Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | AVON PRODUCTS INC | ||
Entity Central Index Key | 8868 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 434,755,598 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $6.30 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net sales | $8,615.90 | $9,764.40 | $10,405.30 | ||
Other revenue | 235.5 | 190.6 | 156.1 | ||
Total revenue | 8,851.40 | 9,955 | 10,561.40 | ||
Costs, expenses and other: | |||||
Cost of sales | 3,499.30 | 3,772.50 | 4,103.10 | ||
Selling, general and administrative expenses | 4,952 | 5,713.20 | 5,889.30 | ||
Impairment of goodwill and intangible assets | 0 | 42.1 | 44 | ||
Operating profit | 400.1 | 427.2 | 525 | ||
Interest expense | 111.1 | 120.6 | 104.3 | ||
Loss on extinguishment of debt | 0 | 86 | 0 | ||
Interest income | -14.8 | -25.9 | -15.1 | ||
Other expense, net | 139.6 | 83.9 | 7.1 | ||
Total other expenses | 235.9 | 264.6 | 96.3 | ||
Income from continuing operations, before taxes | 164.2 | [1] | 162.6 | [1] | 428.7 |
Income taxes | -549.1 | -163.6 | -335.4 | ||
(Loss) income from continuing operations, net of tax | -384.9 | [1],[2] | -1 | [1],[2] | 93.3 |
Loss from discontinued operations, net of tax | 0 | -50.9 | -131.5 | ||
Net loss | -384.9 | -51.9 | -38.2 | ||
Net income attributable to noncontrolling interests | -3.7 | -4.5 | -4.3 | ||
Net loss attributable to Avon | ($388.60) | [1],[2] | ($56.40) | [1],[2] | ($42.50) |
(Loss) earnings per share: | |||||
Basic from continuing operations | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
Basic from discontinued operations | $0 | ($0.12) | ($0.30) | ||
Basic attributable to Avon | ($0.88) | ($0.13) | ($0.10) | ||
Diluted from continuing operations | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
Diluted from discontinued operations | $0 | ($0.12) | ($0.30) | ||
Diluted attributable to Avon | ($0.88) | ($0.13) | ($0.10) | ||
Weighted-average shares outstanding: | |||||
Basic | 434.5 | 433.4 | 431.9 | ||
Diluted | 434.5 | 433.4 | 432.5 | ||
[1] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | ||||
[2] | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | ||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net loss | ($384.90) | ($51.90) | ($38.20) | ||
Other comprehensive (loss) income: | |||||
Foreign currency translation adjustments | -248.3 | -112.8 | 0.4 | ||
Change in derivative losses on cash flow hedges, net of taxes | 1.9 | [1] | 1.7 | [1] | 3.9 |
Change in derivative losses on net investment hedges | 0 | 0 | -1.5 | ||
Amortization of net actuarial loss and prior service cost, net of taxes | 85.8 | 35.7 | 33.9 | ||
Adjustments of net actuarial loss and prior service cost, net of taxes | -187.2 | 80.6 | -58.4 | ||
Total other comprehensive (loss) income, net of taxes | -347.8 | 5.2 | -21.7 | ||
Comprehensive loss | -732.7 | -46.7 | -59.9 | ||
Less: comprehensive (loss) income attributable to noncontrolling interests | -1.9 | 1.2 | 1.4 | ||
Comprehensive loss attributable to Avon | ($730.80) | ($47.90) | ($61.30) | ||
[1] | Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. |
Recovered_Sheet1
Consolidated Statements of Comprehensive Income Parenthetical (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in derivative losses on cash flow hedges, taxes | $0 | $0.90 | $2.10 |
Amortization of net actuarial losses and prior service cost, axes | 2.5 | 16.5 | 15.8 |
Adjustments of net actuarial losses and prior service cost, taxes | ($12) | $39.20 | ($17.80) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash, including cash equivalents of $440.3 and $576.2 | $960.50 | $1,107.90 |
Accounts receivable (less allowances of $118.0 and $147.2) | 563.5 | 676.3 |
Inventories | 822.2 | 967.7 |
Prepaid expenses and other | 618.3 | 689.3 |
Total current assets | 2,964.50 | 3,441.20 |
Property, plant and equipment, at cost | ||
Land | 45.8 | 55.3 |
Buildings and improvements | 1,011.10 | 1,085.30 |
Equipment | 1,235.70 | 1,343.90 |
Property, plant and equipment, at cost | 2,292.60 | 2,484.50 |
Less accumulated depreciation | -1,061.60 | -1,091.20 |
Property, plant and equipment, net, total | 1,231 | 1,393.30 |
Goodwill | 249.3 | 282.5 |
Other assets | 1,052 | 1,375.30 |
Total assets | 5,496.80 | 6,492.30 |
Current Liabilities | ||
Debt maturing within one year | 137.1 | 188 |
Accounts payable | 895.4 | 896.5 |
Accrued compensation | 210.5 | 271.2 |
Other accrued liabilities | 598.8 | 652.6 |
Sales and taxes other than income | 168.6 | 186.8 |
Income taxes | 36.8 | 45.4 |
Total current liabilities | 2,047.20 | 2,240.50 |
Long-term debt | 2,463.90 | 2,532.70 |
Employee benefit plans | 501.8 | 398 |
Long-term income taxes | 77.8 | 53.3 |
Other liabilities | 100.8 | 140.3 |
Total liabilities | 5,191.50 | 5,364.80 |
Commitments and contingencies (Notes 13 and 15) | ||
Shareholders' Equity | ||
Common stock, par value $.25 - authorized 1,500 shares; Issued 750.3 and 748.8 shares | 187.6 | 189.4 |
Additional paid-in capital | 2,207.90 | 2,175.60 |
Retained earnings | 3,702.90 | 4,196.70 |
Accumulated other comprehensive loss | -1,217.60 | -870.4 |
Treasury stock, at cost (315.6 and 314.9 shares) | -4,591 | -4,581.20 |
Total Avon shareholders' equity | 289.8 | 1,110.10 |
Noncontrolling interest | 15.5 | 17.4 |
Total shareholders' equity | 305.3 | 1,127.50 |
Total liabilities and shareholders' equity | $5,496.80 | $6,492.30 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Cash equivalents | $440.30 | $576.20 |
Allowances | $118 | $147.20 |
Common stock, par value | $0.25 | $0.25 |
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares issued | 750.3 | 748.8 |
Treasury stock | 315.6 | 314.9 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash Flows from Operating Activities | ||||||
Net loss | ($384.90) | ($51.90) | ($38.20) | |||
Loss from discontinued operations, net of tax | 0 | 50.9 | 131.5 | |||
(Loss) income from continuing operations, net of tax | -384.9 | [1],[2] | -1 | [1],[2] | 93.3 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||
Depreciation | 141.3 | 164.8 | 161.8 | |||
Amortization | 51.3 | 59.8 | 50.7 | |||
Provision for doubtful accounts | 192.5 | 239.3 | 250.9 | |||
Provision for obsolescence | 100.9 | 117.1 | 118.8 | |||
Share-based compensation | 38.9 | 43.3 | 41.1 | |||
Foreign exchange losses (gains) | 42.4 | 26.3 | -22.4 | |||
Deferred income taxes | 244.5 | -128.6 | 27.9 | |||
Charges for Venezuelan monetary assets and liabilities | 53.7 | 34.1 | 0 | |||
Charge for Venezuelan non-monetary assets to net realizable value | 115.7 | 0 | 0 | |||
Impairment of goodwill, intangible assets and SMT capitalized software | 0 | 159.3 | 44 | |||
Other | 70.2 | 28.2 | 57.7 | |||
Changes in assets and liabilities: | ||||||
Accounts receivable | -182.6 | -235.3 | -240.9 | |||
Inventories | -155.4 | -87.4 | -81.8 | |||
Prepaid expenses and other | -61.6 | 77.7 | 59.1 | |||
Accounts payable and accrued liabilities | 125 | 140.1 | 82.6 | |||
Income and other taxes | 47.9 | 3.4 | -23.3 | |||
Noncurrent assets and liabilities | -80 | -101.5 | -75.5 | |||
Net cash provided by operating activities of continuing operations | 359.8 | 539.6 | 544 | |||
Cash Flows from Investing Activities | ||||||
Capital expenditures | -131.1 | -197.3 | -228.5 | |||
Disposal of assets | 15.9 | 37.8 | 15.4 | |||
Purchases of investments | -26.8 | -28.2 | -1.5 | |||
Proceeds from sale of investments | 36.9 | 14.3 | 1.2 | |||
Net cash used by investing activities of continuing operations | -105.1 | -173.4 | -213.4 | |||
Cash Flows from Financing Activities | ||||||
Cash dividends | -110.2 | [3] | -106.8 | [3] | -329.3 | [3] |
Debt, net (maturities of three months or less) | -28.8 | [3] | -1.2 | [3] | -710.5 | [3] |
Proceeds from debt | 70 | [3] | 1,488.20 | [3] | 735.8 | [3] |
Repayment of debt | -140.2 | [3] | -1,942.70 | [3] | -138.3 | [3] |
Interest rate swap termination | 0 | [3] | 88.1 | [3] | 43.6 | [3] |
Net proceeds from exercise of stock options | 0.2 | [3] | 15.9 | [3] | 6.2 | [3] |
Repurchase of common stock | -9.8 | [3] | -9.4 | [3] | -8.8 | [3] |
Net cash used by financing activities of continuing operations | -218.8 | [3] | -467.9 | [3] | -401.3 | [3] |
Cash Flows from Discontinued Operations | ||||||
Net cash (used) provided by operating activities of discontinued operations | 0 | -4 | 12.1 | |||
Net cash provided (used) by investing activities of discontinued operations | 0 | 84.8 | -0.3 | |||
Net cash provided by Discontinued Operations | 0 | 80.8 | 11.8 | |||
Effect of exchange rate changes on cash and equivalents | -183.3 | -80.8 | 23.4 | |||
Net decrease in cash and equivalents | -147.4 | -101.7 | -35.5 | |||
Cash and equivalents at beginning of year | 1,107.90 | [4],[5] | 1,209.60 | [4],[5] | 1,245.10 | [4] |
Cash and equivalents at end of year | 960.5 | [5] | 1,107.90 | [4],[5] | 1,209.60 | [4],[5] |
Cash paid for: | ||||||
Interest, net of amounts capitalized | 125.9 | 224.4 | 137.5 | |||
Income taxes, net of refunds received | $225.10 | $296.80 | $331.90 | |||
[1] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | |||||
[2] | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | |||||
[3] | Non-cash financing activities included the change in fair market value of interest-rate swap agreements of $(.7) in 2013 and $(8.4) in 2012 (see Note 8, Financial Instruments and Risk Management). | |||||
[4] | Includes cash and cash equivalents of discontinued operations of $2.7 and $6.9 at the beginning of the year in 2013 and 2012, respectively. | |||||
[5] | Includes cash and cash equivalents of discontinued operations of $2.7 at the end of the year in 2012. |
Recovered_Sheet2
Consolidated Statements of Cash Flows Parenthetical (Parentheticals) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Non-Cash Financing Activities - change in fair value of interest rate swaps | $0 | ($0.70) | ($8.40) | |
Cash and cash equivalents of discontinued operations | $0 | $0 | $2.70 | $6.90 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | |
In Millions | ||||||||
Shareholders' Equity at Period Start at Dec. 31, 2011 | $1,585.20 | $187.30 | $2,077.70 | $4,726.10 | ($854.40) | ($4,566.30) | $14.80 | |
Balance, shares at Dec. 31, 2011 | 744.9 | 314.1 | ||||||
Net loss attributable to Avon | -42.5 | -42.5 | ||||||
Net income attributable to noncontrolling interests | 4.3 | 4.3 | ||||||
Net loss | -38.2 | |||||||
Other comprehensive income (loss) attributable to parent | -22.3 | |||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 0.6 | |||||||
Other comprehensive (loss) income | -21.7 | |||||||
Dividends | -325.8 | -325.8 | ||||||
Exercise/ vesting of share-based compensation, value | 48.5 | 1 | 44.3 | 3.2 | ||||
Exercise/ vesting of share-based compensation, shares | 1.8 | -0.1 | ||||||
Repurchase of common stock, value | -8.8 | -8.8 | ||||||
Repurchase of common stock, shares | 0.5 | |||||||
Purchases and sales of noncontrolling interests, net of dividends paid | -3.5 | -3.5 | ||||||
Income tax benefits - stock transactions | -2.4 | -2.4 | ||||||
Shareholders' Equity at Period End at Dec. 31, 2012 | 1,233.30 | 188.3 | 2,119.60 | 4,357.80 | -876.7 | -4,571.90 | 16.2 | |
Balance, shares at Dec. 31, 2012 | 746.7 | 314.5 | ||||||
Net loss attributable to Avon | -56.4 | [1],[2] | -56.4 | |||||
Net income attributable to noncontrolling interests | 4.5 | 4.5 | ||||||
Net loss | -51.9 | |||||||
Other comprehensive income (loss) attributable to parent | 6.3 | |||||||
Other comprehensive income (loss) attributable to noncontrolling interests | -1.1 | |||||||
Other comprehensive (loss) income | 5.2 | |||||||
Dividends | -104.7 | -104.7 | ||||||
Exercise/ vesting of share-based compensation, value | 60.7 | 1.1 | 59.5 | 0.1 | ||||
Exercise/ vesting of share-based compensation, shares | 2.1 | -0.1 | ||||||
Repurchase of common stock, value | -9.4 | -9.4 | ||||||
Repurchase of common stock, shares | 0.5 | |||||||
Purchases and sales of noncontrolling interests, net of dividends paid | -2.2 | -2.2 | ||||||
Income tax benefits - stock transactions | -3.5 | -3.5 | ||||||
Shareholders' Equity at Period End at Dec. 31, 2013 | 1,127.50 | 189.4 | 2,175.60 | 4,196.70 | -870.4 | -4,581.20 | 17.4 | |
Balance, shares at Dec. 31, 2013 | 748.8 | 314.9 | ||||||
Net loss attributable to Avon | -388.6 | [1],[2] | -388.6 | |||||
Net income attributable to noncontrolling interests | 3.7 | 3.7 | ||||||
Net loss | -384.9 | |||||||
Other comprehensive income (loss) attributable to parent | -347.2 | |||||||
Other comprehensive income (loss) attributable to noncontrolling interests | -0.6 | |||||||
Other comprehensive (loss) income | -347.8 | |||||||
Dividends | -105.2 | -105.2 | ||||||
Exercise/ vesting of share-based compensation, value | 39.2 | -1.8 | 41 | 0 | ||||
Exercise/ vesting of share-based compensation, shares | 1.5 | 0 | ||||||
Repurchase of common stock, value | -9.8 | -9.8 | ||||||
Repurchase of common stock, shares | 0.7 | |||||||
Purchases and sales of noncontrolling interests, net of dividends paid | -5 | -5 | ||||||
Income tax benefits - stock transactions | -8.7 | -8.7 | ||||||
Shareholders' Equity at Period End at Dec. 31, 2014 | $305.30 | $187.60 | $2,207.90 | $3,702.90 | ($1,217.60) | ($4,591) | $15.50 | |
Balance, shares at Dec. 31, 2014 | 750.3 | 315.6 | ||||||
[1] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | |||||||
[2] | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders Equity Parentheticals (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Dividends per share | $0.24 | $0.24 | $0.75 |
Purchases and sales of noncontrolling interests, net of dividends paid | $5 | $2.20 | $3.50 |
Description_of_the_Business_an
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 worldwide, primarily in one channel, direct selling. Our reportable segments are based on geographic operations in four regions: Latin America; Europe, Middle East & Africa; North America; and Asia Pacific. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare (which includes personal care), 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. | |||||||||||||
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. | |||||||||||||
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 allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rate 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, intangible assets and capitalized software for potential impairment. | |||||||||||||
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 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 United States ("U.S.") dollar is required to be used as the functional currency. At December 31, 2014, Venezuela was the only Avon subsidiary considered to be operating in a highly inflationary economy. 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 the Consolidated Statements of Income. Non-monetary assets and liabilities, such as inventory, property, plant and equipment and prepaid expenses are recorded in U.S. dollars at the historical rates at the time of acquisition of such assets or liabilities. | |||||||||||||
Venezuela Currency | |||||||||||||
We account for Venezuela as a highly inflationary economy. In February 2014, the Venezuelan government announced a foreign exchange system ("SICAD II") which began operating on March 24, 2014. There are multiple legal mechanisms in Venezuela to exchange currency. As SICAD II represented the rate which better reflected the economics of Avon Venezuela's business activity, we concluded that we should utilize the SICAD II exchange rate to remeasure our Venezuelan operations effective March 31, 2014. As a result of the change to the SICAD II rate, which caused the recognition of a devaluation of approximately 88% as compared to the official exchange rate we used previously, we recorded an after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) in the first quarter of 2014, primarily reflecting the write-down of monetary assets and liabilities. In addition, as a result of using the historical U.S. dollar cost basis of non-monetary assets, such as inventories, these assets continued to be remeasured, following the change to the SICAD II rate, at the applicable rate at the time of acquisition. The remeasurement of non-monetary assets at the historical U.S. dollar cost basis causes a disproportionate expense as these assets are consumed in operations, negatively impacting operating profit and net income during 2014. Also as a result, we determined that an adjustment of $115.7 to cost of sales was needed to reflect certain non-monetary assets at their net realizable value, which was recorded in the first quarter of 2014. In addition, at March 31, 2014, we reviewed Avon Venezuela's long-lived assets to determine whether the carrying amount of the assets were recoverable, and determined that they were. As such, no impairment of Avon Venezuela's long-lived assets was required. In February 2015, the Venezuelan government announced that the SICAD II market would no longer be available, and a new open market foreign exchange system ("SIMADI") was created. We believe that significant uncertainty exists regarding the foreign exchange mechanisms in Venezuela, as well as how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism. We are still evaluating our future access to funds through the SIMADI or other similar markets. | |||||||||||||
Effective February 13, 2013, the Venezuelan government devalued its currency by approximately 32% and as such we recorded a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) in the first quarter of 2013, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits. In addition, as a result of using the historical U.S. dollar cost basis of non-monetary assets, such as inventories, acquired prior to the devaluation, operating profit and net loss during 2013 were negatively impacted. | |||||||||||||
Revenue Recognition | |||||||||||||
Net sales primarily include sales generated as a result of Representative orders less any discounts, taxes and other deductions. We recognize revenue upon delivery, when both title and the risks and rewards of ownership pass to the independent Representatives, who are our customers. Our internal financial systems accumulate revenues as orders are shipped to the Representative. Since we report revenue upon delivery, revenues recorded in the financial system must be reduced for an estimate of the financial impact of those orders shipped but not delivered at the end of each reporting period. We use estimates in determining the adjustments to revenue and operating profit for orders that have been shipped but not delivered as of the end of the period. These estimates are based on daily sales levels, delivery lead times, gross margin and variable expenses. We also record a provision for estimated sales returns based on historical experience with product returns. In addition, we estimate an allowance for doubtful accounts on receivable balances based on an analysis of historical data and current circumstances. | |||||||||||||
Other Revenue | |||||||||||||
Other revenue is primarily comprised of shipping and handling and order processing fees billed to Representatives. | |||||||||||||
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 market. 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 determine the level of obsolescence provision. | |||||||||||||
Prepaid Brochure Costs | |||||||||||||
Costs to prepare brochures are initially deferred to prepaid expenses and other and are expensed to selling, general and administrative expenses over the campaign length. In addition, fees charged to Representatives for brochures are initially deferred and presented as a reduction to prepaid expenses and other and are recorded as a reduction to selling, general and administrative expenses over the campaign length. The campaign length is typically two weeks in the U.S. and two to four weeks for most markets outside of the U.S. | |||||||||||||
Brochure costs and associated fees that are presented as prepaid expenses and other were $29.9 at December 31, 2014 and $38.3 at December 31, 2013. Additionally, paper stock is purchased in advance of creating the brochures. Prepaid expenses and other include paper supply of $8.5 at December 31, 2014 and $9.1 at December 31, 2013. | |||||||||||||
Brochure costs expensed to selling, general and administrative expenses amounted to $389.7 in 2014, $461.7 in 2013 and $506.3 in 2012. The fees charged to Representatives recorded as a reduction to selling, general and administrative expenses amounted to $243.3 in 2014, $274.1 in 2013 and $285.9 in 2012. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
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, five 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. We evaluate our long-lived assets 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 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. | |||||||||||||
We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the related asset and depreciated over the useful life of the related asset. We did not capitalize any interest in 2014, and we capitalized interest of $1.4 in 2013 and $2.0 in 2012. | |||||||||||||
Capitalized Software | |||||||||||||
Certain systems development costs related to the purchase, development and installation of computer software are capitalized and amortized over the estimated useful life of the related project, generally not to exceed five years. 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 $101.3 at December 31, 2014 and $122.9 at December 31, 2013. The amortization expense associated with capitalized software was $48.4, $55.4 and $41.2 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, we recorded a capitalized software impairment charge of $117.2 during 2013. | |||||||||||||
Capitalized software is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future pre-tax undiscounted cash flows expected to result from the use of the asset and its eventual disposition are compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount 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. | |||||||||||||
In December 2013, we decided to halt further roll-out of our Service Model Transformation ("SMT") project. SMT was a global program initiated in 2009 to improve our order management system and enable changes to the way Representatives interact with us. SMT was piloted in Canada during 2013, and caused significant business disruption in that market. This decision to halt the further roll-out of SMT was made in light of the potential risk of further disruption. In addition, SMT did not show a clear return on investment. | |||||||||||||
As Canada was the only market expected to utilize the capitalized software associated with SMT ("SMT asset"), the accounting guidance requires the impairment assessment to consider the cash flows of the Canadian business, which includes the ongoing costs associated with SMT. These expected cash flows were not sufficient to supporting the carrying value of the associated asset group, which includes the SMT asset. In the fourth quarter of 2013, we recorded a non-cash impairment charge of $117.2 before tax ($74.1 after tax), reflecting the write-down of capitalized software. This impairment charge was recorded as a component of our global expenses, within selling, general and administrative expenses in the Consolidated Statements of Income. | |||||||||||||
The fair value of the SMT asset was determined using a risk-adjusted discounted cash flow ("DCF") model under the relief-from-royalty method. The impairment analysis performed for the asset group, which includes the SMT asset, required several estimates, including revenue and cash flow projections, and royalty and discount rates. As a result of this impairment charge, the remaining carrying amount of the SMT asset is not material. | |||||||||||||
Goodwill and Intangible Assets | |||||||||||||
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 first quantitative step, as described below, is required. | |||||||||||||
The quantitative test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of a reporting unit to its carrying value. If the fair value of a reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit’s goodwill. The second step of the impairment analysis requires a valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of the purchase price in a business combination. If the resulting implied fair value of the reporting unit’s goodwill is less than its carrying value, that difference represents an impairment. | |||||||||||||
The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a 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 five 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. | |||||||||||||
Indefinite-lived intangible assets are not amortized, but rather are assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred. When testing indefinite-lived intangible assets for impairment, we perform either a qualitative or quantitative assessment. If the qualitative analysis results in a more likely than not probability of impairment, a quantitative assessment is required. The quantitative test to evaluate indefinite-lived intangible assets for impairment compares the fair value of the intangible asset to its carrying value. If the fair value of the asset is less than its carrying value, that difference represents an impairment. The impairment analysis performed for indefinite-lived intangible asset requires several estimates in computing the estimated fair value of the asset. We use a risk-adjusted DCF model under the relief-from-royalty method. | |||||||||||||
Finite-lived intangible assets are amortized using a straight-line method over their estimated useful lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future pre-tax undiscounted cash flows expected to result from the use of the asset and its eventual disposition are compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of the asset is determined using probability weighted expected cash flow estimates, quoted market prices when available and appraisals, as appropriate. | |||||||||||||
If applicable, the impairment testing should be performed in the following order: indefinite-lived intangible assets, finite-lived intangible assets, and then goodwill. | |||||||||||||
See Note 16, Goodwill and Intangible Assets for more information on China, and Note 3, Discontinued Operations for more information on Silpada. | |||||||||||||
Financial Instruments | |||||||||||||
We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. | |||||||||||||
If applicable, derivatives are recognized on the 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 to the extent effective 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 to the extent effective as a hedge. | ||||||||||||
• | 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 the Consolidated Statements of Income. | ||||||||||||
Realized gains and losses on a derivative are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item. | |||||||||||||
For derivatives designated as hedges, we assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Highly effective means 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. The ineffective portion of a derivative’s gain or loss, if any, is recorded in earnings in other expense, net in the Consolidated Statements of Income. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When it is probable that a hedged forecasted transaction will not occur, we discontinue hedge accounting for the affected portion of the forecasted transaction, and reclassify gains or losses that were accumulated in AOCI to earnings in other expense, net in the Consolidated Statements of Income. | |||||||||||||
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 7, Income Taxes for more information. | |||||||||||||
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 the Consolidated Statements of Income. | |||||||||||||
Selling, General and Administrative Expenses | |||||||||||||
Selling, general and administrative expenses include costs associated with selling; marketing; and distribution activities, 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 $861.7 in 2014, $990.1 in 2013 and $1,027.7 in 2012. | |||||||||||||
Advertising | |||||||||||||
Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $177.1 in 2014, $201.9 in 2013 and $251.3 in 2012. | |||||||||||||
Research and Development | |||||||||||||
Research and development costs are expensed as incurred and amounted to $62.5 in 2014, $67.2 in 2013 and $73.3 in 2012. 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 | |||||||||||||
All 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 Black-Scholes-Merton option-pricing model to calculate the fair value of options. | |||||||||||||
Restructuring Expense | |||||||||||||
We record the estimated expense for our restructuring initiatives 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, 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 discount rates, hybrid plan maximum interest crediting rates and expected rate of return on plan assets, rate of compensation increase of plan participants, interest cost, health care cost trend rates, benefits earned, mortality rates, the number of participants and certain demographics 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 are required, among other things, to recognize the funded status of pension and other postretirement benefit plans on the 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 three- and five-year periods. We use a December 31 measurement date for all of our employee benefit plans. | |||||||||||||
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. | |||||||||||||
Revisions | |||||||||||||
During the first quarter of 2014, we revised our consolidated financial statements to reflect tooling balances in other assets, while they had been previously reported in inventories, as we believe that this is a better presentation of our tooling assets. Tooling assets are the plates and molds used in the manufacturing process of our beauty products. This revision did not impact cash flows from operating activities, our Consolidated Statements of Income, our Consolidated Statements of Comprehensive Income or our Consolidated Statements of Changes in Shareholders' Equity. We determined that the effect of this revision was not material to any of our previously issued financial statements. | |||||||||||||
Out-of-Period Items | |||||||||||||
During 2014, we recorded out-of-period adjustments in our Latin America segment (primarily related to revenue and selling, general and administrative expenses) which increased earnings by approximately $15 before tax. The total out-of-period adjustments increasing earnings during 2014 was approximately $13 before tax (approximately $1 after tax decreasing earnings during 2014). We evaluated the total out-of-period adjustments impacting 2014, both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to the consolidated annual financial statements for all impacted periods. | |||||||||||||
During the first quarter of 2012, we recorded an out-of-period adjustment which decreased earnings by approximately $14 before tax ($10 after tax) which related to 2011 and was associated with bad debt expense in our South Africa operations. We evaluated the total out-of-period adjustments impacting 2012 of approximately $13 before tax (approximately $15 after tax), both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to the consolidated annual financial statements for all impacted periods. | |||||||||||||
(Loss) Earnings per Share | |||||||||||||
We compute (loss) earnings per share ("EPS") using the two-class method, which is a (loss) earnings allocation formula that determines (loss) earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net (loss) income allocated to common shareholders by the weighted-average number of shares outstanding during the year. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the year. | |||||||||||||
For each of the three years ended December 31 the components of basic and diluted EPS were as follows: | |||||||||||||
(Shares in millions) | 2014 | 2013 | 2012 | ||||||||||
Numerator from continuing operations: | |||||||||||||
(Loss) income from continuing operations less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (5.5 | ) | $ | 89 | |||||
Less: Loss (earnings) allocated to participating securities | 4.7 | 0.1 | (.8 | ) | |||||||||
(Loss) income from continuing operations allocated to common shareholders | (383.9 | ) | (5.4 | ) | 88.2 | ||||||||
Numerator from discontinued operations: | |||||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | $ | — | $ | (50.9 | ) | $ | (131.5 | ) | |||||
Less: Loss allocated to participating securities | — | 0.5 | 1 | ||||||||||
Loss allocated to common shareholders | — | (50.4 | ) | (130.5 | ) | ||||||||
Numerator attributable to Avon: | |||||||||||||
Loss attributable to Avon less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (56.4 | ) | $ | (42.5 | ) | ||||
Less: Loss allocated to participating securities | 4.7 | 0.5 | 0.3 | ||||||||||
Loss allocated to common shareholders | (383.9 | ) | (55.9 | ) | (42.2 | ) | |||||||
Denominator: | |||||||||||||
Basic EPS weighted-average shares outstanding | 434.5 | 433.4 | 431.9 | ||||||||||
Diluted effect of assumed conversion of stock options | — | — | 0.6 | ||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 434.5 | 433.4 | 432.5 | ||||||||||
(Loss) Earnings per Common Share from continuing operations: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.01 | ) | $ | 0.2 | |||||
Diluted | (.88 | ) | (.01 | ) | 0.2 | ||||||||
Loss per Common Share from discontinued operations: | |||||||||||||
Basic | $ | — | $ | (.12 | ) | $ | (.30 | ) | |||||
Diluted | — | (.12 | ) | (.30 | ) | ||||||||
Loss per Common Share attributable to Avon: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.13 | ) | $ | (.10 | ) | ||||
Diluted | (.88 | ) | (.13 | ) | (.10 | ) | |||||||
Amounts in the table above may not necessarily sum due to rounding. | |||||||||||||
During the years ended December 31, 2014 and 2013, we did not include stock options to purchase 18.0 million shares and 18.3 million shares of Avon common stock, respectively, in the calculations of diluted EPS as we had a loss from continuing operations, net of tax and the inclusion of these shares would decrease the net loss per share. Since the inclusion of such shares would be anti-dilutive, these are excluded from the calculation. If we had income from continuing operations, net of tax, we would have included .8 million shares for the year ended December 31, 2013, because the average market price was higher than the exercise prices of those options. During the year ended December 31, 2012, we did not include stock options to purchase 22.0 million shares of Avon common stock in the calculation of diluted EPS, because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would be anti-dilutive. |
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Standards |
Standards to be Implemented | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification Topic 606. The core principle of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective beginning in 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Discontinued Operations | Discontinued Operations | ||||||||
Silpada | |||||||||
On June 30, 2013, the Company entered into an agreement to sell its Silpada jewelry business (“Silpada”) for $85, plus an earn-out of up to $15 if Silpada achieves specific earnings targets over two years. Silpada was previously reported within our North America segment and has been classified within discontinued operations for all periods presented. The transaction closed on July 3, 2013. Proceeds from the sale were used for general corporate purposes, including the repayment of outstanding debt. The benefit associated with the earn-out will be recorded in discontinued operations only when it becomes realizable by Avon. As of December 31, 2014, we do not believe that the financial performance of Silpada will result in the achievement of the earn-out for fiscal year 2014. In 2013, we recorded a loss on sale of $79.4 before tax ($50.4 after tax), which represented the difference between the carrying value of the Silpada business and the proceeds. Of the total loss on sale, $79.0 before tax ($50.0 after tax), was recorded in the second quarter of 2013, reflecting the expected loss on sale at that time. | |||||||||
In the first quarter of 2013, the Company disclosed that it was reviewing strategic alternatives for Silpada. In connection with this review, we ran a broad auction process that included potential financial and strategic buyers. The initial offers that were received through April of 2013 were lower than the carrying value of Silpada. At that time, we did not believe that these offers were representative of the underlying fair value of the Silpada business. In June 2013, the Company received final offers for the Silpada business that were also at a level below what previously had been expected as the fair value of the business. The Company decided to agree to the offer that emerged at the time as the highest bid, based in part on consideration of a) the timeline and investment required to return the business to historical levels of profitability and b) the deterioration of Silpada's business performance in the second quarter of 2013. The Company also considered that this divestiture would allow greater focus of time and resources on the core Avon business. This transaction was approved by the Board of Directors on June 26, 2013, subject to certain conditions which were satisfied on June 30, 2013. | |||||||||
Summarized financial information for discontinued operations is shown below: | |||||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Total revenue | $ | 54.5 | $ | 155.7 | |||||
Operating loss(1) | (81.0 | ) | (210.2 | ) | |||||
(1) Operating loss for the year ended December 31, 2013 includes a charge of $79.0 before tax recorded in the second quarter of 2013, reflecting the expected loss on sale at that time, as well as an additional loss on sale of $.4 before tax recorded in the third quarter of 2013. Operating loss for the year ended December 31, 2012 includes an impairment charge of $209.0 before tax recorded in the fourth quarter of 2012, as discussed further below. | |||||||||
Silpada was acquired in July 2010. Silpada had historically generated positive cash flows and was expected to continue to generate positive cash flows; however, the expected cash flows of the business as of the date of our impairment analysis were not at a level sufficient to support the carrying value of the business. Since the acquisition in 2010, the Silpada business did not achieve our revenue, earnings and cash flows expectations primarily due to lower consumer spending, higher silver prices and increased competition. When compared to our initial projections for the business at the time of the acquisition, the future expectations for Silpada utilized in the 2012 impairment analysis represented a significant decrease in the future cash flows that were expected to be generated by Silpada. This reduction in future expectations led to a material impairment of $209.0 being recorded during the fourth quarter of 2012. | |||||||||
2012 Silpada Impairment Assessment | |||||||||
In the fourth quarter of 2012, we completed the annual goodwill and indefinite-lived intangible assets impairment assessments and subsequently determined that the goodwill, indefinite-lived trademark and finite-lived customer relationships associated with Silpada were impaired. As a result, the carrying amount of Silpada’s goodwill was reduced from $116.7 to its estimated fair value of $44.6, resulting in a non-cash impairment charge of $72.1. In addition, the carrying amount of Silpada’s indefinite-lived trademark was reduced from $85.0 to its estimated fair value of $40.0, resulting in a non-cash impairment charge of $45.0, and the carrying amount of Silpada’s finite-lived customer relationships was reduced from $131.9 to its estimated fair value of $40.0, resulting in a non-cash impairment charge of $91.9. | |||||||||
Throughout the first nine months of 2012, Silpada continued to perform generally in line with our revenue and earnings forecast and there were no significant changes to our long-term outlook for the business. Our revenue and earnings forecast for 2012 had projected improvements to the trends (i.e., a reduction of the year-over-year revenue declines) in the latter portion of 2012. In 2012, in an effort to promote sales and grow the business, we made changes to certain members of the Silpada management team, including bringing in personnel who had previously managed other Avon businesses. Among the initiatives implemented by the new Silpada management team was a recruiting incentive program which we had believed would benefit our Representative counts and Representative productivity primarily in the latter portion of 2012, and in turn improve the performance of the business. While we saw improvement in our Representative additions, the recruiting incentive program did not result in the expected Representative productivity. | |||||||||
In the fourth quarter of 2012, which was generally the quarter with the largest dollar value of revenue for the Silpada business, it became apparent that we would not achieve our forecasted revenue and earnings for 2012, partially due to the recruiting incentive program not driving the expected Representative productivity, and as a result, Silpada experienced weaker than expected performance in the fourth quarter of 2012. Based on these continued trends, in the latter part of the fourth quarter of 2012, in conjunction with the 2013 planning process and the early stages of our evaluation of strategic alternatives for the business, we lowered our long-term revenue and earnings projections for Silpada in our DCF model to reflect a more moderate recovery of the business. The more moderate recovery of the business was believed to be appropriate due to the lack of sales momentum in the business and the continued inability of Silpada to achieve our financial performance expectations. | |||||||||
