Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | AVON PRODUCTS INC | ||
Entity Central Index Key | 8,868 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 435,472,459 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.7 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Net sales | $ 6,076.5 | $ 7,472.5 | $ 8,379.4 | ||
Other revenue | 84 | 175.5 | 117.4 | ||
Total revenue | 6,160.5 | 7,648 | 8,496.8 | ||
Costs, expenses and other: | |||||
Cost of sales | 2,445.4 | 3,006.9 | 3,172.8 | ||
Selling, general and administrative expenses | 3,543.2 | 4,206.8 | 4,742.1 | ||
Impairment of goodwill and intangible assets | 6.9 | 0 | 42.1 | ||
Operating profit | 165 | 434.3 | 539.8 | ||
Interest expense | 120.5 | 108.8 | 117.9 | ||
Loss on extinguishment of debt | 5.5 | 0 | 86 | ||
Interest income | (12.5) | (14.8) | (25.9) | ||
Other expense, net | 73.7 | 139.5 | 83.9 | ||
Gain on sale of business | (44.9) | 0 | 0 | ||
Total other expenses | 142.3 | 233.5 | 261.9 | ||
Income from continuing operations, before taxes | 22.7 | [1] | 200.8 | [1] | 277.9 |
Income taxes | (819.2) | (545.3) | (210.4) | ||
Loss from continuing operations, net of tax | (796.5) | [1],[2] | (344.5) | [1],[2] | 67.5 |
Loss from discontinued operations, net of tax | (349.1) | (40.4) | (119.4) | ||
Net loss | (1,145.6) | (384.9) | (51.9) | ||
Net income attributable to noncontrolling interests | (3.3) | (3.7) | (4.5) | ||
Net loss attributable to Avon | $ (1,148.9) | [1],[2] | $ (388.6) | [1],[2] | $ (56.4) |
Loss per share: | |||||
Basic from continuing operations | $ (1.81) | [1],[2],[3] | $ (0.79) | [1],[2],[3] | $ 0.14 |
Basic from discontinued operations | (0.79) | (0.09) | (0.27) | ||
Basic attributable to Avon | (2.60) | (0.88) | (0.13) | ||
Diluted from continuing operations | (1.81) | [1],[2],[3] | (0.79) | [1],[2],[3] | 0.14 |
Diluted from discontinued operations | (0.79) | (0.09) | (0.27) | ||
Diluted attributable to Avon | $ (2.60) | $ (0.88) | $ (0.13) | ||
Weighted-average shares outstanding: | |||||
Basic | 435.2 | 434.5 | 433.4 | ||
Diluted | 435.2 | 434.5 | 434.2 | ||
[1] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an 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. | ||||
[2] | (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies.In addition, (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 $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. | ||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Net loss | $ (1,145.6) | $ (384.9) | $ (51.9) | ||
Other comprehensive (loss) income: | |||||
Foreign currency translation adjustments | (275) | (248.3) | (112.8) | ||
Change in derivative losses on cash flow hedges, net of taxes | 1.9 | [1] | 1.9 | [1] | 1.7 |
Amortization of net actuarial loss and prior service cost, net of taxes | 81.8 | 85.8 | 35.7 | ||
Adjustments of net actuarial loss and prior service cost, net of taxes | 40.7 | (187.2) | 80.6 | ||
Total other comprehensive (loss) income, net of taxes | (150.6) | (347.8) | 5.2 | ||
Comprehensive loss | (1,296.2) | (732.7) | (46.7) | ||
Less: comprehensive (loss) income attributable to noncontrolling interests | (1.6) | (1.9) | 1.2 | ||
Comprehensive loss attributable to Avon | $ (1,294.6) | $ (730.8) | $ (47.9) | ||
[1] | Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Change in derivative losses on cash flow hedges, taxes | $ 0 | $ 0 | $ 0.9 |
Amortization of net actuarial losses and prior service cost, taxes | 1.2 | 2.5 | 16.5 |
Adjustments of net actuarial losses and prior service cost, taxes | $ 3.9 | $ (12) | $ 39.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash, including cash equivalents | $ 686.9 | $ 936.4 |
Accounts receivable (less allowances) | 443 | 515.6 |
Inventories | 624 | 707.7 |
Prepaid expenses and other | 296.1 | 590.7 |
Current assets of discontinued operations | 291.1 | 314.1 |
Total current assets | 2,341.1 | 3,064.5 |
Property, plant and equipment, at cost | ||
Land | 32.2 | 37.8 |
Buildings and improvements | 665.8 | 831.1 |
Equipment | 797.7 | 999 |
Property, plant and equipment, at cost | 1,495.7 | 1,867.9 |
Less accumulated depreciation | (728.8) | (831.1) |
Property, plant and equipment, net, total | 766.9 | 1,036.8 |
Goodwill | 92.3 | 249.3 |
Other assets | 499.1 | 1,034.3 |
Noncurrent assets of discontinued operations | 180.1 | 211.9 |
Total assets | 3,879.5 | 5,596.8 |
Current Liabilities | ||
Debt maturing within one year | 55.2 | 121.7 |
Accounts payable | 774.2 | 806.3 |
Accrued compensation | 157.6 | 174.9 |
Other accrued liabilities | 419.6 | 539.1 |
Sales and taxes other than income | 174.9 | 160.8 |
Income taxes | 23.9 | 36.8 |
Payable to Discontinued Operations | 100 | 100 |
Current liabilities of discontinued operations | 489.7 | 207.6 |
Total current liabilities | 2,195.1 | 2,147.2 |
Long-term debt | 2,159.6 | 2,428.7 |
Employee benefit plans | 177.5 | 249.6 |
Long-term income taxes | 65.1 | 75.2 |
Other liabilities | 78.4 | 93.8 |
