8) |
Non-cash write-offs | 0.0 | 0.0 |
Foreign exchange | (0.7) | (0.7) |
Ending Balance | 14.0 | 9.0 |
Inventory write-off | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 0.0 | 0.0 |
Charges | 1.0 | 0.7 |
Adjustments | 0.0 | (1.8) |
Cash payments | 0.0 | 0.0 |
Non-cash write-offs | 1.0 | 1.1 |
Foreign exchange | 0.0 | 0.0 |
Ending Balance | 0.0 | 0.0 |
Contract termination and other net costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 2.8 | 6.4 |
Charges | 3.4 | 3.8 |
Adjustments | 0.0 | 0.0 |
Cash payments | (5.0) | (7.4) |
Non-cash write-offs | 0.0 | 0.0 |
Foreign exchange | 0.0 | 0.0 |
Ending Balance | $ 1.2 | $ 2.8 |
Restructuring Initiatives - Restructuring Initiatives by Charge Type (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Avon Integration | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | $ 12.6 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 12.6 |
Avon Integration | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 12.4 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 12.4 |
Avon Integration | Inventory write-off | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.0 |
Avon Integration | Contract termination and other net costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0.2 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 0.2 |
Avon Integration | Foreign Currency Translation Adjustment Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | |
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 | 228.2 |
Estimated charges to be incurred on approved initiatives | 0.3 |
Total expected charges on approved initiatives | 228.5 |
Open Up & Grow | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 115.8 |
Estimated charges to be incurred on approved initiatives | 0.3 |
Total expected charges on approved initiatives | 116.1 |
Open Up & Grow | Inventory write-off | |
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 termination and other net costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 15.9 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 15.9 |
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) |
Transformation Plan & Other | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 169.5 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 169.5 |
Transformation Plan & Other | Employee-Related Costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 122.7 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 122.7 |
Transformation Plan & Other | Inventory write-off | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 2.5 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 2.5 |
Transformation Plan & Other | Contract termination and other net costs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 40.9 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | 40.9 |
Transformation Plan & Other | Foreign Currency Translation Adjustment Write-offs | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 3.4 |
Estimated charges to be incurred on approved initiatives | 0.0 |
Total expected charges on approved initiatives | $ 3.4 |
Restructuring Initiatives - Charges Reportable by Business Segment (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Avon Integration | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | $ 1.8 | $ 10.8 | ||
Charges incurred to-date | 12.6 | |||
Estimated charges to be incurred on approved initiatives | 0.0 | |||
Total expected charges on approved initiatives | 12.6 | |||
Avon Integration | Avon International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | (1.2) | 6.2 | ||
Charges incurred to-date | 5.0 | |||
Estimated charges to be incurred on approved initiatives | 0.0 | |||
Total expected charges on approved initiatives | 5.0 | |||
Avon Integration | Avon LATAM | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 3.0 | 4.6 | ||
Charges incurred to-date | 7.6 | |||
Estimated charges to be incurred on approved initiatives | 0.0 | |||
Total expected charges on approved initiatives | 7.6 | |||
Open Up & Grow | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 37.1 | 2.4 | $ 71.6 | $ 117.1 |
Charges incurred to-date | 228.2 | |||
Estimated charges to be incurred on approved initiatives | 0.3 | |||
Total expected charges on approved initiatives | 228.5 | |||
Open Up & Grow | Avon International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 36.9 | 3.2 | 34.7 | 52.8 |
Charges incurred to-date | 127.6 | |||
Estimated charges to be incurred on approved initiatives | 0.3 | |||
Total expected charges on approved initiatives | 127.9 | |||
Open Up & Grow | Avon LATAM | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges incurred | 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 |
Series C Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 03, 2020 |
Dec. 30, 2019 |
Mar. 01, 2016 |
Dec. 31, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Jan. 31, 2020 |
|
Class of Stock [Line Items] | |||||||
Dividend accrual, percentage | 1.25% | ||||||
Payables to affiliates of Natura &Co | $ 29.4 | $ 0.0 | |||||
Increase in carrying value of preferred stock | $ 60.9 | ||||||
Conversion of stock (in shares) | 435,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Dividends paid | $ 8.7 | ||||||
Natura & Co | |||||||
Class of Stock [Line Items] | |||||||
Dividends paid | $ 91.5 | ||||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Discount on shares | $ 8.7 | ||||||
Series C Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 435,000 | ||||||
Stock issued during period | $ 435.0 | ||||||
Payables to affiliates of Natura &Co | $ 91.3 | ||||||
Conversion of stock (in shares) | 435,000 |
Contingencies (Narrative) (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
lawsuit
|
Dec. 31, 2020
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Number of litigation suits | lawsuit | 151 | |
Number of litigation suits, new | lawsuit | 19 | |
Number of litigation suits, dismissed | lawsuit | 20 | |