The decline in the fair values of the Silpada reporting unit, the trademark and the customer relationships was primarily driven by the reduction in the forecasted long-term growth rates and cash flows used to estimate fair value. The lower than expected financial results for fiscal year 2012 served as the baseline for the long-term projections of the business. Fiscal year 2012 revenue for Silpada was approximately 19% less than fiscal year 2011 results. We forecasted revenue and the resulting cash flows over ten years using a DCF model which included a terminal value at the end of the projection period. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory, Net [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories at December 31 consisted of the following: | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 248.8 | $ | 272.9 | |||||
Finished goods | 573.4 | 694.8 | |||||||
Total | $ | 822.2 | $ | 967.7 | |||||
Debt_and_Other_Financing
Debt and Other Financing | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||
Debt and Other Financing | Debt and Other Financing | ||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Debt at December 31 consisted of the following: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Debt maturing within one year: | |||||||||||||||||||||||||||||
Notes payable | $ | 122 | $ | 159.4 | |||||||||||||||||||||||||
Current portion of long-term debt | 15.1 | 28.6 | |||||||||||||||||||||||||||
Total | $ | 137.1 | $ | 188 | |||||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||||||||
Term Loan | $ | — | $ | 52.5 | |||||||||||||||||||||||||
2.375% Notes, due March 2016 | 249.9 | 249.9 | |||||||||||||||||||||||||||
5.75% Notes, due March 2018 | 249.7 | 249.6 | |||||||||||||||||||||||||||
4.20% Notes, due July 2018 | 249.7 | 249.6 | |||||||||||||||||||||||||||
6.50% Notes, due March 2019 | 348.2 | 347.7 | |||||||||||||||||||||||||||
Other debt, payable through 2024 with interest from .6% to 7.4% | 57.4 | 67.9 | |||||||||||||||||||||||||||
4.60% Notes, due March 2020 | 499.4 | 499.3 | |||||||||||||||||||||||||||
5.00% Notes, due March 2023 | 496 | 495.5 | |||||||||||||||||||||||||||
6.95% Notes, due March 2043 | 249.3 | 249.3 | |||||||||||||||||||||||||||
Total | 2,399.60 | 2,461.30 | |||||||||||||||||||||||||||
Amortization of swap termination | 79.4 | 100 | |||||||||||||||||||||||||||
Less current portion | (15.1 | ) | (28.6 | ) | |||||||||||||||||||||||||
Total long-term debt | $ | 2,463.90 | $ | 2,532.70 | |||||||||||||||||||||||||
Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 4.2% at December 31, 2014 and 6.5% at December 31, 2013. | |||||||||||||||||||||||||||||
Other debt, payable through 2024, included obligations under capital leases of $11.6 at December 31, 2014 and $11.6 at December 31, 2013, which primarily relate to leases of automobiles and equipment. In addition, other debt, payable through 2024, at December 31, 2014 and 2013, included financing obligations of $45.8 and $56.3, respectively, of which $40.4 and $44.5, respectively, relates to the sale and leaseback of equipment in one of our distribution facilities in North America entered into in 2009, which is payable through 2019. | |||||||||||||||||||||||||||||
Public Notes | |||||||||||||||||||||||||||||
On April 15, 2013, we prepaid our 5.625% Notes, due March 1, 2014 (the "2014 Notes") at a prepayment price equal to 100% of the principal amount of $500.0, plus accrued interest of $3.4 and a make-whole premium of $21.7. In connection with the prepayment of our 2014 Notes, we incurred a loss on extinguishment of debt of $13.0 in the second quarter of 2013 consisting of the $21.7 make-whole premium for the 2014 Notes and the write-off of $1.1 of debt issuance costs and discounts related to the initial issuance of the 2014 Notes, partially offset by a deferred gain of $9.8 associated with the January 2013 interest-rate swap agreement termination. See Note 8, Financial Instruments and Risk Management for more information. In addition, the $250.0 principal amount of our 4.80% Notes due March 1, 2013 and the $125.0 principal amount of our 4.625% Notes due May 15, 2013 were repaid in full at maturity. | |||||||||||||||||||||||||||||
In March 2013, we issued, in a public offering, $250.0 principal amount of 2.375% Notes, due March 15, 2016 (the "2016 Notes"), $500.0 principal amount of 4.60% Notes, due March 15, 2020 (the "2020 Notes"), $500.0 principal amount of 5.00% Notes, due March 15, 2023 (the "2023 Notes") and $250.0 principal amount of 6.95% Notes, due March 15, 2043 (the "2043 Notes") (collectively, the "Notes"). The net proceeds from these Notes were used to repay $380.0 of the outstanding principal amount of the term loan agreement (as defined below), to prepay the Private Notes (as defined below) and 2014 Notes (plus make-whole premium and accrued interest for both prepayments), and to repay the 4.625% Notes, due May 15, 2013 at maturity. Interest on the Notes is payable semi-annually on March 15 and September 15 of each year. As a result of the long-term credit rating downgrades by S&P to BB+ (Stable outlook) and by Moody's to Ba1 (Stable outlook) (as discussed below), the interest rates on the Notes will increase by .50%, effective as of March 15, 2015. The carrying value of the 2016 Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.1 and $.1 at December 31, 2014 and 2013, respectively. The carrying value of the 2020 Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $.6 and $.7 at December 31, 2014 and 2013, respectively. The carrying value of the 2023 Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $4.0 and $4.5 at December 31, 2014 and 2013, respectively. The carrying value of the 2043 Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.7 and $.7 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
At December 31, 2014, we also had outstanding $250.0 principal amount of our 5.75% Notes due March 1, 2018 (the "2018 Notes"), $250.0 principal amount of our 4.20% Notes due July 15, 2018 (the "4.20% Notes") and $350.0 principal amount of our 6.50% Notes due March 1, 2019 (the "2019 Notes"). Interest on the 2018 Notes, the 4.20% Notes and the 2019 Notes is payable semi-annually. The carrying value of the 2018 Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.3 and $.4 at December 31, 2014 and 2013, respectively. The carrying value of the 4.20% Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.3 and $.4 at December 31, 2014 and 2013, respectively. The carrying value of the 2019 Notes represented the $350.0 principal amount, net of the unamortized discount to face value of $1.8 and $2.3 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
The indentures governing our outstanding notes described above contain certain covenants, including limitations on the incurrence of liens and restrictions on the incurrence of sale/leaseback transactions and transactions involving a merger, consolidation or sale of substantially all of our assets. In addition, these indentures contain customary events of default and cross-default provisions. Further, we would be required to make an offer to repurchase the 2018 Notes, the 2019 Notes and each series of the Notes at a price equal to 101% of their aggregate principal amount plus accrued and unpaid interest in the event of a change in control involving Avon and a corresponding credit ratings downgrade to below investment grade. In addition, the indenture governing the Notes contains interest rate adjustment provisions depending on our credit ratings with S&P and Moody's. As described in the indenture, the interest rates on the Notes increase by .25% for each one-notch downgrade below investment grade on each of our long-term credit ratings 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 Notes. As a result of the long-term credit rating downgrades by S&P to BB+ (Stable outlook) and by Moody's to Ba1 (Stable outlook) (as discussed below), the interest rates on the Notes will increase by .50%, effective as of March 15, 2015. | |||||||||||||||||||||||||||||
Term Loan Agreement | |||||||||||||||||||||||||||||
On June 29, 2012, we entered into a $500.0 term loan agreement (the "term loan agreement"). Subsequently on August 2, 2012, we borrowed an incremental $50.0 of principal from subscriptions by new lenders under the term loan agreement. Borrowings under the term loan agreement bore interest, at our option, at a rate per annum equal to LIBOR plus an applicable margin or a floating base rate plus an applicable margin, in each case subject to adjustment based on our credit ratings. | |||||||||||||||||||||||||||||
In March 2013, we repaid $380.0 of the outstanding principal amount of the term loan agreement with a portion of the proceeds from the issuance of the Notes, which repayment resulted in a loss in the first quarter of 2013 of $1.6 on extinguishment of debt associated with the write-off of debt issuance costs related to the term loan agreement. On July 25, 2013, we prepaid $117.5 of the outstanding principal balance under the term loan agreement, without prepayment penalties. On June 30, 2014, we paid the $52.5 remaining outstanding principal balance under the term loan agreement, of which $39.4 was not yet due, without prepayment penalties, effectively terminating the term loan agreement since amounts thereunder may not be reborrowed. | |||||||||||||||||||||||||||||
Private Notes | |||||||||||||||||||||||||||||
On March 29, 2013, we prepaid the $535.0 senior notes issued in 2010 in a private placement exempt from registration under the Securities Act of 1933, as amended (the "Private Notes"). In connection with the prepayment of our Private Notes, we incurred a loss on extinguishment of debt of $71.4 in the first quarter of 2013, which included a make-whole premium of $68.0 and the write-off of $3.4 of debt issuance costs related to the Private Notes. | |||||||||||||||||||||||||||||
Maturities of Long-Term Debt | |||||||||||||||||||||||||||||
Annual maturities of long-term debt, which includes our notes (including unamortized discounts and premiums), capital leases and financing obligations outstanding at December 31, 2014, are as follows: | |||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and Beyond | Total | |||||||||||||||||||||||
Maturities | $ | 15.1 | $ | 259.8 | $ | 8.8 | $ | 506.7 | $ | 366.7 | $ | 1,250.30 | $ | 2,407.40 | |||||||||||||||
Other Financing | |||||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||||
In March 2013, we entered into a four-year $1 billion revolving credit facility (the “revolving credit facility”), which expires in March 2017. The revolving credit facility replaced the previous $1 billion revolving credit facility (the "2010 revolving credit facility"), which was terminated in March 2013 prior to its scheduled expiration in November 2013. There were no amounts drawn under the 2010 revolving credit facility on the date of termination and no early termination penalties were incurred. In the first quarter of 2013, $1.2 was recorded for the write-off of issuance costs related to the 2010 revolving credit facility. Borrowings under the revolving credit facility bear interest, at our option, at a rate per annum equal to LIBOR plus an applicable margin or a floating base rate plus an applicable margin, in each case subject to adjustment based on our credit ratings. The revolving credit facility has an annual fee of approximately $3.0, payable quarterly, based on our current credit ratings. The revolving credit facility may be used for general corporate purposes. As of December 31, 2014, there were no amounts outstanding under the revolving credit facility. | |||||||||||||||||||||||||||||
The revolving credit facility contains covenants limiting our ability to incur liens and enter into mergers and consolidations or sales of substantially all our assets. The revolving credit facility also contains a covenant that limits our subsidiary debt to existing subsidiary debt at February 28, 2013 plus $500.0, with certain other exceptions. In addition, the revolving credit facility contains financial covenants which require our interest coverage ratio at the end of each fiscal quarter to equal or exceed 4:1 and our leverage ratio to not be greater than 3.5:1 at the end of the fiscal quarter ended December 31, 2014 and each fiscal quarter thereafter. In addition, the revolving credit facility contains customary events of default and cross-default provisions. The interest coverage ratio is determined by dividing our consolidated EBIT (as defined in the revolving credit facility) by our consolidated interest expense, in each case for the period of four fiscal quarters ending on the date of determination. The leverage ratio is determined by dividing the amount of our consolidated funded debt on the date of determination by our consolidated EBITDA (as defined in the revolving credit facility) for the period of four fiscal quarters ending on the date of determination. When calculating the interest coverage and leverage ratios, the revolving credit facility allows us, subject to certain conditions and limitations, to add back to our consolidated net income, among other items: (i) extraordinary and other non-cash losses and expenses, (ii) one-time fees, cash charges and other cash expenses, premiums or penalties incurred in connection with any asset sale, equity issuance or incurrence or repayment of debt or refinancing or modification or amendment of any debt instrument and (iii) cash charges and other cash expenses, premiums or penalties incurred in connection with any restructuring or relating to any legal or regulatory action, settlement, judgment or ruling, in an aggregate amount not to exceed $400.0 for the period from October 1, 2012 until the termination of commitments under the revolving credit facility (which expires in March 2017); provided, that cash restructuring charges incurred after December 31, 2014 shall not be added back to our consolidated net income. Beginning January 1, 2015, charges taken for cash restructuring cannot be added back to our consolidated net income. As of December 31, 2014, we have less than $10 remaining for the other items (cash charges and other cash expenses, premiums or penalties incurred relating to any legal or regulatory action, settlement, judgment or ruling). We were in compliance with our interest coverage and leverage ratios under the revolving credit facility for the four fiscal quarters ended December 31, 2014. As of December 31, 2014, and based on then applicable interest rates, approximately $825 of the $1 billion revolving credit facility could have been drawn down without violating any covenant. A continued decline in our business results (including the impact of any adverse foreign exchange movements, significant restructuring charges and significant legal or regulatory settlements) may further reduce our borrowing capacity under the revolving credit facility or cause us to be non-compliant with our interest coverage and leverage ratios. If we were to be non-compliant with our interest coverage or leverage ratio, we would no longer have access to our revolving credit facility. As of December 31, 2014, there were no amounts outstanding under the revolving credit facility. | |||||||||||||||||||||||||||||
Commercial Paper Program | |||||||||||||||||||||||||||||
In November 2014, we terminated our $1 billion commercial paper program, which was supported by the revolving credit facility, as our current credit ratings essentially eliminated the demand for our commercial paper. We had not sought to issue commercial paper since our March 2013 public offering. | |||||||||||||||||||||||||||||
Letters of Credit | |||||||||||||||||||||||||||||
At December 31, 2014 and December 31, 2013, we also had letters of credit outstanding totaling $12.9 and $19.9, respectively, which primarily guarantee various insurance activities. In addition, we had outstanding letters of credit for trade activities and commercial commitments executed in the ordinary course of business, such as purchase orders for normal replenishment of inventory levels. | |||||||||||||||||||||||||||||
Additional Information | |||||||||||||||||||||||||||||
Our long-term credit ratings are Ba1 (Stable Outlook) with Moody's, BB+ (Stable Outlook) with S&P, and BB (Negative Outlook) with Fitch, which are below investment grade. In November 2014, S&P lowered their long-term credit rating from BBB- (Negative Outlook) to BB+ (Stable Outlook). In October 2014, Moody's lowered their long-term credit rating from Baa3 (Negative Outlook) to Ba1 (Stable Outlook). We do not believe these long-term credit rating downgrades will have a material impact on our near-term liquidity. However, additional rating agency reviews could result in a change in outlook or downgrade, which could further limit our access to new financing, particularly short-term financing, reduce our flexibility with respect to working capital needs, affect the market price of some or all of our outstanding debt securities, as well as most likely result in an increase in financing costs, including interest expense under certain of our debt instruments, and less favorable covenants and financial terms of our financing arrangements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
The tables below present the changes in AOCI by component and the reclassifications out of AOCI during 2014 and 2013: | |||||||||||||||||||||
Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||
Balance at December 31, 2013 | $ | (429.3 | ) | $ | (5.1 | ) | $ | (4.3 | ) | $ | (431.7 | ) | $ | (870.4 | ) | ||||||
Other comprehensive loss other than reclassifications | (247.7 | ) | — | — | (187.2 | ) | (434.9 | ) | |||||||||||||
Reclassifications into earnings: | |||||||||||||||||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | — | 1.9 | — | — | 1.9 | ||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $2.5(2) | — | — | — | 85.8 | 85.8 | ||||||||||||||||
Total reclassifications into earnings | — | 1.9 | — | 85.8 | 87.7 | ||||||||||||||||
Balance at December 31, 2014 | $ | (677.0 | ) | $ | (3.2 | ) | $ | (4.3 | ) | $ | (533.1 | ) | $ | (1,217.6 | ) | ||||||
Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||
Balance at December 31, 2012 | $ | (317.6 | ) | $ | (6.8 | ) | $ | (4.3 | ) | $ | (548.0 | ) | $ | (876.7 | ) | ||||||
Other comprehensive loss other than reclassifications | (111.7 | ) | — | — | 80.6 | (31.1 | ) | ||||||||||||||
Reclassifications into earnings: | |||||||||||||||||||||
Derivative losses on cash flow hedges, net of tax of $.9(1) | — | 1.7 | — | — | 1.7 | ||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $16.5(2) | — | — | — | 35.7 | 35.7 | ||||||||||||||||
Total reclassifications into earnings | — | 1.7 | — | 35.7 | 37.4 | ||||||||||||||||
Balance at December 31, 2013 | $ | (429.3 | ) | $ | (5.1 | ) | $ | (4.3 | ) | $ | (431.7 | ) | $ | (870.4 | ) | ||||||
(1) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. | |||||||||||||||||||||
(2) Gross amount reclassified to pension and postretirement expense, within selling, general and administrative expenses, and related taxes reclassified to income taxes. | |||||||||||||||||||||
Foreign exchange net loss of $18.2 for 2014 and net gains of $.2 and $7.7 for 2013 and 2012, respectively, resulting from the translation of actuarial losses and prior service cost recorded in AOCI are included in changes in foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
At December 31, 2014, we had recognized deferred tax assets relating to tax loss carryforwards of $726.2 primarily from foreign jurisdictions, for which a valuation allowance of $717.9 has been provided. Prior to December 31, 2014, we had recognized deferred tax assets of $617.7 relating to excess U.S. foreign tax credit carryforwards that will expire in the 2018-2024 period. | |||||||||||||
During the fourth quarter of 2012, as a result of the uncertainty of our financing arrangements and our domestic liquidity profile at that time, we determined that we may repatriate offshore cash to meet certain domestic funding needs. Accordingly, we asserted that these undistributed earnings of foreign subsidiaries were no longer indefinitely reinvested and, therefore, recorded an additional provision for income taxes of $168.3 on such earnings. At December 31, 2012, we had a deferred tax liability in the amount of $224.8 for the U.S. tax cost on the undistributed earnings of subsidiaries outside of the U.S. of $3.1 billion. | |||||||||||||
At December 31, 2014, we continue to assert that our foreign earnings are not indefinitely reinvested, as a result of our domestic liquidity profile. Accordingly, we adjusted our deferred tax liability to account for our 2014 undistributed earnings of foreign subsidiaries and for earnings that were actually repatriated to the U.S. during the year. Additionally, the deferred tax liability was reduced due to the lower cost to repatriate the undistributed earnings of our foreign subsidiaries compared to 2013. The net impact on the deferred tax liability associated with the Company’s undistributed earnings is a reduction of $128.5, resulting in a deferred tax liability balance of $14.3 related to the incremental tax cost on $1.9 billion of undistributed foreign earnings at December 31, 2014. This deferred income tax liability amount is net of the estimated foreign tax credits that would be generated upon the repatriation of such earnings. The repatriation of foreign earnings should result in the utilization of foreign tax credits in the year of repatriation; therefore, the utilization of foreign tax credits is dependent on the amount and timing of repatriations, as well as the jurisdictions involved. We have not included the undistributed earnings of our subsidiary in Venezuela in the calculation of this deferred income tax liability as local regulations restrict cash distributions denominated in U.S. dollars. | |||||||||||||
Deferred tax assets (liabilities) resulting from temporary differences in the recognition of income and expense for tax and financial reporting purposes at December 31 consisted of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 217.4 | $ | 274.2 | |||||||||
Pension and postretirement benefits | 161.5 | 132 | |||||||||||
Asset revaluations | 12.1 | 37.4 | |||||||||||
Capitalized expenses | 161.4 | 156.4 | |||||||||||
Depreciation and amortization | 15.4 | 15 | |||||||||||
Deferred loss on foreign currency | 37.2 | 13.3 | |||||||||||
Share-based compensation | 57.7 | 63.7 | |||||||||||
Restructuring initiatives | 22.7 | 23.9 | |||||||||||
Postemployment benefits | 6.8 | 8.1 | |||||||||||
Tax loss carryforwards | 726.2 | 756.1 | |||||||||||
Foreign tax credit carryforwards | 617.7 | 585.4 | |||||||||||
Minimum tax and business credit carryforwards | 57.1 | 53.2 | |||||||||||
All other | 55.7 | 39.3 | |||||||||||
Valuation allowance | (1,208.6 | ) | (783.4 | ) | |||||||||
Total deferred tax assets | 940.3 | 1,374.60 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (24.6 | ) | (27.9 | ) | |||||||||
Unremitted foreign earnings | (14.3 | ) | (142.8 | ) | |||||||||
Prepaid expenses | (8.7 | ) | (16.6 | ) | |||||||||
Capitalized interest | (8.7 | ) | (9.4 | ) | |||||||||
All other | (26.5 | ) | (33.7 | ) | |||||||||
Total deferred tax liabilities | (82.8 | ) | (230.4 | ) | |||||||||
Net deferred tax assets | $ | 857.5 | $ | 1,144.20 | |||||||||
Deferred tax assets (liabilities) at December 31 were classified as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Prepaid expenses and other | $ | 204.7 | $ | 233.6 | |||||||||
Other assets | 685.8 | 944.7 | |||||||||||
Total deferred tax assets | 890.5 | 1,178.30 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Income taxes | (.3 | ) | (1.1 | ) | |||||||||
Long-term income taxes | (32.7 | ) | (33.0 | ) | |||||||||
Total deferred tax liabilities | (33.0 | ) | (34.1 | ) | |||||||||
Net deferred tax assets | $ | 857.5 | $ | 1,144.20 | |||||||||
The valuation allowance primarily represents amounts for U.S. deferred tax assets and foreign tax loss carryforwards. The basis used for recognition of deferred tax assets included tax planning strategies, the current and future profitability of the operations, related deferred tax liabilities and the likelihood of utilizing tax credit and/or loss carryforwards during the carryover periods. The net increase in the valuation allowance of $425.2 during 2014 was mainly due to the recording of the valuation allowance of $441 to reduce our U.S. deferred tax assets (as discussed below). In addition, the net increase in the valuation allowance was attributable to several of our foreign entities continuing to incur losses during 2014, thereby increasing the tax loss carryforwards for which a valuation allowance was also provided, as well as the favorable impact of foreign currency translation, as the strengthening of the U.S. dollar against many of our foreign currencies resulted in lower reported valuation allowances. | |||||||||||||
During the fourth quarter of 2014, the Company’s expected net foreign source income was reduced significantly, primarily due to the strengthening of the U.S. dollar against currencies for some of our key markets and, to a lesser extent, the finalization of the Foreign Corrupt Practices Act ("FCPA") settlements. This strengthening of the U.S. dollar reduced the expected dividends and royalties that could be remitted to the U.S. by our foreign subsidiaries, particularly Russia, Brazil, Mexico and Colombia. The effectiveness of our tax planning strategies, including the repatriation of foreign earnings and the acceleration of royalties from our foreign subsidiaries, was also negatively impacted by the strengthening of the U.S. dollar. In addition, the finalization of the FCPA settlements, which included a $68 fine related to Avon China in connection with the U.S. Department of Justice ("DOJ") settlement and $67 in disgorgement and prejudgment interest related to Avon Products, Inc. in connection with the U.S. Securities and Exchange Commission ("SEC") settlement, negatively impacted expected future repatriation of foreign earnings and reduced current U.S. taxable income, respectively. As a result of these developments, we may not generate sufficient taxable income to realize all of our U.S. deferred tax assets. As such, we recorded a valuation allowance of $441 to reduce our U.S. deferred tax assets to an amount that is "more likely than not" to be realized, of which $367 was recorded to income taxes in the Consolidated Statements of Income and the remainder was recorded to various components of other comprehensive (loss) income. | |||||||||||||
(Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (214.7 | ) | $ | (500.8 | ) | $ | (227.7 | ) | ||||
Foreign | 378.9 | 663.4 | 656.4 | ||||||||||
Total | $ | 164.2 | $ | 162.6 | $ | 428.7 | |||||||
The U.S. loss from continuing operations, before taxes, for the years ended December 31, 2014, 2013 and 2012, does not include dividend income from foreign subsidiaries. | |||||||||||||
The provision for income taxes for the years ended December 31 was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 58 | $ | 76.6 | $ | 38.8 | |||||||
Deferred | 208 | (212.5 | ) | (111.5 | ) | ||||||||
266 | (135.9 | ) | (72.7 | ) | |||||||||
Foreign: | |||||||||||||
Current | 246.7 | 216.3 | 267.5 | ||||||||||
Deferred | (3.3 | ) | 90.5 | 143.6 | |||||||||
243.4 | 306.8 | 411.1 | |||||||||||
State and other: | |||||||||||||
Current | (.1 | ) | (.7 | ) | 1.2 | ||||||||
Deferred | 39.8 | (6.6 | ) | (4.2 | ) | ||||||||
39.7 | (7.3 | ) | (3.0 | ) | |||||||||
Total | $ | 549.1 | $ | 163.6 | $ | 335.4 | |||||||
The foreign provision for income taxes includes the U.S. tax benefit on foreign earnings of $3.5, and the U.S. tax cost on foreign earnings of $9.9 and $156.8 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The effective tax rate for the years ended December 31 was as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal rate | 35 | % | 35 | % | 35 | % | |||||||
State and local taxes, net of federal tax benefit | 8.8 | (2.1 | ) | (.5 | ) | ||||||||
Taxes on foreign income, including translation | (4.8 | ) | (22.0 | ) | (2.0 | ) | |||||||
Audit settlements, statute expirations and amended returns | (3.2 | ) | (6.9 | ) | (2.1 | ) | |||||||
Additional tax on unremitted prior year foreign earnings | — | — | 39.3 | ||||||||||
Venezuela devaluation and highly inflationary accounting | 33.5 | 28.2 | — | ||||||||||
FCPA accrual | (8.7 | ) | 19.2 | — | |||||||||
China goodwill impairment | — | 8.4 | 3.6 | ||||||||||
Reserves for uncertain tax positions | 24.4 | 4.5 | 3 | ||||||||||
Net change in valuation allowances | 244.1 | 31.4 | 1.5 | ||||||||||
Blocked income | 4.3 | 3.9 | 1.1 | ||||||||||
Other | 1 | 1 | (.7 | ) | |||||||||
Effective tax rate | 334.4 | % | 100.6 | % | 78.2 | % | |||||||
In the fourth quarter of 2014, as a result of the finalization of the FCPA settlements, we recorded a net tax benefit of $18.5. See Note 15, Contingencies for further discussion of the FCPA settlements. | |||||||||||||
At December 31, 2014, we had tax loss carryforwards of $2,486.2. The loss carryforwards expiring between 2015 and 2029 are $177.0 and the loss carryforwards which do not expire are $2,309.2. We also had minimum tax credit carryforwards of $39.0 which do not expire, business credit carryforwards of $18.0 that will expire between 2021 and 2034, and foreign tax credit carryforwards of $617.7 that will expire between 2018 and 2024. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
At December 31, 2014, we had $58.7 of total gross unrecognized tax benefits of which approximately $33.6 would impact the effective tax rate, if recognized. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Balance at December 31, 2011 | $ | 36 | |||||||||||
Additions based on tax positions related to the current year | 7.4 | ||||||||||||
Additions for tax positions of prior years | 9.3 | ||||||||||||
Reductions for tax positions of prior years | (3.7 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (6.4 | ) | |||||||||||
Reductions due to settlements with tax authorities | (6.6 | ) | |||||||||||
Balance at December 31, 2012 | 36 | ||||||||||||
Additions based on tax positions related to the current year | 5.3 | ||||||||||||
Additions for tax positions of prior years | 1.9 | ||||||||||||
Reductions for tax positions of prior years | (7.8 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (3.1 | ) | |||||||||||
Reductions due to settlements with tax authorities | (4.3 | ) | |||||||||||
Balance at December 31, 2013 | 28 | ||||||||||||
Additions based on tax positions related to the current year | 1.5 | ||||||||||||
Additions for tax positions of prior years | 37.7 | ||||||||||||
Reductions for tax positions of prior years | (4.8 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (1.7 | ) | |||||||||||
Reductions due to settlements with tax authorities | (2.0 | ) | |||||||||||
Balance at December 31, 2014 | $ | 58.7 | |||||||||||
We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. We had $4.9 at December 31, 2014 and $4.4 at December 31, 2013, accrued for interest and penalties, net of tax benefit. We recorded expense of $1.0, and benefits of $.1 and $1.1 for interest and penalties, net of taxes during 2014, 2013 and 2012, respectively. | |||||||||||||
We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. As of December 31, 2014, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: | |||||||||||||
Jurisdiction | Open Years | ||||||||||||
Brazil | 2009-2014 | ||||||||||||
Mexico | 2008-2014 | ||||||||||||
Poland | 2009-2014 | ||||||||||||
Russia | 2011-2014 | ||||||||||||
United States (Federal) | 2014 | ||||||||||||
We anticipate that it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $1 to $18 within the next twelve months due to the closure of tax years by expiration of the statute of limitations and audit settlements. |
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [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. As of December 31, 2014, we do not have any interest-rate swap agreements. | ||||||||||||
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, including if we were to merge with another entity and the creditworthiness of the surviving entity were to be "materially weaker" than that of Avon prior to the merger. | ||||||||||||
Derivatives are recognized on the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments outstanding at December 31, 2014: | ||||||||||||
Asset | Liability | |||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
Classification | Value | Classification | Value | |||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | 0.6 | Accounts payable | $ | 5 | ||||||
Total derivatives not designated as hedges | $ | 0.6 | $ | 5 | ||||||||
Total derivatives | $ | 0.6 | $ | 5 | ||||||||
The following table presents the fair value of derivative instruments outstanding at December 31, 2013: | ||||||||||||
Asset | Liability | |||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
Classification | Value | Classification | Value | |||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | 3.4 | Accounts payable | $ | 0.3 | ||||||
Total derivatives not designated as hedges | $ | 3.4 | $ | 0.3 | ||||||||
Total derivatives | $ | 3.4 | $ | 0.3 | ||||||||
Interest Rate Risk | ||||||||||||
A portion of our borrowings is subject to interest rate risk. In the past we have used interest-rate swap agreements, which effectively converted the fixed rate on long-term debt to a floating interest rate, to manage our interest rate exposure. The agreements were designated as fair value hedges. As of December 31, 2014 and 2013, all designated interest-rate swap agreements have been terminated either in conjunction with repayment of the associated debt or in the January 2013 and March 2012 transactions described below. Approximately 5% and approximately 8% of our debt portfolio at December 31, 2014 and 2013, respectively, was exposed to floating interest rates. | ||||||||||||
In January 2013, we terminated eight of our interest-rate swap agreements previously designated as fair value hedges, with notional amounts totaling $1,000. As of the interest-rate swap agreements’ termination date, the aggregate favorable adjustment to the carrying value (deferred gain) of our debt was $90.4, which is being amortized as a reduction to interest expense over the remaining term of the underlying debt obligations. We incurred termination fees of $2.3 which were recorded in other expense, net in the Consolidated Statements of Income. For the years ended December 31, 2014 and December 31, 2013, the net impact of the gain amortization was $14.4 and $26.1, respectively. The interest-rate swap agreements were terminated in order to improve our capital structure, including increasing our ratio of fixed-rate debt. At December 31, 2014, the unamortized deferred gain associated with the January 2013 interest-rate swap termination was $50.0, and was included within long-term debt in the Consolidated Balance Sheets. | ||||||||||||
In March 2012, we terminated two of our interest-rate swap agreements previously designated as fair value hedges, with notional amounts totaling $350. As of the interest-rate swap agreements’ termination date, the aggregate favorable adjustment to the carrying value (deferred gain) of our debt was $46.1, which is being amortized as a reduction to interest expense over the remaining term of the underlying debt obligations through March 2019. We incurred termination fees of $2.5 which were recorded in other expense, net in the Consolidated Statements of Income. For the years ended December 31, 2014 and 2013, the net impact of the gain amortization was $6.3 and $6.0, respectively. The interest-rate swap agreements were terminated in order to increase our ratio of fixed-rate debt. At December 31, 2014, the unamortized deferred gain associated with the March 2012 interest-rate swap termination was $29.4, and was included within long-term debt in the Consolidated Balance Sheets. | ||||||||||||
During 2013, we recorded a net loss of $.7 in interest expense in the Consolidated Statements of Income for these interest-rate swap agreements previously designated as fair value hedges; however, no net gain or loss was recorded during 2014 as the interest-rate swaps were terminated in the second quarter of 2013. The impact on interest expense of these interest-rate swap agreements was offset by an equal and offsetting impact in interest expense on our fixed-rate debt. | ||||||||||||
At times, we may de-designate the hedging relationship of a receive-fixed/pay-variable interest-rate swap agreement. In these cases, we enter into receive-variable/pay-fixed interest-rate swap agreements that are designated to offset the gain or loss on the de-designated contract. At December 31, 2014, we do not have undesignated interest-rate swap agreements. As the remaining undesignated interest-rate swap agreements were terminated in conjunction with the repayment of the associated debt in the second quarter of 2013, no net gain or loss was recorded during 2014. During 2013, we recorded an immaterial net loss in other expense, net in the Consolidated Statements of Income, associated with these undesignated interest-rate swap agreements. There was no hedge ineffectiveness for the years ended December 31, 2013 and 2012, related to these interest-rate swaps. | ||||||||||||
During 2007, we entered into treasury lock agreements (the "2007 locks") with notional amounts totaling $500.0 that expired on July 31, 2008. The 2007 locks were designated as cash flow hedges of the anticipated interest payments on $250.0 principal amount of the 2013 Notes and $250.0 principal amount of the 2018 Notes. The losses on the 2007 locks of $38.0 were recorded in AOCI. $19.2 of the losses were amortized to interest expense in the Consolidated Statements of Income over five years and $18.8 are being amortized over ten years. | ||||||||||||
During 2003, we entered into treasury lock agreements (the "2003 locks") that we designated as cash flow hedges and used to hedge the exposure to the possible rise in interest rates prior to the issuance of the 4.625% Notes. The loss on the 2003 locks of $2.6 was recorded in AOCI and was amortized to interest expense in the Consolidated Statements of Income over ten years. | ||||||||||||
As of December 31, 2014, we expect to reclassify $1.9, net of taxes, of net losses on derivative instruments designated as cash flow hedges from AOCI to earnings during the next twelve months. | ||||||||||||
For the years ended December 31, 2014 and 2013, treasury lock agreements impacted AOCI as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Net unamortized losses at beginning of year, net of taxes of $2.7 and $3.7 | $ | (5.1 | ) | $ | (6.8 | ) | ||||||
Reclassification of net losses to earnings, net of taxes of $0.0 and $1.0 | 1.9 | 1.7 | ||||||||||
Net unamortized losses at end of year, net of taxes of $2.7 and $2.7 | $ | (3.2 | ) | $ | (5.1 | ) | ||||||
Foreign Currency Risk | ||||||||||||
We use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At December 31, 2014, we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $173.9 for various currencies. | ||||||||||||
We use foreign exchange forward contracts to manage foreign currency exposure of certain intercompany loans. These contracts are not designated as hedges. 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 2014 and 2013, we recorded losses of $13.3 and $3.5, respectively, in other expense, net in the Consolidated Statements of Income related to these undesignated foreign exchange forward contracts. Also during 2014 and 2013, we recorded gains of $14.7 and $4.8, respectively, related to the intercompany loans, caused by changes in foreign currency exchange rates. | ||||||||||||
We also used a foreign exchange forward contract to hedge the foreign currency exposure related to the net assets of foreign subsidiaries, which were effective as hedges. A gain of $4.3 for 2012 related to the effective portions of the foreign exchange forward contract was included in foreign currency translation adjustments within AOCI. The foreign exchange forward contract was terminated in January 2012, and therefore no gain or loss was recorded during 2014 or 2013. | ||||||||||||
Credit Risk of Financial Instruments | ||||||||||||
We attempt to minimize our credit exposure to counterparties by entering into derivative transactions and similar agreements with major international financial institutions with "A" or higher credit ratings as issued by Standard & Poor’s Corporation. Our foreign currency and interest rate derivatives are 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 have resulted in a write-off of $.6 at December 31, 2014. 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. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 as of December 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 2.7 | $ | — | $ | 2.7 | |||||||||||
Foreign exchange forward contracts | — | 0.6 | 0.6 | ||||||||||||||
Total | $ | 2.7 | 0.6 | 3.3 | |||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 5 | $ | 5 | |||||||||||