Noncurrent liabilities of discontinued operations | 260.2 | 297 |
Total liabilities | $ 4,935.9 | $ 5,291.5 |
Commitments and contingencies (Notes 13 and 15) | ||
Shareholders' (Deficit) Equity | ||
Common stock, par value $.25 | $ 187.9 | $ 187.6 |
Additional paid-in capital | 2,254 | 2,207.9 |
Retained earnings | 2,448.1 | 3,702.9 |
Accumulated other comprehensive loss | (1,366.2) | (1,217.6) |
Treasury stock, at cost | (4,594.1) | (4,591) |
Total Avon shareholders' (deficit) equity | (1,070.3) | 289.8 |
Noncontrolling interest | 13.9 | 15.5 |
Total shareholders' (deficit) equity | (1,056.4) | 305.3 |
Total liabilities and shareholders' (deficit) equity | $ 3,879.5 | $ 5,596.8 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash equivalents | $ 123.2 | $ 440.3 |
Allowances | $ 86.7 | $ 106.9 |
Common stock, par value | $ 0.25 | $ 0.25 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 751,400,000 | 750,300,000 |
Treasury stock | 315,900,000 | 315,600,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Cash Flows from Operating Activities | |||||||
Net loss | $ (1,145.6) | $ (384.9) | $ (51.9) | ||||
Loss from discontinued operations, net of tax | 349.1 | 40.4 | 119.4 | ||||
(Loss) income from continuing operations, net of tax | (796.5) | [1],[2] | (344.5) | [1],[2] | 67.5 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation | 94 | 121.7 | 132.8 | ||||
Amortization | 32.1 | 47.7 | 54.9 | ||||
Provision for doubtful accounts | 144.1 | 171.1 | 209.2 | ||||
Provision for obsolescence | 45.4 | 78.4 | 82 | ||||
Share-based compensation | 51.2 | 38.9 | 43.3 | ||||
Foreign exchange losses | 44.3 | 41.4 | 26.2 | ||||
Deferred income taxes | 644.6 | 236.4 | (87.5) | ||||
Charge for Venezuelan monetary assets and liabilities | (4.2) | 53.7 | 34.1 | ||||
Charge for Venezuelan non-monetary assets | 101.7 | 115.7 | 0 | ||||
Pre-tax gain on sale of business | (44.9) | 0 | 0 | ||||
Impairment of goodwill and intangible assets | 6.9 | 0 | 42.1 | ||||
Other | 11.6 | 10.8 | (2.3) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (184.7) | (179) | (224) | ||||
Inventories | (106.6) | (170.5) | (88.1) | ||||
Prepaid expenses and other | 8.7 | (77) | 72.1 | ||||
Accounts payable and accrued liabilities | 80.4 | 142.6 | 176 | ||||
Income and other taxes | 50.7 | 57.5 | 7.1 | ||||
Noncurrent assets and liabilities | (87.4) | (56) | (74.9) | ||||
Net cash provided by operating activities of continuing operations | 91.4 | 288.9 | 470.5 | ||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (92.4) | (126.3) | (189.7) | ||||
Disposal of assets | 8.2 | 15.7 | 13 | ||||
Net proceeds from sale of business | 208.3 | 0 | 0 | ||||
Purchases of investments | (35.3) | (26.8) | (28.3) | ||||
Proceeds from sale of investments | 53.7 | 36.9 | 14.4 | ||||
Net cash provided (used) by investing activities of continuing operations | 142.5 | (100.5) | (190.6) | ||||
Cash Flows from Financing Activities | |||||||
Cash dividends | (108.8) | (110.2) | (106.8) | ||||
Debt, net (maturities of three months or less) | (59.1) | (22.4) | (10.3) | ||||
Proceeds from debt | 7.6 | 0 | 1,488.3 | ||||
Repayment of debt | (261.2) | (66.5) | (1,935.2) | ||||
Interest rate swap termination | 0 | 0 | 88.1 | ||||
Net proceeds from exercise of stock options | 0 | 0.2 | 15.9 | ||||
Repurchase of common stock | (3.1) | (9.8) | (9.4) | ||||
Other financing activities | (5.9) | 0 | 0 | ||||
Net cash used by financing activities of continuing operations | (430.5) | (208.7) | (469.4) | [3] | |||
Cash Flows from Discontinued Operations | |||||||
Net cash provided by operating activities of discontinued operations | 20.7 | 70.9 | 65.1 | ||||
Net cash (used) provided by investing activities of discontinued operations | (4.2) | (4.6) | 102 | ||||
Net cash (used) provided by financing activities of discontinued operations | (15) | (10.1) | 1.5 | ||||
Net cash provided by discontinued operations | 1.5 | 56.2 | 168.6 | ||||
Effect of exchange rate changes on cash and equivalents | (80.7) | (183.3) | (80.8) | ||||
Net decrease in cash and equivalents | (275.8) | (147.4) | (101.7) | ||||
Cash and equivalents at beginning of year | [5] | 960.5 | [4] | 1,107.9 | [4] | 1,209.6 | |
Cash and equivalents at end of year | [4] | 684.7 | 960.5 | [5] | 1,107.9 | [5] | |
Cash paid for: | |||||||
Interest, net of amounts capitalized | 128.6 | 123.8 | 222.1 | ||||
Income taxes, net of refunds received | $ 162.5 | $ 229.2 | $ 296.2 | ||||
[1] | (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies.In addition, (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. | ||||||
[2] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an 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. | ||||||
[3] | Non-cash financing activities included the change in fair market value of interest-rate swap agreements of $(.7) in 2013(see Note 8, Financial Instruments and Risk Management). | ||||||