IPI Tax On Manufactured Products - Minimum Pricing Rules | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 360.0 | $ 378.0 |
IPI Tax On Manufactured Products - Decree Equated Certain Commercial Companies | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 243.0 | 231.0 |
Brazilian Financial Indemnities | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 157.0 | 185.0 |
Brazil labor-related | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 11.0 | 8.0 |
Shareholder Litigation | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, amount awarded to other party | $ 14.5 | |
Payments for legal settlements | $ 2.0 |
Goodwill (Schedule of Goodwill) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Gross balance at period start | $ 172.5 |
Accumulated impairments | (89.3) |
Net balance at period start | 83.2 |
Foreign exchange | (11.1) |
Gross balance at period end | 161.4 |
Accumulated impairments at period end | (89.3) |
Net balance at period end | 72.1 |
Avon International | |
Goodwill [Roll Forward] | |
Gross balance at period start | 109.3 |
Accumulated impairments | (89.3) |
Net balance at period start | 20.0 |
Foreign exchange | (2.4) |
Gross balance at period end | 106.9 |
Accumulated impairments at period end | (89.3) |
Net balance at period end | 17.6 |
Avon LATAM | |
Goodwill [Roll Forward] | |
Gross balance at period start | 63.2 |
Accumulated impairments | 0.0 |
Net balance at period start | 63.2 |
Foreign exchange | (8.7) |
Gross balance at period end | 54.5 |
Accumulated impairments at period end | 0.0 |
Net balance at period end | $ 54.5 |
Supplemental Balance Sheet Information (Components of Prepaid Expenses and Other) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 84.0 | $ 117.6 |
Receivables other than trade | 27.8 | 34.9 |
Prepaid brochure costs, paper and other literature | 8.3 | 12.0 |
Other | 45.5 | 39.7 |
Prepaid expenses and other | $ 165.6 | $ 204.2 |
Supplemental Balance Sheet Information (Components of Other Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Capitalized software | $ 74.9 | $ 76.0 |
Judicial deposits | 47.2 | 50.9 |
Net overfunded pension plans | 162.5 | 103.0 |
Long-term receivables including taxes | 180.2 | 157.0 |
Trust assets associated with supplemental benefit plans | 30.4 | 33.7 |
Other | 14.2 | 17.9 |
Other assets | $ 509.4 | $ 438.5 |
Supplemental Balance Sheet Information, Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Brazil indirect taxes receivables | $ 128 | $ 112 |
Brazil indirect taxes, additional receivable | $ 24 |
Merger with Natura Cosméticos S.A. - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
May 22, 2019 |
Jan. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Jan. 03, 2020 |
Dec. 30, 2019 |
|
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Shares authorized (in shares) | 1,525,000,000 | 1,525,000,000 | |||||||
Common stock, shares authorized (in shares) | 1,000 | 1,500,000,000 | 1,000 | 1,000 | 1,000 | 1,500,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.25 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.25 | $ 0.25 | ||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |||||||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 1.00 | $ 1.00 | ||||||
Shares canceled (in shares) | 550,890,788 | ||||||||
Common stock shares outstanding (in shares) | 101.34 | 101.34 | 101.34 | 101.34 | |||||
Accelerated costs | $ 1.7 | ||||||||
Settlement of stock options | $ 0.0 | $ 25.8 | $ 0.0 | ||||||
Write off of debt issuance cost | $ 7.9 | ||||||||
Minimum | |||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Tax attributes lost due to Transaction | $ 546.0 | ||||||||
Maximum | |||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Tax attributes lost due to Transaction | 616.0 | ||||||||
Merger Agreement | |||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Share conversion ratio | 60.00% | ||||||||
Acquisition related expense | 46.0 | $ 44.0 | |||||||
Severance costs | 25.0 | 25.0 | |||||||
Accelerated costs | 10.0 | $ 10.0 | |||||||
Settlement of stock options | 26.0 | ||||||||
Deferred compensation payment | 12.0 | ||||||||
Write off of debt issuance cost | $ 7.8 | ||||||||
Merger Agreement | Natura & Co | |||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Common stock composing one American depository shares (in shares) | 2 | ||||||||
American Depositary Shares | Merger Agreement | |||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||
Share conversion ratio | 30.00% |
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at End of Period | $ 37.1 | ||
Allowance for doubtful accounts receivable | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 51.1 | $ 66.6 | $ 93.0 |
Charged to Costs and Expenses | 62.4 | 78.3 | 115.4 |
Charged to Revenue | 0.0 | 0.0 | 0.0 |
Deductions | (76.4) | (93.8) | (141.8) |
Balance at End of Period | 51.1 | 66.6 | |
Refund liability | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 9.1 | ||
Charged to Costs and Expenses | 0.0 | ||
Charged to Revenue | 75.9 | ||
Deductions | (80.7) | ||
Balance at End of Period | 4.3 | 9.1 | |
Refund liability | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 9.1 | 10.7 | 12.3 |
Charged to Costs and Expenses | 0.0 | 0.0 | |
Charged to Revenue | 101.4 | 132.6 | |
Deductions | (103.0) | (134.2) | |
Balance at End of Period | 9.1 | 10.7 | |
Allowance for inventory obsolescence | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 70.4 | 82.0 | 146.1 |
Charged to Costs and Expenses | 26.8 | 37.9 | 37.1 |
Charged to Revenue | 0.0 | 0.0 | 0.0 |
Deductions | (42.4) | (49.5) | (101.2) |
Balance at End of Period | 54.8 | 70.4 | 82.0 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 2,327.6 | 2,960.0 | 3,257.5 |
Charged to Costs and Expenses | 125.7 | (632.4) | (297.5) |
Charged to Revenue | 0.0 | 0.0 | 0.0 |
Deductions | (1,637.9) | 0.0 | 0.0 |
Balance at End of Period | $ 815.4 | $ 2,327.6 | $ 2,960.0 |
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