Total | $ | — | $ | 5 | $ | 5 | |||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 0.5 | $ | — | $ | 0.5 | |||||||||||
Available-for-sale securities | 2.5 | — | 2.5 | ||||||||||||||
Foreign exchange forward contracts | — | 3.4 | 3.4 | ||||||||||||||
Total | $ | 3 | $ | 3.4 | $ | 6.4 | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||
Total | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||
The tables above exclude our defined benefit pension and postretirement plan assets. See Note 11, Employee Benefit Plans, for the fair value hierarchy for our plan assets. The money market funds were held in a Healthcare trust in order to fund future benefit payments for both active and retiree benefit plans (see Note 11, Employee Benefit Plans). 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 11, Employee Benefit Plans). The foreign exchange forward contracts are hedges of either recorded assets or liabilities or anticipated transactions. The underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above (see Note 8, Financial Instruments and Risk Management). | |||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis | |||||||||||||||||
December 31, 2013 - SMT | |||||||||||||||||
In December 2013, we decided to halt further roll-out of our SMT project beyond the pilot program in Canada, in light of the potential risk of further business disruption. As a result, in the fourth quarter of 2013, we completed an impairment assessment of the SMT asset and subsequently determined that the SMT asset was impaired. As a result of the non-cash impairment charge of $117.2 before tax ($74.1 after tax), the remaining carrying amount of the SMT asset is not material. | |||||||||||||||||
The fair value of the SMT asset was determined using a risk-adjusted DCF model under the relief-from-royalty method. The impairment analysis performed for the asset group, which includes the SMT asset, required several estimates, including revenue and cash flow projections, and royalty and discount rates. | |||||||||||||||||
See Note 1, Description of the Business and Summary of Significant Accounting Policies for more information on SMT. | |||||||||||||||||
September 30, 2013 - China | |||||||||||||||||
In the third quarter of 2013, we completed an interim impairment assessment of the fair value of goodwill related to China and subsequently determined that the goodwill associated with China was impaired. As a result, the carrying amount of China's goodwill was reduced from $38.4 to $0, resulting in a non-cash impairment charge of $38.4. In addition, the carrying amount of China's finite-lived intangible assets was reduced from $3.7 to $0, resulting in a non-cash impairment charge of $3.7. | |||||||||||||||||
The impairment analyses performed for goodwill and intangible assets require several estimates in computing the estimated fair value of a reporting unit and finite-lived intangible assets. As part of our goodwill impairment analysis, we typically use a DCF approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of a business, and is most consistent with the approach that we would generally expect a market 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 five 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 our 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. | |||||||||||||||||
Key assumptions used in measuring the fair value of China included projections of revenue and the resulting cash flows, as well as the discount rate (based on the estimated weighted-average cost of capital). To estimate the fair value of China, we forecasted revenue and the resulting cash flows over ten years using a DCF model which included a terminal value at the end of the projection period. We believed that a ten-year period was a reasonable amount of time in order to return China's cash flows to normalized, sustainable levels. | |||||||||||||||||
See Note 16, Goodwill and Intangible Assets for more information on China. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, money market funds, accounts receivable, loans receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forwards 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: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Available-for-sale securities | $ | 2.7 | $ | 2.7 | $ | 2.5 | $ | 2.5 | |||||||||
Money market funds | — | — | 0.5 | 0.5 | |||||||||||||
Debt maturing within one year(1) | (137.1 | ) | (137.1 | ) | (188.0 | ) | (188.0 | ) | |||||||||
Long-term debt(1) | (2,463.9 | ) | (2,242.5 | ) | (2,532.7 | ) | (2,511.6 | ) | |||||||||
Foreign exchange forward contracts | (4.4 | ) | (4.4 | ) | 3.1 | 3.1 | |||||||||||
(1) The carrying value of debt maturing within one year and long-term debt includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. | |||||||||||||||||
The methods and assumptions used to estimate fair value are as follows: | |||||||||||||||||
Available-for-sale securities and money market funds - The fair values of these investments were the quoted market prices for issues listed on securities exchanges. | |||||||||||||||||
Debt maturing within one year and 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. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans | |||||||||||||
The Avon Products, Inc. 2010 Stock Incentive Plan (the "2010 Plan") and the Avon Products, Inc. 2013 Stock Incentive Plan (the “2013 Plan”), which are shareholder approved plans, provide for several types of share-based incentive compensation awards including stock options, stock appreciation rights, restricted stock, restricted stock units and performance restricted stock units. Following shareholder approval of the 2013 Plan in May 2013, there were no further awards made under the 2010 Plan. Under the 2010 Plan, the maximum number of shares that may be awarded was 32,000,000 shares, where the maximum number of shares was reduced as follows: (i) in the case of the grant of an award of an option or Stock Appreciation Right ("SAR"), by each share of stock subject to such an award and (ii) in the case of the grant of an award payable in stock other than an option or SAR by 2.33 multiplied by each share of stock subject to such award. Under the 2013 Plan, the maximum number of shares that may be awarded is 42,000,000 shares, 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 3.13 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 have issued stock options and stock appreciation rights under the 2010 Plan, and restricted stock units and performance restricted stock units under both the 2010 Plan and the 2013 Plan. Stock option awards are granted with an exercise price equal to the closing market price of our stock at the date of grant. Those option awards and stock appreciation rights 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 performance conditions. | ||||||||||||||
For the years ended December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units | $ | 38.9 | $ | 43.3 | $ | 41.1 | ||||||||
Total income tax benefit recognized for share-based arrangements | 3.2 | 14.9 | 13 | |||||||||||
All of the compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units for 2014, 2013 and 2012 was recorded in selling, general and administrative expenses in the Consolidated Statements of Income. | ||||||||||||||
Stock Options | ||||||||||||||
The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted-average assumptions for options granted during the years ended December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free rate(1) | * | * | 0.7 | % | ||||||||||
Expected term(2) | * | * | 4 years | |||||||||||
Expected volatility(3) | * | * | 38 | % | ||||||||||
Expected dividends(4) | * | * | 5 | % | ||||||||||
* | There were no stock options granted in 2014 and 2013. | |||||||||||||
-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 historical employee exercise behavior, the vesting terms of the respective option and a contractual life of 10 years. | |||||||||||||
-3 | Expected volatility was based on the weekly historical volatility of our stock price, over a period similar to the expected life of the option. | |||||||||||||
-4 | Assumed the then-current cash dividends of $.23 during 2012 per share each quarter on our common stock for options granted during that year. | |||||||||||||
The weighted-average grant-date fair values per share of options granted were $3.55 during 2012. | ||||||||||||||
A summary of stock options as of December 31, 2014, and changes during 2014, is as follows: | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
(in 000’s) | Average | Average | Intrinsic | |||||||||||
Exercise | Contractual | Value | ||||||||||||
Price | Term | |||||||||||||
Outstanding at January 1, 2014 | 21,543 | $ | 32.27 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (12 | ) | 15.5 | |||||||||||
Forfeited | (59 | ) | 18.29 | |||||||||||
Expired | (4,314 | ) | 34.68 | |||||||||||
Outstanding at December 31, 2014 | 17,158 | $ | 31.74 | 3 | $ | — | ||||||||
Exercisable at December 31, 2014 | 16,156 | $ | 31.81 | 2.9 | $ | — | ||||||||
At December 31, 2014, there was approximately $.1 of unrecognized compensation cost related to stock options outstanding, which is expected to be recognized in 2015. We recognize expense on stock options using a graded vesting method, which recognizes the associated expense based on the timing of option vesting dates. | ||||||||||||||
Cash proceeds, tax obligations and intrinsic value related to total stock options exercised during 2014, 2013 and 2012, were as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cash proceeds from stock options exercised | $ | 0.2 | $ | 19.4 | $ | 8.6 | ||||||||
Tax obligation realized for stock options exercised | — | (1.8 | ) | (3.7 | ) | |||||||||
Intrinsic value of stock options exercised | — | 6.4 | 2.2 | |||||||||||
Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units | ||||||||||||||
The fair value of restricted stock units and performance restricted stock units granted was determined based on the closing price of our common stock on the date of grant. | ||||||||||||||
In 2012, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions. Several weeks after the original grant date, we amended one of these performance conditions associated with this award. As a result, the incremental compensation cost associated with this modification totaled $.9, of which $.3 was recognized in 2012. We accrue compensation cost if it is probable that the performance conditions will be achieved and reassess whether achievement of the performance conditions are probable at each reporting period. We have assessed that it is no longer probable that we would meet the specified performance conditions, and reversed the compensation cost recognized to-date. | ||||||||||||||
In 2013, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions. We have adjusted the compensation cost recognized to-date to reflect our estimated performance. | ||||||||||||||
In 2014, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions. We currently believe that the achievement of the performance conditions is probable. | ||||||||||||||
A summary of restricted stock and restricted stock units at December 31, 2014, and changes during 2014, is as follows: | ||||||||||||||
Restricted Stock | Weighted-Average | |||||||||||||
And Units | Grant-Date | |||||||||||||
(in 000’s) | Fair Value | |||||||||||||
1-Jan-14 | 4,234 | $ | 20.67 | |||||||||||
Granted | 3,212 | 14.58 | ||||||||||||
Vested | (1,574 | ) | 22.23 | |||||||||||
Forfeited | (877 | ) | 17.27 | |||||||||||
31-Dec-14 | 4,995 | $ | 16.8 | |||||||||||
A summary of performance restricted stock units at December 31, 2014, and changes during 2014, is as follows: | ||||||||||||||
Performance Restricted | Weighted-Average | |||||||||||||
Stock Units | Grant-Date | |||||||||||||
(in 000’s) | Fair Value | |||||||||||||
January 1, 2014(1) | 4,383 | $ | 22.19 | |||||||||||
Granted | 2,330 | 14.68 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | (1,737 | ) | 22.35 | |||||||||||
December 31, 2014(1) | 4,976 | $ | 17.53 | |||||||||||
(1) Based on initial target payout. | ||||||||||||||
The total fair value of restricted stock units that vested during 2014 was $21.9, based upon market prices on the vesting dates. At December 31, 2014, there was approximately $64.7 of unrecognized compensation cost related to restricted stock, restricted stock units and performance restricted stock units compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.8 years. | ||||||||||||||
In addition to the amounts in the table above, in April 2012 we granted 200,000 restricted stock units that will be funded with treasury shares, outside of the 2010 Plan, in reliance upon The New York Stock Exchange rules. These restricted stock units have a weighted-average grant-date fair value of $21.69 and vest and settle ratably over five years. During 2014, 40,000 of these restricted stock units vested, and 120,000 of these restricted stock units were outstanding at December 31, 2014. During 2014, 2013 and 2012, we recognized compensation cost of $.8, $1.4 and $1.4, respectively, for these restricted stock units. At December 31, 2014, there was $.8 of unrecognized compensation cost related to these restricted stock units. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | ||||||||||||||||||||||||||||||||||||
Savings Plan | |||||||||||||||||||||||||||||||||||||
We 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 $9.4 in 2014, $10.6 in 2013 and $11.8 in 2012, which follow the same investment allocation that the participant has selected for his or her own contributions. For U.S. employees hired on or after January 1, 2015, we will make 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 three 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. The U.S. defined benefit pension plan, the Avon Products, Inc. Personal Retirement Account Plan (the "PRA"), has been closed to employees hired on or after January 1, 2015. Qualified retirement benefits for U.S. employees hired on or after January 1, 2015 will be provided solely through the PSA, as described above. | |||||||||||||||||||||||||||||||||||||
We provide health care benefits, subject to certain limitations, to many retired employees in the U.S. and certain foreign countries. In the U.S., the cost of such health care benefits is shared by us and our retirees for employees hired on or before January 1, 2005. Employees hired after January 1, 2005, will pay the full cost of the health care benefits upon retirement. In August 2009, we announced changes to our postretirement medical and life insurance benefits offered to U.S. retirees. The changes to the retiree medical benefits reduced the plan’s obligations by $36.3. This amount is being amortized as a negative prior service cost over the average future service of active participants which is approximately 12 years. The changes to the retiree life insurance benefits reduced the plan’s obligations by $27.7. This amount was amortized as a negative prior service cost over 3.3 years, which was the remaining term of the plan. | |||||||||||||||||||||||||||||||||||||
We are required, among other things, to 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 three- 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. | |||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | (668.3 | ) | $ | (792.7 | ) | $ | (863.7 | ) | $ | (838.5 | ) | $ | (111.1 | ) | $ | (138.1 | ) | |||||||||||||||||||
Service cost | (14.1 | ) | (15.7 | ) | (8.5 | ) | (12.2 | ) | (1.1 | ) | (1.8 | ) | |||||||||||||||||||||||||
Interest cost | (27.8 | ) | (27.5 | ) | (36.5 | ) | (36.8 | ) | (4.9 | ) | (5.1 | ) | |||||||||||||||||||||||||
Actuarial (loss) gain | (124.6 | ) | 58.4 | (137.3 | ) | (21.0 | ) | (3.6 | ) | 22.9 | |||||||||||||||||||||||||||
Plan participant contributions | — | — | (.4 | ) | (.7 | ) | (2.8 | ) | (2.9 | ) | |||||||||||||||||||||||||||
Benefits paid | 129.1 | 109.2 | 53.1 | 44.8 | 10 | 10.5 | |||||||||||||||||||||||||||||||
Plan amendments | 2 | — | — | — | — | 1.3 | |||||||||||||||||||||||||||||||
Curtailments | (1.4 | ) | — | — | 1.5 | 0.3 | 0.9 | ||||||||||||||||||||||||||||||
Settlements | — | — | 0.7 | — | — | — | |||||||||||||||||||||||||||||||
Special termination benefits | (.1 | ) | — | — | — | (.2 | ) | (.5 | ) | ||||||||||||||||||||||||||||
Foreign currency changes and other | — | — | 82.4 | (.8 | ) | 1.7 | 1.7 | ||||||||||||||||||||||||||||||
Ending balance | $ | (705.2 | ) | $ | (668.3 | ) | $ | (910.2 | ) | $ | (863.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 531.1 | $ | 529.2 | $ | 715 | $ | 609.3 | $ | — | $ | — | |||||||||||||||||||||||||
Actual return on plan assets | 54.5 | 59.8 | 81.4 | 76.4 | — | — | |||||||||||||||||||||||||||||||
Company contributions | 50 | 51.3 | 31.4 | 67.4 | 7.2 | 7.6 | |||||||||||||||||||||||||||||||
Plan participant contributions | — | — | 0.4 | 0.7 | 2.8 | 2.9 | |||||||||||||||||||||||||||||||
Benefits paid | (129.1 | ) | (109.2 | ) | (53.1 | ) | (44.8 | ) | (10.0 | ) | (10.5 | ) | |||||||||||||||||||||||||
Foreign currency changes and other | — | — | (55.1 | ) | 6 | — | — | ||||||||||||||||||||||||||||||
Ending balance | $ | 506.5 | $ | 531.1 | $ | 720 | $ | 715 | $ | — | $ | — | |||||||||||||||||||||||||
Funded Status: | |||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (198.7 | ) | $ | (137.2 | ) | $ | (190.2 | ) | $ | (148.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Amount Recognized in Balance Sheet: | |||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 2.7 | $ | 2.7 | $ | — | $ | — | |||||||||||||||||||||||||
Accrued compensation | (9.0 | ) | (10.3 | ) | (3.9 | ) | (4.0 | ) | (8.7 | ) | (8.8 | ) | |||||||||||||||||||||||||
Employee benefit plans liability | (189.7 | ) | (126.9 | ) | (189.0 | ) | (147.4 | ) | (103.0 | ) | (102.3 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | (198.7 | ) | $ | (137.2 | ) | $ | (190.2 | ) | $ | (148.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 380 | $ | 355.6 | $ | 338.9 | $ | 283.4 | $ | 27.5 | $ | 26 | |||||||||||||||||||||||||
Prior service credit | (2.1 | ) | (.4 | ) | (1.4 | ) | (.7 | ) | (24.8 | ) | (32.4 | ) | |||||||||||||||||||||||||
Total pretax amount recognized | $ | 377.9 | $ | 355.2 | $ | 337.5 | $ | 282.7 | $ | 2.7 | $ | (6.4 | ) | ||||||||||||||||||||||||
Supplemental Information: | |||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 701.6 | $ | 663.6 | $ | 860.5 | $ | 807.9 | N/A | N/A | |||||||||||||||||||||||||||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 705.2 | $ | 668.3 | $ | 902.6 | $ | 853.3 | N/A | N/A | |||||||||||||||||||||||||||
Fair value plan assets | 506.5 | 531.1 | 709.6 | 701.9 | N/A | N/A | |||||||||||||||||||||||||||||||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 705.2 | $ | 668.3 | $ | 883.3 | $ | 832.6 | N/A | N/A | |||||||||||||||||||||||||||
Accumulated benefit obligation | 701.6 | 663.6 | 850.8 | 797.5 | N/A | N/A | |||||||||||||||||||||||||||||||
Fair value plan assets | 506.5 | 531.1 | 696.1 | 687.5 | N/A | N/A | |||||||||||||||||||||||||||||||
The U.S. pension plans include a funded qualified plan and unfunded non-qualified plans. As of December 31, 2014, the U.S. qualified pension plan had benefit obligations of $673.1 and plan assets of $506.5. As of December 31, 2013, the U.S. qualified pension plan had benefit obligations of $624.1 and plan assets of $531.1. We believe we have adequate investments and cash flows to fund the liabilities associated with the unfunded non-qualified plans. | |||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.1 | $ | 15.7 | $ | 15.1 | $ | 8.5 | $ | 12.2 | $ | 18 | $ | 1.1 | $ | 1.8 | $ | 1.9 | |||||||||||||||||||
Interest cost | 27.8 | 27.5 | 29.6 | 36.5 | 36.8 | 39.8 | 4.9 | 5.1 | 5.8 | ||||||||||||||||||||||||||||
Expected return on plan assets | (35.8 | ) | (37.4 | ) | (36.0 | ) | (43.3 | ) | (40.7 | ) | (39.1 | ) | — | — | — | ||||||||||||||||||||||
Amortization of prior service credit | (.3 | ) | (.3 | ) | (.3 | ) | (.1 | ) | (.2 | ) | (1.3 | ) | (4.5 | ) | (4.8 | ) | (13.2 | ) | |||||||||||||||||||
Amortization of net actuarial losses | 45.1 | 47.2 | 43.7 | 9.8 | 12.8 | 17.6 | 1.4 | 2.5 | 4.1 | ||||||||||||||||||||||||||||
Settlements/curtailments | 38 | — | 0.8 | 2.7 | (4.3 | ) | 1.9 | (2.7 | ) | (1.8 | ) | (1.0 | ) | ||||||||||||||||||||||||
Other | — | — | — | 0.6 | 0.7 | 0.7 | — | — | — | ||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 88.9 | $ | 52.7 | $ | 52.9 | $ | 14.7 | $ | 17.3 | $ | 37.6 | $ | 0.2 | $ | 2.8 | $ | (2.4 | ) | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||||||||||||||||||||||||||||||||||||
Actuarial losses (gains) | $ | 105.9 | $ | (80.8 | ) | $ | 37.7 | $ | 99.2 | $ | (14.8 | ) | $ | 31 | $ | 3.6 | $ | (22.9 | ) | $ | 4.7 | ||||||||||||||||
Prior service (credit) cost | (2.0 | ) | — | — | — | — | 4.8 | — | (1.3 | ) | — | ||||||||||||||||||||||||||
Amortization of prior service credit | 0.3 | 0.3 | 0.3 | 0.1 | 7.9 | 2.4 | 7.3 | 7.1 | 14.6 | ||||||||||||||||||||||||||||
Amortization of net actuarial losses | (81.5 | ) | (47.2 | ) | (43.7 | ) | (13.1 | ) | (17.7 | ) | (21.8 | ) | (1.7 | ) | (3.4 | ) | (4.1 | ) | |||||||||||||||||||
Foreign currency changes | — | — | — | (31.3 | ) | 0.5 | 10.4 | (.1 | ) | (.2 | ) | (.2 | ) | ||||||||||||||||||||||||
Total recognized in other comprehensive (loss) income* | $ | 22.7 | $ | (127.7 | ) | $ | (5.7 | ) | $ | 54.9 | $ | (24.1 | ) | $ | 26.8 | $ | 9.1 | $ | (20.7 | ) | $ | 15 | |||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ | 111.6 | $ | (75.0 | ) | $ | 47.2 | $ | 69.6 | $ | (6.8 | ) | $ | 64.4 | $ | 9.3 | $ | (17.9 | ) | $ | 12.6 | ||||||||||||||||
* Amounts represent the pre-tax effect included within other comprehensive (loss) income. The net of tax amounts are included within the Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||||||||||||||
In an effort to reduce our pension benefit obligations, in March 2014, we offered former employees who are vested and participate in the PRA a payment that would fully settle our pension plan obligation to those participants who elected to receive such payment. The election period ended during the second quarter of 2014 and the payments were made in June 2014 from our plan assets. As a result of the lump-sum payments made, in the second quarter of 2014, we recorded a settlement charge of $23.5. Because the settlement threshold was exceeded in the second quarter of 2014, settlement charges of $5.4 and $7.5 were also recorded in the third and fourth quarters of 2014, respectively, as a result of additional payments from the PRA. These settlement charges were allocated between Global Expenses and the operating results of North America. | |||||||||||||||||||||||||||||||||||||
The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost during 2015 are as follows: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 46.4 | $ | 11.4 | $ | 2.1 | |||||||||||||||||||||||||||||||
Prior service credit | (.7 | ) | (.1 | ) | (4.1 | ) | |||||||||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of December 31 were as follows: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.83 | % | 4.54 | % | 3.34 | % | 4.58 | % | 4.12 | % | 4.91 | % | |||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 3.91 | % | 3.3 | % | 3.63 | % | N/A | N/A | |||||||||||||||||||||||||||
The discount rate used for determining future pension obligations for each individual defined benefit pension plan is based on a review of long-term bonds that receive a high-quality rating from a recognized rating agency. The discount rates for our most significant plans were based on the internal rate 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 decreased to 3.55% at December 31, 2014, from 4.56% at December 31, 2013. | |||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net benefit cost recorded in the Consolidated Statements of Income for the years ended December 31 were as follows: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate | 4.54 | % | 3.55 | % | 4.1 | % | 4.58 | % | 4.59 | % | 5.3 | % | 4.91 | % | 3.99 | % | 4.66 | % | |||||||||||||||||||
Rate of compensation increase | 4 | % | 3.86 | % | 3.82 | % | 3.63 | % | 3.88 | % | 4.13 | % | N/A | N/A | N/A | ||||||||||||||||||||||
Rate of return on assets | 7.5 | % | 7.75 | % | 7.75 | % | 6.41 | % | 6.7 | % | 6.85 | % | N/A | N/A | N/A | ||||||||||||||||||||||
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 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, 2014, the assumed rate of return on assets globally was 6.86%, which represents the weighted-average rate of return on all plan assets, including the U.S. and non-U.S. defined benefit pension plans. | |||||||||||||||||||||||||||||||||||||
The assumed rate of return for determining 2014 net costs for the U.S. defined benefit pension plan was 7.50%. In addition, the current rate of return assumption for the U.S. defined benefit pension plan was based on an asset allocation of approximately 70% in corporate and government bonds and mortgage-backed securities (which are expected to earn approximately 2% to 3% in the long term) and approximately 30% in equity securities and high yield securities (which are expected to earn approximately 6% to 9% in the long term). In addition to the physical assets, the asset portfolio has derivative instruments which increase our exposure to higher yielding securities. Similar assessments were performed in determining rates of return on non-U.S. defined benefit pension plan assets, to arrive at our weighted-average assumed rate of return of 6.41% for determining 2014 net cost. | |||||||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||||||
Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2014 and 2013, by asset category were as follows: | |||||||||||||||||||||||||||||||||||||
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 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Equity securities | 30-35% | 28 | % | 58 | % | 30-35% | 60 | % | 63 | % | |||||||||||||||||||||||||||
Debt securities | 65-70 | 69 | 42 | 65-70 | 38 | 35 | |||||||||||||||||||||||||||||||
Real Estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other | — | 3 | — | 0-5 | 2 | 2 | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Plan | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 21.5 | $ | 21.5 | |||||||||||||||||||||||||||||||
International equity | — | 93.5 | 93.5 | ||||||||||||||||||||||||||||||||||
Emerging markets | — | 25.7 | 25.7 | ||||||||||||||||||||||||||||||||||
— | 140.7 | 140.7 | |||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 208.1 | 208.1 | ||||||||||||||||||||||||||||||||||
Government securities | — | 141.5 | 141.5 | ||||||||||||||||||||||||||||||||||
— | 349.6 | 349.6 | |||||||||||||||||||||||||||||||||||
Cash | 18 | — | 18 | ||||||||||||||||||||||||||||||||||
Derivatives | — | (1.8 | ) | (1.8 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 18 | $ | 488.5 | $ | 506.5 | |||||||||||||||||||||||||||||||
Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 115.5 | $ | — | $ | 115.5 | |||||||||||||||||||||||||||||
International equity | — | 316.8 | — | 316.8 | |||||||||||||||||||||||||||||||||
— | 432.3 | — | 432.3 | ||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 106.2 | — | 106.2 | |||||||||||||||||||||||||||||||||
Government securities | — | 138.1 | — | 138.1 | |||||||||||||||||||||||||||||||||
Other | — | 28.8 | — | 28.8 | |||||||||||||||||||||||||||||||||
— | 273.1 | — | 273.1 | ||||||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||
Cash | 12.7 | — | — | 12.7 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||
Other | — | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||
12.7 | — | 1.9 | 14.6 | ||||||||||||||||||||||||||||||||||
Total | $ | 12.7 | $ | 705.4 | $ | 1.9 | $ | 720 | |||||||||||||||||||||||||||||
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Plan | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 186.7 | $ | 186.7 | |||||||||||||||||||||||||||||||
International equity | — | 75.4 | 75.4 | ||||||||||||||||||||||||||||||||||
Emerging markets | — | 43.4 | 43.4 | ||||||||||||||||||||||||||||||||||
— | 305.5 | 305.5 | |||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 154 | 154 | ||||||||||||||||||||||||||||||||||
Government securities | — | 70.7 | 70.7 | ||||||||||||||||||||||||||||||||||
— | 224.7 | 224.7 | |||||||||||||||||||||||||||||||||||
Cash | 0.9 | — | 0.9 | ||||||||||||||||||||||||||||||||||
Total | $ | 0.9 | $ | 530.2 | $ | 531.1 | |||||||||||||||||||||||||||||||
Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 97.8 | $ | — | $ | 97.8 | |||||||||||||||||||||||||||||
International equity | — | 354.8 | — | 354.8 | |||||||||||||||||||||||||||||||||
— | 452.6 | — | 452.6 | ||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 100.8 | — | 100.8 | |||||||||||||||||||||||||||||||||
Government securities | — | 137.1 | — | 137.1 | |||||||||||||||||||||||||||||||||
Other | — | 11 | — | 11 | |||||||||||||||||||||||||||||||||
— | 248.9 | — | 248.9 | ||||||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||
Cash | 11.2 | — | — | 11.2 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 1.2 | 1.2 | |||||||||||||||||||||||||||||||||
Other | — | — | 1.1 | 1.1 | |||||||||||||||||||||||||||||||||
11.2 | — | 2.3 | 13.5 | ||||||||||||||||||||||||||||||||||
Total | $ | 11.2 | $ | 701.5 | $ | 2.3 | $ | 715 | |||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances for our Level 3 investments is provided in the table below: | |||||||||||||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 13.5 | |||||||||||||||||||||||||||||||||||
Purchases and sales, net | (10.4 | ) | |||||||||||||||||||||||||||||||||||
Actual return on plan assets held | (.5 | ) | |||||||||||||||||||||||||||||||||||
Foreign currency changes | (.3 | ) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 2.3 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets held | (.3 | ) | |||||||||||||||||||||||||||||||||||
Foreign currency changes | (.1 | ) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1.9 | |||||||||||||||||||||||||||||||||||
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 held by our U.S. pension trust 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 PRA 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. | |||||||||||||||||||||||||||||||||||||
Beginning in 2014, we have adopted an investment strategy for the PRA which is designed to match the movements in the pension liability through an increased allocation towards debt securities. In addition, we also have begun to utilize derivative instruments to achieve the desired market exposures or 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 management team. In 2015, similar investment strategies are expected to be implemented in some of our non-U.S. defined benefit pension plans. | |||||||||||||||||||||||||||||||||||||
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, 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 plan’s tolerance of investment risk. | |||||||||||||||||||||||||||||||||||||
Cash flows | |||||||||||||||||||||||||||||||||||||
We expect to make contributions in the range of $50 to $55 to our U.S. defined benefit pension and postretirement plans and in the range of $25 to $30 to our non-U.S. defined benefit pension and postretirement plans during 2015. | |||||||||||||||||||||||||||||||||||||
Total benefit payments expected to be paid from the plans are as follows: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Total | Postretirement | ||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
2015 | $ | 101.4 | $ | 38.4 | $ | 139.8 | $ | 8.7 | |||||||||||||||||||||||||||||
2016 | 68.4 | 40.6 | 109 | 8.6 | |||||||||||||||||||||||||||||||||
2017 | 65.1 | 41.3 | 106.4 | 8.5 | |||||||||||||||||||||||||||||||||
2018 | 51 | 42.7 | 93.7 | 8.4 | |||||||||||||||||||||||||||||||||
2019 | 48.8 | 43.7 | 92.5 | 8.2 | |||||||||||||||||||||||||||||||||
2020-2024 | 215.4 | 236.2 | 451.6 | 37.2 | |||||||||||||||||||||||||||||||||
Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
For 2014, the assumed rate of future increases in the per capita cost of health care benefits (the health care cost trend rate) was 8.7% for all claims and is assumed to gradually decrease each year thereafter to 5.0% (in 2022 and beyond for our U.S. plan). A one-percentage point change in the assumed health care cost trend rates for all postretirement plans would have the following effects: | |||||||||||||||||||||||||||||||||||||
1 Percentage | 1 Percentage | ||||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 0.2 | $ | (.2 | ) | ||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 2.2 | (2.0 | ) | ||||||||||||||||||||||||||||||||||
Postemployment Benefits | |||||||||||||||||||||||||||||||||||||
We provide postemployment benefits, which include salary continuation, severance benefits, disability benefits and continuation of health care benefits to eligible former employees after employment but before retirement. The accrued cost for such postemployment benefits was $26.2 at December 31, 2014 and $39.1 at December 31, 2013, and was included in employee benefit plans in the 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, the deferral of performance restricted stock units for certain employees (through the end of 2012 only), 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 $1.3 in 2014, $1.2 in 2013 and $1.7 in 2012. The benefit obligation under the DCP was $45.5 at December 31, 2014 and $57.9 at December 31, 2013 and was included in other liabilities and accrued compensation in the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||
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. 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 six years. The annual cost of these programs has been included in the determination of the net periodic benefit cost shown previously and amounted to $7.1 in 2014, $7.6 in 2013 and $8.4 in 2012. The benefit obligation under these programs was $32.1 at December 31, 2014 and $44.2 at December 31, 2013 and was included in employee benefit plans and accrued compensation in the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||
We also maintain a Supplemental Life Plan ("SLIP") under which additional death benefits ranging from $.4 to $2.0 are provided to certain active and retired officers. The SLIP has not been offered to new officers in the last five 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: | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Corporate-owned life insurance policies | $ | 32.2 | $ | 30.5 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1.4 | 0.8 | |||||||||||||||||||||||||||||||||||
Total | $ | 33.6 | $ | 31.3 | |||||||||||||||||||||||||||||||||
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 selling, general and administrative expenses in the Consolidated Statements of Income. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||||||
Our reportable segments are based on geographic operations and include commercial business units in Latin America; Europe, Middle East & Africa; North America; and Asia Pacific. The segments have similar business characteristics and each offers similar products through similar customer access methods. | |||||||||||||||||||||||||
Global and other expenses include, among other things, costs related to our executive and administrative offices, information technology, research and development, marketing, professional and related fees associated with the FCPA investigations and compliance reviews, the accrual for the settlements related to the FCPA investigations, a non-cash impairment charge for the capitalized software associated with SMT and pension settlement charges. We allocate certain planned global expenses to our business segments primarily based on planned revenue. The unallocated costs remain as Global and other expenses. We do not allocate to our segments costs of implementing restructuring initiatives related to our global functions, professional and related fees associated with the FCPA investigations and compliance reviews, the accrual for the settlements related to the FCPA investigations, a non-cash impairment charge for the capitalized software associated with SMT and settlement charges associated with the U.S. pension plan. Costs of implementing restructuring initiatives related to a specific segment are recorded within that segment. | |||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in Note 1, Description of the Business and Summary of Significant Accounting Policies. We evaluate the performance of our segments based on revenues and operating profits or losses. Segment revenues primarily reflect direct sales of products to Representatives based on the Representative’s geographic location. Intersegment sales and transfers are not significant. Each segment records direct expenses related to its employees and its operations. | |||||||||||||||||||||||||
Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables: | |||||||||||||||||||||||||
Total Revenue & Operating Profit (Loss) | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Total | Operating | Total | Operating | Total | Operating | ||||||||||||||||||||
Revenue | Profit (Loss) | Revenue | Profit (Loss) | Revenue | Profit (Loss) | ||||||||||||||||||||
Latin America | $ | 4,239.50 | $ | 279.8 | $ | 4,840.50 | $ | 478.6 | $ | 4,993.70 | $ | 443.9 | |||||||||||||
Europe, Middle East & Africa | 2,705.80 | 300.9 | 2,898.40 | 406.7 | 2,914.20 | 312.8 | |||||||||||||||||||
North America | 1,203.40 | (72.5 | ) | 1,458.20 | (60.1 | ) | 1,751.10 | (4.7 | ) | ||||||||||||||||
Asia Pacific | 702.7 | 20.9 | 757.9 | (12.1 | ) | 902.4 | 5.1 | ||||||||||||||||||
Total from operations | 8,851.40 | 529.1 | 9,955.00 | 813.1 | 10,561.40 | 757.1 | |||||||||||||||||||
Global and other | — | (129.0 | ) | — | (385.9 | ) | — | (232.1 | ) | ||||||||||||||||
Total | $ | 8,851.40 | $ | 400.1 | $ | 9,955.00 | $ | 427.2 | $ | 10,561.40 | $ | 525 | |||||||||||||
Total Assets | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 2,033.00 | $ | 2,432.70 | $ | 2,713.30 | |||||||||||||||||||
Europe, Middle East & Africa | 1,170.60 | 1,370.90 | 1,380.20 | ||||||||||||||||||||||
North America | 429.9 | 519.5 | 635.9 | ||||||||||||||||||||||
Asia Pacific | 390.8 | 441.7 | 537.7 | ||||||||||||||||||||||
Total from continuing operations | 4,024.30 | 4,764.80 | 5,267.10 | ||||||||||||||||||||||
Total from discontinued operations | — | — | 190.6 | ||||||||||||||||||||||
Global and other | 1,472.50 | 1,727.50 | 1,924.80 | ||||||||||||||||||||||
Total assets | $ | 5,496.80 | $ | 6,492.30 | $ | 7,382.50 | |||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 82.6 | $ | 94.1 | $ | 99 | |||||||||||||||||||
Europe, Middle East & Africa | 19 | 20 | 27.1 | ||||||||||||||||||||||
North America | 4.7 | 7.6 | 8.6 | ||||||||||||||||||||||
Asia Pacific | 3.3 | 6.6 | 4.6 | ||||||||||||||||||||||
Total from operations | 109.6 | 128.3 | 139.3 | ||||||||||||||||||||||
Global and other | 21.5 | 69 | 89.2 | ||||||||||||||||||||||
Total capital expenditures | $ | 131.1 | $ | 197.3 | $ | 228.5 | |||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 70.9 | $ | 72.2 | $ | 74.3 | |||||||||||||||||||
Europe, Middle East & Africa | 40 | 46.6 | 47 | ||||||||||||||||||||||
North America | 22.1 | 37.4 | 33.7 | ||||||||||||||||||||||
Asia Pacific | 17.3 | 21.9 | 21.2 | ||||||||||||||||||||||
Total from operations | 150.3 | 178.1 | 176.2 | ||||||||||||||||||||||
Global and other | 42.3 | 46.5 | 36.3 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 192.6 | $ | 224.6 | $ | 212.5 | |||||||||||||||||||
Total Revenue by Major Country | |||||||||||||||||||||||||
A major country is defined as one with total revenues greater than 10% of consolidated total revenues. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Brazil | $ | 1,909.30 | $ | 2,014.00 | $ | 2,041.70 | |||||||||||||||||||
U.S. | 1,008.30 | 1,221.80 | 1,454.10 | ||||||||||||||||||||||
All other | 5,933.80 | 6,719.20 | 7,065.60 | ||||||||||||||||||||||
Total | $ | 8,851.40 | $ | 9,955.00 | $ | 10,561.40 | |||||||||||||||||||
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. Long-lived assets primarily include property, plant and equipment and intangible assets. Long-lived assets in the U.S. and Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
U.S. | $ | 418.5 | $ | 450.4 | $ | 714.4 | |||||||||||||||||||
Brazil | 361.9 | 421.5 | 484.5 | ||||||||||||||||||||||
All other | 1,005.30 | 1,153.40 | 1,232.60 | ||||||||||||||||||||||
Total | $ | 1,785.70 | $ | 2,025.30 | $ | 2,431.50 | |||||||||||||||||||
Leases_and_Commitments_Leases_
Leases and Commitments Leases and Commitments (Notes) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases and Commitments [Abstract] | |||||||||
Commitments Disclosure [Text Block] | Leases and Commitments | ||||||||
Minimum rental commitments under noncancellable operating leases, primarily for equipment and office facilities at December 31, 2014, are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. | |||||||||
Year | Leases | Purchase | |||||||
Obligations | |||||||||
2015 | $ | 92.8 | $ | 187.3 | |||||
2016 | 80.7 | 59.4 | |||||||
2017 | 64.2 | 17.8 | |||||||
2018 | 53.9 | 8.6 | |||||||
2019 | 47.9 | 3.2 | |||||||
Later years | 123.1 | 1.1 | |||||||
Sublease rental income | (39.9 | ) | N/A | ||||||
Total | $ | 422.7 | $ | 277.4 | |||||
Rent expense was $106.5 in 2014, $125.1 in 2013 and $133.1 in 2012. Plant construction, expansion and modernization projects with an estimated cost to complete of approximately $59.8 were in progress at December 31, 2014. |
Restructuring_Initiatives
Restructuring Initiatives | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||||||||||