[4] | Includes cash and cash equivalents of discontinued operations of $(2.2), $24.1 and $17.9 at the end of the year in 2015, 2014 and 2013, respectively. | ||||||
[5] | Includes cash and cash equivalents of discontinued operations of $24.1, $17.9 and $19.9 at the beginning of the year in 2015, 2014 and 2013, respectively. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows Parenthetical (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Purchases and sales of noncontrolling interests, net of dividends paid | $ 2.9 | $ 5 | $ 2.2 | |
Non-Cash Financing Activities - change in fair value of interest rate swaps | 0 | 0 | (0.7) | |
Cash and cash equivalents of discontinued operations | $ (2.2) | $ 24.1 | $ 17.9 | $ 19.9 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | |
Shareholders' Equity at Period Start at Dec. 31, 2012 | $ 1,233.3 | $ 188.3 | $ 2,119.6 | $ 4,357.8 | $ (876.7) | $ (4,571.9) | $ 16.2 | |
Balance, shares at Dec. 31, 2012 | 746.7 | 314.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income attributable to Avon | (56.4) | (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 | 1,127.5 | $ 189.4 | 2,175.6 | 4,196.7 | (870.4) | $ (4,581.2) | 17.4 | |
Balance, shares at Dec. 31, 2013 | 748.8 | 314.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income 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 | 305.3 | $ 187.6 | 2,207.9 | 3,702.9 | (1,217.6) | $ (4,591) | 15.5 | |
Balance, shares at Dec. 31, 2014 | 750.3 | 315.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income attributable to Avon | (1,148.9) | [1],[2] | (1,148.9) | |||||
Net income attributable to noncontrolling interests | 3.3 | 3.3 | ||||||
Net loss | (1,145.6) | |||||||
Other comprehensive income (loss) attributable to parent | (148.6) | |||||||
Other comprehensive income (loss) attributable to noncontrolling interests | (2) | |||||||
Other comprehensive (loss) income | (150.6) | |||||||
Dividends | (105.9) | (105.9) | ||||||
Exercise/ vesting of share-based compensation, value | 51 | $ 0.3 | 50.7 | $ 0 | ||||
Exercise/ vesting of share-based compensation, shares | 1.1 | 0 | ||||||
Repurchase of common stock, value | (3.1) | $ (3.1) | ||||||
Repurchase of common stock, shares | 0.3 | |||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (2.9) | (2.9) | ||||||
Income tax benefits - stock transactions | (4.6) | (4.6) | ||||||
Shareholders' Equity at Period End at Dec. 31, 2015 | $ (1,056.4) | $ 187.9 | $ 2,254 | $ 2,448.1 | $ (1,366.2) | $ (4,594.1) | $ 13.9 | |
Balance, shares at Dec. 31, 2015 | 751.4 | 315.9 | ||||||
[1] | (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies.In addition, (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. | |||||||
[2] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity Parentheticals (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends per share | $ 0.24 | $ 0.24 | $ 0.24 |
Purchases and sales of noncontrolling interests, net of dividends paid | $ 2.9 | $ 5 | $ 2.2 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Description Of The Business And Summary Of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Business When used in these notes, the terms "Avon," "Company," "we," "our" or "us" mean Avon Products, Inc. We are a global manufacturer and marketer of beauty and related products. Our business is conducted primarily in one channel, direct selling. Our reportable segments are based on geographic operations in three regions: Latin America; Europe, Middle East & Africa; and Asia Pacific. In addition, we operate our business in North America, which has been presented as discontinued operations for all periods presented and is discussed further below. 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. In December 2015, we entered into definitive agreements with affiliates controlled by Cerberus Capital Management ("Cerberus"), which include a $435 investment in Avon by an affiliate of Cerberus through the purchase of our convertible preferred stock and the separation of the North America business from Avon into a privately-held company that will be majority-owned and managed by an affiliate of Cerberus. Avon will retain approximately 20% ownership in this new privately-held company. The transactions are expected to close concurrently in the first half of 2016. North America was previously its own reportable segment and has been presented as discontinued operations for all periods presented. Refer to Note 3, Discontinued Operations and Divestitures for additional information regarding the investment by an affiliate of Cerberus and the separation of the North America business. 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, property, plant and equipment 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 income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the United States ("U.S.") dollar is required to be used as the functional currency. At December 31, 2015, 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 Operations. 