Restructuring Initiatives | Restructuring Initiatives | ||||||||||||||||||||||||
$400M Cost Savings Initiative | |||||||||||||||||||||||||
In 2012, we announced a cost savings initiative (the "$400M Cost Savings Initiative") in an effort to stabilize the business and return Avon to sustainable growth, which was expected to be achieved through restructuring actions as well as other cost-savings strategies that will not result in restructuring charges. The $400M Cost Savings Initiative was designed to reduce our operating expenses as a percentage of total revenue to help us achieve a targeted low double-digit operating margin. The restructuring actions under the $400M Cost Savings Initiative primarily consist of global headcount reductions and related actions, as well as the closure of certain smaller, under-performing markets, including South Korea, Vietnam, Republic of Ireland, Bolivia and France. Other costs to implement these restructuring initiatives consist primarily of professional service fees and accelerated depreciation, and also include professional service fees associated with our North America business. A portion of the professional service fees associated with the North America business are contingent upon the achievement of operating profit targets. These fees were recognized over the period that the services were provided and are based upon our estimate of the total amount expected to be paid, which may change based on actual results. | |||||||||||||||||||||||||
As a result of the restructuring actions associated with the $400M Cost Savings Initiative, we have recorded total costs to implement these restructuring initiatives of $230.4 before taxes, of which $111.3 before taxes was recorded in 2014. For these restructuring actions, we expect our total costs to implement restructuring to be approximately $250 before taxes. The additional charges not yet incurred associated with the restructuring actions approved to-date of approximately $20 before taxes are expected to be recorded primarily in 2015. In connection with the restructuring actions associated with the $400M Cost Savings Initiative, we expect to realize annualized savings of approximately $275 to $285 (both before taxes). For market closures, the annualized savings represent the foregone selling, general and administrative expenses as a result of no longer operating in the respective markets. For actions that did not result in the closure of a market, the annualized savings represent the net reduction of expenses that will no longer be incurred by Avon. The annualized savings do not incorporate the impact of the decline in revenue associated with these actions (including market closures), which is not expected to be material. | |||||||||||||||||||||||||
Restructuring Charges – 2014 | |||||||||||||||||||||||||
During 2014, we recorded total costs to implement of $111.3 related to the $400M Cost Savings Initiative, in selling, general and administrative expenses, in the Consolidated Statements of Income, related to the $400M Cost Savings Initiative. The costs consisted of the following: | |||||||||||||||||||||||||
• | net charge of $72.0 primarily for employee-related costs, including severance benefits; | ||||||||||||||||||||||||
• | accelerated depreciation of $13.0 associated with the closure and rationalization of certain facilities and other assets; | ||||||||||||||||||||||||
• | contract termination and other net charges of $6.3, primarily related to the costs associated with the closure of the France market and the exit of the Service Model Transformation ("SMT") facility; | ||||||||||||||||||||||||
• | charge of $3.7 primarily related to the accumulated foreign currency translation adjustments associated with the closure of the France market; and | ||||||||||||||||||||||||
• | implementation costs of $16.3 primarily related to professional service fees associated with our North America business. | ||||||||||||||||||||||||
The majority of cash payments, if applicable, associated with these charges were made in 2014 and the remaining are expected to be made during 2015. | |||||||||||||||||||||||||
Restructuring Charges – 2013 | |||||||||||||||||||||||||
During 2013, we recorded total costs to implement of $68.4 related to the $400M Cost Savings Initiative, and the costs consisted of the following: | |||||||||||||||||||||||||
• | net charge of $50.4 primarily for employee-related costs, including severance and pension and postretirement benefits; | ||||||||||||||||||||||||
• | accelerated depreciation of $13.9 associated with the closure and rationalization of certain facilities; | ||||||||||||||||||||||||
• | contract termination and other charges of $4.8, primarily related to the costs associated with our exit from the Republic of Ireland market; | ||||||||||||||||||||||||
• | net benefit of $3.5 due to accumulated foreign currency translation adjustments in the second quarter of 2013 primarily associated with our exit from the Vietnam market; | ||||||||||||||||||||||||
• | implementation costs of $3.3 for professional service fees; | ||||||||||||||||||||||||
• | net benefit of $.7 due to inventory adjustments in the first and second quarters of 2013; and | ||||||||||||||||||||||||
• | net loss of $.2 due to the sale of a facility in the U.S. | ||||||||||||||||||||||||
Of the total costs to implement, $69.1 was recorded in selling, general and administrative expenses and a net benefit of $.7 was recorded in cost of sales, in the Consolidated Statements of Income. | |||||||||||||||||||||||||
Restructuring Charges – 2012 | |||||||||||||||||||||||||
During 2012, we recorded total costs to implement of $50.7 related to the $400M Cost Savings Initiative, and the costs consisted of the following: | |||||||||||||||||||||||||
• | net charge of $45.2 primarily for employee-related costs, including severance and pension and postretirement benefits; | ||||||||||||||||||||||||
• | accelerated depreciation of $2.2 associated with the closure and rationalization of certain facilities; | ||||||||||||||||||||||||
• | contract termination and other charges of $1.9 primarily related to the closure of certain facilities and our exit from the South Korea market; and | ||||||||||||||||||||||||
• | inventory write-offs of $1.4 associated with the exit of our South Korea and Vietnam markets. | ||||||||||||||||||||||||
Of the total costs to implement, $49.3 was recorded in selling, general and administrative expenses and $1.4 was recorded in cost of sales, in the Consolidated Statements of Income. | |||||||||||||||||||||||||
The liability balance for the $400M Cost Savings Initiative as of December 31, 2014 is as follows: | |||||||||||||||||||||||||
Employee- | Inventory/ Asset Write-offs | Foreign Currency Translation Adjustment Write-offs | Contract Terminations/ Other | Total | |||||||||||||||||||||
Related | |||||||||||||||||||||||||
Costs | |||||||||||||||||||||||||
2012 Charges | $ | 45.2 | $ | 1.4 | $ | — | $ | 1.9 | $ | 48.5 | |||||||||||||||
Cash payments | (3.2 | ) | — | — | (.2 | ) | (3.4 | ) | |||||||||||||||||
Non-cash write-offs | (.8 | ) | (1.4 | ) | — | — | (2.2 | ) | |||||||||||||||||
Foreign exchange | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 41.3 | $ | — | $ | — | $ | 1.7 | $ | 43 | |||||||||||||||
2013 Charges | 54.4 | 0.1 | (3.5 | ) | 5.3 | 56.3 | |||||||||||||||||||
Adjustments | (4.0 | ) | (.8 | ) | — | (.5 | ) | (5.3 | ) | ||||||||||||||||
Cash payments | (44.9 | ) | — | — | (4.8 | ) | (49.7 | ) | |||||||||||||||||
Non-cash write-offs | (.2 | ) | 0.7 | 3.5 | — | 4 | |||||||||||||||||||
Foreign exchange | 0.1 | — | — | 0.1 | 0.2 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 46.7 | $ | — | $ | — | $ | 1.8 | $ | 48.5 | |||||||||||||||
2014 Charges | 80.4 | — | 3.7 | 7.4 | 91.5 | ||||||||||||||||||||
Adjustments | (8.4 | ) | — | — | (1.1 | ) | (9.5 | ) | |||||||||||||||||
Cash payments | (66.9 | ) | — | — | (7.5 | ) | (74.4 | ) | |||||||||||||||||
Non-cash write-offs | 0.6 | — | (3.7 | ) | — | (3.1 | ) | ||||||||||||||||||
Foreign exchange | (2.3 | ) | — | — | (.1 | ) | (2.4 | ) | |||||||||||||||||
Balance at December 31, 2014 | $ | 50.1 | $ | — | $ | — | $ | 0.5 | $ | 50.6 | |||||||||||||||
Non-cash write-offs associated with employee-related costs are the result of settlements, curtailments and special termination benefits for pension and postretirement benefits plans due to the initiatives implemented. | |||||||||||||||||||||||||
The following table presents the restructuring charges incurred to-date, net of adjustments, under our $400M Cost Savings Initiative, along with the estimated charges expected to be incurred on approved initiatives under the plan: | |||||||||||||||||||||||||
Employee- | Inventory/ Asset Write-offs | Foreign Currency | Contract | Total | |||||||||||||||||||||
Related | Translation | Terminations/ | |||||||||||||||||||||||
Costs | Adjustment | Other | |||||||||||||||||||||||
Write-offs | |||||||||||||||||||||||||
Charges incurred to date | $ | 167.6 | $ | 0.7 | $ | 0.2 | $ | 13 | $ | 181.5 | |||||||||||||||
Estimated charges to be incurred on approved initiatives | 4.4 | 4.1 | — | 6 | 14.5 | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | 172 | $ | 4.8 | $ | 0.2 | $ | 19 | $ | 196 | |||||||||||||||
The charges, net of adjustments, of initiatives under the $400M Cost Savings Initiative by reportable business segment were as follows: | |||||||||||||||||||||||||
Latin | Europe, Middle East & Africa | North | Asia | Corporate | Total | ||||||||||||||||||||
America | America | Pacific | |||||||||||||||||||||||
2012 | $ | 12.9 | $ | 1.1 | $ | 18 | $ | 12.9 | $ | 3.6 | $ | 48.5 | |||||||||||||
2013 | 11.1 | 15.6 | 5.3 | 1.3 | 17.7 | 51 | |||||||||||||||||||
2014 | 24.5 | 19.9 | 14 | 6.5 | 17.1 | 82 | |||||||||||||||||||
Charges incurred to date | 48.5 | 36.6 | 37.3 | 20.7 | 38.4 | 181.5 | |||||||||||||||||||
Estimated charges to be incurred on approved initiatives | 2.2 | — | 11.5 | 0.8 | — | 14.5 | |||||||||||||||||||
Total expected charges on approved initiatives | $ | 50.7 | $ | 36.6 | $ | 48.8 | $ | 21.5 | $ | 38.4 | $ | 196 | |||||||||||||
As noted previously, we expect to record total costs to implement restructuring of approximately $250 before taxes under the $400M Cost Savings Initiative. The amounts shown in the tables above as charges recorded to-date relate to initiatives that have been approved and recorded in the financial statements as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met. In addition to the charges included in the tables above, we have incurred and will incur other costs to implement restructuring initiatives such as other professional services and accelerated depreciation. | |||||||||||||||||||||||||
Additional Restructuring Charges 2012 | |||||||||||||||||||||||||
In an effort to improve operating performance, we identified certain actions in 2012 that we believe will enhance our operating model, reduce costs and improve efficiencies. In addition, we have relocated our corporate headquarters in New York City. | |||||||||||||||||||||||||
Restructuring Charges – 2014 | |||||||||||||||||||||||||
As a result of the analysis and the actions taken, during 2014, we recorded total costs to implement of $1.8 in selling, general and administrative expenses, in the Consolidated Statements of Income, primarily consisting of contract termination costs associated with the relocation of our corporate headquarters. | |||||||||||||||||||||||||
Restructuring Charges – 2013 | |||||||||||||||||||||||||
As a result of the analysis and the actions taken, during 2013, we recorded total costs to implement of $5.0 in selling, general and administrative expenses in the Consolidated Statements of Income, primarily consisting of contract termination costs of $6.1 associated with the relocation of our corporate headquarters, partially offset by other immaterial adjustments to the reserve for employee-related costs. | |||||||||||||||||||||||||
Restructuring Charges – 2012 | |||||||||||||||||||||||||
During 2012, we recorded total costs to implement of $73.9, in selling, general and administrative expenses, in the Consolidated Statements of Income. The costs consisted of the following: | |||||||||||||||||||||||||
• | net charge of $53.4 primarily for employee-related costs, including severance and pension benefits; | ||||||||||||||||||||||||
• | contract termination costs of $12.0 associated with the relocation of our corporate headquarters; | ||||||||||||||||||||||||
• | implementation costs of $5.8 for professional service fees; and | ||||||||||||||||||||||||
• | accelerated depreciation of $2.7 associated with the relocation of our corporate headquarters. | ||||||||||||||||||||||||
The liability balance for these various restructuring initiatives as of December 31, 2014 is as follows: | |||||||||||||||||||||||||
Employee- | Contract Terminations/Other | Total | |||||||||||||||||||||||
Related | |||||||||||||||||||||||||
Costs | |||||||||||||||||||||||||
2012 Charges | $ | 53.4 | $ | 12 | $ | 65.4 | |||||||||||||||||||
Cash payments | (33.9 | ) | (.2 | ) | (34.1 | ) | |||||||||||||||||||
Non-cash write-offs | (1.6 | ) | — | (1.6 | ) | ||||||||||||||||||||
Foreign exchange | (.3 | ) | — | (.3 | ) | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 17.6 | $ | 11.8 | $ | 29.4 | |||||||||||||||||||
2013 Charges | 0.8 | 6.1 | 6.9 | ||||||||||||||||||||||
Adjustments | (1.9 | ) | — | (1.9 | ) | ||||||||||||||||||||
Cash payments | (14.4 | ) | (5.6 | ) | (20.0 | ) | |||||||||||||||||||
Foreign exchange | (.1 | ) | — | (.1 | ) | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 2 | $ | 12.3 | $ | 14.3 | |||||||||||||||||||
2014 Charges | — | 1.9 | 1.9 | ||||||||||||||||||||||
Adjustments | (.1 | ) | — | (.1 | ) | ||||||||||||||||||||
Cash payments | (1.5 | ) | (5.7 | ) | (7.2 | ) | |||||||||||||||||||
Balance at December 31, 2014 | $ | 0.4 | $ | 8.5 | $ | 8.9 | |||||||||||||||||||
The actions associated with these various restructuring initiatives are substantially complete. | |||||||||||||||||||||||||
In addition, during 2014 we recorded total costs to implement of $1.1 and during 2013 a net benefit as a result of adjustments to the reserve of $7.5 primarily in selling, general and administrative expenses, in the Consolidated Statements of Income, associated with the restructuring programs launched in 2005 and 2009, which are substantially complete. The net benefit in 2013 primarily consisted of a net gain of $4.9 due to the sale of a facility in the U.S., as well as adjustments to the reserve for employee-related costs. During 2012, we recorded total costs to implement of $.1, of which a net benefit of $3.0 was recorded in selling, general and administrative expenses and total costs to implement of $3.1 were recorded in cost of sales, in the Consolidated Statements of Income, associated with the restructuring programs launched in 2005 and 2009. The total costs to implement in 2012 consisted of the following: | |||||||||||||||||||||||||
• | net benefit of $12.1 as a result of adjustments to the reserve, partially offset by employee-related costs; | ||||||||||||||||||||||||
• | implementation costs of $8.9 for professional service fees, primarily associated with our initiatives to outsource certain finance processes and realign certain distribution operations; | ||||||||||||||||||||||||
• | accelerated depreciation of $4.7 associated with our initiatives to realign certain distribution operations and close certain manufacturing operations; and | ||||||||||||||||||||||||
• | a net gain of $1.4 due to the sale of machinery and equipment in Germany. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Contingencies Abstract | |
Contingencies | Contingencies |
Settlements of FCPA Investigations | |
As previously reported, we engaged outside counsel to conduct an internal investigation and compliance reviews focused on compliance with the FCPA and related U.S. and foreign laws in China and additional countries. The internal investigation, which was conducted under the oversight of our Audit Committee, began in June 2008. The internal investigation and compliance reviews focused on reviewing certain expenses and books and records processes, including, but not limited to, travel, entertainment, gifts, use of third-party vendors and consultants and related due diligence, joint ventures and acquisitions, and payments to third-party agents and others, in connection with our business dealings, directly or indirectly, with foreign governments and their employees. The internal investigation and compliance reviews of these matters are complete. In connection with the internal investigation and compliance reviews, certain personnel actions, including termination of employment of certain senior members of management, were taken. In connection with the internal investigation and compliance reviews, we have enhanced our ethics and compliance program, including our policies and procedures, FCPA compliance-related training, FCPA third-party due diligence program and other compliance-related resources. | |
As previously reported, in October 2008, we voluntarily contacted the SEC and the DOJ to advise both agencies of our internal investigation. We cooperated with investigations of these matters by the SEC and the DOJ. | |
As previously reported, in December 2014, the United States District Court for the Southern District of New York (the "USDC") approved a deferred prosecution agreement (the "DPA") entered into between the Company and the DOJ related to charges of violations of the books and records and internal controls provisions of the FCPA. In addition, Avon Products (China) Co. Ltd., a subsidiary of the Company operating in China, pleaded guilty to conspiring to violate the books and records provision of the FCPA and was sentenced by the USDC to pay a $68 fine. The SEC also filed a complaint against the Company charging violations of the books and records and internal controls provisions of the FCPA and a consent to settlement (the "Consent") which was approved in a judgment entered by the USDC in January 2015, and included $67 in disgorgement and prejudgment interest. The DPA, the above-mentioned guilty plea and the Consent resolved the SEC’s and the DOJ’s investigations of the Company’s compliance with the FCPA and related U.S. laws in China and additional countries. The fine was paid in December 2014 and the payment to the SEC was made in January 2015, both of which had been previously accrued for before December 31, 2014. | |
Under the DPA, the DOJ will defer criminal prosecution of the Company for a term of three years. If the DOJ determines that the Company has knowingly violated the DPA, the DOJ may commence prosecution or extend the term of the DPA, including the monitoring provisions described below, for up to one year. If the Company remains in compliance with the DPA during its term, the charges against the Company will be dismissed with prejudice. | |
Under the DPA and the Consent, among other things, the Company agreed to have a compliance monitor (the "monitor"). With the approval of the DOJ and the SEC, the monitor can be replaced 18 months after the monitor’s retention by the Company pursuant to its agreement to undertake self-reporting obligations for the remainder of the monitoring period. The monitoring period expires on the later of three years from the date of the retention of the monitor and the expiration of the DPA. We are in the process of retaining a monitor, whose selection is subject to the approval of the DOJ and the SEC. There can be no assurance as to when a monitor will be approved or whether or when the DOJ and the SEC will approve replacing the monitorship with the Company’s self-reporting. | |
Under the DPA, the Company also represented that it has implemented and agreed that it will continue to implement a compliance and ethics program designed to prevent and detect violations of the FCPA and other applicable anti-corruption laws throughout its operations. | |
The monitor will assess and monitor the Company's compliance with the terms of the DPA and Consent by evaluating, among other things, the Company's internal accounting controls, recordkeeping and financial reporting policies and procedures. The monitor may recommend changes to our policies and procedures that we must adopt unless they are unduly burdensome or otherwise inadvisable, in which case we may propose alternatives, which the DOJ and the SEC may or may not accept. In addition, operating under the oversight of the monitor may result in burdens on members of our management and divert their time from the operation of our business. Assuming the monitorship is replaced by a self-reporting period, the Company’s self-reporting obligations may continue to be costly or burdensome. | |
We currently cannot estimate the costs that we are likely to incur in connection with compliance with the DPA and the Consent, including the retention of the monitor, the costs, if applicable, of self-reporting, and the costs of implementing the changes, if any, to our policies and procedures required by the monitor. However, the costs and burdens of the monitoring process could be significant. | |
FCPA-Related Litigation Matters | |
In July and August 2010, derivative actions were filed in state court against certain present or former officers and/or directors of the Company (Carol J. Parker, derivatively on behalf of Avon Products, Inc. v. W. Don Cornwell, et al. and Avon Products, Inc. as nominal defendant (filed in the New York Supreme Court, Nassau County, Index No. 600570/2010); Lynne Schwartz, derivatively on behalf of Avon Products, Inc. v. Andrea Jung, et al. and Avon Products, Inc. as nominal defendant (filed in the New York Supreme Court, New York County, Index No. 651304/2010)). On November 22, 2013, a derivative action was filed in federal court against certain present or former officers and/or directors of the Company (Sylvia Pritika, derivatively on behalf of Avon Products, Inc. v. Ann S. Moore, et al. and Avon Products, Inc. as nominal defendant (filed in the United States District Court for the Southern District of New York, No. 13-CV-8369)). The claims asserted in one or more of these actions include alleged breach of fiduciary duty, abuse of control, waste of corporate assets, and unjust enrichment, relating to the Company's compliance with the FCPA, including the adequacy of the Company's internal controls. The relief sought against the individual defendants in one or more of these derivative actions include certain declaratory and equitable relief, restitution, damages, exemplary damages and interest. The Company is a nominal defendant, and no relief is sought against the Company itself. In the Parker case, plaintiff has agreed that defendants' time to file an answer, motion to dismiss or other response is adjourned until plaintiff files an amended pleading. In Schwartz, the parties have agreed to a stipulated schedule for further proceedings, which provides, among other things, for plaintiffs to file a further amended complaint and for defendants to file a motion to dismiss. In Pritika, defendants moved to dismiss the complaint on March 7, 2014. We are unable to predict the outcome of these matters. | |
On July 6, 2011, a purported shareholder's class action complaint (City of Brockton Retirement System v. Avon Products, Inc., et al., No. 11-CIV-4665) was filed in the United States District Court for the Southern District of New York against the Company and certain present or former officers and/or directors of the Company. On September 29, 2011, the Court appointed LBBW Asset Management Investmentgesellschaft mbH and SGSS Deutschland Kapitalanlagegesellschaft mbH as lead plaintiffs and Motley Rice LLC as lead counsel. Lead plaintiffs filed an amended complaint, and the defendants moved to dismiss the amended complaint on June 14, 2012. On September 29, 2014, the Court granted the defendants' motion to dismiss and also granted the plaintiffs leave to amend their complaint. On October 24, 2014, plaintiffs filed their second amended complaint on behalf of a purported class consisting of all persons or entities who purchased or otherwise acquired shares of Avon's common stock from July 31, 2006 through and including October 26, 2011. The second amended complaint names as defendants the Company and two individuals and asserts violations of Sections 10(b) and 20(a) of the Exchange Act based on allegedly false or misleading statements and omissions with respect to, among other things, the Company's compliance with the FCPA, including the adequacy of the Company's internal controls. Plaintiffs seek compensatory damages and declaratory, injunctive, and other equitable relief. Defendants moved to dismiss the Second Amended Complaint on November 21, 2014. We are unable to predict the outcome of this matter. However, it is reasonably possible that we may incur a loss in connection with this matter. We are unable to reasonably estimate the amount or range of such reasonably possible loss. | |
On December 23, 2014, a purported class action (Poovathur v. Avon Products, Inc., et al., No. 14-CV-10083) was filed in the United States District Court for the Southern District of New York against the Company and certain present or former Company employees pursuant to the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1132. An amended complaint was filed on January 28, 2015. The purported class consists of participants in and beneficiaries of the Avon Personal Savings Account Plan (the “Plan”) who invested in and/or held shares of the Avon Common Stock Fund between July 31, 2006 and January 1, 2015. The claims asserted in this action include, inter alia, alleged breach of fiduciary duties in connection with the administration and management of the Plan and the appointment, evaluation, and monitoring of other Plan Fiduciaries. Plaintiffs seek, inter alia, certain monetary relief, damages, and declaratory, injunctive, and other equitable relief. We are unable to predict the outcome of this matter. However, it is reasonably possible that we may incur a loss in connection with this matter. We are unable to reasonably estimate the amount or range of such reasonably possible loss. | |
Under some circumstances, any losses incurred in connection with adverse outcomes in the litigation matters described above could be material. | |
Brazilian Tax Matters | |
In 2002, our Brazilian subsidiary received an excise tax (IPI) assessment from the Brazilian tax authorities for alleged tax deficiencies during the years 1997-1998. In December 2012, additional assessments were received for the year 2008 with respect to excise tax (IPI) and taxes charged on gross receipts (PIS and COFINS). In the second quarter of 2014, the PIS and COFINS assessments were officially closed in favor of Avon Brazil. The 2002 and the 2012 IPI 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 did not observe minimum pricing rules to define the taxable basis of excise tax. 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 2002 and 2012 IPI assessments are unfounded. | |
These matters are being vigorously contested. In January 2013, we filed a protest seeking a first administrative level review with respect to the 2012 IPI assessment. In July 2013, the 2012 IPI assessment was upheld at the first administrative level and we have appealed this decision to the second administrative level. The 2012 IPI assessment totals approximately $322, including penalties and accrued interest. In October 2010, the 2002 IPI assessment was upheld at the first administrative level at an amount reduced to approximately $25 from approximately $59, including penalties and accrued interest. We have appealed this decision to the second administrative level. | |
In the event that the 2002 or 2012 IPI assessments are upheld at the last administrative level, it may be necessary for us to provide security to pursue further appeals, which, depending on the circumstances, may result in a charge to earnings. It is not possible to reasonably estimate the likelihood or potential amount of assessments that may be issued for subsequent periods (tax years up through 2007 are closed by statute). However, other similar IPI assessments involving different periods (1998-2001) have been canceled and officially closed in our favor by the second administrative level, and we believe that the likelihood that the 2002 assessment will be upheld is remote and the likelihood that the 2012 IPI assessment will be upheld is reasonably possible. As stated above, we believe that the 2002 and 2012 IPI assessments are unfounded. | |
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, 2014, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets | ||||||||||||||||
Q3 2012 China Impairment Assessment | |||||||||||||||||
Based on the continued decline in revenue performance in China during the third quarter of 2012 and a corresponding lowering of our long-term growth estimates in China, we completed an interim impairment assessment of the fair value of goodwill related to our operations in China. The changes to our long-term growth estimates were based on the state of our China business, as the China business did not achieve our revenue, earnings and cash flows expectations primarily due to challenges in our business model. Based upon this interim analysis, we determined that the goodwill related to our operations in China was impaired. Specifically, the results of our interim impairment test indicated the estimated fair value of our China reporting unit was less than its respective carrying amount. As a result of our impairment testing, we recorded a non-cash impairment charge of $44.0 ($44.0 after tax) in the third quarter of 2012 to reduce the carrying amount of goodwill for China to its estimated fair value. | |||||||||||||||||
Q3 2013 China Impairment Assessment | |||||||||||||||||
As compared to our projections used in our fourth quarter 2012 impairment analysis ("Q4 2012 projections"), China performed generally in line with our revenue and earnings projections during the first half of 2013. As assumed in our Q4 2012 projections, China's revenue in the first half of 2013 continued to deteriorate versus the prior-year period; however, beginning in the third quarter of 2013, this revenue decline was significantly in excess of our assumptions. Revenue in the third quarter of 2013 declined 67% versus the third quarter of 2012, compared to a revenue decline of 28% in the first half of 2013 versus the first half of 2012. As a result, in the third quarter of 2013, it became apparent that we would not achieve our 2013 and long-term forecasted revenue and earnings, and we completed an interim impairment assessment of the fair value of goodwill related to our operations in China. | |||||||||||||||||
China's revenue performance in the third quarter of 2013 was approximately 67% less (when excluding the impact of foreign currency) than the revenue in our Q4 2012 projections. The revenue decline in China during the third quarter of 2013 resulted in the recognition of an operating loss while we had expected operating profit in our Q4 2012 projections. In the third quarter of 2013, we significantly lowered our long-term revenue and earnings projections for China that was included in our DCF model utilized in our interim impairment assessment. Based upon this interim analysis, we determined that the goodwill related to our operations in China was impaired. Specifically, the results of our interim impairment analysis indicated the estimated fair value of our China reporting unit was less than its respective carrying amount. As a result of our impairment testing, we recorded a non-cash before tax impairment charge of $38.4 ($38.4 after tax) to reduce the carrying amount of goodwill. There is no goodwill remaining for our China reporting unit as a result of this impairment. The decline in the fair value of the China reporting unit was primarily driven by the significant reduction in the forecasted long-term growth rates and cash flows used to estimate fair value. Fiscal year 2013 revenue for China was expected to be approximately 38% less than the revenue in our Q4 2012 projections and 47% less than fiscal year 2012 results. | |||||||||||||||||
We also performed an interim impairment analysis for our China finite-lived intangible assets, which indicated the carrying value of these intangible assets exceeded the estimated future undiscounted cash flows of the business. This resulted in a non-cash before tax impairment charge of $3.7 ($2.8 after tax) to reduce the carrying amount of these assets. There are no intangible assets remaining for China as a result of this impairment charge. | |||||||||||||||||
China had historically generated positive cash flows, but was not expected to generate positive cash flows in 2013 or for a number of years thereafter as there was a need for further investment than was previously anticipated. As a result, the expected cash flows of the business as of the date of our impairment analysis were not at a level sufficient to support the carrying value of the business. As compared to prior years' projections for China, the future expectations declined significantly in the 2012 and 2013 impairment analyses. This reduction in future expectations led to impairments of $44.0 and $42.1 being recorded in the third quarters of 2012 and 2013, respectively. | |||||||||||||||||
Key Assumptions - China | |||||||||||||||||
Key assumptions used in measuring the fair value of China during these impairment assessments included projections of revenue and the resulting cash flows, as well as the discount rate (based on the estimated weighted-average cost of capital). To estimate the fair value of China, we forecasted revenue and the resulting cash flows over ten years using a DCF model which included a terminal value at the end of the projection period. We believed that a ten-year period was a reasonable amount of time in order to return China's cash flows to normalized, sustainable levels. | |||||||||||||||||
Goodwill | |||||||||||||||||
Latin | Europe, Middle East & Africa | Asia | Total | ||||||||||||||
America | Pacific | ||||||||||||||||
Gross balance at December 31, 2013 | $ | 112.6 | $ | 167.3 | $ | 85 | $ | 364.9 | |||||||||
Accumulated impairments | — | — | (82.4 | ) | (82.4 | ) | |||||||||||
Net balance at December 31, 2013 | $ | 112.6 | $ | 167.3 | $ | 2.6 | $ | 282.5 | |||||||||
Changes during the period ended December 31, 2014: | |||||||||||||||||
Foreign exchange | $ | (21.9 | ) | $ | (11.3 | ) | $ | — | $ | (33.2 | ) | ||||||
Gross balance at December 31, 2014 | $ | 90.7 | $ | 156 | $ | 85 | $ | 331.7 | |||||||||
Accumulated impairments | — | — | (82.4 | ) | (82.4 | ) | |||||||||||
Net balance at December 31, 2014 | $ | 90.7 | $ | 156 | $ | 2.6 | $ | 249.3 | |||||||||
Other intangible assets | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Finite-Lived Intangible Assets | |||||||||||||||||
Customer relationships | $ | 33 | $ | (31.1 | ) | $ | 39.9 | $ | (36.5 | ) | |||||||
Licensing agreements | 43.4 | (39.9 | ) | 52.3 | (47.3 | ) | |||||||||||
Noncompete agreements | 7.2 | (7.2 | ) | 8.1 | (8.1 | ) | |||||||||||
Trademarks | — | — | 6.6 | (6.6 | ) | ||||||||||||
Indefinite-Lived Trademarks | 23.6 | — | 25.1 | — | |||||||||||||
Total | $ | 107.2 | $ | (78.2 | ) | $ | 132 | $ | (98.5 | ) | |||||||
Actual amortization expense may differ from the amounts above due to, among other things, future acquisitions, disposals, impairments, accelerated amortization or fluctuations in foreign currency exchange rates. Aggregate amortization expense was $4.4 and $9.5 for the years ended December 31, 2013 and 2012, respectively. Aggregate amortization expense was not material for the year ended December 31, 2014, and is not expected to be material for future periods. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information | ||||||||
At December 31, 2014 and 2013, prepaid expenses and other included the following: | |||||||||
Prepaid expenses and other | 2014 | 2013 | |||||||
Deferred tax assets (Note 7) | $ | 204.7 | $ | 233.6 | |||||
Prepaid taxes and tax refunds receivable | 165.7 | 145.9 | |||||||
Prepaid brochure costs, paper and other literature | 77.6 | 95.7 | |||||||
Receivables other than trade | 72.5 | 86.6 | |||||||
Short-term investments | 21 | 31.7 | |||||||
Other | 76.8 | 95.8 | |||||||
Prepaid expenses and other | $ | 618.3 | $ | 689.3 | |||||
At December 31, 2014 and 2013, other assets included the following: | |||||||||
Other assets | 2014 | 2013 | |||||||
Deferred tax assets (Note 7) | $ | 685.8 | $ | 944.7 | |||||
Long-term receivables | 149.5 | 168 | |||||||
Capitalized software (Note 1) | 101.3 | 122.9 | |||||||
Investments | 36.4 | 33.8 | |||||||
Other intangible assets, net (Note 16) | 29 | 33.5 | |||||||
Tooling | 21.7 | 37.9 | |||||||
Other | 28.3 | 34.5 | |||||||
Other assets | $ | 1,052.00 | $ | 1,375.30 | |||||
Results_of_Operations_by_Quart
Results of Operations by Quarter | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||
Results of Operations by Quarter | Results of Operations by Quarter (Unaudited) | |||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | |||||||||||||||||
Total revenue | $ | 2,183.60 | $ | 2,188.60 | $ | 2,138.20 | $ | 2,341.00 | 8,851.40 | |||||||||||||
Gross profit | 1,228.20 | 1,377.90 | 1,324.30 | 1,421.70 | 5,352.10 | |||||||||||||||||
Operating (loss) profit(1) | (50.9 | ) | 93.2 | 187.9 | 169.9 | 400.1 | ||||||||||||||||
(Loss) income from continuing operations, before taxes(2) | (141.0 | ) | 65.7 | 144.4 | 95.1 | 164.2 | ||||||||||||||||
(Loss) income from continuing operations, net of tax (3) | (167.2 | ) | 19.9 | 92 | (329.6 | ) | (384.9 | ) | ||||||||||||||
Net income attributable to noncontrolling interests | (1.1 | ) | (.9 | ) | (.6 | ) | (1.1 | ) | (3.7 | ) | ||||||||||||
Net (loss) income attributable to Avon | $ | (168.3 | ) | $ | 19 | $ | 91.4 | $ | (330.7 | ) | (388.6 | ) | ||||||||||
(Loss) earnings per share from continuing operations | ||||||||||||||||||||||
Basic | $ | (.38 | ) | $ | 0.04 | $ | 0.21 | $ | (.75 | ) | $ | (.88 | ) | -4 | ||||||||
Diluted | (.38 | ) | 0.04 | 0.21 | (.75 | ) | (.88 | ) | -4 | |||||||||||||
2013 | First | Second | Third | Fourth | Year | |||||||||||||||||
Total revenue | $ | 2,456.00 | $ | 2,508.90 | $ | 2,322.90 | $ | 2,667.20 | $ | 9,955.00 | ||||||||||||
Gross profit | 1,530.60 | 1,573.50 | 1,451.20 | 1,627.20 | 6,182.50 | |||||||||||||||||
Operating profit (loss)(1) | 174 | 202.2 | 68.2 | (17.2 | ) | 427.2 | ||||||||||||||||
Income (loss) from continuing operations, before taxes(2) | 29.3 | 145.3 | 31.6 | (43.6 | ) | 162.6 | ||||||||||||||||
(Loss) income from continuing operations, net of tax(3) | (11.5 | ) | 84.6 | (6.4 | ) | (67.7 | ) | (1.0 | ) | |||||||||||||
(Loss) income from discontinued operations, net of tax | (1.1 | ) | (50.4 | ) | 0.6 | — | (50.9 | ) | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (1.1 | ) | (2.3 | ) | 0.3 | (1.4 | ) | (4.5 | ) | |||||||||||||
Net (loss) income attributable to Avon | $ | (13.7 | ) | $ | 31.9 | $ | (5.5 | ) | $ | (69.1 | ) | $ | (56.4 | ) | ||||||||
(Loss) earnings per share from continuing operations | ||||||||||||||||||||||
Basic | $ | (.03 | ) | $ | 0.19 | $ | (.01 | ) | $ | (.16 | ) | $ | (.01 | ) | -4 | |||||||
Diluted | (.03 | ) | 0.19 | (.01 | ) | (.16 | ) | (.01 | ) | -4 | ||||||||||||
(1) Operating profit (loss) was impacted by the following: | ||||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Selling, general and administrative expenses | 22.7 | 51.2 | 2.5 | 37.8 | 114.2 | |||||||||||||||||
Total costs to implement restructuring initiatives | $ | 22.7 | $ | 51.2 | $ | 2.5 | $ | 37.8 | $ | 114.2 | ||||||||||||
Venezuelan special items | $ | 115.7 | $ | 18 | $ | 2 | $ | 1.4 | $ | 137.1 | ||||||||||||
FCPA accrual | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | ||||||||||||
Pension settlement charge | $ | — | $ | 23.5 | $ | 5.4 | $ | 7.5 | $ | 36.4 | ||||||||||||
2013 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | (.6 | ) | $ | (.3 | ) | $ | — | $ | — | $ | (.9 | ) | |||||||||
Selling, general and administrative expenses | 20.9 | 8.7 | (.2 | ) | 37.4 | 66.8 | ||||||||||||||||
Total costs to implement restructuring initiatives | $ | 20.3 | $ | 8.4 | $ | (.2 | ) | $ | 37.4 | $ | 65.9 | |||||||||||
Venezuelan special items | $ | 13.3 | $ | 16.5 | $ | 14.9 | $ | 4.9 | $ | 49.6 | ||||||||||||
FCPA accrual | $ | — | $ | 12 | $ | — | $ | 77 | $ | 89 | ||||||||||||
Asset impairment and other charges | $ | — | $ | — | $ | 42.1 | $ | 117.2 | $ | 159.3 | ||||||||||||
-2 | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate. | |||||||||||||||||||||
In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | ||||||||||||||||||||||
-3 | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. | |||||||||||||||||||||
In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | ||||||||||||||||||||||
-4 | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. | |||||||||||||||||||||
See Note 15, Restructuring Initiatives, "Results Of Operations - Consolidated" within MD&A on pages 32 through 39, "Segment Review - Latin America" within MD&A on pages 40 through 44, Note 15, Contingencies, Note 11, Employee Benefit Plans, Note 16, Goodwill and Intangibles, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 5, Debt and Other Financing and Note 7, Income Taxes, for more information on these items. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||||||||||||||
Valuation And Qualifying Accounts | AVON PRODUCTS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||||
Years ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||