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 2015, the Venezuelan government announced that a new foreign exchange system was created, referred to as the SIMADI exchange ("SIMADI"). SIMADI began operating on February 12, 2015. There are multiple legal mechanisms in Venezuela to exchange currency. As SIMADI represents the rate which better reflects the economics of Avon Venezuela's business activity, in comparison to the other available exchange rates, we concluded that we should utilize the SIMADI exchange rate to remeasure our Venezuelan operations effective February 12, 2015. As a result of the change to the SIMADI rate, which caused the recognition of a devaluation of approximately 70% as compared to the exchange rate we used previously, we recorded an after-tax benefit of $3.4 (a benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) in the first quarter of 2015, 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 SIMADI rate, at the applicable rate at the time of their 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 by $18.5 during 2015. Also as a result of the change to the SIMADI rate, we determined that an adjustment of $11.4 to cost of sales was needed to reflect certain non-monetary assets, primarily inventories, at their net realizable value, which was recorded in the first quarter of 2015. In addition, in February 2015, we reviewed Avon Venezuela's long-lived assets to determine whether the carrying amount of the assets was recoverable. Based on our expected cash flows associated with the asset group, we determined that the carrying amount of the assets, carried at their historical U.S. dollar cost basis, was not recoverable. As such, an impairment charge of $90.3 to selling, general and administrative expenses was recorded to reflect the write-down of the long-lived assets to their estimated fair value of $15.7 , which was recorded in the first quarter of 2015. The fair value of Avon Venezuela's long-lived assets was determined using both market and cost valuation approaches. The valuation analysis performed required several estimates, including market conditions and inflation rates. In February 2014, the Venezuelan government announced a foreign exchange system which began operating on March 24, 2014, referred to as the SICAD II exchange ("SICAD II"). As SICAD II represented the rate which better reflected the economics of Avon Venezuela's business activity, in comparison to the other available exchange rates, 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 their 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 by $21.4 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, primarily inventories, at their net realizable value, which was recorded in the first quarter of 2014. Effective February 13, 2013, the Venezuelan government devalued its currency by approximately 32% and as such we recorded an 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 by $49.6 . 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 three to four weeks for most markets. Brochure costs and associated fees that are presented as prepaid expenses and other were $25.8 at December 31, 2015 and $27.8 at December 31, 2014 . Additionally, paper stock is purchased in advance of creating the brochures. Prepaid expenses and other include paper supply of $3.8 at December 31, 2015 and $6.2 at December 31, 2014 . Brochure costs expensed to selling, general and administrative expenses amounted to $256.6 in 2015, $309.4 in 2014 and $348.0 in 2013. The fees charged to Representatives recorded as a reduction to selling, general and administrative expenses amounted to $141.9 in 2015, $173.2 in 2014 and $188.1 in 2013. 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. See above for more information on Avon Venezuela's long-lived assets. 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 2015, 2014 or 2013. 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 $82.4 at December 31, 2015 and $91.6 at December 31, 2014 . The amortization expense associated with capitalized software was $ 31.0 , $ 44.8 and $ 50.8 for the years ended December 31, 2015, 2014 and 2013, respectively. 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 carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate. 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 discounted cash flow ("DCF") approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of 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 would 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 Egypt. 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 Operations. 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 Operations. 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 Operations. 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 Operations. 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 $538.8 in 2015 , $695.8 in 2014 and $784.5 in 2013 . Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $128.0 in 2015 , $166.4 in 2014 and $174.3 in 2013 . Research and Development Research and development costs are expensed as incurred and amounted to $61.9 in 2015 , $64.7 in 2014 and $66.9 in 2013 . 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 Monte-Carlo simulation to calculate the fair value of performance restricted stock units with market conditions and 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 We revised our Consolidated Statements of Cash Flows to correct the presentation of certain financing activities, specifically a decrease of $65.6 in repayment of debt, a decrease of $70.0 in proceeds from debt, and an increase of $4.4 in debt, net for the year ended December 31, 2014. This revision did not impact cash flows from operating activities, our Consolidated Statements of Operations, our Consolidated Statements of Comprehensive Income (Loss) or our Consolidated Balance Sheets. We determined that the effect of this revision was not material to any of our previously issued financial statements. Out-of-Period Items During 2015, we recorded out-of-period adjustments which decreased income from continuing operations by approximately $8 before tax (approximately $14 after tax). We evaluated the total out-of-period adjustments impacting 2015, 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 2014, we recorded out-of-period adjustments in our Latin America segment (primarily related to revenue and selling, general and administrative expenses) which increased income from continuing operations by approximately $15 before tax. The total out-of-period adjustments increasing income from continuing operations during 2014 was approximately $13 before tax (approximately $6 after tax), and the total out-of-period adjustments decreasing income from discontinued operations during 2014 was approximately $7 after tax. 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. Earnings (Loss) per Share We compute earnings (loss) per share ("EPS") using the two-class method, which is a earnings (loss) allocation formula that determines earnings (loss) per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net income (loss) 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) 2015 2014 2013 Numerator from continuing operations: (Loss) income from continuing operations less amounts attributable to noncontrolling interests $ (799.8 ) $ (348.1 ) $ 63.0 Less: Loss (income) allocated to participating securities 10.9 4.2 (.6 ) (Loss) income from continuing operations allocated to common shareholders (788.9 ) (343.9 ) 62.4 Numerator from discontinued operations: Loss from discontinued operations less amounts attributable to noncontrolling interests $ (349.1 ) $ (40.5 ) $ (119.4 ) Less: Loss allocated to participating securities 4.7 .6 1.2 Loss from discontinued operations allocated to common shareholders (344.4 ) (39.9 ) (118.2 ) Numerator attributable to Avon: Loss attributable to Avon less amounts attributable to noncontrolling interests $ (1,148.9 ) $ (388.6 ) $ (56.4 ) Less: Loss allocated to participating securities 15.7 4.7 .6 Loss attributable to Avon allocated to common shareholders (1,133.2 ) (383.9 ) (55.8 ) Denominator: Basic EPS weighted-average shares outstanding 435.2 434.5 433.4 Diluted effect of assumed conversion of stock options — — .8 Diluted EPS adjusted weighted-average shares outstanding 435.2 434.5 43 |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Standards Standards Implemented In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes . ASU 2015-17 simplifies the presentation of deferred taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. We elected to early adopt ASU 2015-17 in the fourth quarter of 2015 on a prospective basis. This did not have an impact on our consolidated financial statements, other than balance sheet presentation as of December 31, 2015, as prior periods were not retrospectively adjusted. Standards to be Implemented In May 2014, the FASB issued ASU 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. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date, which resulted in the standard being effective beginning in 2018, with early adoption permitted in the beginning of 2017. This standard 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 and Div
Discontinued Operations and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |
Discontinued Operations | Discontinued Operations and Divestitures Discontinued Operations North America On December 17, 2015, the Company entered into definitive agreements with affiliates controlled by Cerberus. The agreements include a an investment agreement providing for a $435 investment by Cleveland Apple Investor LLC (“Cleveland Investor”) (an affiliate of Cerberus) in the Company through the purchase of perpetual convertible preferred stock and a separation and investment agreement providing for the separation of the Company's North America business, which represents the Company's operations in the United States, Canada and Puerto Rico, from the Company into a privately-held company (“NewCo”) that will be majority-owned and managed by Cleveland NA Investor LLC (“Cleveland NA”) (an affiliate of Cerberus) as a result of the issuance to Cleveland NA of ownership interests in NewCo. Cleveland NA will contribute $170 of cash into NewCo in exchange for 80.1% of its ownership interests. We will contribute the North America business, certain pension and postretirement liabilities and $100 of cash into NewCo and will own 19.9% of NewCo’s ownership interests. The $435 investment by Cleveland Investor in the Company will be in exchange for perpetual convertible preferred stock with an optional conversion price for holders of $5.00 per share and a dividend that accrues at a rate of 5% per annum, subject to increase upon certain events. The dividend is payable at the Company's option in (i) cash, (ii) subject to certain conditions, in common shares or (iii) subject to certain conditions, upon conversion of shares in Series C Preferred Stock, in shares of our non-voting, non-convertible Series D Preferred Stock, par value $1.00 per share (the "Series D Preferred Stock"). Any such shares of Series D Preferred Stock issued would have similar preferential rights. At the close of these transactions, the Company will make changes to its Board of Directors, including certain current directors stepping down and other directors joining from Cerberus. In addition, new independent directors jointly selected by the Company and Cerberus will be appointed at or as soon as practicable after the close of the transactions. The transactions are expected to close concurrently in the first half of 2016. Proceeds from the sale of the perpetual convertible preferred stock are intended to be used to fund the $100 cash contribution into NewCo, approximately $250 may be used to reduce debt, and the remainder will be used for restructuring and reinvestment in the business. The Company considered that the transactions with affiliates of Cerberus should help to drive enhanced focus on Avon's international markets, revitalize the North America business and deliver long-term value to shareholders. The North America business was previously its own reportable segment and has been presented as discontinued operations for all periods presented as the separation represented a significant strategic shift and was determined to have a major effect on our operations and financial results. Amounts previously allocated from Global Expenses to North America have been moved to Global Expenses for all periods presented, as these represent costs associated with functions of the Company's continuing operations. As the carrying value exceeded the estimated fair value less costs to sell, in the fourth quarter of 2015, we recorded an estimated loss on sale of discontinued operations of approximately $340 before tax (approximately $340 after tax). The estimated loss on sale represents the net assets to be contributed into NewCo, including certain pension and postretirement benefit plan liabilities and amounts in AOCI associated with the North America business, which were primarily unrecognized losses associated with our U.S. defined benefit pension plan, and costs to sell, as compared to the implied value of our ownership interests in NewCo which will be $43 . The actual total loss on sale will be dependent on a number of factors including discount rates and the actual return on plan assets. Post-separation, the Company will account for its ownership interests in NewCo using the equity method of accounting, which will result in the Company recognizing its proportionate share of NewCo's income or loss. NewCo will enter into a perpetual, irrevocable royalty-free licensing agreement with the Company for the use of the Avon brand and certain other intellectual property. There will also be transition services agreements which include, among other things, information technology, human resources and supply chain services and other commercial agreements, including research and development and manufacturing. The major classes of financial statement components comprising the loss on discontinued operations, before tax for North America are shown below: Year ended December 31, 2015 2014 2013 Total revenue $ 1,012.5 $ 1,203.4 $ 1,458.2 Cost of sales 404.0 492.4 599.7 Selling, general and administrative expenses (1) 606.2 745.2 971.1 Operating income (loss) (1) 2.3 (34.2 ) (112.6 ) Other expense items 3.2 2.4 2.7 Loss from discontinued operations, before tax (1) (.9 ) (36.6 ) (115.3 ) Loss on sale of discontinued operations, before tax (340.0 ) — — Loss from discontinued operations, before tax (1) $ (340.9 ) $ (36.6 ) $ (115.3 ) (1) Includes a capitalized software impairment charge of $117.2 during 2013, as discussed below. The