Additions | |||||||||||||||||||||||
(In millions) | Balance at | Charged | Charged | Deductions | Balance | ||||||||||||||||||
Description | Beginning | to Costs | to | at End of | |||||||||||||||||||
of Period | and | Revenue | Period | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 129.6 | $ | 192.5 | $ | — | $ | (221.3 | ) | -1 | $ | 100.8 | |||||||||||
Allowance for sales returns | 17.6 | — | 298.1 | (298.5 | ) | -2 | 17.2 | ||||||||||||||||
Allowance for inventory obsolescence | 150.8 | 100.9 | — | (129.8 | ) | -3 | 121.9 | ||||||||||||||||
Deferred tax asset valuation allowance | 783.4 | 425.2 | -4 | — | — | 1,208.60 | |||||||||||||||||
2013 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 134.3 | $ | 239.3 | $ | — | $ | (244.0 | ) | -1 | $ | 129.6 | |||||||||||
Allowance for sales returns | 26.8 | — | 340 | (349.2 | ) | -2 | 17.6 | ||||||||||||||||
Allowance for inventory obsolescence | 164.8 | 117.1 | — | (131.1 | ) | -3 | 150.8 | ||||||||||||||||
Deferred tax asset valuation allowance | 627.4 | 156 | -4 | — | — | 783.4 | |||||||||||||||||
2012 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 138.4 | $ | 250.9 | $ | — | $ | (255.0 | ) | -1 | $ | 134.3 | |||||||||||
Allowance for sales returns | 35.8 | — | 386.4 | (395.4 | ) | -2 | 26.8 | ||||||||||||||||
Allowance for inventory obsolescence | 147.4 | 118.8 | — | (101.4 | ) | -3 | 164.8 | ||||||||||||||||
Deferred tax asset valuation allowance | 546.1 | 81.3 | -4 | — | — | 627.4 | |||||||||||||||||
-1 | Accounts written off, net of recoveries and foreign currency translation adjustment. | ||||||||||||||||||||||
-2 | Returned product destroyed and foreign currency translation adjustment. | ||||||||||||||||||||||
-3 | Obsolete inventory destroyed and foreign currency translation adjustment. | ||||||||||||||||||||||
-4 | Increase in valuation allowance primarily for deferred tax assets that are not more likely than not to be realized in the future. |
Description_of_the_Business_an1
Description of the Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business | 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 worldwide, primarily in one channel, direct selling. Our reportable segments are based on geographic operations in four regions: Latin America; Europe, Middle East & Africa; North America; and Asia Pacific. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare (which includes personal care), 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. | |||||||||||||
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. | |||||||||||||
Use of Estimates | 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 allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rate 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, intangible assets and capitalized software for potential impairment. | |||||||||||||
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 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 United States ("U.S.") dollar is required to be used as the functional currency. At December 31, 2014, Venezuela was the only Avon subsidiary considered to be operating in a highly inflationary economy. 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 the Consolidated Statements of Income. Non-monetary assets and liabilities, such as inventory, property, plant and equipment and prepaid expenses are recorded in U.S. dollars at the historical rates at the time of acquisition of such assets or liabilities. | |||||||||||||
Venezuela Currency | |||||||||||||
We account for Venezuela as a highly inflationary economy. In February 2014, the Venezuelan government announced a foreign exchange system ("SICAD II") which began operating on March 24, 2014. There are multiple legal mechanisms in Venezuela to exchange currency. As SICAD II represented the rate which better reflected the economics of Avon Venezuela's business activity, we concluded that we should utilize the SICAD II exchange rate to remeasure our Venezuelan operations effective March 31, 2014. As a result of the change to the SICAD II rate, which caused the recognition of a devaluation of approximately 88% as compared to the official exchange rate we used previously, we recorded an after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) in the first quarter of 2014, primarily reflecting the write-down of monetary assets and liabilities. In addition, as a result of using the historical U.S. dollar cost basis of non-monetary assets, such as inventories, these assets continued to be remeasured, following the change to the SICAD II rate, at the applicable rate at the time of acquisition. The remeasurement of non-monetary assets at the historical U.S. dollar cost basis causes a disproportionate expense as these assets are consumed in operations, negatively impacting operating profit and net income during 2014. Also as a result, we determined that an adjustment of $115.7 to cost of sales was needed to reflect certain non-monetary assets at their net realizable value, which was recorded in the first quarter of 2014. In addition, at March 31, 2014, we reviewed Avon Venezuela's long-lived assets to determine whether the carrying amount of the assets were recoverable, and determined that they were. As such, no impairment of Avon Venezuela's long-lived assets was required. In February 2015, the Venezuelan government announced that the SICAD II market would no longer be available, and a new open market foreign exchange system ("SIMADI") was created. We believe that significant uncertainty exists regarding the foreign exchange mechanisms in Venezuela, as well as how any such mechanisms will operate in the future and the availability of U.S. dollars under each mechanism. We are still evaluating our future access to funds through the SIMADI or other similar markets. | |||||||||||||
Effective February 13, 2013, the Venezuelan government devalued its currency by approximately 32% and as such we recorded a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) in the first quarter of 2013, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits. In addition, as a result of using the historical U.S. dollar cost basis of non-monetary assets, such as inventories, acquired prior to the devaluation, operating profit and net loss during 2013 were negatively impacted. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Net sales primarily include sales generated as a result of Representative orders less any discounts, taxes and other deductions. We recognize revenue upon delivery, when both title and the risks and rewards of ownership pass to the independent Representatives, who are our customers. Our internal financial systems accumulate revenues as orders are shipped to the Representative. Since we report revenue upon delivery, revenues recorded in the financial system must be reduced for an estimate of the financial impact of those orders shipped but not delivered at the end of each reporting period. We use estimates in determining the adjustments to revenue and operating profit for orders that have been shipped but not delivered as of the end of the period. These estimates are based on daily sales levels, delivery lead times, gross margin and variable expenses. We also record a provision for estimated sales returns based on historical experience with product returns. In addition, we estimate an allowance for doubtful accounts on receivable balances based on an analysis of historical data and current circumstances. | |||||||||||||
Other Revenue | Other Revenue | ||||||||||||
Other revenue is primarily comprised of shipping and handling and order processing fees billed to Representatives. | |||||||||||||
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. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market. 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 determine the level of obsolescence provision. | |||||||||||||
Prepaid Brochure Costs | Prepaid Brochure Costs | ||||||||||||
Costs to prepare brochures are initially deferred to prepaid expenses and other and are expensed to selling, general and administrative expenses over the campaign length. In addition, fees charged to Representatives for brochures are initially deferred and presented as a reduction to prepaid expenses and other and are recorded as a reduction to selling, general and administrative expenses over the campaign length. The campaign length is typically two weeks in the U.S. and two to four weeks for most markets outside of the U.S. | |||||||||||||
Brochure costs and associated fees that are presented as prepaid expenses and other were $29.9 at December 31, 2014 and $38.3 at December 31, 2013. Additionally, paper stock is purchased in advance of creating the brochures. Prepaid expenses and other include paper supply of $8.5 at December 31, 2014 and $9.1 at December 31, 2013. | |||||||||||||
Brochure costs expensed to selling, general and administrative expenses amounted to $389.7 in 2014, $461.7 in 2013 and $506.3 in 2012. The fees charged to Representatives recorded as a reduction to selling, general and administrative expenses amounted to $243.3 in 2014, $274.1 in 2013 and $285.9 in 2012. | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
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, five 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. We evaluate our long-lived assets 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 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. | |||||||||||||
We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the related asset and depreciated over the useful life of the related asset. We did not capitalize any interest in 2014, and we capitalized interest of $1.4 in 2013 and $2.0 in 2012. | |||||||||||||
Capitalized Software | Capitalized Software | ||||||||||||
Certain systems development costs related to the purchase, development and installation of computer software are capitalized and amortized over the estimated useful life of the related project, generally not to exceed five years. 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 $101.3 at December 31, 2014 and $122.9 at December 31, 2013. The amortization expense associated with capitalized software was $48.4, $55.4 and $41.2 for the years ended December 31, 2014, 2013 and 2012, respectively. In addition, we recorded a capitalized software impairment charge of $117.2 during 2013. | |||||||||||||
Capitalized software is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future pre-tax undiscounted cash flows expected to result from the use of the asset and its eventual disposition are compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount 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. | |||||||||||||
In December 2013, we decided to halt further roll-out of our Service Model Transformation ("SMT") project. SMT was a global program initiated in 2009 to improve our order management system and enable changes to the way Representatives interact with us. SMT was piloted in Canada during 2013, and caused significant business disruption in that market. This decision to halt the further roll-out of SMT was made in light of the potential risk of further disruption. In addition, SMT did not show a clear return on investment. | |||||||||||||
As Canada was the only market expected to utilize the capitalized software associated with SMT ("SMT asset"), the accounting guidance requires the impairment assessment to consider the cash flows of the Canadian business, which includes the ongoing costs associated with SMT. These expected cash flows were not sufficient to supporting the carrying value of the associated asset group, which includes the SMT asset. In the fourth quarter of 2013, we recorded a non-cash impairment charge of $117.2 before tax ($74.1 after tax), reflecting the write-down of capitalized software. This impairment charge was recorded as a component of our global expenses, within selling, general and administrative expenses in the Consolidated Statements of Income. | |||||||||||||
The fair value of the SMT asset was determined using a risk-adjusted discounted cash flow ("DCF") model under the relief-from-royalty method. The impairment analysis performed for the asset group, which includes the SMT asset, required several estimates, including revenue and cash flow projections, and royalty and discount rates. As a result of this impairment charge, the remaining carrying amount of the SMT asset is not material. | |||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | ||||||||||||
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 first quantitative step, as described below, is required. | |||||||||||||
The quantitative test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of a reporting unit to its carrying value. If the fair value of a reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit’s goodwill. The second step of the impairment analysis requires a valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of the purchase price in a business combination. If the resulting implied fair value of the reporting unit’s goodwill is less than its carrying value, that difference represents an impairment. | |||||||||||||
The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a 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 five 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. | |||||||||||||
Indefinite-lived intangible assets are not amortized, but rather are assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred. When testing indefinite-lived intangible assets for impairment, we perform either a qualitative or quantitative assessment. If the qualitative analysis results in a more likely than not probability of impairment, a quantitative assessment is required. The quantitative test to evaluate indefinite-lived intangible assets for impairment compares the fair value of the intangible asset to its carrying value. If the fair value of the asset is less than its carrying value, that difference represents an impairment. The impairment analysis performed for indefinite-lived intangible asset requires several estimates in computing the estimated fair value of the asset. We use a risk-adjusted DCF model under the relief-from-royalty method. | |||||||||||||
Finite-lived intangible assets are amortized using a straight-line method over their estimated useful lives. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future pre-tax undiscounted cash flows expected to result from the use of the asset and its eventual disposition are compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of the asset is determined using probability weighted expected cash flow estimates, quoted market prices when available and appraisals, as appropriate. | |||||||||||||
If applicable, the impairment testing should be performed in the following order: indefinite-lived intangible assets, finite-lived intangible assets, and then goodwill. | |||||||||||||
See Note 16, Goodwill and Intangible Assets for more information on China, and Note 3, Discontinued Operations for more information on Silpada. | |||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||
We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. | |||||||||||||
If applicable, derivatives are recognized on the 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 to the extent effective 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 to the extent effective as a hedge. | ||||||||||||
• | 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 the Consolidated Statements of Income. | ||||||||||||
Realized gains and losses on a derivative are reported in the Consolidated Statements of Cash Flows consistent with the nature of the underlying hedged item. | |||||||||||||
For derivatives designated as hedges, we assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Highly effective means 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. The ineffective portion of a derivative’s gain or loss, if any, is recorded in earnings in other expense, net in the Consolidated Statements of Income. In addition, when we determine that a derivative is not highly effective as a hedge, hedge accounting is discontinued. When it is probable that a hedged forecasted transaction will not occur, we discontinue hedge accounting for the affected portion of the forecasted transaction, and reclassify gains or losses that were accumulated in AOCI to earnings in other expense, net in the Consolidated Statements of Income. | |||||||||||||
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 7, Income Taxes for more information. | |||||||||||||
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. | |||||||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | ||||||||||||
Selling, general and administrative expenses include costs associated with selling; marketing; and distribution activities, 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 | ||||||||||||
Shipping and handling costs are expensed as incurred and amounted to $861.7 in 2014, $990.1 in 2013 and $1,027.7 in 2012. | |||||||||||||
Advertising | Advertising | ||||||||||||
Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $177.1 in 2014, $201.9 in 2013 and $251.3 in 2012. | |||||||||||||
Research and Development | Research and Development | ||||||||||||
Research and development costs are expensed as incurred and amounted to $62.5 in 2014, $67.2 in 2013 and $73.3 in 2012. 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 | Share-based Compensation | ||||||||||||
All 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 Black-Scholes-Merton option-pricing model to calculate the fair value of options. | |||||||||||||
Restructuring Reserves | Restructuring Expense | ||||||||||||
We record the estimated expense for our restructuring initiatives 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, 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 | ||||||||||||
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 discount rates, hybrid plan maximum interest crediting rates and expected rate of return on plan assets, rate of compensation increase of plan participants, interest cost, health care cost trend rates, benefits earned, mortality rates, the number of participants and certain demographics 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 are required, among other things, to recognize the funded status of pension and other postretirement benefit plans on the 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 three- and five-year periods. We use a December 31 measurement date for all of our employee benefit plans. | |||||||||||||
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. | |||||||||||||
Reclassification, Policy [Policy Text Block] | Revisions | ||||||||||||
During the first quarter of 2014, we revised our consolidated financial statements to reflect tooling balances in other assets, while they had been previously reported in inventories, as we believe that this is a better presentation of our tooling assets. Tooling assets are the plates and molds used in the manufacturing process of our beauty products. This revision did not impact cash flows from operating activities, our Consolidated Statements of Income, our Consolidated Statements of Comprehensive Income or our Consolidated Statements of Changes in Shareholders' Equity. We determined that the effect of this revision was not material to any of our previously issued financial statements. | |||||||||||||
Out Of Period Items | Out-of-Period Items | ||||||||||||
During 2014, we recorded out-of-period adjustments in our Latin America segment (primarily related to revenue and selling, general and administrative expenses) which increased earnings by approximately $15 before tax. The total out-of-period adjustments increasing earnings during 2014 was approximately $13 before tax (approximately $1 after tax decreasing earnings during 2014). We evaluated the total out-of-period adjustments impacting 2014, both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to the consolidated annual financial statements for all impacted periods. | |||||||||||||
During the first quarter of 2012, we recorded an out-of-period adjustment which decreased earnings by approximately $14 before tax ($10 after tax) which related to 2011 and was associated with bad debt expense in our South Africa operations. We evaluated the total out-of-period adjustments impacting 2012 of approximately $13 before tax (approximately $15 after tax), both individually and in the aggregate, in relation to the quarterly and annual periods in which they originated and the annual period in which they were corrected, and concluded that these adjustments were not material to the consolidated annual financial statements for all impacted periods. | |||||||||||||
Earnings per Share | (Loss) Earnings per Share | ||||||||||||
We compute (loss) earnings per share ("EPS") using the two-class method, which is a (loss) earnings allocation formula that determines (loss) earnings per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net (loss) income allocated to common shareholders by the weighted-average number of shares outstanding during the year. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the year. | |||||||||||||
For each of the three years ended December 31 the components of basic and diluted EPS were as follows: | |||||||||||||
(Shares in millions) | 2014 | 2013 | 2012 | ||||||||||
Numerator from continuing operations: | |||||||||||||
(Loss) income from continuing operations less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (5.5 | ) | $ | 89 | |||||
Less: Loss (earnings) allocated to participating securities | 4.7 | 0.1 | (.8 | ) | |||||||||
(Loss) income from continuing operations allocated to common shareholders | (383.9 | ) | (5.4 | ) | 88.2 | ||||||||
Numerator from discontinued operations: | |||||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | $ | — | $ | (50.9 | ) | $ | (131.5 | ) | |||||
Less: Loss allocated to participating securities | — | 0.5 | 1 | ||||||||||
Loss allocated to common shareholders | — | (50.4 | ) | (130.5 | ) | ||||||||
Numerator attributable to Avon: | |||||||||||||
Loss attributable to Avon less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (56.4 | ) | $ | (42.5 | ) | ||||
Less: Loss allocated to participating securities | 4.7 | 0.5 | 0.3 | ||||||||||
Loss allocated to common shareholders | (383.9 | ) | (55.9 | ) | (42.2 | ) | |||||||
Denominator: | |||||||||||||
Basic EPS weighted-average shares outstanding | 434.5 | 433.4 | 431.9 | ||||||||||
Diluted effect of assumed conversion of stock options | — | — | 0.6 | ||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 434.5 | 433.4 | 432.5 | ||||||||||
(Loss) Earnings per Common Share from continuing operations: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.01 | ) | $ | 0.2 | |||||
Diluted | (.88 | ) | (.01 | ) | 0.2 | ||||||||
Loss per Common Share from discontinued operations: | |||||||||||||
Basic | $ | — | $ | (.12 | ) | $ | (.30 | ) | |||||
Diluted | — | (.12 | ) | (.30 | ) | ||||||||
Loss per Common Share attributable to Avon: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.13 | ) | $ | (.10 | ) | ||||
Diluted | (.88 | ) | (.13 | ) | (.10 | ) | |||||||
Amounts in the table above may not necessarily sum due to rounding. | |||||||||||||
During the years ended December 31, 2014 and 2013, we did not include stock options to purchase 18.0 million shares and 18.3 million shares of Avon common stock, respectively, in the calculations of diluted EPS as we had a loss from continuing operations, net of tax and the inclusion of these shares would decrease the net loss per share. Since the inclusion of such shares would be anti-dilutive, these are excluded from the calculation. If we had income from continuing operations, net of tax, we would have included .8 million shares for the year ended December 31, 2013, because the average market price was higher than the exercise prices of those options. During the year ended December 31, 2012, we did not include stock options to purchase 22.0 million shares of Avon common stock in the calculation of diluted EPS, because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would be anti-dilutive. |
Description_of_the_Business_an2
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For each of the three years ended December 31 the components of basic and diluted EPS were as follows: | ||||||||||||
(Shares in millions) | 2014 | 2013 | 2012 | ||||||||||
Numerator from continuing operations: | |||||||||||||
(Loss) income from continuing operations less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (5.5 | ) | $ | 89 | |||||
Less: Loss (earnings) allocated to participating securities | 4.7 | 0.1 | (.8 | ) | |||||||||
(Loss) income from continuing operations allocated to common shareholders | (383.9 | ) | (5.4 | ) | 88.2 | ||||||||
Numerator from discontinued operations: | |||||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | $ | — | $ | (50.9 | ) | $ | (131.5 | ) | |||||
Less: Loss allocated to participating securities | — | 0.5 | 1 | ||||||||||
Loss allocated to common shareholders | — | (50.4 | ) | (130.5 | ) | ||||||||
Numerator attributable to Avon: | |||||||||||||
Loss attributable to Avon less amounts attributable to noncontrolling interests | $ | (388.6 | ) | $ | (56.4 | ) | $ | (42.5 | ) | ||||
Less: Loss allocated to participating securities | 4.7 | 0.5 | 0.3 | ||||||||||
Loss allocated to common shareholders | (383.9 | ) | (55.9 | ) | (42.2 | ) | |||||||
Denominator: | |||||||||||||
Basic EPS weighted-average shares outstanding | 434.5 | 433.4 | 431.9 | ||||||||||
Diluted effect of assumed conversion of stock options | — | — | 0.6 | ||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 434.5 | 433.4 | 432.5 | ||||||||||
(Loss) Earnings per Common Share from continuing operations: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.01 | ) | $ | 0.2 | |||||
Diluted | (.88 | ) | (.01 | ) | 0.2 | ||||||||
Loss per Common Share from discontinued operations: | |||||||||||||
Basic | $ | — | $ | (.12 | ) | $ | (.30 | ) | |||||
Diluted | — | (.12 | ) | (.30 | ) | ||||||||
Loss per Common Share attributable to Avon: | |||||||||||||
Basic | $ | (.88 | ) | $ | (.13 | ) | $ | (.10 | ) | ||||
Diluted | (.88 | ) | (.13 | ) | (.10 | ) |
Discontinued_Operations_Discon
Discontinued Operations Discontinued Operations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Summarized financial information for discontinued operations is shown below: | ||||||||
Years ended December 31, | |||||||||
2013 | 2012 | ||||||||
Total revenue | $ | 54.5 | $ | 155.7 | |||||
Operating loss(1) | (81.0 | ) | (210.2 | ) | |||||
(1) Operating loss for the year ended December 31, 2013 includes a charge of $79.0 before tax recorded in the second quarter of 2013, reflecting the expected loss on sale at that time, as well as an additional loss on sale of $.4 before tax recorded in the third quarter of 2013. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory, Net [Abstract] | |||||||||
Components of Inventories | Inventories at December 31 consisted of the following: | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 248.8 | $ | 272.9 | |||||
Finished goods | 573.4 | 694.8 | |||||||
Total | $ | 822.2 | $ | 967.7 | |||||
Debt_and_Other_Financing_Table
Debt and Other Financing (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | Debt at December 31 consisted of the following: | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Debt maturing within one year: | |||||||||||||||||||||||||||||
Notes payable | $ | 122 | $ | 159.4 | |||||||||||||||||||||||||
Current portion of long-term debt | 15.1 | 28.6 | |||||||||||||||||||||||||||
Total | $ | 137.1 | $ | 188 | |||||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||||||||
Term Loan | $ | — | $ | 52.5 | |||||||||||||||||||||||||
2.375% Notes, due March 2016 | 249.9 | 249.9 | |||||||||||||||||||||||||||
5.75% Notes, due March 2018 | 249.7 | 249.6 | |||||||||||||||||||||||||||
4.20% Notes, due July 2018 | 249.7 | 249.6 | |||||||||||||||||||||||||||
6.50% Notes, due March 2019 | 348.2 | 347.7 | |||||||||||||||||||||||||||
Other debt, payable through 2024 with interest from .6% to 7.4% | 57.4 | 67.9 | |||||||||||||||||||||||||||
4.60% Notes, due March 2020 | 499.4 | 499.3 | |||||||||||||||||||||||||||
5.00% Notes, due March 2023 | 496 | 495.5 | |||||||||||||||||||||||||||
6.95% Notes, due March 2043 | 249.3 | 249.3 | |||||||||||||||||||||||||||
Total | 2,399.60 | 2,461.30 | |||||||||||||||||||||||||||
Amortization of swap termination | 79.4 | 100 | |||||||||||||||||||||||||||
Less current portion | (15.1 | ) | (28.6 | ) | |||||||||||||||||||||||||
Total long-term debt | $ | 2,463.90 | $ | 2,532.70 | |||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Maturities of Long-Term Debt | ||||||||||||||||||||||||||||
Annual maturities of long-term debt, which includes our notes (including unamortized discounts and premiums), capital leases and financing obligations outstanding at December 31, 2014, are as follows: | |||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and Beyond | Total | |||||||||||||||||||||||
Maturities | $ | 15.1 | $ | 259.8 | $ | 8.8 | $ | 506.7 | $ | 366.7 | $ | 1,250.30 | $ | 2,407.40 | |||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The tables below present the changes in AOCI by component and the reclassifications out of AOCI during 2014 and 2013: | ||||||||||||||||||||
Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||
Balance at December 31, 2013 | $ | (429.3 | ) | $ | (5.1 | ) | $ | (4.3 | ) | $ | (431.7 | ) | $ | (870.4 | ) | ||||||
Other comprehensive loss other than reclassifications | (247.7 | ) | — | — | (187.2 | ) | (434.9 | ) | |||||||||||||
Reclassifications into earnings: | |||||||||||||||||||||
Derivative losses on cash flow hedges, net of tax of $0.0(1) | — | 1.9 | — | — | 1.9 | ||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $2.5(2) | — | — | — | 85.8 | 85.8 | ||||||||||||||||
Total reclassifications into earnings | — | 1.9 | — | 85.8 | 87.7 | ||||||||||||||||
Balance at December 31, 2014 | $ | (677.0 | ) | $ | (3.2 | ) | $ | (4.3 | ) | $ | (533.1 | ) | $ | (1,217.6 | ) | ||||||
Foreign Currency Translation Adjustments | Cash Flow Hedges | Net Investment Hedges | Pension and Postretirement Benefits | Total | |||||||||||||||||
Balance at December 31, 2012 | $ | (317.6 | ) | $ | (6.8 | ) | $ | (4.3 | ) | $ | (548.0 | ) | $ | (876.7 | ) | ||||||
Other comprehensive loss other than reclassifications | (111.7 | ) | — | — | 80.6 | (31.1 | ) | ||||||||||||||
Reclassifications into earnings: | |||||||||||||||||||||
Derivative losses on cash flow hedges, net of tax of $.9(1) | — | 1.7 | — | — | 1.7 | ||||||||||||||||
Amortization of net actuarial loss and prior service cost, net of tax of $16.5(2) | — | — | — | 35.7 | 35.7 | ||||||||||||||||
Total reclassifications into earnings | — | 1.7 | — | 35.7 | 37.4 | ||||||||||||||||
Balance at December 31, 2013 | $ | (429.3 | ) | $ | (5.1 | ) | $ | (4.3 | ) | $ | (431.7 | ) | $ | (870.4 | ) | ||||||
(1) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. | |||||||||||||||||||||
(2) Gross amount reclassified to pension and postretirement expense, within selling, general and administrative expenses, and related taxes reclassified to income taxes. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) resulting from temporary differences in the recognition of income and expense for tax and financial reporting purposes at December 31 consisted of the following: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 217.4 | $ | 274.2 | |||||||||
Pension and postretirement benefits | 161.5 | 132 | |||||||||||
Asset revaluations | 12.1 | 37.4 | |||||||||||
Capitalized expenses | 161.4 | 156.4 | |||||||||||
Depreciation and amortization | 15.4 | 15 | |||||||||||
Deferred loss on foreign currency | 37.2 | 13.3 | |||||||||||
Share-based compensation | 57.7 | 63.7 | |||||||||||
Restructuring initiatives | 22.7 | 23.9 | |||||||||||
Postemployment benefits | 6.8 | 8.1 | |||||||||||
Tax loss carryforwards | 726.2 | 756.1 | |||||||||||
Foreign tax credit carryforwards | 617.7 | 585.4 | |||||||||||
Minimum tax and business credit carryforwards | 57.1 | 53.2 | |||||||||||
All other | 55.7 | 39.3 | |||||||||||
Valuation allowance | (1,208.6 | ) | (783.4 | ) | |||||||||
Total deferred tax assets | 940.3 | 1,374.60 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (24.6 | ) | (27.9 | ) | |||||||||
Unremitted foreign earnings | (14.3 | ) | (142.8 | ) | |||||||||
Prepaid expenses | (8.7 | ) | (16.6 | ) | |||||||||
Capitalized interest | (8.7 | ) | (9.4 | ) | |||||||||
All other | (26.5 | ) | (33.7 | ) | |||||||||
Total deferred tax liabilities | (82.8 | ) | (230.4 | ) | |||||||||
Net deferred tax assets | $ | 857.5 | $ | 1,144.20 | |||||||||
Deferred Tax Assets (Liabilities) Classification | Deferred tax assets (liabilities) at December 31 were classified as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Prepaid expenses and other | $ | 204.7 | $ | 233.6 | |||||||||
Other assets | 685.8 | 944.7 | |||||||||||
Total deferred tax assets | 890.5 | 1,178.30 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Income taxes | (.3 | ) | (1.1 | ) | |||||||||
Long-term income taxes | (32.7 | ) | (33.0 | ) | |||||||||
Total deferred tax liabilities | (33.0 | ) | (34.1 | ) | |||||||||
Net deferred tax assets | $ | 857.5 | $ | 1,144.20 | |||||||||
Income from Continuing Operations before Taxes | (Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (214.7 | ) | $ | (500.8 | ) | $ | (227.7 | ) | ||||
Foreign | 378.9 | 663.4 | 656.4 | ||||||||||
Total | $ | 164.2 | $ | 162.6 | $ | 428.7 | |||||||
Provision for Income Taxes | The provision for income taxes for the years ended December 31 was as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal: | |||||||||||||
Current | $ | 58 | $ | 76.6 | $ | 38.8 | |||||||
Deferred | 208 | (212.5 | ) | (111.5 | ) | ||||||||
266 | (135.9 | ) | (72.7 | ) | |||||||||
Foreign: | |||||||||||||
Current | 246.7 | 216.3 | 267.5 | ||||||||||
Deferred | (3.3 | ) | 90.5 | 143.6 | |||||||||
243.4 | 306.8 | 411.1 | |||||||||||
State and other: | |||||||||||||
Current | (.1 | ) | (.7 | ) | 1.2 | ||||||||
Deferred | 39.8 | (6.6 | ) | (4.2 | ) | ||||||||
39.7 | (7.3 | ) | (3.0 | ) | |||||||||
Total | $ | 549.1 | $ | 163.6 | $ | 335.4 | |||||||
Effective Tax Rate | The effective tax rate for the years ended December 31 was as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal rate | 35 | % | 35 | % | 35 | % | |||||||
State and local taxes, net of federal tax benefit | 8.8 | (2.1 | ) | (.5 | ) | ||||||||
Taxes on foreign income, including translation | (4.8 | ) | (22.0 | ) | (2.0 | ) | |||||||
Audit settlements, statute expirations and amended returns | (3.2 | ) | (6.9 | ) | (2.1 | ) | |||||||
Additional tax on unremitted prior year foreign earnings | — | — | 39.3 | ||||||||||
Venezuela devaluation and highly inflationary accounting | 33.5 | 28.2 | — | ||||||||||
FCPA accrual | (8.7 | ) | 19.2 | — | |||||||||
China goodwill impairment | — | 8.4 | 3.6 | ||||||||||
Reserves for uncertain tax positions | 24.4 | 4.5 | 3 | ||||||||||
Net change in valuation allowances | 244.1 | 31.4 | 1.5 | ||||||||||
Blocked income | 4.3 | 3.9 | 1.1 | ||||||||||
Other | 1 | 1 | (.7 | ) | |||||||||
Effective tax rate | 334.4 | % | 100.6 | % | 78.2 | % | |||||||
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: | ||||||||||||
Balance at December 31, 2011 | $ | 36 | |||||||||||
Additions based on tax positions related to the current year | 7.4 | ||||||||||||
Additions for tax positions of prior years | 9.3 | ||||||||||||
Reductions for tax positions of prior years | (3.7 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (6.4 | ) | |||||||||||
Reductions due to settlements with tax authorities | (6.6 | ) | |||||||||||
Balance at December 31, 2012 | 36 | ||||||||||||
Additions based on tax positions related to the current year | 5.3 | ||||||||||||
Additions for tax positions of prior years | 1.9 | ||||||||||||
Reductions for tax positions of prior years | (7.8 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (3.1 | ) | |||||||||||
Reductions due to settlements with tax authorities | (4.3 | ) | |||||||||||
Balance at December 31, 2013 | 28 | ||||||||||||
Additions based on tax positions related to the current year | 1.5 | ||||||||||||
Additions for tax positions of prior years | 37.7 | ||||||||||||
Reductions for tax positions of prior years | (4.8 | ) | |||||||||||
Reductions due to lapse of statute of limitations | (1.7 | ) | |||||||||||
Reductions due to settlements with tax authorities | (2.0 | ) | |||||||||||
Balance at December 31, 2014 | $ | 58.7 | |||||||||||
Tax Years Remaining | We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. As of December 31, 2014, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: | ||||||||||||
Jurisdiction | Open Years | ||||||||||||
Brazil | 2009-2014 | ||||||||||||
Mexico | 2008-2014 | ||||||||||||
Poland | 2009-2014 | ||||||||||||
Russia | 2011-2014 | ||||||||||||
United States (Federal) | 2014 |
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||
Schedule of Fair Value of All Derivative Contracts | Derivatives are recognized on the Consolidated Balance Sheets at their fair values. The following table presents the fair value of derivative instruments outstanding at December 31, 2014: | |||||||||||
Asset | Liability | |||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
Classification | Value | Classification | Value | |||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | 0.6 | Accounts payable | $ | 5 | ||||||
Total derivatives not designated as hedges | $ | 0.6 | $ | 5 | ||||||||
Total derivatives | $ | 0.6 | $ | 5 | ||||||||
The following table presents the fair value of derivative instruments outstanding at December 31, 2013: | ||||||||||||
Asset | Liability | |||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||
Classification | Value | Classification | Value | |||||||||
Derivatives not designated as hedges: | ||||||||||||
Foreign exchange forward contracts | Prepaid expenses and other | $ | 3.4 | Accounts payable | $ | 0.3 | ||||||
Total derivatives not designated as hedges | $ | 3.4 | $ | 0.3 | ||||||||
Total derivatives | $ | 3.4 | $ | 0.3 | ||||||||
Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income | For the years ended December 31, 2014 and 2013, treasury lock agreements impacted AOCI as follows: | |||||||||||
2014 | 2013 | |||||||||||
Net unamortized losses at beginning of year, net of taxes of $2.7 and $3.7 | $ | (5.1 | ) | $ | (6.8 | ) | ||||||
Reclassification of net losses to earnings, net of taxes of $0.0 and $1.0 | 1.9 | 1.7 | ||||||||||
Net unamortized losses at end of year, net of taxes of $2.7 and $2.7 | $ | (3.2 | ) | $ | (5.1 | ) |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Recorded at Fair Value on a Recurring Basis | ||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 2.7 | $ | — | $ | 2.7 | |||||||||||
Foreign exchange forward contracts | — | 0.6 | 0.6 | ||||||||||||||
Total | $ | 2.7 | 0.6 | 3.3 | |||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 5 | $ | 5 | |||||||||||
Total | $ | — | $ | 5 | $ | 5 | |||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Total | |||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 0.5 | $ | — | $ | 0.5 | |||||||||||
Available-for-sale securities | 2.5 | — | 2.5 | ||||||||||||||
Foreign exchange forward contracts | — | 3.4 | 3.4 | ||||||||||||||
Total | $ | 3 | $ | 3.4 | $ | 6.4 | |||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||
Total | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, money market funds, accounts receivable, loans receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forwards 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: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Amount | Amount | ||||||||||||||||
Available-for-sale securities | $ | 2.7 | $ | 2.7 | $ | 2.5 | $ | 2.5 | |||||||||
Money market funds | — | — | 0.5 | 0.5 | |||||||||||||
Debt maturing within one year(1) | (137.1 | ) | (137.1 | ) | (188.0 | ) | (188.0 | ) | |||||||||
Long-term debt(1) | (2,463.9 | ) | (2,242.5 | ) | (2,532.7 | ) | (2,511.6 | ) | |||||||||
Foreign exchange forward contracts | (4.4 | ) | (4.4 | ) | 3.1 | 3.1 | |||||||||||
(1) The carrying value of debt maturing within one year and long-term debt includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. | |||||||||||||||||
The methods and assumptions used to estimate fair value are as follows: | |||||||||||||||||
Available-for-sale securities and money market funds - The fair values of these investments were the quoted market prices for issues listed on securities exchanges. | |||||||||||||||||
Debt maturing within one year and 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. |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | For the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units | $ | 38.9 | $ | 43.3 | $ | 41.1 | ||||||||
Total income tax benefit recognized for share-based arrangements | 3.2 | 14.9 | 13 | |||||||||||
Schedule of Weighted-Average Assumptions for Options Granted During Period | The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted-average assumptions for options granted during the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free rate(1) | * | * | 0.7 | % | ||||||||||
Expected term(2) | * | * | 4 years | |||||||||||
Expected volatility(3) | * | * | 38 | % | ||||||||||
Expected dividends(4) | * | * | 5 | % | ||||||||||
* | There were no stock options granted in 2014 and 2013. | |||||||||||||
-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 historical employee exercise behavior, the vesting terms of the respective option and a contractual life of 10 years. | |||||||||||||
-3 | Expected volatility was based on the weekly historical volatility of our stock price, over a period similar to the expected life of the option. | |||||||||||||
-4 | Assumed the then-current cash dividends of $.23 during 2012 per share each quarter on our common stock for options granted during that year. | |||||||||||||
Schedule of Options Activity During Period | A summary of stock options as of December 31, 2014, and changes during 2014, is as follows: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
(in 000’s) | Average | Average | Intrinsic | |||||||||||
Exercise | Contractual | Value | ||||||||||||
Price | Term | |||||||||||||
Outstanding at January 1, 2014 | 21,543 | $ | 32.27 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (12 | ) | 15.5 | |||||||||||
Forfeited | (59 | ) | 18.29 | |||||||||||
Expired | (4,314 | ) | 34.68 | |||||||||||
Outstanding at December 31, 2014 | 17,158 | $ | 31.74 | 3 | $ | — | ||||||||
Exercisable at December 31, 2014 | 16,156 | $ | 31.81 | 2.9 | $ | — | ||||||||
Schedule of Cash Proceeds, Tax Benefits, and Instrinsic Value Related to Options Exercised During Period | Cash proceeds, tax obligations and intrinsic value related to total stock options exercised during 2014, 2013 and 2012, were as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cash proceeds from stock options exercised | $ | 0.2 | $ | 19.4 | $ | 8.6 | ||||||||
Tax obligation realized for stock options exercised | — | (1.8 | ) | (3.7 | ) | |||||||||
Intrinsic value of stock options exercised | — | 6.4 | 2.2 | |||||||||||
Schedule of Restricted Stock and Units Activity During Period | A summary of restricted stock and restricted stock units at December 31, 2014, and changes during 2014, is as follows: | |||||||||||||
Restricted Stock | Weighted-Average | |||||||||||||
And Units | Grant-Date | |||||||||||||
(in 000’s) | Fair Value | |||||||||||||
1-Jan-14 | 4,234 | $ | 20.67 | |||||||||||
Granted | 3,212 | 14.58 | ||||||||||||
Vested | (1,574 | ) | 22.23 | |||||||||||
Forfeited | (877 | ) | 17.27 | |||||||||||
31-Dec-14 | 4,995 | $ | 16.8 | |||||||||||
Schedule of Share-Based Compensation Performance Restricted Stock Units Activity | A summary of performance restricted stock units at December 31, 2014, and changes during 2014, is as follows: | |||||||||||||
Performance Restricted | Weighted-Average | |||||||||||||
Stock Units | Grant-Date | |||||||||||||
(in 000’s) | Fair Value | |||||||||||||
January 1, 2014(1) | 4,383 | $ | 22.19 | |||||||||||
Granted | 2,330 | 14.68 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | (1,737 | ) | 22.35 | |||||||||||
December 31, 2014(1) | 4,976 | $ | 17.53 | |||||||||||
(1) Based on initial target payout. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | 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. | |||||||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | (668.3 | ) | $ | (792.7 | ) | $ | (863.7 | ) | $ | (838.5 | ) | $ | (111.1 | ) | $ | (138.1 | ) | |||||||||||||||||||
Service cost | (14.1 | ) | (15.7 | ) | (8.5 | ) | (12.2 | ) | (1.1 | ) | (1.8 | ) | |||||||||||||||||||||||||
Interest cost | (27.8 | ) | (27.5 | ) | (36.5 | ) | (36.8 | ) | (4.9 | ) | (5.1 | ) | |||||||||||||||||||||||||
Actuarial (loss) gain | (124.6 | ) | 58.4 | (137.3 | ) | (21.0 | ) | (3.6 | ) | 22.9 | |||||||||||||||||||||||||||
Plan participant contributions | — | — | (.4 | ) | (.7 | ) | (2.8 | ) | (2.9 | ) | |||||||||||||||||||||||||||
Benefits paid | 129.1 | 109.2 | 53.1 | 44.8 | 10 | 10.5 | |||||||||||||||||||||||||||||||
Plan amendments | 2 | — | — | — | — | 1.3 | |||||||||||||||||||||||||||||||
Curtailments | (1.4 | ) | — | — | 1.5 | 0.3 | 0.9 | ||||||||||||||||||||||||||||||
Settlements | — | — | 0.7 | — | — | — | |||||||||||||||||||||||||||||||
Special termination benefits | (.1 | ) | — | — | — | (.2 | ) | (.5 | ) | ||||||||||||||||||||||||||||
Foreign currency changes and other | — | — | 82.4 | (.8 | ) | 1.7 | 1.7 | ||||||||||||||||||||||||||||||
Ending balance | $ | (705.2 | ) | $ | (668.3 | ) | $ | (910.2 | ) | $ | (863.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 531.1 | $ | 529.2 | $ | 715 | $ | 609.3 | $ | — | $ | — | |||||||||||||||||||||||||
Actual return on plan assets | 54.5 | 59.8 | 81.4 | 76.4 | — | — | |||||||||||||||||||||||||||||||
Company contributions | 50 | 51.3 | 31.4 | 67.4 | 7.2 | 7.6 | |||||||||||||||||||||||||||||||
Plan participant contributions | — | — | 0.4 | 0.7 | 2.8 | 2.9 | |||||||||||||||||||||||||||||||
Benefits paid | (129.1 | ) | (109.2 | ) | (53.1 | ) | (44.8 | ) | (10.0 | ) | (10.5 | ) | |||||||||||||||||||||||||
Foreign currency changes and other | — | — | (55.1 | ) | 6 | — | — | ||||||||||||||||||||||||||||||
Ending balance | $ | 506.5 | $ | 531.1 | $ | 720 | $ | 715 | $ | — | $ | — | |||||||||||||||||||||||||
Funded Status: | |||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (198.7 | ) | $ | (137.2 | ) | $ | (190.2 | ) | $ | (148.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Amount Recognized in Balance Sheet: | |||||||||||||||||||||||||||||||||||||
Other assets | $ | — | $ | — | $ | 2.7 | $ | 2.7 | $ | — | $ | — | |||||||||||||||||||||||||
Accrued compensation | (9.0 | ) | (10.3 | ) | (3.9 | ) | (4.0 | ) | (8.7 | ) | (8.8 | ) | |||||||||||||||||||||||||
Employee benefit plans liability | (189.7 | ) | (126.9 | ) | (189.0 | ) | (147.4 | ) | (103.0 | ) | (102.3 | ) | |||||||||||||||||||||||||
Net amount recognized | $ | (198.7 | ) | $ | (137.2 | ) | $ | (190.2 | ) | $ | (148.7 | ) | $ | (111.7 | ) | $ | (111.1 | ) | |||||||||||||||||||
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 380 | $ | 355.6 | $ | 338.9 | $ | 283.4 | $ | 27.5 | $ | 26 | |||||||||||||||||||||||||
Prior service credit | (2.1 | ) | (.4 | ) | (1.4 | ) | (.7 | ) | (24.8 | ) | (32.4 | ) | |||||||||||||||||||||||||
Total pretax amount recognized | $ | 377.9 | $ | 355.2 | $ | 337.5 | $ | 282.7 | $ | 2.7 | $ | (6.4 | ) | ||||||||||||||||||||||||
Supplemental Information: | |||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 701.6 | $ | 663.6 | $ | 860.5 | $ | 807.9 | N/A | N/A | |||||||||||||||||||||||||||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 705.2 | $ | 668.3 | $ | 902.6 | $ | 853.3 | N/A | N/A | |||||||||||||||||||||||||||
Fair value plan assets | 506.5 | 531.1 | 709.6 | 701.9 | N/A | N/A | |||||||||||||||||||||||||||||||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 705.2 | $ | 668.3 | $ | 883.3 | $ | 832.6 | N/A | N/A | |||||||||||||||||||||||||||
Accumulated benefit obligation | 701.6 | 663.6 | 850.8 | 797.5 | N/A | N/A | |||||||||||||||||||||||||||||||
Fair value plan assets | 506.5 | 531.1 | 696.1 | 687.5 | N/A | N/A | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 14.1 | $ | 15.7 | $ | 15.1 | $ | 8.5 | $ | 12.2 | $ | 18 | $ | 1.1 | $ | 1.8 | $ | 1.9 | |||||||||||||||||||
Interest cost | 27.8 | 27.5 | 29.6 | 36.5 | 36.8 | 39.8 | 4.9 | 5.1 | 5.8 | ||||||||||||||||||||||||||||
Expected return on plan assets | (35.8 | ) | (37.4 | ) | (36.0 | ) | (43.3 | ) | (40.7 | ) | (39.1 | ) | — | — | — | ||||||||||||||||||||||
Amortization of prior service credit | (.3 | ) | (.3 | ) | (.3 | ) | (.1 | ) | (.2 | ) | (1.3 | ) | (4.5 | ) | (4.8 | ) | (13.2 | ) | |||||||||||||||||||
Amortization of net actuarial losses | 45.1 | 47.2 | 43.7 | 9.8 | 12.8 | 17.6 | 1.4 | 2.5 | 4.1 | ||||||||||||||||||||||||||||
Settlements/curtailments | 38 | — | 0.8 | 2.7 | (4.3 | ) | 1.9 | (2.7 | ) | (1.8 | ) | (1.0 | ) | ||||||||||||||||||||||||
Other | — | — | — | 0.6 | 0.7 | 0.7 | — | — | — | ||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 88.9 | $ | 52.7 | $ | 52.9 | $ | 14.7 | $ | 17.3 | $ | 37.6 | $ | 0.2 | $ | 2.8 | $ | (2.4 | ) | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||||||||||||||||||||||||||||||||||||
Actuarial losses (gains) | $ | 105.9 | $ | (80.8 | ) | $ | 37.7 | $ | 99.2 | $ | (14.8 | ) | $ | 31 | $ | 3.6 | $ | (22.9 | ) | $ | 4.7 | ||||||||||||||||
Prior service (credit) cost | (2.0 | ) | — | — | — | — | 4.8 | — | (1.3 | ) | — | ||||||||||||||||||||||||||
Amortization of prior service credit | 0.3 | 0.3 | 0.3 | 0.1 | 7.9 | 2.4 | 7.3 | 7.1 | 14.6 | ||||||||||||||||||||||||||||
Amortization of net actuarial losses | (81.5 | ) | (47.2 | ) | (43.7 | ) | (13.1 | ) | (17.7 | ) | (21.8 | ) | (1.7 | ) | (3.4 | ) | (4.1 | ) | |||||||||||||||||||
Foreign currency changes | — | — | — | (31.3 | ) | 0.5 | 10.4 | (.1 | ) | (.2 | ) | (.2 | ) | ||||||||||||||||||||||||
Total recognized in other comprehensive (loss) income* | $ | 22.7 | $ | (127.7 | ) | $ | (5.7 | ) | $ | 54.9 | $ | (24.1 | ) | $ | 26.8 | $ | 9.1 | $ | (20.7 | ) | $ | 15 | |||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ | 111.6 | $ | (75.0 | ) | $ | 47.2 | $ | 69.6 | $ | (6.8 | ) | $ | 64.4 | $ | 9.3 | $ | (17.9 | ) | $ | 12.6 | ||||||||||||||||
Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost During Next Fiscal Year | The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost during 2015 are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement | |||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 46.4 | $ | 11.4 | $ | 2.1 | |||||||||||||||||||||||||||||||
Prior service credit | (.7 | ) | (.1 | ) | (4.1 | ) | |||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations | Assumptions | ||||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of December 31 were as follows: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement | ||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.83 | % | 4.54 | % | 3.34 | % | 4.58 | % | 4.12 | % | 4.91 | % | |||||||||||||||||||||||||
Rate of compensation increase | 4 | % | 3.91 | % | 3.3 | % | 3.63 | % | N/A | N/A | |||||||||||||||||||||||||||
Weighted-Average Assumptions Used to Determine Net Benefit Cost | Weighted-average assumptions used to determine net benefit cost recorded in the Consolidated Statements of Income for the years ended December 31 were as follows: | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Postretirement Benefits | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate | 4.54 | % | 3.55 | % | 4.1 | % | 4.58 | % | 4.59 | % | 5.3 | % | 4.91 | % | 3.99 | % | 4.66 | % | |||||||||||||||||||
Rate of compensation increase | 4 | % | 3.86 | % | 3.82 | % | 3.63 | % | 3.88 | % | 4.13 | % | N/A | N/A | N/A | ||||||||||||||||||||||
Rate of return on assets | 7.5 | % | 7.75 | % | 7.75 | % | 6.41 | % | 6.7 | % | 6.85 | % | N/A | N/A | N/A | ||||||||||||||||||||||
Pension and Postretirement Plans Target and Weighted-Average Asset Allocations | |||||||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||||||
Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2014 and 2013, by asset category were as follows: | |||||||||||||||||||||||||||||||||||||
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 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Equity securities | 30-35% | 28 | % | 58 | % | 30-35% | 60 | % | 63 | % | |||||||||||||||||||||||||||
Debt securities | 65-70 | 69 | 42 | 65-70 | 38 | 35 | |||||||||||||||||||||||||||||||
Real Estate | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other | — | 3 | — | 0-5 | 2 | 2 | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||
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 as of December 31, 2014: | ||||||||||||||||||||||||||||||||||||
U.S. Pension Plan | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 21.5 | $ | 21.5 | |||||||||||||||||||||||||||||||
International equity | — | 93.5 | 93.5 | ||||||||||||||||||||||||||||||||||
Emerging markets | — | 25.7 | 25.7 | ||||||||||||||||||||||||||||||||||
— | 140.7 | 140.7 | |||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 208.1 | 208.1 | ||||||||||||||||||||||||||||||||||
Government securities | — | 141.5 | 141.5 | ||||||||||||||||||||||||||||||||||
— | 349.6 | 349.6 | |||||||||||||||||||||||||||||||||||
Cash | 18 | — | 18 | ||||||||||||||||||||||||||||||||||
Derivatives | — | (1.8 | ) | (1.8 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 18 | $ | 488.5 | $ | 506.5 | |||||||||||||||||||||||||||||||
Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 115.5 | $ | — | $ | 115.5 | |||||||||||||||||||||||||||||
International equity | — | 316.8 | — | 316.8 | |||||||||||||||||||||||||||||||||
— | 432.3 | — | 432.3 | ||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 106.2 | — | 106.2 | |||||||||||||||||||||||||||||||||
Government securities | — | 138.1 | — | 138.1 | |||||||||||||||||||||||||||||||||
Other | — | 28.8 | — | 28.8 | |||||||||||||||||||||||||||||||||
— | 273.1 | — | 273.1 | ||||||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||
Cash | 12.7 | — | — | 12.7 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||
Other | — | — | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||
12.7 | — | 1.9 | 14.6 | ||||||||||||||||||||||||||||||||||
Total | $ | 12.7 | $ | 705.4 | $ | 1.9 | $ | 720 | |||||||||||||||||||||||||||||
The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||
U.S. Pension Plan | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 186.7 | $ | 186.7 | |||||||||||||||||||||||||||||||
International equity | — | 75.4 | 75.4 | ||||||||||||||||||||||||||||||||||
Emerging markets | — | 43.4 | 43.4 | ||||||||||||||||||||||||||||||||||
— | 305.5 | 305.5 | |||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 154 | 154 | ||||||||||||||||||||||||||||||||||
Government securities | — | 70.7 | 70.7 | ||||||||||||||||||||||||||||||||||
— | 224.7 | 224.7 | |||||||||||||||||||||||||||||||||||
Cash | 0.9 | — | 0.9 | ||||||||||||||||||||||||||||||||||
Total | $ | 0.9 | $ | 530.2 | $ | 531.1 | |||||||||||||||||||||||||||||||
Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||||||||||||||
Domestic equity | $ | — | $ | 97.8 | $ | — | $ | 97.8 | |||||||||||||||||||||||||||||
International equity | — | 354.8 | — | 354.8 | |||||||||||||||||||||||||||||||||
— | 452.6 | — | 452.6 | ||||||||||||||||||||||||||||||||||
Fixed Income Securities: | |||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 100.8 | — | 100.8 | |||||||||||||||||||||||||||||||||
Government securities | — | 137.1 | — | 137.1 | |||||||||||||||||||||||||||||||||
Other | — | 11 | — | 11 | |||||||||||||||||||||||||||||||||
— | 248.9 | — | 248.9 | ||||||||||||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||||||||
Cash | 11.2 | — | — | 11.2 | |||||||||||||||||||||||||||||||||
Real estate | — | — | 1.2 | 1.2 | |||||||||||||||||||||||||||||||||
Other | — | — | 1.1 | 1.1 | |||||||||||||||||||||||||||||||||
11.2 | — | 2.3 | 13.5 | ||||||||||||||||||||||||||||||||||
Total | $ | 11.2 | $ | 701.5 | $ | 2.3 | $ | 715 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||
Amount | |||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 13.5 | |||||||||||||||||||||||||||||||||||
Purchases and sales, net | (10.4 | ) | |||||||||||||||||||||||||||||||||||
Actual return on plan assets held | (.5 | ) | |||||||||||||||||||||||||||||||||||
Foreign currency changes | (.3 | ) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 2.3 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets held | (.3 | ) | |||||||||||||||||||||||||||||||||||
Foreign currency changes | (.1 | ) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 1.9 | |||||||||||||||||||||||||||||||||||
Expected Benefit Payments | Total benefit payments expected to be paid from the plans are as follows: | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Total | Postretirement | ||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
2015 | $ | 101.4 | $ | 38.4 | $ | 139.8 | $ | 8.7 | |||||||||||||||||||||||||||||
2016 | 68.4 | 40.6 | 109 | 8.6 | |||||||||||||||||||||||||||||||||
2017 | 65.1 | 41.3 | 106.4 | 8.5 | |||||||||||||||||||||||||||||||||
2018 | 51 | 42.7 | 93.7 | 8.4 | |||||||||||||||||||||||||||||||||
2019 | 48.8 | 43.7 | 92.5 | 8.2 | |||||||||||||||||||||||||||||||||
2020-2024 | 215.4 | 236.2 | 451.6 | 37.2 | |||||||||||||||||||||||||||||||||
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in the assumed health care cost trend rates for all postretirement plans would have the following effects: | ||||||||||||||||||||||||||||||||||||
1 Percentage | 1 Percentage | ||||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 0.2 | $ | (.2 | ) | ||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 2.2 | (2.0 | ) | ||||||||||||||||||||||||||||||||||
Assets Held in Trust | 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: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Corporate-owned life insurance policies | $ | 32.2 | $ | 30.5 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | 1.4 | 0.8 | |||||||||||||||||||||||||||||||||||
Total | $ | 33.6 | $ | 31.3 | |||||||||||||||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||
Total Revenue & Operating Profit by Reporting Segment | |||||||||||||||||||||||||
Total Revenue & Operating Profit (Loss) | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Total | Operating | Total | Operating | Total | Operating | ||||||||||||||||||||
Revenue | Profit (Loss) | Revenue | Profit (Loss) | Revenue | Profit (Loss) | ||||||||||||||||||||
Latin America | $ | 4,239.50 | $ | 279.8 | $ | 4,840.50 | $ | 478.6 | $ | 4,993.70 | $ | 443.9 | |||||||||||||
Europe, Middle East & Africa | 2,705.80 | 300.9 | 2,898.40 | 406.7 | 2,914.20 | 312.8 | |||||||||||||||||||
North America | 1,203.40 | (72.5 | ) | 1,458.20 | (60.1 | ) | 1,751.10 | (4.7 | ) | ||||||||||||||||
Asia Pacific | 702.7 | 20.9 | 757.9 | (12.1 | ) | 902.4 | 5.1 | ||||||||||||||||||
Total from operations | 8,851.40 | 529.1 | 9,955.00 | 813.1 | 10,561.40 | 757.1 | |||||||||||||||||||
Global and other | — | (129.0 | ) | — | (385.9 | ) | — | (232.1 | ) | ||||||||||||||||
Total | $ | 8,851.40 | $ | 400.1 | $ | 9,955.00 | $ | 427.2 | $ | 10,561.40 | $ | 525 | |||||||||||||
Total Assets | |||||||||||||||||||||||||
Total Assets | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 2,033.00 | $ | 2,432.70 | $ | 2,713.30 | |||||||||||||||||||
Europe, Middle East & Africa | 1,170.60 | 1,370.90 | 1,380.20 | ||||||||||||||||||||||
North America | 429.9 | 519.5 | 635.9 | ||||||||||||||||||||||
Asia Pacific | 390.8 | 441.7 | 537.7 | ||||||||||||||||||||||
Total from continuing operations | 4,024.30 | 4,764.80 | 5,267.10 | ||||||||||||||||||||||
Total from discontinued operations | — | — | 190.6 | ||||||||||||||||||||||
Global and other | 1,472.50 | 1,727.50 | 1,924.80 | ||||||||||||||||||||||
Total assets | $ | 5,496.80 | $ | 6,492.30 | $ | 7,382.50 | |||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 82.6 | $ | 94.1 | $ | 99 | |||||||||||||||||||
Europe, Middle East & Africa | 19 | 20 | 27.1 | ||||||||||||||||||||||
North America | 4.7 | 7.6 | 8.6 | ||||||||||||||||||||||
Asia Pacific | 3.3 | 6.6 | 4.6 | ||||||||||||||||||||||
Total from operations | 109.6 | 128.3 | 139.3 | ||||||||||||||||||||||
Global and other | 21.5 | 69 | 89.2 | ||||||||||||||||||||||
Total capital expenditures | $ | 131.1 | $ | 197.3 | $ | 228.5 | |||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Latin America | $ | 70.9 | $ | 72.2 | $ | 74.3 | |||||||||||||||||||
Europe, Middle East & Africa | 40 | 46.6 | 47 | ||||||||||||||||||||||
North America | 22.1 | 37.4 | 33.7 | ||||||||||||||||||||||
Asia Pacific | 17.3 | 21.9 | 21.2 | ||||||||||||||||||||||
Total from operations | 150.3 | 178.1 | 176.2 | ||||||||||||||||||||||
Global and other | 42.3 | 46.5 | 36.3 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 192.6 | $ | 224.6 | $ | 212.5 | |||||||||||||||||||
Total Revenue by Major Country | Total Revenue by Major Country | ||||||||||||||||||||||||
A major country is defined as one with total revenues greater than 10% of consolidated total revenues. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Brazil | $ | 1,909.30 | $ | 2,014.00 | $ | 2,041.70 | |||||||||||||||||||
U.S. | 1,008.30 | 1,221.80 | 1,454.10 | ||||||||||||||||||||||
All other | 5,933.80 | 6,719.20 | 7,065.60 | ||||||||||||||||||||||
Total | $ | 8,851.40 | $ | 9,955.00 | $ | 10,561.40 | |||||||||||||||||||
Long-Lived Assets by Major Country | 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. Long-lived assets primarily include property, plant and equipment and intangible assets. Long-lived assets in the U.S. and Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
U.S. | $ | 418.5 | $ | 450.4 | $ | 714.4 | |||||||||||||||||||
Brazil | 361.9 | 421.5 | 484.5 | ||||||||||||||||||||||
All other | 1,005.30 | 1,153.40 | 1,232.60 | ||||||||||||||||||||||
Total | $ | 1,785.70 | $ | 2,025.30 | $ | 2,431.50 | |||||||||||||||||||
Leases_and_Commitments_Tables
Leases and Commitments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Schedule Of Minimum Rental Commitments And Purchase Obligations | Purchase obligations include commitments to purchase paper, inventory and other services. | ||||||||
Year | Leases | Purchase | |||||||
Obligations | |||||||||
2015 | $ | 92.8 | $ | 187.3 | |||||
2016 | 80.7 | 59.4 | |||||||
2017 | 64.2 | 17.8 | |||||||
2018 | 53.9 | 8.6 | |||||||
2019 | 47.9 | 3.2 | |||||||
Later years | 123.1 | 1.1 | |||||||
Sublease rental income | (39.9 | ) | N/A | ||||||
Total | $ | 422.7 | $ | 277.4 | |||||
Restructuring_Initiatives_Tabl
Restructuring Initiatives (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Restructuring and Related Costs Related to $400M Cost Savings Initiative | The following table presents the restructuring charges incurred to-date, net of adjustments, under our $400M Cost Savings Initiative, along with the estimated charges expected to be incurred on approved initiatives under the plan: | ||||||||||||||||||||||||
Employee- | Inventory/ Asset Write-offs | Foreign Currency | Contract | Total | |||||||||||||||||||||
Related | Translation | Terminations/ | |||||||||||||||||||||||
Costs | Adjustment | Other | |||||||||||||||||||||||
Write-offs | |||||||||||||||||||||||||
Charges incurred to date | $ | 167.6 | $ | 0.7 | $ | 0.2 | $ | 13 | $ | 181.5 | |||||||||||||||
Estimated charges to be incurred on approved initiatives | 4.4 | 4.1 | — | 6 | 14.5 | ||||||||||||||||||||
Total expected charges on approved initiatives | $ | 172 | $ | 4.8 | $ | 0.2 | $ | 19 | $ | 196 | |||||||||||||||
Charges Reportable by Business Segment Under $400M Cost Savings Initiative | The charges, net of adjustments, of initiatives under the $400M Cost Savings Initiative by reportable business segment were as follows: | ||||||||||||||||||||||||
Latin | Europe, Middle East & Africa | North | Asia | Corporate | Total | ||||||||||||||||||||
America | America | Pacific | |||||||||||||||||||||||
2012 | $ | 12.9 | $ | 1.1 | $ | 18 | $ | 12.9 | $ | 3.6 | $ | 48.5 | |||||||||||||
2013 | 11.1 | 15.6 | 5.3 | 1.3 | 17.7 | 51 | |||||||||||||||||||
2014 | 24.5 | 19.9 | 14 | 6.5 | 17.1 | 82 | |||||||||||||||||||
Charges incurred to date | 48.5 | 36.6 | 37.3 | 20.7 | 38.4 | 181.5 | |||||||||||||||||||
Estimated charges to be incurred on approved initiatives | 2.2 | — | 11.5 | 0.8 | — | 14.5 | |||||||||||||||||||
Total expected charges on approved initiatives | $ | 50.7 | $ | 36.6 | $ | 48.8 | $ | 21.5 | $ | 38.4 | $ | 196 | |||||||||||||
$400M Cost Savings Initiative [Member] | |||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The liability balance for the $400M Cost Savings Initiative as of December 31, 2014 is as follows: | ||||||||||||||||||||||||
Employee- | Inventory/ Asset Write-offs | Foreign Currency Translation Adjustment Write-offs | Contract Terminations/ Other | Total | |||||||||||||||||||||
Related | |||||||||||||||||||||||||
Costs | |||||||||||||||||||||||||
2012 Charges | $ | 45.2 | $ | 1.4 | $ | — | $ | 1.9 | $ | 48.5 | |||||||||||||||
Cash payments | (3.2 | ) | — | — | (.2 | ) | (3.4 | ) | |||||||||||||||||
Non-cash write-offs | (.8 | ) | (1.4 | ) | — | — | (2.2 | ) | |||||||||||||||||
Foreign exchange | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 41.3 | $ | — | $ | — | $ | 1.7 | $ | 43 | |||||||||||||||
2013 Charges | 54.4 | 0.1 | (3.5 | ) | 5.3 | 56.3 | |||||||||||||||||||
Adjustments | (4.0 | ) | (.8 | ) | — | (.5 | ) | (5.3 | ) | ||||||||||||||||
Cash payments | (44.9 | ) | — | — | (4.8 | ) | (49.7 | ) | |||||||||||||||||
Non-cash write-offs | (.2 | ) | 0.7 | 3.5 | — | 4 | |||||||||||||||||||
Foreign exchange | 0.1 | — | — | 0.1 | 0.2 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 46.7 | $ | — | $ | — | $ | 1.8 | $ | 48.5 | |||||||||||||||
2014 Charges | 80.4 | — | 3.7 | 7.4 | 91.5 | ||||||||||||||||||||
Adjustments | (8.4 | ) | — | — | (1.1 | ) | (9.5 | ) | |||||||||||||||||
Cash payments | (66.9 | ) | — | — | (7.5 | ) | (74.4 | ) | |||||||||||||||||
Non-cash write-offs | 0.6 | — | (3.7 | ) | — | (3.1 | ) | ||||||||||||||||||
Foreign exchange | (2.3 | ) | — | — | (.1 | ) | (2.4 | ) | |||||||||||||||||
Balance at December 31, 2014 | $ | 50.1 | $ | — | $ | — | $ | 0.5 | $ | 50.6 | |||||||||||||||
Other Restructuring Initiatives [Member] | |||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The liability balance for these various restructuring initiatives as of December 31, 2014 is as follows: | ||||||||||||||||||||||||
Employee- | Contract Terminations/Other | Total | |||||||||||||||||||||||
Related | |||||||||||||||||||||||||
Costs | |||||||||||||||||||||||||
2012 Charges | $ | 53.4 | $ | 12 | $ | 65.4 | |||||||||||||||||||
Cash payments | (33.9 | ) | (.2 | ) | (34.1 | ) | |||||||||||||||||||
Non-cash write-offs | (1.6 | ) | — | (1.6 | ) | ||||||||||||||||||||
Foreign exchange | (.3 | ) | — | (.3 | ) | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 17.6 | $ | 11.8 | $ | 29.4 | |||||||||||||||||||
2013 Charges | 0.8 | 6.1 | 6.9 | ||||||||||||||||||||||
Adjustments | (1.9 | ) | — | (1.9 | ) | ||||||||||||||||||||
Cash payments | (14.4 | ) | (5.6 | ) | (20.0 | ) | |||||||||||||||||||
Foreign exchange | (.1 | ) | — | (.1 | ) | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 2 | $ | 12.3 | $ | 14.3 | |||||||||||||||||||
2014 Charges | — | 1.9 | 1.9 | ||||||||||||||||||||||
Adjustments | (.1 | ) | — | (.1 | ) | ||||||||||||||||||||
Cash payments | (1.5 | ) | (5.7 | ) | (7.2 | ) | |||||||||||||||||||
Balance at December 31, 2014 | $ | 0.4 | $ | 8.5 | $ | 8.9 | |||||||||||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Adjustments to Goodwill | Goodwill | ||||||||||||||||
Latin | Europe, Middle East & Africa | Asia | Total | ||||||||||||||
America | Pacific | ||||||||||||||||
Gross balance at December 31, 2013 | $ | 112.6 | $ | 167.3 | $ | 85 | $ | 364.9 | |||||||||
Accumulated impairments | — | — | (82.4 | ) | (82.4 | ) | |||||||||||
Net balance at December 31, 2013 | $ | 112.6 | $ | 167.3 | $ | 2.6 | $ | 282.5 | |||||||||
Changes during the period ended December 31, 2014: | |||||||||||||||||
Foreign exchange | $ | (21.9 | ) | $ | (11.3 | ) | $ | — | $ | (33.2 | ) | ||||||
Gross balance at December 31, 2014 | $ | 90.7 | $ | 156 | $ | 85 | $ | 331.7 | |||||||||
Accumulated impairments | — | — | (82.4 | ) | (82.4 | ) | |||||||||||
Net balance at December 31, 2014 | $ | 90.7 | $ | 156 | $ | 2.6 | $ | 249.3 | |||||||||
Schedule of Intangible Assets | Other intangible assets | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Finite-Lived Intangible Assets | |||||||||||||||||
Customer relationships | $ | 33 | $ | (31.1 | ) | $ | 39.9 | $ | (36.5 | ) | |||||||
Licensing agreements | 43.4 | (39.9 | ) | 52.3 | (47.3 | ) | |||||||||||
Noncompete agreements | 7.2 | (7.2 | ) | 8.1 | (8.1 | ) | |||||||||||
Trademarks | — | — | 6.6 | (6.6 | ) | ||||||||||||
Indefinite-Lived Trademarks | 23.6 | — | 25.1 | — | |||||||||||||
Total | $ | 107.2 | $ | (78.2 | ) | $ | 132 | $ | (98.5 | ) | |||||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Components of Prepaid Expenses and Other | At December 31, 2014 and 2013, prepaid expenses and other included the following: | ||||||||
Prepaid expenses and other | 2014 | 2013 | |||||||
Deferred tax assets (Note 7) | $ | 204.7 | $ | 233.6 | |||||
Prepaid taxes and tax refunds receivable | 165.7 | 145.9 | |||||||
Prepaid brochure costs, paper and other literature | 77.6 | 95.7 | |||||||
Receivables other than trade | 72.5 | 86.6 | |||||||
Short-term investments | 21 | 31.7 | |||||||
Other | 76.8 | 95.8 | |||||||
Prepaid expenses and other | $ | 618.3 | $ | 689.3 | |||||
Components of Other Assets | At December 31, 2014 and 2013, other assets included the following: | ||||||||
Other assets | 2014 | 2013 | |||||||
Deferred tax assets (Note 7) | $ | 685.8 | $ | 944.7 | |||||
Long-term receivables | 149.5 | 168 | |||||||
Capitalized software (Note 1) | 101.3 | 122.9 | |||||||
Investments | 36.4 | 33.8 | |||||||
Other intangible assets, net (Note 16) | 29 | 33.5 | |||||||
Tooling | 21.7 | 37.9 | |||||||
Other | 28.3 | 34.5 | |||||||
Other assets | $ | 1,052.00 | $ | 1,375.30 | |||||
Results_of_Operations_by_Quart1
Results of Operations by Quarter (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||
Financial Results of Operations by Quarter | ||||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | |||||||||||||||||
Total revenue | $ | 2,183.60 | $ | 2,188.60 | $ | 2,138.20 | $ | 2,341.00 | 8,851.40 | |||||||||||||
Gross profit | 1,228.20 | 1,377.90 | 1,324.30 | 1,421.70 | 5,352.10 | |||||||||||||||||
Operating (loss) profit(1) | (50.9 | ) | 93.2 | 187.9 | 169.9 | 400.1 | ||||||||||||||||
(Loss) income from continuing operations, before taxes(2) | (141.0 | ) | 65.7 | 144.4 | 95.1 | 164.2 | ||||||||||||||||
(Loss) income from continuing operations, net of tax (3) | (167.2 | ) | 19.9 | 92 | (329.6 | ) | (384.9 | ) | ||||||||||||||
Net income attributable to noncontrolling interests | (1.1 | ) | (.9 | ) | (.6 | ) | (1.1 | ) | (3.7 | ) | ||||||||||||
Net (loss) income attributable to Avon | $ | (168.3 | ) | $ | 19 | $ | 91.4 | $ | (330.7 | ) | (388.6 | ) | ||||||||||
(Loss) earnings per share from continuing operations | ||||||||||||||||||||||
Basic | $ | (.38 | ) | $ | 0.04 | $ | 0.21 | $ | (.75 | ) | $ | (.88 | ) | -4 | ||||||||
Diluted | (.38 | ) | 0.04 | 0.21 | (.75 | ) | (.88 | ) | -4 | |||||||||||||
2013 | First | Second | Third | Fourth | Year | |||||||||||||||||
Total revenue | $ | 2,456.00 | $ | 2,508.90 | $ | 2,322.90 | $ | 2,667.20 | $ | 9,955.00 | ||||||||||||
Gross profit | 1,530.60 | 1,573.50 | 1,451.20 | 1,627.20 | 6,182.50 | |||||||||||||||||
Operating profit (loss)(1) | 174 | 202.2 | 68.2 | (17.2 | ) | 427.2 | ||||||||||||||||
Income (loss) from continuing operations, before taxes(2) | 29.3 | 145.3 | 31.6 | (43.6 | ) | 162.6 | ||||||||||||||||
(Loss) income from continuing operations, net of tax(3) | (11.5 | ) | 84.6 | (6.4 | ) | (67.7 | ) | (1.0 | ) | |||||||||||||
(Loss) income from discontinued operations, net of tax | (1.1 | ) | (50.4 | ) | 0.6 | — | (50.9 | ) | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (1.1 | ) | (2.3 | ) | 0.3 | (1.4 | ) | (4.5 | ) | |||||||||||||
Net (loss) income attributable to Avon | $ | (13.7 | ) | $ | 31.9 | $ | (5.5 | ) | $ | (69.1 | ) | $ | (56.4 | ) | ||||||||
(Loss) earnings per share from continuing operations | ||||||||||||||||||||||
Basic | $ | (.03 | ) | $ | 0.19 | $ | (.01 | ) | $ | (.16 | ) | $ | (.01 | ) | -4 | |||||||
Diluted | (.03 | ) | 0.19 | (.01 | ) | (.16 | ) | (.01 | ) | -4 | ||||||||||||
(1) Operating profit (loss) was impacted by the following: | ||||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Selling, general and administrative expenses | 22.7 | 51.2 | 2.5 | 37.8 | 114.2 | |||||||||||||||||
Total costs to implement restructuring initiatives | $ | 22.7 | $ | 51.2 | $ | 2.5 | $ | 37.8 | $ | 114.2 | ||||||||||||
Venezuelan special items | $ | 115.7 | $ | 18 | $ | 2 | $ | 1.4 | $ | 137.1 | ||||||||||||
FCPA accrual | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | ||||||||||||
Pension settlement charge | $ | — | $ | 23.5 | $ | 5.4 | $ | 7.5 | $ | 36.4 | ||||||||||||
2013 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | (.6 | ) | $ | (.3 | ) | $ | — | $ | — | $ | (.9 | ) | |||||||||
Selling, general and administrative expenses | 20.9 | 8.7 | (.2 | ) | 37.4 | 66.8 | ||||||||||||||||
Total costs to implement restructuring initiatives | $ | 20.3 | $ | 8.4 | $ | (.2 | ) | $ | 37.4 | $ | 65.9 | |||||||||||
Venezuelan special items | $ | 13.3 | $ | 16.5 | $ | 14.9 | $ | 4.9 | $ | 49.6 | ||||||||||||
FCPA accrual | $ | — | $ | 12 | $ | — | $ | 77 | $ | 89 | ||||||||||||
Asset impairment and other charges | $ | — | $ | — | $ | 42.1 | $ | 117.2 | $ | 159.3 | ||||||||||||
-2 | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate. | |||||||||||||||||||||
In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | ||||||||||||||||||||||
-3 | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. | |||||||||||||||||||||
In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | ||||||||||||||||||||||
-4 | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. | |||||||||||||||||||||
See Note 15, Restructuring Initiatives, "Results Of Operations - Consolidated" within MD&A on pages 32 through 39, "Segment Review - Latin America" within MD&A on pages 40 through 44, Note 15, Contingencies, Note 11, Employee Benefit Plans, Note 16, Goodwill and Intangibles, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 5, Debt and Other Financing and Note 7, Income Taxes, for more information on these items. | ||||||||||||||||||||||
Components Impacting Results of Operations | (1) Operating profit (loss) was impacted by the following: | |||||||||||||||||||||
2014 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Selling, general and administrative expenses | 22.7 | 51.2 | 2.5 | 37.8 | 114.2 | |||||||||||||||||
Total costs to implement restructuring initiatives | $ | 22.7 | $ | 51.2 | $ | 2.5 | $ | 37.8 | $ | 114.2 | ||||||||||||
Venezuelan special items | $ | 115.7 | $ | 18 | $ | 2 | $ | 1.4 | $ | 137.1 | ||||||||||||
FCPA accrual | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | ||||||||||||
Pension settlement charge | $ | — | $ | 23.5 | $ | 5.4 | $ | 7.5 | $ | 36.4 | ||||||||||||
2013 | First | Second | Third | Fourth | Year | |||||||||||||||||
Costs to implement restructuring initiatives: | ||||||||||||||||||||||
Cost of sales | $ | (.6 | ) | $ | (.3 | ) | $ | — | $ | — | $ | (.9 | ) | |||||||||
Selling, general and administrative expenses | 20.9 | 8.7 | (.2 | ) | 37.4 | 66.8 | ||||||||||||||||
Total costs to implement restructuring initiatives | $ | 20.3 | $ | 8.4 | $ | (.2 | ) | $ | 37.4 | $ | 65.9 | |||||||||||
Venezuelan special items | $ | 13.3 | $ | 16.5 | $ | 14.9 | $ | 4.9 | $ | 49.6 | ||||||||||||
FCPA accrual | $ | — | $ | 12 | $ | — | $ | 77 | $ | 89 | ||||||||||||
Asset impairment and other charges | $ | — | $ | — | $ | 42.1 | $ | 117.2 | $ | 159.3 | ||||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||||||||||||||
Valuation And Qualifying Accounts | |||||||||||||||||||||||
Additions | |||||||||||||||||||||||
(In millions) | Balance at | Charged | Charged | Deductions | Balance | ||||||||||||||||||
Description | Beginning | to Costs | to | at End of | |||||||||||||||||||
of Period | and | Revenue | Period | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 129.6 | $ | 192.5 | $ | — | $ | (221.3 | ) | -1 | $ | 100.8 | |||||||||||
Allowance for sales returns | 17.6 | — | 298.1 | (298.5 | ) | -2 | 17.2 | ||||||||||||||||
Allowance for inventory obsolescence | 150.8 | 100.9 | — | (129.8 | ) | -3 | 121.9 | ||||||||||||||||
Deferred tax asset valuation allowance | 783.4 | 425.2 | -4 | — | — | 1,208.60 | |||||||||||||||||
2013 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 134.3 | $ | 239.3 | $ | — | $ | (244.0 | ) | -1 | $ | 129.6 | |||||||||||
Allowance for sales returns | 26.8 | — | 340 | (349.2 | ) | -2 | 17.6 | ||||||||||||||||
Allowance for inventory obsolescence | 164.8 | 117.1 | — | (131.1 | ) | -3 | 150.8 | ||||||||||||||||
Deferred tax asset valuation allowance | 627.4 | 156 | -4 | — | — | 783.4 | |||||||||||||||||
2012 | |||||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 138.4 | $ | 250.9 | $ | — | $ | (255.0 | ) | -1 | $ | 134.3 | |||||||||||
Allowance for sales returns | 35.8 | — | 386.4 | (395.4 | ) | -2 | 26.8 | ||||||||||||||||
Allowance for inventory obsolescence | 147.4 | 118.8 | — | (101.4 | ) | -3 | 164.8 | ||||||||||||||||
Deferred tax asset valuation allowance | 546.1 | 81.3 | -4 | — | — | 627.4 | |||||||||||||||||
-1 | Accounts written off, net of recoveries and foreign currency translation adjustment. | ||||||||||||||||||||||
-2 | Returned product destroyed and foreign currency translation adjustment. | ||||||||||||||||||||||
-3 | Obsolete inventory destroyed and foreign currency translation adjustment. | ||||||||||||||||||||||
-4 | Increase in valuation allowance primarily for deferred tax assets that are not more likely than not to be realized in the future. |
Description_of_the_Business_an3
Description of the Business and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 13, 2013 |
Charge for Venezuelan non-monetary assets to net realizable value | $115.70 | $115.70 | $0 | $0 | |||
Venezuela foreign currency devaluation | 88.00% | 32.00% | |||||
Exchange rate net charges, total | 41.8 | 50.7 | |||||
Exchange rate net charges on other expense, net | 53.7 | 34.1 | |||||
Exchange rate net charges on income taxes | -11.9 | 16.6 | |||||
Prepaid expenses and other | 618.3 | 689.3 | 689.3 | ||||
Brochure costs | 389.7 | 461.7 | 506.3 | ||||
Brochure income | 243.3 | 274.1 | 285.9 | ||||
Capitalized interest | 1.4 | 2 | |||||
Capitalization period of software | 5 years | ||||||
Capitalized software | 101.3 | 122.9 | 122.9 | ||||
Amortization of capitalized software | 48.4 | 55.4 | 41.2 | ||||
Minimum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 80.00% | ||||||
Maximum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 125.00% | ||||||
Shipping and handling costs | 861.7 | 990.1 | 1,027.70 | ||||
Advertising costs | 177.1 | 201.9 | 251.3 | ||||
Research and development costs | 62.5 | 67.2 | 73.3 | ||||
Stock Options Excluded from Computation of Earnings Per Share Due to Net Loss, Including Options With Higher Exercise Prices than Average Market Price | 18 | 18.3 | |||||
Stock options excluded from computation of earnings per share due to net loss | 0.8 | ||||||
Antidilutive stock options excluded from diluted earnings per share | 22 | ||||||
Building [Member] | |||||||
Estimated useful lives | 45 years | ||||||
Land Improvements [Member] | |||||||
Estimated useful lives | 20 years | ||||||
Machinery and Equipment [Member] | |||||||
Estimated useful lives | 15 years | ||||||
Minimum [Member] | Office Equipment [Member] | |||||||
Estimated useful lives | 5 years | ||||||
Maximum [Member] | Office Equipment [Member] | |||||||
Estimated useful lives | 10 years | ||||||
Deferred Brochure Costs [Member] | |||||||
Prepaid expenses and other | 29.9 | 38.3 | 38.3 | ||||
Paper Supply [Member] | |||||||
Prepaid expenses and other | 8.5 | 9.1 | 9.1 | ||||
SMT [Member] | |||||||
Capitalized software impairment | 117.2 | ||||||
Capitalized software impairment, net of tax | $74.10 |
Description_of_the_Business_an4
Description of the Business and Summary of Significant Accounting Policies Description of the Business and Summary of Significant Accounting Policies Out of Period (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2012 |
Revisions and Out-of-Period Items | |||
Out Of Period Adjustment | ($13) | $13 | |
Out of Period Adjustment After Tax | 1 | 15 | |
South Africa [Member] | |||
Revisions and Out-of-Period Items | |||
Out Of Period Adjustment | 14 | ||
Out of Period Adjustment After Tax | 10 | ||
Latin America [Member] | |||
Revisions and Out-of-Period Items | |||
Out Of Period Adjustment | ($15) |
Description_of_the_Business_an5
Description of the Business and Summary of Significant Accounting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Numerator from continuing operations: [Abstract] | |||||||||||||||||||||
(Loss) income from continuing operations less amounts attributable to noncontrolling interests | ($388.60) | ($5.50) | $89 | ||||||||||||||||||
Less: Loss (earnings) allocated to participating securities, continuing operations | 4.7 | 0.1 | -0.8 | ||||||||||||||||||
(Loss) income from continuing operations allocated to common shareholders, continuing operations | -383.9 | -5.4 | 88.2 | ||||||||||||||||||
Numerator from discontinued operations: [Abstract] | |||||||||||||||||||||
Loss from discontinued operations plus/less amounts attributable to noncontrolling interests | 0 | -50.9 | -131.5 | ||||||||||||||||||
Less: Loss allocated to participating securities, discontinued operations | 0 | 0.5 | 1 | ||||||||||||||||||
Loss allocated to common shareholders, discontinued operations | 0 | -50.4 | -130.5 | ||||||||||||||||||
Numerator attributable to Avon: | |||||||||||||||||||||
Loss attributable to Avon less amounts attributable to noncontrolling interests | -330.7 | [1] | 91.4 | 19 | -168.3 | [2] | -69.1 | [1],[2] | -5.5 | [1] | 31.9 | [2] | -13.7 | [2] | -388.6 | [1],[2] | -56.4 | [1],[2] | -42.5 | ||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | -4.7 | -0.5 | -0.3 | ||||||||||||||||||
(Loss) income allocated to common shareholders | ($383.90) | ($55.90) | ($42.20) | ||||||||||||||||||
Denominator | |||||||||||||||||||||
Basic EPS weighted-average shares outstanding | 434.5 | 433.4 | 431.9 | ||||||||||||||||||
Diluted effect of assumed conversion of stock options | 0 | 0 | 0.6 | ||||||||||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 434.5 | 433.4 | 432.5 | ||||||||||||||||||
Earnings per Common Share from continuing operations: [Abstract] | |||||||||||||||||||||
(Loss) Earnings Per Common Share from continuing operations, Basic | ($0.75) | [1],[3] | $0.21 | [3] | $0.04 | [3] | ($0.38) | [2],[3] | ($0.16) | [1],[2] | ($0.01) | [1],[3] | $0.19 | [2],[3] | ($0.03) | [2],[3] | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
(Loss) Earnings Per Common Share from continuing operations, Diluted | ($0.75) | [1],[3] | $0.21 | [3] | $0.04 | [3] | ($0.38) | [2],[3] | ($0.16) | [1],[2] | ($0.01) | [1],[3] | $0.19 | [2],[3] | ($0.03) | [2],[3] | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
Loss per Common Share from discontinued operations: | |||||||||||||||||||||
Loss Per Common Share from discontinued operations, Basic | $0 | ($0.12) | ($0.30) | ||||||||||||||||||
Loss Per Common Share from discontinued operations, Diluted | $0 | ($0.12) | ($0.30) | ||||||||||||||||||
Earnings (Loss) per Common Share attributable to Avon: | |||||||||||||||||||||
(Loss) Earnings per Common Share attributable to Avon, Basic | ($0.88) | ($0.13) | ($0.10) | ||||||||||||||||||
(Loss) Earnings per Common Share attributable to Avon, Diluted | ($0.88) | ($0.13) | ($0.10) | ||||||||||||||||||
[1] | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | ||||||||||||||||||||
[2] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of goodwill and intangible assets | $0 | $42.10 | $44 | ||||
Goodwill | 249.3 | 282.5 | |||||
Indefinite-Lived Trademarks | 23.6 | 25.1 | |||||
Silpada lower revenue than prior year results | 19.00% | ||||||
Silpada [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from sale of business | 85 | ||||||
Silpada potential earn-out | 15 | ||||||
Business Combination, Contingent Consideration Arrangements, Description | if Silpada achieves specific earnings targets over two years | ||||||
Loss on sale of business, before tax | 0.4 | 79 | 79.4 | ||||
Loss on sale of business, after tax | 50 | 50.4 | |||||
Impairment of goodwill and intangible assets | 209 | ||||||
Goodwill | 44.6 | 44.6 | 116.7 | ||||
Goodwill, Impairment Loss | 72.1 | ||||||
Indefinite-Lived Trademarks | 40 | 40 | 85 | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 45 | ||||||
Finite-Lived Intangible Assets, Net | 40 | 40 | 131.9 | ||||
Impairment of Intangible Assets, Finite-lived | $91.90 |
Discontinued_Operations_Discon1
Discontinued Operations Discontinued Operations Table (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | $54.50 | $155.70 | |
Operating loss | ($81) | [1] | ($210.20) |
[1] | Operating loss for the year ended December 31, 2013 includes a charge of $79.0 before tax recorded in the second quarter of 2013, reflecting the expected loss on sale at that time, as well as an additional loss on sale of $.4 before tax recorded in the third quarter of 2013. Operating loss for the year ended December 31, 2012 includes an impairment charge of $209.0 before tax recorded in the fourth quarter of 2012, as discussed further below. |
Inventories_Components_of_Inve
Inventories (Components of Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Raw materials | $248.80 | $272.90 |
Finished goods | 573.4 | 694.8 |
Total | $822.20 | $967.70 |
Debt_and_Other_Financing_Narra
Debt and Other Financing (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||
Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jul. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Apr. 15, 2013 | Mar. 29, 2013 | Mar. 31, 2008 | 31-May-03 | Jun. 30, 2009 | Jun. 30, 2003 | Sep. 30, 2012 | Jun. 30, 2012 | |
Short-term Debt, Weighted Average Interest Rate | 4.20% | 6.50% | |||||||||||||||
Obligations under capital leases | $11,600,000 | $11,600,000 | |||||||||||||||
Other financing obligations | 45,800,000 | 56,300,000 | |||||||||||||||
Sale and leaseback | 40,400,000 | 44,500,000 | |||||||||||||||
2014 Notes prepayment percent | 100.00% | ||||||||||||||||
2014 Notes accrued interest paid April 2013 | 3,400,000 | ||||||||||||||||
Loss on extinguishment of debt | -73,000,000 | 0 | -86,000,000 | 0 | |||||||||||||
2014 Notes Make Whole Premium | 21,700,000 | ||||||||||||||||
2014 Notes acceleration of interest-rate swap gain | 9,800,000 | ||||||||||||||||
Private Notes Make Whole Premium | 68,000,000 | ||||||||||||||||
Amount remaining for the other items to be added back to net income under covenant | 10,000,000 | ||||||||||||||||
Revolving credit facility draw down amount without violating covenant | 825,000,000 | ||||||||||||||||
Letters of credit outstanding | 12,900,000 | 19,900,000 | |||||||||||||||
Credit ratings | Our long-term credit ratings are Ba1 (Stable Outlook) with Moody's, BB+ (Stable Outlook) with S&P, and BB (Negative Outlook) with Fitch, which are below investment grade. | ||||||||||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 2.38% | 2.38% | |||||||||||||||
Principal Amount of Debt | 250,000,000 | 250,000,000 | |||||||||||||||
Unamortized discount to face value | 100,000 | 100,000 | |||||||||||||||
Private Senior Notes | 249,900,000 | 249,900,000 | |||||||||||||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | |||||||||||||||||
Interest rate, stated percentage | 4.60% | 4.60% | |||||||||||||||
Principal Amount of Debt | 500,000,000 | 500,000,000 | |||||||||||||||
Unamortized discount to face value | 600,000 | 700,000 | |||||||||||||||
Private Senior Notes | 499,400,000 | 499,300,000 | |||||||||||||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | |||||||||||||||||
Interest rate, stated percentage | 5.00% | 5.00% | |||||||||||||||
Principal Amount of Debt | 500,000,000 | 500,000,000 | |||||||||||||||
Unamortized discount to face value | 4,000,000 | 4,500,000 | |||||||||||||||
Private Senior Notes | 496,000,000 | 495,500,000 | |||||||||||||||
Term Loan [Member] | |||||||||||||||||
Line of credit facility | 0 | 52,500,000 | |||||||||||||||
Four Point Eight Percent Notes, Due March Two Thousand Thirteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 4.80% | ||||||||||||||||
Principal Amount of Debt | 250,000,000 | ||||||||||||||||
Four Point Six Two Five Percent Notes, Due May Two Thousand Thirteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 4.63% | ||||||||||||||||
Principal Amount of Debt | 125,000,000 | ||||||||||||||||
Five Point Six Two Five Percent Notes, Due March Two Thousand Fourteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 5.63% | ||||||||||||||||
Principal Amount of Debt | 500,000,000 | ||||||||||||||||
Loss on extinguishment of debt | -13,000,000 | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,100,000 | ||||||||||||||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 5.75% | ||||||||||||||||
Principal Amount of Debt | 250,000,000 | ||||||||||||||||
Unamortized discount to face value | 300,000 | 400,000 | |||||||||||||||
Private Senior Notes | 249,700,000 | 249,600,000 | |||||||||||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 4.20% | ||||||||||||||||
Principal Amount of Debt | 250,000,000 | ||||||||||||||||
Unamortized discount to face value | 300,000 | 400,000 | |||||||||||||||
Private Senior Notes | 249,700,000 | 249,600,000 | |||||||||||||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 6.50% | ||||||||||||||||
Principal Amount of Debt | 350,000,000 | ||||||||||||||||
Unamortized discount to face value | 1,800,000 | 2,300,000 | |||||||||||||||
Private Senior Notes | 348,200,000 | 347,700,000 | |||||||||||||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | |||||||||||||||||
Interest rate, stated percentage | 6.95% | 6.95% | |||||||||||||||
Principal Amount of Debt | 250,000,000 | 250,000,000 | |||||||||||||||
Unamortized discount to face value | 700,000 | 700,000 | |||||||||||||||
Private Senior Notes | 249,300,000 | 249,300,000 | |||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||
Line of credit facility | 1,000,000,000 | ||||||||||||||||
Credit facility annual fee | 3,000,000 | ||||||||||||||||
Amount outstanding under the revolving credit facility | 0 | ||||||||||||||||
Commercial Paper Program | 1,000,000,000 | ||||||||||||||||
2010 Revolving Credit Facility [Member] | |||||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,200,000 | ||||||||||||||||
Line of credit facility | 1,000,000,000 | ||||||||||||||||
Revolving credit facility and term loan agreement [Member] | |||||||||||||||||
Limits of subsidiary debt plus existing at February 28, 2013 | 500,000,000 | ||||||||||||||||
Revolving Credit Facility interest coverage ratio add back maximum of restructuring or legal or regulatory action | 400,000,000 | ||||||||||||||||
Private Placement [Member] | |||||||||||||||||
Loss on extinguishment of debt | -71,400,000 | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | 3,400,000 | ||||||||||||||||
Private Senior Notes | 535,000,000 | ||||||||||||||||
Maximum leverage ratio numerator Dec 2014 | 3.5 | ||||||||||||||||
Maximum leverage ratio denominator Dec 2014 | 1 | ||||||||||||||||
Term Loan [Member] | |||||||||||||||||
Loss on extinguishment of debt | -1,600,000 | ||||||||||||||||
Repayments of Long-term Debt | 117,500,000 | 380,000,000 | 52,500,000 | ||||||||||||||
Line of credit facility | 500,000,000 | ||||||||||||||||
Term loan incremental draw down | 50,000,000 | ||||||||||||||||
Term Loan [Member] | Long-term Debt [Member] | |||||||||||||||||
Repayments of Long-term Debt | $39,400,000 | ||||||||||||||||
Line of Credit [Member] | |||||||||||||||||
Minimum compliance of interest coverage ratio, numerator | 4 | ||||||||||||||||
Minimum compliance of interest coverage ratio, denominator | 1 |
Debt_and_Other_Financing_Debt_
Debt and Other Financing (Debt) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2008 | Jun. 30, 2003 | Jun. 30, 2009 |
Notes payable | $122 | $159.40 | ||||
Current portion of long-term debt | 15.1 | 28.6 | ||||
Total | 137.1 | 188 | ||||
Total | 2,399.60 | 2,461.30 | ||||
Amortization of swap termination | -79.4 | 100 | ||||
Less current portion | -15.1 | -28.6 | ||||
Total long-term debt | 2,463.90 | 2,532.70 | ||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | ||||||
Notes | 249.9 | 249.9 | ||||
Interest rate, stated percentage | 2.38% | |||||
Term Loan [Member] | ||||||
Term Loan | 0 | 52.5 | ||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | ||||||
Notes | 249.7 | 249.6 | ||||
Interest rate, stated percentage | 5.75% | |||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | ||||||
Notes | 249.7 | 249.6 | ||||
Interest rate, stated percentage | 4.20% | |||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | ||||||
Notes | 348.2 | 347.7 | ||||
Interest rate, stated percentage | 6.50% | |||||
Other, payable through 2024 with interest from .6% to 7.4% [Member] | ||||||
Other debt | 57.4 | 67.9 | ||||
Interest rate, stated percentage, minimum | 0.60% | |||||
Interest rate, stated percentage, maximum | 7.40% | |||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | ||||||
Notes | 499.4 | 499.3 | ||||
Interest rate, stated percentage | 4.60% | |||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | ||||||
Notes | 496 | 495.5 | ||||
Interest rate, stated percentage | 5.00% | |||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | ||||||
Notes | $249.30 | $249.30 | ||||
Interest rate, stated percentage | 6.95% |
Debt_and_Other_Financing_Matur
Debt and Other Financing (Maturities of Long-Term Debt) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Instruments [Abstract] | |
Maturities, 2015 | $15.10 |
Maturities, 2016 | 259.8 |
Maturities, 2017 | 8.8 |
Maturities, 2018 | 506.7 |
Maturities, 2019 | 366.7 |
Maturities, 2020 and Beyond | 1,250.30 |
Total Maturities | $2,407.40 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Exchange Gains (Losses) From Translation Of Acturial Losses and Prior Service Credit | ($18.20) | $0.20 | $7.70 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Components of Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Balance at Period Start | $4.30 | ||||
Balance at Period Start | -870.4 | -876.7 | |||
Other comprehensive loss other than reclassifications | -434.9 | -31.1 | |||
Reclassifications into earnings | |||||
Change in derivative losses on cash flow hedges, net of taxes | 1.9 | [1] | 1.7 | [1] | 3.9 |
Amortization of net actuarial loss and prior service cost, net of taxes | 85.8 | 35.7 | 33.9 | ||
Total reclassifications into earnings | 87.7 | 37.4 | |||
Balance at Period End | 4.3 | ||||
Balance at Period End | -1,217.60 | -870.4 | -876.7 | ||
Change in derivative losses on cash flow hedges, taxes | 0 | 0.9 | 2.1 | ||
Adjustments of and amortization of net actuarial loss and prior service costs, taxes | 2.5 | 16.5 | |||
Foreign Currency Gain (Loss) [Member] | |||||
Balance at Period Start | -429.3 | -317.6 | |||
Other comprehensive loss other than reclassifications | -247.7 | -111.7 | |||
Reclassifications into earnings | |||||
Change in derivative losses on cash flow hedges, net of taxes | 0 | 0 | |||
Amortization of net actuarial loss and prior service cost, net of taxes | 0 | 0 | |||
Total reclassifications into earnings | 0 | 0 | |||
Balance at Period End | -677 | -429.3 | |||
Cash Flow Hedging [Member] | |||||
Balance at Period Start | -5.1 | -6.8 | |||
Other comprehensive loss other than reclassifications | 0 | 0 | |||
Reclassifications into earnings | |||||
Change in derivative losses on cash flow hedges, net of taxes | 1.9 | [1] | 1.7 | [1] | |
Amortization of net actuarial loss and prior service cost, net of taxes | 0 | 0 | |||
Total reclassifications into earnings | 1.9 | 1.7 | |||
Balance at Period End | -3.2 | -5.1 | |||
Net Investment Hedging [Member] | |||||
Balance at Period Start | -4.3 | -4.3 | |||
Other comprehensive loss other than reclassifications | 0 | 0 | |||
Reclassifications into earnings | |||||
Change in derivative losses on cash flow hedges, net of taxes | 0 | 0 | |||
Amortization of net actuarial loss and prior service cost, net of taxes | 0 | 0 | |||
Total reclassifications into earnings | 0 | 0 | |||
Balance at Period End | -4.3 | -4.3 | |||
Defined Benefit Plans [Domain] | |||||
Balance at Period Start | -431.7 | -548 | |||
Other comprehensive loss other than reclassifications | -187.2 | [2] | 80.6 | [2] | |
Reclassifications into earnings | |||||
Change in derivative losses on cash flow hedges, net of taxes | 0 | 0 | |||
Amortization of net actuarial loss and prior service cost, net of taxes | 85.8 | 35.7 | |||
Total reclassifications into earnings | 85.8 | 35.7 | |||
Balance at Period End | ($533.10) | ($431.70) | |||
[1] | Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. | ||||
[2] | Gross amount reclassified to pension and postretirement expense, within selling, general and administrative expenses, and related taxes reclassified to income taxes. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Tax Assets, Operating Loss Carryforwards | $726,200,000 | $726,200,000 | ||||
Valuation allowance | 1,208,600,000 | 1,208,600,000 | 783,400,000 | |||
Foreign tax credit carryforwards | 617,700,000 | 617,700,000 | 585,400,000 | |||
Additional provision for income taxes for no longer asserting indefinite reinvestment | 168,300,000 | |||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 14,300,000 | 224,800,000 | 14,300,000 | 142,800,000 | 224,800,000 | |
Undistributed earnings of foreign subsidiaries | 1,900,000,000 | 3,100,000,000 | 1,900,000,000 | 3,100,000,000 | ||
Change in deferred tax liability associated with undistributed earnings | 128,500,000 | |||||
Net increase (decrease) in valuation allowance | 383,500,000 | 425,200,000 | ||||
U.S. tax cost on foreign earnings | -3,500,000 | 9,900,000 | 156,800,000 | |||
FCPA Settlement, Tax Benefit | 18,500,000 | |||||
Foreign tax loss carryforwards | 2,486,200,000 | 2,486,200,000 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 177,000,000 | 177,000,000 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 2,309,200,000 | 2,309,200,000 | ||||
Minimum tax credit carryforwards | 39,000,000 | 39,000,000 | ||||
Deferred Tax Assets, Tax Credit Carryforwards, General Business | 18,000,000 | 18,000,000 | ||||
Total gross unrecognized tax benefits | 58,700,000 | 36,000,000 | 58,700,000 | 28,000,000 | 36,000,000 | 36,000,000 |
Unrecognized tax benefits that would impact effective tax rate | 33,600,000 | 33,600,000 | ||||
Accrued interest and penalties | 4,900,000 | 4,900,000 | 4,400,000 | |||
Expense for interest and penalties | 1,000,000 | -100,000 | -1,100,000 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 1,000,000 | 1,000,000 | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 18,000,000 | 18,000,000 | ||||
Foreign [Member] | ||||||
Valuation allowance | 717,900,000 | 717,900,000 | ||||
Beginning [Member] | ||||||
Operating Loss Carryforwards, Expiration Dates | 1-Jan-15 | |||||
Capital Loss Carryforwards Expiration Date | 1-Jan-21 | |||||
Beginning [Member] | Foreign [Member] | ||||||
Tax Credit Carryforward, Expiration Date | 1-Jan-18 | |||||
Ending [Member] | ||||||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-29 | |||||
Capital Loss Carryforwards Expiration Date | 31-Dec-34 | |||||
Ending [Member] | Foreign [Member] | ||||||
Tax Credit Carryforward, Expiration Date | 31-Dec-24 | |||||
United States [Member] | ||||||
Net increase (decrease) in valuation allowance | 441,000,000 | |||||
Valuation Allowance, Amount Recorded to Income Statement | 367,000,000 | |||||
DOJ [Member] | FCPA [Member] | ||||||
Litigation Settlement, Amount | 68,000,000 | |||||
SEC [Member] | FCPA [Member] | ||||||
Litigation Settlement, Amount | $67,000,000 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets (Liabilities) Resulting From Temporary Differences) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Accrued expenses and reserves | $217.40 | $274.20 | |
Pension and postretirement benefits | 161.5 | 132 | |
Asset revaluations | 12.1 | 37.4 | |
Capitalized expenses | 161.4 | 156.4 | |
Depreciation and amortization | 15.4 | 15 | |
Deferred loss on foreign currency | 37.2 | 13.3 | |
Share-based compensation | 57.7 | 63.7 | |
Restructuring initiatives | 22.7 | 23.9 | |
Postemployment benefits | 6.8 | 8.1 | |
Tax loss carryforwards | 726.2 | 756.1 | |
Foreign tax credit carryforwards | 617.7 | 585.4 | |
Minimum tax and business credit carryforwards | 57.1 | 53.2 | |
All other | 55.7 | 39.3 | |
Valuation allowance | -1,208.60 | -783.4 | |
Total deferred tax assets | 940.3 | 1,374.60 | |
Depreciation and amortization | -24.6 | -27.9 | |
Unremitted foreign earnings | -14.3 | -142.8 | -224.8 |
Prepaid expenses | -8.7 | -16.6 | |
Capitalized interest | -8.7 | -9.4 | |
All other | -26.5 | -33.7 | |
Total deferred tax liabilities | 82.8 | 230.4 | |
Net deferred tax assets | $857.50 | $1,144.20 |
Income_Taxes_Deferred_Tax_Asse1
Income Taxes (Deferred Tax Assets (Liabilities) Classification) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Prepaid expenses and other | $204.70 | $233.60 |
Other assets | 685.8 | 944.7 |
Total deferred tax assets | 890.5 | 1,178.30 |
Income taxes | -0.3 | -1.1 |
Long-term income taxes | -32.7 | -33 |
Total deferred tax liabilities | -33 | -34.1 |
Net deferred tax assets | $857.50 | $1,144.20 |
Income_Taxes_Income_from_Conti
Income Taxes (Income from Continuing Operations before Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
United States | ($214.70) | ($500.80) | ($227.70) | |||||||||||||
Foreign | 378.9 | 663.4 | 656.4 | |||||||||||||
Income from continuing operations, before taxes | $95.10 | $144.40 | $65.70 | ($141) | [1] | ($43.60) | $31.60 | $145.30 | [1] | $29.30 | [1] | $164.20 | [1] | $162.60 | [1] | $428.70 |
[1] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). |
Income_Taxes_Provision_For_Inc
Income Taxes (Provision For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal, Current | $58 | $76.60 | $38.80 |
Federal, Deferred | 208 | -212.5 | -111.5 |
Federal, Total | 266 | -135.9 | -72.7 |
Foreign, Current | 246.7 | 216.3 | 267.5 |
Foreign, Deferred | -3.3 | 90.5 | 143.6 |
Foreign, Total | 243.4 | 306.8 | 411.1 |
State and other, Current | -0.1 | -0.7 | 1.2 |
State and other, Deferred | 39.8 | -6.6 | -4.2 |
State and other, Total | 39.7 | -7.3 | -3 |
Total | $549.10 | $163.60 | $335.40 |
Income_Taxes_Income_Taxes_Effe
Income Taxes Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 8.80% | -2.10% | -0.50% |
Taxes on foreign income, including translation | -4.80% | -22.00% | -2.00% |
Audit settlements, statute expirations and amended returns | -3.20% | -6.90% | -2.10% |
Effective Income Tax Rate Reconciliation, Undistributed Earnings | 0.00% | 0.00% | 39.30% |
Effective Income Tax Rate Reconciliation Devaluation Highly Inflationary | 33.50% | 28.20% | 0.00% |
Effective Income Tax Rate Reconciliation, Uncertain Tax Positions | 24.40% | 4.50% | 3.00% |
Effective Income Tax Rate Reconciliation FCPA Accrual | -8.70% | 19.20% | 0.00% |
Effective Income Tax Rate Reconciliation, Goodwill Impairment | 0.00% | 8.40% | 3.60% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 244.10% | 31.40% | 1.50% |
Effective Income Tax Rate Reconciliation Blocked Income | 4.30% | 3.90% | 1.10% |
Other | 1.00% | 1.00% | -0.70% |
Effective tax rate | 334.40% | 100.60% | 78.20% |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, beginning balance | $28 | $36 | $36 |
Additions based on tax positions related to the current year | 1.5 | 5.3 | 7.4 |
Additions for tax positions of prior years | 37.7 | 1.9 | 9.3 |
Reductions for tax positions of prior years | -4.8 | -7.8 | -3.7 |
Reductions due to lapse of statute of limitations | -1.7 | -3.1 | -6.4 |
Reductions due to settlements with tax authorities | -2 | -4.3 | -6.6 |
Unrecognized tax benefits, ending balance | $58.70 | $28 | $36 |
Income_Taxes_Tax_Years_Remaini
Income Taxes (Tax Years Remaining) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
United States [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2014 |
Beginning [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2009 |
Beginning [Member] | Mexico [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2008 |
Beginning [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2009 |
Beginning [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2011 |
Ending [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2014 |
Ending [Member] | Mexico [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2014 |
Ending [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2014 |
Ending [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2014 |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Mar. 31, 2012 |
Total exposure to floating rate interest rates | 5.00% | 8.00% | |||
Unrealized gains on interest-rate swap agreements | $79.40 | ($100) | |||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 0 | -0.7 | -8.4 | ||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||||
Interest Rate Fair Value Hedge Ineffectiveness | 0 | 0 | |||
Hedge loss reclassified to interest expense | 111.1 | 120.6 | 104.3 | ||
Net losses on derivative hedges expected to be reclassified from AOCI to earnings | 1.9 | ||||
Gains on net investment hedges | 4.3 | ||||
Loss written-off resulting from non-performance of counterparties | 0.6 | ||||
Foreign Exchange Contract [Member] | |||||
Notional amounts of derivative contracts | 173.9 | ||||
Gain (Loss) in other expense from undesignated foreign currency exchange contracts | -13.3 | -3.5 | |||
2003 Lock Agreement [Member] | |||||
Interest rate on debt instrument | 4.63% | ||||
2007 Lock Agreement [Member] | |||||
Notional amounts of derivative contracts | 500 | ||||
Hedge loss reclassified to interest expense | 38 | ||||
2007 Lock Agreement [Member] | 2013 Notes [Member] | |||||
Principal amount of debt | 250 | ||||
2007 Lock Agreement [Member] | 2018 Notes [Member] | |||||
Principal amount of debt | 250 | ||||
Intercompany Loans [Member] | |||||
Gain (Loss) related to intercompany transactions for foreign currency change | 14.7 | 4.8 | |||
Losses Amortized to Interest Expense in Five Years [Member] | 2007 Lock Agreement [Member] | |||||
Hedge loss reclassified to interest expense | 19.2 | ||||
Losses Amortized to Interest Expense in Ten Years [Member] | 2003 Lock Agreement [Member] | |||||
Hedge loss reclassified to interest expense | 2.6 | ||||
Losses Amortized to Interest Expense in Ten Years [Member] | 2007 Lock Agreement [Member] | |||||
Hedge loss reclassified to interest expense | 18.8 | ||||
January 2013 Interest-Rate Swap Termination [Member] | |||||
Notional Amount Related to Discontinuation of Interest Rate Fair Value Hedge | 1,000 | ||||
Unrealized gains on interest-rate swap agreements | 50 | 90.4 | |||
Interest Rate Swap Termination Fee | 2.3 | ||||
Amortization of Deferred Hedge Gains | 14.4 | 26.1 | |||
March 2012 Interest-Rate Swap Termination [Member] | |||||
Notional Amount Related to Discontinuation of Interest Rate Fair Value Hedge | 350 | ||||
Unrealized gains on interest-rate swap agreements | 29.4 | 46.1 | |||
Interest Rate Swap Termination Fee | 2.5 | ||||
Amortization of Deferred Hedge Gains | $6.30 | $6 |
Financial_Instruments_and_Risk3
Financial Instruments and Risk Management (Schedule of Fair Value of All Derivative Contracts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $0.60 | $3.40 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 5 | 0.3 |
Derivative Asset, Fair Value | 0.6 | 3.4 |
Derivative Liability, Fair Value | 5 | 0.3 |
Foreign Exchange Contract [Member] | Accounts Payable [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 5 | 0.3 |
Foreign Exchange Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $0.60 | $3.40 |
Financial_Instruments_and_Risk4
Financial Instruments and Risk Management (Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Reclassification of net losses to earnings, net of taxes | $1.90 | [1] | $1.70 | [1] | $3.90 |
Treasury Locks [Member] | |||||
Balance at Period Start | -5.1 | -6.8 | |||
Reclassification of net losses to earnings, net of taxes | 1.9 | 1.7 | |||
Balance at Period End | -3.2 | -5.1 | |||
Net unamortized losses at beginning of year, tax effect | 2.7 | 3.7 | |||
Reclassification of net losses to earnings, tax effect | 0 | 1 | |||
Net unamortized losses at end of year, tax effect | $2.70 | $2.70 | |||
[1] | Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. |
Fair_Value_Fair_Value_Narrativ
Fair Value Fair Value (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 |
Goodwill | $282.50 | $249.30 | |||
China [Member] | |||||
Goodwill | 0 | 38.4 | |||
Goodwill, Impairment Loss | 38.4 | 44 | |||
Finite-Lived Intangible Assets, Gross | 0 | 3.7 | |||
Impairment of Intangible Assets, Finite-lived | 3.7 | ||||
SMT [Member] | |||||
Capitalized software impairment | 117.2 | ||||
Capitalized software impairment, net of tax | $74.10 |
Fair_Value_Fair_Value_Assets_a
Fair Value (Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Money market funds | $0.50 | |
Total Assets | 3.3 | 6.4 |
Total Liabilities | 5 | 0.3 |
Available-for-sale Securities [Member] | ||
Available-for-sale securities | 2.7 | 2.5 |
Foreign Exchange Contract [Member] | ||
Foreign exchange forward contracts, assets | 0.6 | 3.4 |
Foreign exchange forward contracts, liabilities | 5 | 0.3 |
Level 1 [Member] | ||
Money market funds | 0.5 | |
Total Assets | 2.7 | 3 |
Total Liabilities | 0 | 0 |
Level 1 [Member] | Available-for-sale Securities [Member] | ||
Available-for-sale securities | 2.7 | 2.5 |
Level 1 [Member] | Foreign Exchange Contract [Member] | ||
Foreign exchange forward contracts, assets | 0 | 0 |
Foreign exchange forward contracts, liabilities | 0 | 0 |
Level 2 [Member] | ||
Money market funds | 0 | |
Total Assets | 0.6 | 3.4 |
Total Liabilities | 5 | 0.3 |
Level 2 [Member] | Available-for-sale Securities [Member] | ||
Available-for-sale securities | 0 | 0 |
Level 2 [Member] | Foreign Exchange Contract [Member] | ||
Foreign exchange forward contracts, assets | 0.6 | 3.4 |
Foreign exchange forward contracts, liabilities | $5 | $0.30 |
Fair_Value_Fair_Value_of_Finan
Fair Value (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Money market funds | $0.50 | |||
Carrying Amount [Member] | ||||
Available-for-sale securities | 2.7 | 2.5 | ||
Money market funds | 0 | 0.5 | ||
Debt maturing within one year | -137.1 | [1] | -188 | [1] |
Long-term debt | -2,463.90 | [1] | -2,532.70 | [1] |
Foreign exchange forward contracts | -4.4 | 3.1 | ||
Fair Value [Member] | ||||
Available-for-sale securities | 2.7 | 2.5 | ||
Money market funds | 0 | 0.5 | ||
Debt maturing within one year | -137.1 | -188 | ||
Long-term debt | -2,242.50 | -2,511.60 | ||
Foreign exchange forward contracts | ($4.40) | $3.10 | ||
[1] | (1) The carrying value of debt maturing within one year and long-term debt includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | 34 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |||
Dividends per share | $0.23 | ||||||
Compensation cost for share-based payments | $38.90 | $43.30 | $41.10 | ||||
Stock Options [Member] | |||||||
Vesting period, years | 3 years | ||||||
Contractual term, years | 10 years | ||||||
Weighted-average grant-date fair value per share | $3.55 | ||||||
Unrecognized compensation cost | 0.1 | 0.1 | |||||
Restricted Stock Units [Member] | |||||||
Vesting period, years | 3 years | ||||||
Fair value vested during period | 21.9 | ||||||
Granted, restricted stock and units | 3,212,000 | ||||||
Granted, weighted-average grant-date fair value | $14.58 | ||||||
Vested, restricted stock and units | 1,574,000 | ||||||
Nonvested, ending balance, restricted stock and units | 4,995,000 | 4,234,000 | 4,995,000 | ||||
Performance Restricted Stock Units [Member] | |||||||
Vesting period, years | 3 years | ||||||
Incremental compensation cost associated with modification of stock award recognized | 0.3 | 0.9 | |||||
Granted, restricted stock and units | 2,330,000 | ||||||
Granted, weighted-average grant-date fair value | $14.68 | ||||||
Vested, restricted stock and units | 0 | ||||||
Nonvested, ending balance, restricted stock and units | 4,976,000 | [1] | 4,383,000 | [1] | 4,976,000 | [1] | |
Restricted Stock Units and Performance Restricted Stock Units [Member] | |||||||
Unrecognized compensation cost | 64.7 | 64.7 | |||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 9 months 8 days | ||||||
2010 Plan [Member] | |||||||
Multiplier for grant award | 2.33 | ||||||
Maximum award, number of shares | 32,000,000 | 32,000,000 | |||||
Two Thousand And Thirteen Plan [Member] | |||||||
Multiplier for grant award | 3.13 | ||||||
Maximum award, number of shares | 42,000,000 | 42,000,000 | |||||
Restricted Stock Units - Treasury Stock [Member] | |||||||
Vesting period, years | 5 years | ||||||
Unrecognized compensation cost | 0.8 | 0.8 | |||||
Granted, restricted stock and units | 200,000 | ||||||
Granted, weighted-average grant-date fair value | $21.69 | ||||||
Vested, restricted stock and units | 40,000 | ||||||
Nonvested, ending balance, restricted stock and units | 120,000 | [1] | 120,000 | [1] | |||
Compensation cost for share-based payments | $0.80 | $1.40 | $1.40 | ||||
[1] | Based on initial target payout. |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Schedule of Compensation Cost and Income Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units | $38.90 | $43.30 | $41.10 |
Total income tax benefit recognized for share-based arrangements | $3.20 | $14.90 | $13 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Schedule of Weighted-Average Assumptions for Stock Options) (Details) | 12 Months Ended | |
Dec. 31, 2012 | ||
Risk-free rate(1) | 0.70% | [1] |
Expected term(2) | 4 years | [2] |
Expected volatility(3) | 38.00% | [3] |
Expected dividends(4) | 5.00% | [4] |
[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 historical employee exercise behavior, the vesting terms of the respective option and a contractual life of 10 years. | |
[3] | Expected volatility was based on the weekly historical volatility of our stock price, over a period similar to the expected life of the option. | |
[4] | Assumed the then-current cash dividends of $.23 during 2012B per share each quarter on our common stock for options granted during that year. |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans (Schedule of Summary of Stock Options) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 |
Outstanding, beginning balance, in shares | 21,543 |
Granted, in shares | 0 |
Exercised, in shares | -12 |
Forfeited, in shares | -59 |
Expired, in shares | -4,314 |
Outstanding, ending balance, in shares | 17,158 |
Exercisable, ending balance, in shares | 16,156 |
Outstanding, beginning balance, weighted-average exercise price | $32.27 |
Granted, weighted-average exercise price | $0 |
Exercised, weighted-average exercise price | $15.50 |
Forfeited, weighted-average exercise price | $18.29 |
Expired, weighted-average exercise price | $34.68 |
Outstanding, ending balance, weighted-average exercise price | $31.74 |
Exercisable, ending balance, weighted-average exercise price | $31.81 |
Outstanding, ending balance, weighted-average contractual term, years | 3 years |
Outstanding, exercisable, weighted-average contractual term, years | 2 years 10 months 24 days |
Outstanding, ending balance, aggregate intrinsic value | $0 |
Exercisable, ending balance, aggregate intrinsic value | $0 |
ShareBased_Compensation_Plans_5
Share-Based Compensation Plans (Schedule of Cash Proceeds, Tax Benefits and Intrinsic Value Related to Stock Options) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash proceeds from stock option exercised | $0.20 | $19.40 | $8.60 |
Tax obligation realized for stock options exercised | 0 | -1.8 | -3.7 |
Intrinsic value of stock options exercised | $0 | $6.40 | $2.20 |
ShareBased_Compensation_Plans_6
Share-Based Compensation Plans (Schedule of Summary of Restricted Stock and Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested, beginning balance, restricted stock and units | 4,234,000 |
Granted, restricted stock and units | 3,212,000 |
Vested, restricted stock and units | -1,574,000 |
Forfeited, restricted stock and units | -877,000 |
Nonvested, ending balance, restricted stock and units | 4,995,000 |
Nonvested, beginning balance, weighted-average grant- date fair value | $20.67 |
Granted, weighted-average grant-date fair value | $14.58 |
Vested, weighted-average grant-date fair value | $22.23 |
Forfeited, weighted average grant-date fair value | $17.27 |
Nonvested, ending balance, weighted-average grant-date fair value | $16.80 |
ShareBased_Compensation_Plans_7
Share-Based Compensation Plans Share-Based Compensation Plans (Schedule of Summary of Performance Restricted Stock Units) (Details) (Performance Restricted Stock Units [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Performance Restricted Stock Units [Member] | ||
Nonvested, beginning balance, restricted stock and units | 4,383,000 | [1] |
Granted, restricted stock and units | 2,330,000 | |
Vested, restricted stock and units | 0 | |
Forfeited, restricted stock and units | -1,737,000 | |
Nonvested, ending balance, restricted stock and units | 4,976,000 | [1] |
Nonvested, beginning balance, weighted-average grant- date fair value | $22.19 | |
Granted, weighted-average grant-date fair value | $14.68 | |
Vested, weighted-average grant-date fair value | $0 | |
Forfeited, weighted average grant-date fair value | $22.35 | |
Nonvested, ending balance, weighted-average grant-date fair value | $17.53 | |
[1] | Based on initial target payout. |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Aug. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Years | ||||||||
Change in plan obligations, due to retiree medical benefits reduction | ($36.30) | |||||||
Average future service of active participants, years | 12 | |||||||
Change in plan obligations, due to retiree life insurance benefits reduction | -27.7 | |||||||
Remaining term of plan, years | 3.3 | |||||||
Assumed health care trend rate | 8.70% | |||||||
Ultimate health care trend rate | 5.00% | |||||||
Year that rate reaches ultimate trend rate | 2022 | 2022 | ||||||
Postemployment benefits liability | 26.2 | 26.2 | 39.1 | |||||
Defined Benefit Pension Plans [Member] | ||||||||
Discount rate | 3.55% | 3.55% | 4.56% | |||||
Rate of return on assets | 6.86% | |||||||
Pension Benefits U.S. Plans [Member] | ||||||||
Qualified pension plans, benefit obligations | 705.2 | 705.2 | 668.3 | 792.7 | ||||
Qualified pension plans, plan assets | 506.5 | 506.5 | 531.1 | 529.2 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 36.4 | 7.5 | 5.4 | 23.5 | 0 | |||
Discount rate | 3.83% | 3.83% | 4.54% | |||||
Rate of return on assets | 7.50% | 7.75% | 7.75% | |||||
assumptions used calculating net periodic benefit allocation, debt securities allocation | 70.00% | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit, Equity Securities Allocation | 30.00% | |||||||
Pension Benefits Non-U.S. Plans [Member] | ||||||||
Qualified pension plans, benefit obligations | 910.2 | 910.2 | 863.7 | 838.5 | ||||
Qualified pension plans, plan assets | 720 | 720 | 715 | 609.3 | ||||
Discount rate | 3.34% | 3.34% | 4.58% | |||||
Rate of return on assets | 6.41% | 6.70% | 6.85% | |||||
U.S. Qualified Pension Plan [Member] | ||||||||
Qualified pension plans, benefit obligations | 673.1 | 673.1 | 624.1 | |||||
Qualified pension plans, plan assets | 506.5 | 506.5 | 531.1 | |||||
Corporate and Government Bonds [Member] | Pension Benefits U.S. Plans [Member] | ||||||||
Expected long term rate of return on debt securities, minimum | 2.00% | |||||||
Expected long term rate of return on debt securities, maximum | 3.00% | |||||||
Equity Securities and High Yield Securities [Member] | Pension Benefits U.S. Plans [Member] | ||||||||
Expected long term rate of return on equity securities, minimum | 6.00% | |||||||
Expected long term rate of return on equity securities, maximum | 9.00% | |||||||
Personal Savings Account Plan [Member] | ||||||||
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% | |||||||
Employer contribution | 9.4 | 10.6 | 11.8 | |||||
Retirement Savings Account Plan [Member] | ||||||||
Employer match toward contributions, fifty cents for dollar, minimum | 3.00% | |||||||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | |||||||
Minimum [Member] | U.S. Pension and Postretirement Plans [Member] | ||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 50 | |||||||
Minimum [Member] | International Pension and Postretirement Plans [Member] | ||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 25 | |||||||
Maximum [Member] | U.S. Pension and Postretirement Plans [Member] | ||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 55 | |||||||
Maximum [Member] | International Pension and Postretirement Plans [Member] | ||||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $30 |
Employee_Benefit_Plans_Supplem
Employee Benefit Plans (Supplemental Retirement Programs) (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Maximum deferral of base salary | 50.00% | ||
Maximum deferral of incentive compensation bonuses | 100.00% | ||
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Expenses associated with deferred compensation plan | $1.30 | $1.20 | $1.70 |
Deferred compensation liability | 45.5 | 57.9 | |
Supplemental Employee Retirement Plan [Member] | |||
Net periodic benefit costs SERP Restoration | 7.1 | 7.6 | 8.4 |
Benefit obligation SERP Restoration | 32.1 | 44.2 | |
Supplemental Life Plan [Member] | |||
Additional death benefits, minimum range | 0.4 | ||
Additional death benefits, maximum range | $2 |
Employee_Benefit_Plans_Reconci
Employee Benefit Plans (Reconciliation of Benefit Obligations, Plan Assets and Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amount Recognized in Balance Sheet: | |||
Other assets | $1,052 | $1,375.30 | |
Accrued compensation | -210.5 | -271.2 | |
Pension Benefits U.S. Plans [Member] | |||
Change in Benefit Obligation: | |||
Beginning balance | -668.3 | -792.7 | |
Service cost | -14.1 | -15.7 | -15.1 |
Interest cost | -27.8 | -27.5 | -29.6 |
Actuarial gain (loss) | -124.6 | 58.4 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | 129.1 | 109.2 | |
Plan amendments | 2 | 0 | |
Curtailments | -1.4 | 0 | |
Settlements | 0 | 0 | |
Special termination benefits | -0.1 | 0 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | -705.2 | -668.3 | -792.7 |
Change in Plan Assets: | |||
Beginning balance | 531.1 | 529.2 | |
Actual return on plan assets | 54.5 | 59.8 | |
Company contributions | 50 | 51.3 | |
Plan participant contributions | 0 | 0 | |
Benefits paid | -129.1 | -109.2 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | 506.5 | 531.1 | 529.2 |
Funded Status: | |||
Funded status at end of year | -198.7 | -137.2 | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0 | 0 | |
Accrued compensation | -9 | -10.3 | |
Employee benefit plans liability | -189.7 | -126.9 | |
Net amount recognized | -198.7 | -137.2 | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 380 | 355.6 | |
Prior service credit | -2.1 | -0.4 | |
Total pretax amount recognized | 377.9 | 355.2 | |
Supplemental Information: | |||
Accumulated benefit obligation | 701.6 | 663.6 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 705.2 | 668.3 | |
Fair value plan assets | 506.5 | 531.1 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 705.2 | 668.3 | |
Accumulated benefit obligation | 701.6 | 663.6 | |
Fair value plan assets | 506.5 | 531.1 | |
Pension Benefits Non-U.S. Plans [Member] | |||
Change in Benefit Obligation: | |||
Beginning balance | -863.7 | -838.5 | |
Service cost | -8.5 | -12.2 | -18 |
Interest cost | -36.5 | -36.8 | -39.8 |
Actuarial gain (loss) | -137.3 | -21 | |
Plan participant contributions | -0.4 | -0.7 | |
Benefits paid | 53.1 | 44.8 | |
Plan amendments | 0 | 0 | |
Curtailments | 0 | 1.5 | |
Settlements | 0.7 | 0 | |
Special termination benefits | 0 | 0 | |
Foreign currency changes and other | 82.4 | -0.8 | |
Ending balance | -910.2 | -863.7 | -838.5 |
Change in Plan Assets: | |||
Beginning balance | 715 | 609.3 | |
Actual return on plan assets | 81.4 | 76.4 | |
Company contributions | 31.4 | 67.4 | |
Plan participant contributions | 0.4 | 0.7 | |
Benefits paid | -53.1 | -44.8 | |
Foreign currency changes and other | -55.1 | 6 | |
Ending balance | 720 | 715 | 609.3 |
Funded Status: | |||
Funded status at end of year | -190.2 | -148.7 | |
Amount Recognized in Balance Sheet: | |||
Other assets | 2.7 | 2.7 | |
Accrued compensation | -3.9 | -4 | |
Employee benefit plans liability | -189 | -147.4 | |
Net amount recognized | -190.2 | -148.7 | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 338.9 | 283.4 | |
Prior service credit | -1.4 | -0.7 | |
Total pretax amount recognized | 337.5 | 282.7 | |
Supplemental Information: | |||
Accumulated benefit obligation | 860.5 | 807.9 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 902.6 | 853.3 | |
Fair value plan assets | 709.6 | 701.9 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 883.3 | 832.6 | |
Accumulated benefit obligation | 850.8 | 797.5 | |
Fair value plan assets | 696.1 | 687.5 | |
Postretirement Benefits [Member] | |||
Change in Benefit Obligation: | |||
Beginning balance | -111.1 | -138.1 | |
Service cost | -1.1 | -1.8 | -1.9 |
Interest cost | -4.9 | -5.1 | -5.8 |
Actuarial gain (loss) | -3.6 | 22.9 | |
Plan participant contributions | -2.8 | -2.9 | |
Benefits paid | 10 | 10.5 | |
Plan amendments | 0 | 1.3 | |
Curtailments | 0.3 | 0.9 | |
Settlements | 0 | 0 | |
Special termination benefits | -0.2 | -0.5 | |
Foreign currency changes and other | 1.7 | 1.7 | |
Ending balance | -111.7 | -111.1 | -138.1 |
Change in Plan Assets: | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 7.2 | 7.6 | |
Plan participant contributions | 2.8 | 2.9 | |
Benefits paid | -10 | -10.5 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Funded Status: | |||
Funded status at end of year | -111.7 | -111.1 | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0 | 0 | |
Accrued compensation | -8.7 | -8.8 | |
Employee benefit plans liability | -103 | -102.3 | |
Net amount recognized | -111.7 | -111.1 | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 27.5 | 26 | |
Prior service credit | -24.8 | -32.4 | |
Total pretax amount recognized | $2.70 | ($6.40) |
Employee_Benefit_Plans_Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||||
Foreign currency changes | $248.30 | $112.80 | ($0.40) | |||
Pension Benefits U.S. Plans [Member] | ||||||
Net Periodic Benefit Cost: | ||||||
Service cost | 14.1 | 15.7 | 15.1 | |||
Interest cost | 27.8 | 27.5 | 29.6 | |||
Expected return on plan assets | -35.8 | -37.4 | -36 | |||
Amortization of prior service credit | -0.3 | -0.3 | -0.3 | |||
Amortization of actuarial losses | 45.1 | 47.2 | 43.7 | |||
Settlements/curtailments | 38 | 0 | 0.8 | |||
Other | 0 | 0 | 0 | |||
Net periodic benefit costs | 88.9 | 52.7 | 52.9 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||||
Actuarial (gains) losses | 105.9 | -80.8 | 37.7 | |||
Prior service cost (credit) | -2 | 0 | 0 | |||
Amortization of prior service credit | 0.3 | 0.3 | 0.3 | |||
Amortization of actuarial losses | -81.5 | -47.2 | -43.7 | |||
Foreign currency changes | 0 | 0 | 0 | |||
Total recognized in other comprehensive (loss) income | 22.7 | [1] | -127.7 | [1] | -5.7 | [1] |
Recognized in benefit cost and other comprehensive (loss) income | 111.6 | -75 | 47.2 | |||
Pension Benefits Non-U.S. Plans [Member] | ||||||
Net Periodic Benefit Cost: | ||||||
Service cost | 8.5 | 12.2 | 18 | |||
Interest cost | 36.5 | 36.8 | 39.8 | |||
Expected return on plan assets | -43.3 | -40.7 | -39.1 | |||
Amortization of prior service credit | -0.1 | -0.2 | -1.3 | |||
Amortization of actuarial losses | 9.8 | 12.8 | 17.6 | |||
Settlements/curtailments | 2.7 | -4.3 | 1.9 | |||
Other | 0.6 | 0.7 | 0.7 | |||
Net periodic benefit costs | 14.7 | 17.3 | 37.6 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||||
Actuarial (gains) losses | 99.2 | -14.8 | 31 | |||
Prior service cost (credit) | 0 | 0 | 4.8 | |||
Amortization of prior service credit | 0.1 | 7.9 | 2.4 | |||
Amortization of actuarial losses | -13.1 | -17.7 | -21.8 | |||
Foreign currency changes | -31.3 | 0.5 | 10.4 | |||
Total recognized in other comprehensive (loss) income | 54.9 | [1] | -24.1 | [1] | 26.8 | [1] |
Recognized in benefit cost and other comprehensive (loss) income | 69.6 | -6.8 | 64.4 | |||
Postretirement Benefits [Member] | ||||||
Net Periodic Benefit Cost: | ||||||
Service cost | 1.1 | 1.8 | 1.9 | |||
Interest cost | 4.9 | 5.1 | 5.8 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Amortization of prior service credit | -4.5 | -4.8 | -13.2 | |||
Amortization of actuarial losses | 1.4 | 2.5 | 4.1 | |||
Settlements/curtailments | -2.7 | -1.8 | -1 | |||
Other | 0 | 0 | 0 | |||
Net periodic benefit costs | 0.2 | 2.8 | -2.4 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||||
Actuarial (gains) losses | 3.6 | -22.9 | 4.7 | |||
Prior service cost (credit) | 0 | -1.3 | 0 | |||
Amortization of prior service credit | 7.3 | 7.1 | 14.6 | |||
Amortization of actuarial losses | -1.7 | -3.4 | -4.1 | |||
Foreign currency changes | -0.1 | -0.2 | -0.2 | |||
Total recognized in other comprehensive (loss) income | 9.1 | [1] | -20.7 | [1] | 15 | [1] |
Recognized in benefit cost and other comprehensive (loss) income | $9.30 | ($17.90) | $12.60 | |||
[1] | Amounts represent the pre-tax effect included within other comprehensive (loss) income. The net of tax amounts are included within the Consolidated Statements of Comprehensive Income. |
Employee_Benefit_Plans_Accumul
Employee Benefit Plans (Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost During Next Fiscal Year) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Benefits U.S. Plans [Member] | |
Net actuarial loss | $46.40 |
Prior service credit | -0.7 |
Pension Benefits Non-U.S. Plans [Member] | |
Net actuarial loss | 11.4 |
Prior service credit | -0.1 |
Postretirement Benefits [Member] | |
Net actuarial loss | 2.1 |
Prior service credit | ($4.10) |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Pension Plans [Member] | ||
Discount rate | 3.55% | 4.56% |
Pension Benefits U.S. Plans [Member] | ||
Discount rate | 3.83% | 4.54% |
Rate of compensation increase | 4.00% | 3.91% |
Pension Benefits Non-U.S. Plans [Member] | ||
Discount rate | 3.34% | 4.58% |
Rate of compensation increase | 3.30% | 3.63% |
Postretirement Benefits [Member] | ||
Discount rate | 4.12% | 4.91% |
Employee_Benefit_Plans_Weighte1
Employee Benefit Plans (Weighted-Average Assumptions used to Determine Net Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plans [Member] | |||
Rate of return on assets | 6.86% | ||
Pension Benefits U.S. Plans [Member] | |||
Discount rate | 4.54% | 3.55% | 4.10% |
Rate of compensation increase | 4.00% | 3.86% | 3.82% |
Rate of return on assets | 7.50% | 7.75% | 7.75% |
Pension Benefits Non-U.S. Plans [Member] | |||
Discount rate | 4.58% | 4.59% | 5.30% |
Rate of compensation increase | 3.63% | 3.88% | 4.13% |
Rate of return on assets | 6.41% | 6.70% | 6.85% |
Postretirement Benefits [Member] | |||
Discount rate | 4.91% | 3.99% | 4.66% |
Employee_Benefit_Plans_Pension
Employee Benefit Plans (Pension and Postretirement Plans Target and Weighted-Average Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 100.00% | 100.00% |
Pension Benefits Non-U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 100.00% | 100.00% |
Equity Securities [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 30.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 35.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 28.00% | 58.00% |
Equity Securities [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 30.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 35.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 60.00% | 63.00% |
Debt Securities [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 65.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 70.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 69.00% | 42.00% |
Debt Securities [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 65.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 70.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 38.00% | 35.00% |
Real Estate Funds [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 0.00% | 0.00% |
Real Estate Funds [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 0.00% | 0.00% |
Other plan assets [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 0.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 3.00% | 0.00% |
Other plan assets [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% | |
Defined Benefit Plan, Actual Plan Asset Allocation | 2.00% | 2.00% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans (Fair Value Hierarchy for Pension and Postretirement Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Level 3 [Member] | |||
Fair value of plan assets | $1.90 | $2.30 | $13.50 |
Pension Benefits U.S. Plans [Member] | |||
Fair value of plan assets | 506.5 | 531.1 | 529.2 |
Pension Benefits U.S. Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 21.5 | 186.7 | |
Pension Benefits U.S. Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 93.5 | 75.4 | |
Pension Benefits U.S. Plans [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 25.7 | 43.4 | |
Pension Benefits U.S. Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 140.7 | 305.5 | |
Pension Benefits U.S. Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 208.1 | 154 | |
Pension Benefits U.S. Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 141.5 | 70.7 | |
Pension Benefits U.S. Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 349.6 | 224.7 | |
Pension Benefits U.S. Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 18 | 0.9 | |
Pension Benefits U.S. Plans [Member] | Derivative [Member] | |||
Fair value of plan assets | -1.8 | ||
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 18 | 0.9 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 18 | 0.9 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Derivative [Member] | |||
Fair value of plan assets | 0 | ||
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 488.5 | 530.2 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 21.5 | 186.7 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 93.5 | 75.4 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 25.7 | 43.4 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 140.7 | 305.5 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 208.1 | 154 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 141.5 | 70.7 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 349.6 | 224.7 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Derivative [Member] | |||
Fair value of plan assets | -1.8 | ||
Pension Benefits Non-U.S. Plans [Member] | |||
Fair value of plan assets | 720 | 715 | 609.3 |
Pension Benefits Non-U.S. Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 115.5 | 97.8 | |
Pension Benefits Non-U.S. Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 316.8 | 354.8 | |
Pension Benefits Non-U.S. Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 432.3 | 452.6 | |
Pension Benefits Non-U.S. Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 106.2 | 100.8 | |
Pension Benefits Non-U.S. Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 138.1 | 137.1 | |
Pension Benefits Non-U.S. Plans [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 28.8 | 11 | |
Pension Benefits Non-U.S. Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 273.1 | 248.9 | |
Pension Benefits Non-U.S. Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 12.7 | 11.2 | |
Pension Benefits Non-U.S. Plans [Member] | Real Estate [Member] | |||
Fair value of plan assets | 1 | 1.2 | |
Pension Benefits Non-U.S. Plans [Member] | Other [Member] | |||
Fair value of plan assets | 0.9 | 1.1 | |
Pension Benefits Non-U.S. Plans [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 14.6 | 13.5 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 12.7 | 11.2 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 12.7 | 11.2 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 12.7 | 11.2 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 705.4 | 701.5 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 115.5 | 97.8 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 316.8 | 354.8 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 432.3 | 452.6 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 106.2 | 100.8 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 138.1 | 137.1 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 28.8 | 11 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 273.1 | 248.9 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | |||
Fair value of plan assets | 1.9 | 2.3 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 1 | 1.2 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Other [Member] | |||
Fair value of plan assets | 0.9 | 1.1 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | $1.90 | $2.30 |
Employee_Benefit_Plans_Reconci1
Employee Benefit Plans (Reconciliation of the Beginning and Ending Balances for Investments) (Details) (Level 3 [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 [Member] | ||
Beginning balance | $2.30 | $13.50 |
Purchases and sales, net | -10.4 | |
Actual return on plan assets held | -0.3 | -0.5 |
Foreign currency changes | -0.1 | -0.3 |
Ending balance | $1.90 | $2.30 |
Employee_Benefit_Plans_Total_B
Employee Benefit Plans (Total Benefit Payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Pension Plans [Member] | |
2015 | $139.80 |
2016 | 109 |
2017 | 106.4 |
2018 | 93.7 |
2019 | 92.5 |
2020 - 2024 | 451.6 |
Pension Benefits U.S. Plans [Member] | |
2015 | 101.4 |
2016 | 68.4 |
2017 | 65.1 |
2018 | 51 |
2019 | 48.8 |
2020 - 2024 | 215.4 |
Pension Benefits Non-U.S. Plans [Member] | |
2015 | 38.4 |
2016 | 40.6 |
2017 | 41.3 |
2018 | 42.7 |
2019 | 43.7 |
2020 - 2024 | 236.2 |
Postretirement Benefits [Member] | |
2015 | 8.7 |
2016 | 8.6 |
2017 | 8.5 |
2018 | 8.4 |
2019 | 8.2 |
2020 - 2024 | $37.20 |
Employee_Benefit_Plans_OnePerc
Employee Benefit Plans (One-Percentage Point Change for all Postretirement Plans) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Effect on total of service and interest cost components, 1 percentage point increase | $0.20 |
Effect on total of service and interest cost components, 1 percentage point decrease | -0.2 |
Effect on postretirement benefit obligation, 1 percentage point increase | 2.2 |
Effect on postretirement benefit obligation, 1 percentage point decrease | ($2) |
Employee_Benefit_Plans_Assets_
Employee Benefit Plans (Assets Held In Trust) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets held-in-trust | $33.60 | $31.30 |
Corporate-Owned Life Insurance Policies [Member] | ||
Assets held-in-trust | 32.2 | 30.5 |
Cash and Cash Equivalents [Member] | ||
Assets held-in-trust | $1.40 | $0.80 |
Segment_Information_Total_Reve
Segment Information (Total Revenue and Operating Profit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total revenue | $2,341 | $2,138.20 | $2,188.60 | $2,183.60 | $2,667.20 | $2,322.90 | $2,508.90 | $2,456 | $8,851.40 | $9,955 | $10,561.40 |
Operating Profit (Loss) | 400.1 | 427.2 | 525 | ||||||||
Latin America [Member] | |||||||||||
Total revenue | 4,239.50 | 4,840.50 | 4,993.70 | ||||||||
Operating Profit (Loss) | 279.8 | 478.6 | 443.9 | ||||||||
Europe Middle East & Africa [Member] | |||||||||||
Total revenue | 2,705.80 | 2,898.40 | 2,914.20 | ||||||||
Operating Profit (Loss) | 300.9 | 406.7 | 312.8 | ||||||||
North America [Member] | |||||||||||
Total revenue | 1,203.40 | 1,458.20 | 1,751.10 | ||||||||
Operating Profit (Loss) | -72.5 | -60.1 | -4.7 | ||||||||
Asia Pacific [Member] | |||||||||||
Total revenue | 702.7 | 757.9 | 902.4 | ||||||||
Operating Profit (Loss) | 20.9 | -12.1 | 5.1 | ||||||||
Total from operations [Member] | |||||||||||
Total revenue | 8,851.40 | 9,955 | 10,561.40 | ||||||||
Operating Profit (Loss) | 529.1 | 813.1 | 757.1 | ||||||||
Global and other [Member] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Operating Profit (Loss) | ($129) | ($385.90) | ($232.10) |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Total assets | $5,496.80 | $6,492.30 | $7,382.50 |
Latin America [Member] | |||
Total assets | 2,033 | 2,432.70 | 2,713.30 |
Europe Middle East & Africa [Member] | |||
Total assets | 1,170.60 | 1,370.90 | 1,380.20 |
North America [Member] | |||
Total assets | 429.9 | 519.5 | 635.9 |
Asia Pacific [Member] | |||
Total assets | 390.8 | 441.7 | 537.7 |
Total from operations [Member] | |||
Total assets | 4,024.30 | 4,764.80 | 5,267.10 |
Discontinued Operations [Member] | |||
Total assets | 0 | 190.6 | |
Global and other [Member] | |||
Total assets | $1,472.50 | $1,727.50 | $1,924.80 |
Segment_Information_Capital_Ex
Segment Information (Capital Expenditures) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total Capital Expenditures | $131.10 | $197.30 | $228.50 |
Latin America [Member] | |||
Total Capital Expenditures | 82.6 | 94.1 | 99 |
Europe Middle East & Africa [Member] | |||
Total Capital Expenditures | 19 | 20 | 27.1 |
North America [Member] | |||
Total Capital Expenditures | 4.7 | 7.6 | 8.6 |
Asia Pacific [Member] | |||
Total Capital Expenditures | 3.3 | 6.6 | 4.6 |
Total from operations [Member] | |||
Total Capital Expenditures | 109.6 | 128.3 | 139.3 |
Global and other [Member] | |||
Total Capital Expenditures | $21.50 | $69 | $89.20 |
Segment_Information_Depreciati
Segment Information (Depreciation and Amortization) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Depreciation and Amortization | $192.60 | $224.60 | $212.50 |
Latin America [Member] | |||
Depreciation and Amortization | 70.9 | 72.2 | 74.3 |
Europe Middle East & Africa [Member] | |||
Depreciation and Amortization | 40 | 46.6 | 47 |
North America [Member] | |||
Depreciation and Amortization | 22.1 | 37.4 | 33.7 |
Asia Pacific [Member] | |||
Depreciation and Amortization | 17.3 | 21.9 | 21.2 |
Total from operations [Member] | |||
Depreciation and Amortization | 150.3 | 178.1 | 176.2 |
Global and other [Member] | |||
Depreciation and Amortization | $42.30 | $46.50 | $36.30 |
Segment_Information_Total_Reve1
Segment Information (Total Revenue by Major Country) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | $2,341 | $2,138.20 | $2,188.60 | $2,183.60 | $2,667.20 | $2,322.90 | $2,508.90 | $2,456 | $8,851.40 | $9,955 | $10,561.40 |
Total from operations [Member] | |||||||||||
Revenues | 8,851.40 | 9,955 | 10,561.40 | ||||||||
Brazil [Member] | |||||||||||
Revenues | 1,909.30 | 2,014 | 2,041.70 | ||||||||
United States [Member] | |||||||||||
Revenues | 1,008.30 | 1,221.80 | 1,454.10 | ||||||||
All other [Member] | |||||||||||
Revenues | $5,933.80 | $6,719.20 | $7,065.60 |
Segment_Information_LongLived_
Segment Information (Long-Lived Assets by Major Country) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Long-Lived Assets | $1,785.70 | $2,025.30 | $2,431.50 |
United States [Member] | |||
Long-Lived Assets | 418.5 | 450.4 | 714.4 |
Brazil [Member] | |||
Long-Lived Assets | 361.9 | 421.5 | 484.5 |
All other [Member] | |||
Long-Lived Assets | $1,005.30 | $1,153.40 | $1,232.60 |
Leases_and_Commitments_Narrati
Leases and Commitments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rent expense | $106.50 | $125.10 | $133.10 |
Estimated cost of plant construction, expansion and modernization projects | $59.80 |
Leases_and_Commitments_Minimum
Leases and Commitments (Minimum Rental Commitments and Purchase Obligations) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
2015, Leases | $92.80 |
2016, Leases | 80.7 |
2017, Leases | 64.2 |
2018, Leases | 53.9 |
2019, Leases | 47.9 |
Later years, Leases | 123.1 |
Sublease rental income, Leases | -39.9 |
Total, Leases | 422.7 |
2015, Purchase Obligations | 187.3 |
2016, Purchase Obligations | 59.4 |
2017, Purchase Obligations | 17.8 |
2018, Purchase Obligations | 8.6 |
2019, Purchase Obligations | 3.2 |
Later years, Purchase Obligations | 1.1 |
Total, Purchase Obligations | $277.40 |
Restructuring_Initiatives_Narr
Restructuring Initiatives (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Restructuring charges and other costs recorded in period | ($37.80) | ($2.50) | ($51.20) | ($22.70) | ($37.40) | $0.20 | ($8.40) | ($20.30) | ($114.20) | ($65.90) | ||
Cost of Sales [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | 0 | 0 | 0 | 0 | 0 | 0 | 0.3 | 0.6 | 0 | 0.9 | ||
Selling, General and Administrative Expenses [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -37.8 | -2.5 | -51.2 | -22.7 | -37.4 | 0.2 | -8.7 | -20.9 | -114.2 | -66.8 | ||
Other Restructuring Initiatives [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -1.8 | -5 | -73.9 | |||||||||
Other Restructuring Initiatives [Member] | Employee Related Costs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -53.4 | |||||||||||
Other Restructuring Initiatives [Member] | Accelerated Depreciation [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -2.7 | |||||||||||
Other Restructuring Initiatives [Member] | Contract Terminations/ Other [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -6.1 | -12 | ||||||||||
Other Restructuring Initiatives [Member] | Professional Service Fees [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -5.8 | |||||||||||
Other Restructuring Initiatives [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -1.8 | -5 | -73.9 | |||||||||
$400M Cost Savings Initiative [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -111.3 | -68.4 | -50.7 | -230.4 | ||||||||
Total expected charges on approved initiatives | 250 | 250 | 250 | |||||||||
Restructuring and Related Cost, Expected Cost Remaining | 20 | 20 | 20 | |||||||||
Gain on sale of Property Plant Equipment | -0.2 | |||||||||||
$400M Cost Savings Initiative [Member] | Employee Related Costs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -72 | -50.4 | -45.2 | |||||||||
$400M Cost Savings Initiative [Member] | Accelerated Depreciation [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -13 | -13.9 | -2.2 | |||||||||
$400M Cost Savings Initiative [Member] | Contract Terminations/ Other [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -6.3 | -4.8 | -1.9 | |||||||||
$400M Cost Savings Initiative [Member] | Currency Translation Adjustment Write Offs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -3.7 | 3.5 | ||||||||||
$400M Cost Savings Initiative [Member] | Professional Service Fees [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -16.3 | -3.3 | ||||||||||
$400M Cost Savings Initiative [Member] | Inventory/ Asset Write-Offs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | 0.7 | -1.4 | ||||||||||
$400M Cost Savings Initiative [Member] | Minimum [Member] | ||||||||||||
Expected annualized savings before taxes | 275 | |||||||||||
$400M Cost Savings Initiative [Member] | Maximum [Member] | ||||||||||||
Expected annualized savings before taxes | 285 | |||||||||||
$400M Cost Savings Initiative [Member] | Cost of Sales [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | 0.7 | -1.4 | ||||||||||
$400M Cost Savings Initiative [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -111.3 | -69.1 | -49.3 | |||||||||
2005 And 2009 Restructuring Programs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -1.1 | 7.5 | -0.1 | |||||||||
Gain on sale of Property Plant Equipment | 4.9 | 1.4 | ||||||||||
2005 And 2009 Restructuring Programs [Member] | Employee Related Costs [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | 12.1 | |||||||||||
2005 And 2009 Restructuring Programs [Member] | Accelerated Depreciation [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -4.7 | |||||||||||
2005 And 2009 Restructuring Programs [Member] | Professional Service Fees [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -8.9 | |||||||||||
2005 And 2009 Restructuring Programs [Member] | Cost of Sales [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | -3.1 | |||||||||||
2005 And 2009 Restructuring Programs [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Restructuring charges and other costs recorded in period | ($1.10) | $7.50 | ($3) |
Restructuring_Initiatives_Rest
Restructuring Initiatives Restructuring Initiatives (Liability Balance for $400M Cost Savings Initiative) (Details) ($400M Cost Savings Initiative [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Opening Balance | $48.50 | $43 | |
Restructuring Charges | 91.5 | 56.3 | 48.5 |
Adjustments | -9.5 | -5.3 | |
Cash payments | -74.4 | -49.7 | -3.4 |
Non-cash write-offs | -3.1 | 4 | -2.2 |
Foreign exchange | -2.4 | 0.2 | 0.1 |
Ending Balance | 50.6 | 48.5 | 43 |
Contract Terminations/ Other [Member] | |||
Opening Balance | 1.8 | 1.7 | |
Restructuring Charges | 7.4 | 5.3 | 1.9 |
Adjustments | -1.1 | -0.5 | |
Cash payments | -7.5 | -4.8 | -0.2 |
Non-cash write-offs | 0 | 0 | 0 |
Foreign exchange | -0.1 | 0.1 | 0 |
Ending Balance | 0.5 | 1.8 | 1.7 |
Inventory/ Asset Write-Offs [Member] | |||
Opening Balance | 0 | 0 | |
Restructuring Charges | 0 | 0.1 | 1.4 |
Adjustments | 0 | -0.8 | |
Cash payments | 0 | 0 | 0 |
Non-cash write-offs | 0 | 0.7 | -1.4 |
Foreign exchange | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Currency Translation Adjustment Write Offs [Member] | |||
Opening Balance | 0 | 0 | |
Restructuring Charges | 3.7 | -3.5 | 0 |
Adjustments | 0 | 0 | |
Cash payments | 0 | 0 | 0 |
Non-cash write-offs | -3.7 | 3.5 | 0 |
Foreign exchange | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Employee Related Costs [Member] | |||
Opening Balance | 46.7 | 41.3 | |
Restructuring Charges | 80.4 | 54.4 | 45.2 |
Adjustments | -8.4 | -4 | |
Cash payments | -66.9 | -44.9 | -3.2 |
Non-cash write-offs | 0.6 | -0.2 | -0.8 |
Foreign exchange | -2.3 | 0.1 | 0.1 |
Ending Balance | $50.10 | $46.70 | $41.30 |
Restructuring_Initiatives_Rest1
Restructuring Initiatives Restructuring Charges Incurred to Date for $400M Cost Savings Initiative (Details) (USD $) | 12 Months Ended | 27 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Charges incurred to date | ||||
$400M Cost Savings Initiative [Member] | ||||
Charges incurred to date | 82 | 51 | 48.5 | 181.5 |
Estimated charges to be incurred on approved initiatives | 14.5 | |||
Total expected charges on approved initiatives | 196 | |||
$400M Cost Savings Initiative [Member] | Contract Terminations/ Other [Member] | ||||
Charges incurred to date | 13 | |||
Estimated charges to be incurred on approved initiatives | 6 | |||
Total expected charges on approved initiatives | 19 | |||
$400M Cost Savings Initiative [Member] | Currency Translation Adjustment Write Offs [Member] | ||||
Charges incurred to date | 0.2 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 0.2 | |||
$400M Cost Savings Initiative [Member] | Employee Related Costs [Member] | ||||
Charges incurred to date | 167.6 | |||
Estimated charges to be incurred on approved initiatives | 4.4 | |||
Total expected charges on approved initiatives | 172 | |||
$400M Cost Savings Initiative [Member] | Inventory and Asset Write Offs [Member] | ||||
Charges incurred to date | 0.7 | |||
Estimated charges to be incurred on approved initiatives | 4.1 | |||
Total expected charges on approved initiatives | $4.80 |
Restructuring_Initiatives_Rest2
Restructuring Initiatives Restructuring Charges by Reportable Segment for $400M Cost Savings Initiative (Details) (USD $) | 12 Months Ended | 27 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Charges incurred to date | ||||
$400M Cost Savings Initiative [Member] | ||||
Charges incurred to date | 82 | 51 | 48.5 | 181.5 |
Estimated charges to be incurred on approved initiatives | 14.5 | |||
Total expected charges on approved initiatives | 196 | |||
$400M Cost Savings Initiative [Member] | Latin America [Member] | ||||
Charges incurred to date | 24.5 | 11.1 | 12.9 | 48.5 |
Estimated charges to be incurred on approved initiatives | 2.2 | |||
Total expected charges on approved initiatives | 50.7 | |||
$400M Cost Savings Initiative [Member] | Europe Middle East & Africa [Member] | ||||
Charges incurred to date | 19.9 | 15.6 | 1.1 | 36.6 |
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 36.6 | |||
$400M Cost Savings Initiative [Member] | North America [Member] | ||||
Charges incurred to date | 14 | 5.3 | 18 | 37.3 |
Estimated charges to be incurred on approved initiatives | 11.5 | |||
Total expected charges on approved initiatives | 48.8 | |||
$400M Cost Savings Initiative [Member] | Asia Pacific [Member] | ||||
Charges incurred to date | 6.5 | 1.3 | 12.9 | 20.7 |
Estimated charges to be incurred on approved initiatives | 0.8 | |||
Total expected charges on approved initiatives | 21.5 | |||
$400M Cost Savings Initiative [Member] | Corporate [Member] | ||||
Charges incurred to date | 17.1 | 17.7 | 3.6 | 38.4 |
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | $38.40 |
Restructuring_Initiatives_Rest3
Restructuring Initiatives Restructuring Initiatives (Liability for Other Restructuring Initiatives) (Details) (Other Restructuring Initiatives [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Opening Balance | $14.30 | $29.40 | |
Restructuring Charges | 1.9 | 6.9 | 65.4 |
Adjustments | -0.1 | -1.9 | |
Cash payments | -7.2 | -20 | -34.1 |
Non-cash write-offs | -1.6 | ||
Foreign exchange | -0.1 | -0.3 | |
Ending Balance | 8.9 | 14.3 | 29.4 |
Contract Terminations/ Other [Member] | |||
Opening Balance | 12.3 | 11.8 | |
Restructuring Charges | 1.9 | 6.1 | 12 |
Adjustments | 0 | 0 | |
Cash payments | -5.7 | -5.6 | -0.2 |
Non-cash write-offs | 0 | ||
Foreign exchange | 0 | 0 | |
Ending Balance | 8.5 | 12.3 | 11.8 |
Employee Related Costs [Member] | |||
Opening Balance | 2 | 17.6 | |
Restructuring Charges | 0 | 0.8 | 53.4 |
Adjustments | -0.1 | -1.9 | |
Cash payments | -1.5 | -14.4 | -33.9 |
Non-cash write-offs | -1.6 | ||
Foreign exchange | -0.1 | -0.3 | |
Ending Balance | $0.40 | $2 | $17.60 |
Contingencies_Narrative_Detail
Contingencies (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Assessment for 2002 [Member] | |
Assessment of contingencies, including penalties and accruing interest, reduced | $25 |
Assessment of contingencies, prior to reductions | 59 |
IPI [Member] | Assessment for 2012 [Member] | |
Assessment of contingencies, including penalties and accruing interest | 322 |
DOJ [Member] | FCPA [Member] | |
Litigation Settlement, Amount | 68 |
SEC [Member] | FCPA [Member] | |
Litigation Settlement, Amount | $67 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
China lower revenue than prior year results | 67.00% | 28.00% | ||||||
China lower revenue than estimates utilized | 67.00% | |||||||
Goodwill | $249.30 | $282.50 | ||||||
China expected lower revenue than estimates utilized | 38.00% | |||||||
China expected lower revenue than prior year results | 47.00% | |||||||
Impairment of goodwill and intangible assets | 0 | 42.1 | 44 | |||||
Amortization of Intangible Assets | 4.4 | 9.5 | ||||||
China [Member] | ||||||||
Goodwill, Impairment Loss | 38.4 | 44 | ||||||
Goodwill, Impairment Loss, Net of Tax | 38.4 | 44 | ||||||
Goodwill | 0 | 38.4 | 0 | |||||
Impairment of Intangible Assets, Finite-lived | 3.7 | |||||||
Finite Lived Intangible Impairment Loss After Tax | 2.8 | |||||||
Finite-Lived Intangible Assets, Gross | 0 | 3.7 | 0 | |||||
Impairment of goodwill and intangible assets | 42.1 | $44 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Gross balance at December 31, 2013 | $364.90 |
Accumulated impairments | -82.4 |
Net balance at December 31, 2013 | 282.5 |
Goodwill, Translation Adjustments | -33.2 |
Gross balance at December 31, 2014 | 331.7 |
Accumulated impairments | -82.4 |
Net balance at December 31, 2014 | 249.3 |
Latin America [Member] | |
Gross balance at December 31, 2013 | 112.6 |
Accumulated impairments | 0 |
Net balance at December 31, 2013 | 112.6 |
Goodwill, Translation Adjustments | -21.9 |
Gross balance at December 31, 2014 | 90.7 |
Accumulated impairments | 0 |
Net balance at December 31, 2014 | 90.7 |
Europe Middle East & Africa [Member] | |
Gross balance at December 31, 2013 | 167.3 |
Accumulated impairments | 0 |
Net balance at December 31, 2013 | 167.3 |
Goodwill, Translation Adjustments | -11.3 |
Gross balance at December 31, 2014 | 156 |
Accumulated impairments | 0 |
Net balance at December 31, 2014 | 156 |
Asia Pacific [Member] | |
Gross balance at December 31, 2013 | 85 |
Accumulated impairments | -82.4 |
Net balance at December 31, 2013 | 2.6 |
Goodwill, Translation Adjustments | 0 |
Gross balance at December 31, 2014 | 85 |
Accumulated impairments | -82.4 |
Net balance at December 31, 2014 | $2.60 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accumulated Amortization | ($78.20) | ($98.50) |
Indefinite-Lived Trademarks | 23.6 | 25.1 |
Total Gross Intangible Assets | 107.2 | 132 |
Trademarks [Member] | ||
Gross Amount | 0 | 6.6 |
Accumulated Amortization | 0 | -6.6 |
Customer Relationships [Member] | ||
Gross Amount | 33 | 39.9 |
Accumulated Amortization | -31.1 | -36.5 |
Licensing Agreements [Member] | ||
Gross Amount | 43.4 | 52.3 |
Accumulated Amortization | -39.9 | -47.3 |
Noncompete Agreements [Member] | ||
Gross Amount | 7.2 | 8.1 |
Accumulated Amortization | ($7.20) | ($8.10) |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Components of Prepaid Expenses and Other) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ||
Deferred tax assets (Note 7) | $204.70 | $233.60 |
Prepaid taxes and tax refunds receivable | 165.7 | 145.9 |
Prepaid brochure costs, paper and other literature | 77.6 | 95.7 |
Receivables other than trade | 72.5 | 86.6 |
Short-term Investments | 21 | 31.7 |
Other | 76.8 | 95.8 |
Prepaid expenses and other | $618.30 | $689.30 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Components of Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets, Noncurrent [Abstract] | ||
Deferred tax assets (Note 7) | $685.80 | $944.70 |
Long-term receivables | 149.5 | 168 |
Capitalized software (Note 1) | 101.3 | 122.9 |
Investments | 36.4 | 33.8 |
Other intangible assets, net (Note 16) | 29 | 33.5 |
Tooling | 21.7 | 37.9 |
Other | 28.3 | 34.5 |
Other assets | $1,052 | $1,375.30 |
Results_of_Operations_by_Quart2
Results of Operations by Quarter Results of Operatings by Quarter (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Exchange rate net charges, total | $41.80 | $50.70 | ||||||||||
Exchange rate net charges on other expense, net | 53.7 | 34.1 | ||||||||||
Exchange rate net charges on income taxes | -11.9 | 16.6 | ||||||||||
Loss on extinguishment of debt | -73 | 0 | -86 | 0 | ||||||||
Non-Cash Income Tax Charge | 404.9 | |||||||||||
Net increase (decrease) in valuation allowance | 383.5 | 425.2 | ||||||||||
FCPA Settlement, Tax Benefit | 18.5 | |||||||||||
Venezuela [Member] | ||||||||||||
Net increase (decrease) in valuation allowance | 41.8 | |||||||||||
China [Member] | ||||||||||||
Net increase (decrease) in valuation allowance | 9.2 | |||||||||||
Term Loan [Member] | ||||||||||||
Loss on extinguishment of debt | -1.6 | |||||||||||
Repayments of Long-term Debt | 117.5 | 380 | 52.5 | |||||||||
Five Point Six Two Five Percent Notes, Due March Two Thousand Fourteen [Member] | ||||||||||||
Loss on extinguishment of debt | ($13) |
Results_of_Operations_by_Quart3
Results of Operations by Quarter (Financial Results of Operations by Quarter) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Total revenue | $2,341 | $2,138.20 | $2,188.60 | $2,183.60 | $2,667.20 | $2,322.90 | $2,508.90 | $2,456 | $8,851.40 | $9,955 | $10,561.40 | ||||||||||
Gross profit | 1,421.70 | 1,324.30 | 1,377.90 | 1,228.20 | 1,627.20 | 1,451.20 | 1,573.50 | 1,530.60 | 5,352.10 | 6,182.50 | |||||||||||
Operating profit (loss) | 169.9 | 187.9 | 93.2 | -50.9 | -17.2 | 68.2 | 202.2 | 174 | 400.1 | 427.2 | 525 | ||||||||||
Income (loss) from continuing operations, before tax | 95.1 | 144.4 | 65.7 | -141 | [1] | -43.6 | 31.6 | 145.3 | [1] | 29.3 | [1] | 164.2 | [1] | 162.6 | [1] | 428.7 | |||||
(Loss) income from continuing operations, net of tax | -329.6 | [2] | 92 | 19.9 | -167.2 | [1] | -67.7 | [2] | -6.4 | [2] | 84.6 | [1] | -11.5 | [1] | -384.9 | [1],[2] | -1 | [1],[2] | 93.3 | ||
(Loss) income from discontinued operations, net of tax | 0 | 0.6 | -50.4 | -1.1 | 0 | -50.9 | -131.5 | ||||||||||||||
Net income (loss) attributable to noncontrolling interests | -1.1 | -0.6 | -0.9 | -1.1 | -1.4 | 0.3 | -2.3 | -1.1 | -3.7 | -4.5 | -4.3 | ||||||||||
Net loss attributable to Avon | ($330.70) | [2] | $91.40 | $19 | ($168.30) | [1] | ($69.10) | [1],[2] | ($5.50) | [2] | $31.90 | [1] | ($13.70) | [1] | ($388.60) | [1],[2] | ($56.40) | [1],[2] | ($42.50) | ||
Basic | ($0.75) | [2],[3] | $0.21 | [3] | $0.04 | [3] | ($0.38) | [1],[3] | ($0.16) | [1],[2] | ($0.01) | [2],[3] | $0.19 | [1],[3] | ($0.03) | [1],[3] | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
Diluted | ($0.75) | [2],[3] | $0.21 | [3] | $0.04 | [3] | ($0.38) | [1],[3] | ($0.16) | [1],[2] | ($0.01) | [2],[3] | $0.19 | [1],[3] | ($0.03) | [1],[3] | ($0.88) | [1],[2],[3] | ($0.01) | [1],[2],[3] | $0.20 |
[1] | In addition to the items impacting operating profit (loss) above, income (loss) from continuing operations, before taxes during 2014 was impacted by a one-time, after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate.In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a one-time, after-tax loss of $50.7 ($34.1 in other expense, net, and $16.6 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities and deferred tax benefits due to the devaluation of Venezuelan currency. Income (loss) from continuing operations, before taxes during 2013 was also impacted by a loss on extinguishment of debt of $73.0 before tax in the first quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs associated with the prepayment of our Private Notes (as defined in Note 5, Debt and Other Financing), as well as the write-off of debt issuance costs associated with the early repayment of $380.0 of the outstanding principal amount of the term loan agreement (as defined in Note 5, Debt and Other Financing). In addition, income (loss) from continuing operations, before taxes during 2013 was impacted by a loss on extinguishment of debt of $13.0 before tax in the second quarter of 2013 caused by the make-whole premium and the write-off of debt issuance costs and discounts, partially offset by a deferred gain associated with the January 2013 interest-rate swap agreement termination, associated with the prepayment of the 2014 Notes (as defined in Note 5, Debt and Other Financing). | ||||||||||||||||||||
[2] | (Loss) income from continuing operations, net of tax during 2014 was negatively impacted by a non-cash income tax charge of $404.9. This was primarily due to a valuation allowance of $383.5 to reduce our deferred tax assets to an amount that is "more likely than not" to be realized, which was recorded in the fourth quarter of 2014. In addition, (loss) income from continuing operations, net of tax during 2014 was favorably impacted by the $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. In addition, (loss) income from continuing operations, net of tax during 2013 was impacted by valuation allowances for deferred tax assets of $41.8 related to Venezuela in the fourth quarter of 2013 and $9.2 related to the China business in the third quarter of 2013. | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
Results_of_Operations_by_Quart4
Results of Operations by Quarter (Components Impacting Operating Profit) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total costs to implement restructuring initiatives | $37.80 | $2.50 | $51.20 | $22.70 | $37.40 | ($0.20) | $8.40 | $20.30 | $114.20 | $65.90 | |
Venezuelan special items | 1.4 | 2 | 18 | 115.7 | 4.9 | 14.9 | 16.5 | 13.3 | 137.1 | 49.6 | |
FCPA accrual | 0 | 0 | 0 | ||||||||
Asset impairment and other charges | 117.2 | 42.1 | 0 | 0 | 0 | 159.3 | 44 | ||||
FCPA [Member] | |||||||||||
FCPA accrual | 0 | 0 | 46 | 77 | 12 | 46 | 89 | ||||
Pension Benefits U.S. Plans [Member] | |||||||||||
Pension settlement charge | 7.5 | 5.4 | 23.5 | 0 | 36.4 | ||||||
Cost of Sales [Member] | |||||||||||
Total costs to implement restructuring initiatives | 0 | 0 | 0 | 0 | 0 | 0 | -0.3 | -0.6 | 0 | -0.9 | |
Selling, General and Administrative Expenses [Member] | |||||||||||
Total costs to implement restructuring initiatives | $37.80 | $2.50 | $51.20 | $22.70 | $37.40 | ($0.20) | $8.70 | $20.90 | $114.20 | $66.80 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts Receivable [Member] | ||||||
Balance at Beginning of Period | $129.60 | $134.30 | $138.40 | |||
Charged to Costs and Expenses | 192.5 | 239.3 | 250.9 | |||
Charged to Revenue | 0 | 0 | 0 | |||
Deductions | -221.3 | [1] | -244 | [1] | -255 | [1] |
Balance at End of Period | 100.8 | 129.6 | 134.3 | |||
Allowance for Sales Returns [Member] | ||||||
Balance at Beginning of Period | 17.6 | 26.8 | 35.8 | |||
Charged to Costs and Expenses | 0 | 0 | 0 | |||
Charged to Revenue | 298.1 | 340 | 386.4 | |||
Deductions | -298.5 | [2] | -349.2 | [2] | -395.4 | [2] |
Balance at End of Period | 17.2 | 17.6 | 26.8 | |||
Allowance for Inventory Obsolescence [Member] | ||||||
Balance at Beginning of Period | 150.8 | 164.8 | 147.4 | |||
Charged to Costs and Expenses | 100.9 | 117.1 | 118.8 | |||
Charged to Revenue | 0 | 0 | 0 | |||
Deductions | -129.8 | [3] | -131.1 | [3] | -101.4 | [3] |
Balance at End of Period | 121.9 | 150.8 | 164.8 | |||
Deferred Tax Asset Valuation Allowance [Member] | ||||||
Balance at Beginning of Period | 783.4 | 627.4 | 546.1 | |||
Charged to Costs and Expenses | 425.2 | [4] | 156 | [4] | 81.3 | [4] |
Charged to Revenue | 0 | 0 | 0 | |||
Deductions | 0 | 0 | 0 | |||
Balance at End of Period | $1,208.60 | $783.40 | $627.40 | |||
[1] | Accounts written off, net of recoveries and foreign currency translation adjustment. | |||||
[2] | Returned product destroyed and foreign currency translation adjustment. | |||||
[3] | Obsolete inventory destroyed and foreign currency translation adjustment. | |||||
[4] | Increase in valuation allowance primarily for deferred tax assets that are not more likely than not to be realized in the future. |