carrying amount of the major classes of assets and liabilities for North America discontinued operations at December 31, 2015 and 2014 are shown below: 2015 2014 Cash and cash equivalents $ (2.2 ) $ 24.1 Receivable from continuing operations (2) 100.0 100.0 Accounts receivable, net 41.4 47.9 Inventories 128.2 114.5 Prepaid expenses and other 23.7 27.6 Current assets of discontinued operations $ 291.1 $ 314.1 Property, plant and equipment, net $ 171.8 $ 194.2 Other assets 8.3 17.7 Noncurrent assets of discontinued operations $ 180.1 $ 211.9 Debt maturing within one year $ 5.9 $ 15.4 Accounts payable 78.4 89.1 Accrued compensation 18.2 35.6 Other accrued liabilities (3) 380.6 59.7 Other classes of current liabilities that are not major 6.6 7.8 Current liabilities of discontinued operations $ 489.7 $ 207.6 Long-term debt $ 29.3 $ 35.2 Employee benefit plans 228.2 252.2 Other liabilities .2 7.0 Other classes of noncurrent liabilities that are not major 2.5 2.6 Noncurrent liabilities of discontinued operations $ 260.2 $ 297.0 (2) Represents the expected cash contribution by the Company into NewCo to be made at close of the transactions. (3) Includes the accrual for the estimated loss on sale at December 31, 2015. As of December 31, 2015 and December 31, 2014, there were also approximately $19.4 and $15.6 of net deferred tax assets with $19.4 and $9.1 of related valuation allowances reflected in discontinued operations associated with the separation of North America. 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. 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. As a result of this impairment charge, the remaining carrying amount of the SMT asset is not material. 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 presented as 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 earn-out was not achieved by Silpada for fiscal year 2014, and as of December 31, 2015, we do not believe that the financial performance of Silpada will result in the achievement of the earn-out for fiscal year 2015. In 2013, we recorded a loss on sale of $79.4 before tax ( $50.4 after tax), representing 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 Silpada discontinued operations is shown below: Year ended December 31, 2013 Total revenue $ 54.5 Operating loss (4) (81.0 ) (4) Operating loss 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. Divestitures Liz Earle On July 9, 2015, the Company sold Liz Earle Beauty Co. Limited (“Liz Earle”) for approximately $215 , less expenses of approximately $5 . Liz Earle was previously reported within our Europe, Middle East & Africa segment. In 2015, we recorded a gain on sale of $44.9 before tax, which was reported separately in the Consolidated Statements of Operations, and $51.6 after tax, representing the difference between the proceeds, including the expected working capital settlement, and the carrying value of the Liz Earle business on the date of sale. Proceeds from the sale of Liz Earle were used to fund a portion of the Company’s redemption of the $250 principal amount of its 2.375% Notes due March 15, 2016, which occurred on August 10, 2015. See Note 5, Debt and Other Financing for additional information. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories at December 31 consisted of the following: 2015 2014 Raw materials $ 180.5 $ 232.9 Finished goods 443.5 474.8 Total $ 624.0 $ 707.7 |
Debt and Other Financing
Debt and Other Financing | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Debt and Other Financing | Debt and Other Financing Debt Debt at December 31 consisted of the following: 2015 2014 Debt maturing within one year: Notes payable $ 50.4 $ 116.0 Current portion of long-term debt 4.8 5.7 Total $ 55.2 $ 121.7 Long-term debt: 2.375% Notes, due March 2016 $ — $ 249.9 5.75% Notes, due March 2018 249.8 249.7 4.20% Notes, due July 2018 249.8 249.7 6.50% Notes, due March 2019 348.6 348.2 Other debt, payable through 2025 with interest from .4% to 7.8% 12.7 12.8 4.60% Notes, due March 2020 499.6 499.4 5.00% Notes, due March 2023 496.5 496.0 6.95% Notes, due March 2043 249.3 249.3 Total 2,106.3 2,355.0 Amortization of swap termination 58.1 79.4 Less current portion (4.8 ) (5.7 ) Total long-term debt $ 2,159.6 $ 2,428.7 Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 4.0% at December 31, 2015 and 4.2% at December 31, 2014 . Other debt included obligations under capital leases of $11.7 at December 31, 2015 and $11.6 at December 31, 2014 , which primarily relate to leases of automobiles and equipment. Public Notes In March 2013, we issued, in a public offering, $250.0 principal amount of 2.375% Notes due March 15, 2016 (the "2.375% Notes"), $500.0 principal amount of 4.60% Notes due March 15, 2020 (the "4.60% Notes"), $500.0 principal amount of 5.00% Notes due March 15, 2023 (the "5.00% Notes") and $250.0 principal amount of 6.95% Notes due March 15, 2043 (the "6.95% Notes") (collectively, the "2013 Notes"). The net proceeds from these 2013 Notes were used to repay outstanding debt. Interest on the 2013 Notes is payable semi-annually on March 15 and September 15 of each year. On August 10, 2015, we prepaid our 2.375% Notes at a prepayment price equal to 100% of the principal amount of $250.0, plus accrued interest of $3.1 and a make-whole premium of $5.0 . In connection with the prepayment of our 2.375% Notes, we incurred a loss on extinguishment of debt of $5.5 in the third quarter of 2015 consisting of the $5.0 make-whole premium for the 2.375% Notes and the write-off of $.5 of debt issuance costs and discounts related to the initial issuance of the 2.375% Notes. The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the long-term credit ratings assigned to the 2013 Notes with S&P and Moody's. As described in the indenture, the interest rates on the 2013 Notes increase by .25% for each one-notch downgrade below investment grade on each of our long-term credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes. As a result of the long-term credit rating downgrades by S&P in November 2014 to BB+, in February 2015 to BB and in June 2015 to B+, and by Moody's in October 2014 to Ba1 and in May 2015 to Ba3 for senior unsecured debt, the interest rates on the 2013 Notes have increased by 1.75% , of which .75% was effective as of March 15, 2015 and 1.0% was effective as of September 15, 2015. The carrying value of the 2.375% Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.1 at December 31, 2014. The carrying value of the 4.60% Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $.4 and $.6 at December 31, 2015 and 2014, respectively. The carrying value of the 5.00% Notes represented the $500.0 principal amount, net of the unamortized discount to face value of $3.5 and $4.0 at December 31, 2015 and 2014, respectively. The carrying value of the 6.95% Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.7 and $.7 at December 31, 2015 and 2014, respectively. At December 31, 2015, 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"), with interest on each series of these Notes 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 $.2 and $.3 at December 31, 2015 and 2014, respectively. The carrying value of the 4.20% Notes represented the $250.0 principal amount, net of the unamortized discount to face value of $.2 and $.3 at December 31, 2015 and 2014 , respectively. The carrying value of the 2019 Notes represented the $350.0 principal amount, net of the unamortized discount to face value of $1.4 and $1.8 at December 31, 2015 and 2014, 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 all of our outstanding notes described above, with the exception of our 4.20% 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. 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. Term Loan Agreement In 2012, we borrowed $550.0 under a term loan agreement (the "term loan agreement"). 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 2013 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) and capital leases outstanding at December 31, 2015 , are as follows: 2016 2017 2018 2019 2020 2021 and Beyond Total Maturities $ 4.8 $ 3.6 $ 503.2 $ 350.1 $ 500.0 $ 751.0 $ 2,112.7 Other Financing Revolving Credit Facility In June 2015, the Company and Avon International Operations, Inc., a wholly-owned domestic subsidiary of the Company (“AIO”), entered into a new five-year $400.0 senior secured revolving credit facility (the “2015 revolving credit facility”). The Company terminated its previous $1 billion unsecured revolving credit facility (the “2013 revolving credit facility”) in June 2015 prior to its scheduled expiration in March 2017. There were no amounts drawn under the 2013 revolving credit facility on the date of termination and no early termination penalties were incurred. In the second quarter of 2015, $2.5 was recorded for the write-off of issuance costs related to the 2013 revolving credit facility. Borrowings under the 2015 revolving credit facility bear interest, at our option, at a rate per annum equal to LIBOR plus 250 basis points or a floating base rate plus 150 basis points, in each case subject to adjustment based upon a leverage-based pricing grid. The 2015 revolving credit facility may be used for general corporate purposes. As of December 31, 2015, there were no amounts outstanding under the 2015 revolving credit facility. All obligations of AIO under the 2015 revolving credit facility are (i) unconditionally guaranteed by each material domestic restricted subsidiary of the Company (other than AIO, the borrower), in each case, subject to certain exceptions and (ii) guaranteed on a limited recourse basis by the Company. The obligations of AIO and the guarantors are secured by first priority liens on and security interest in substantially all of the assets of AIO and the subsidiary guarantors and by certain assets of the Company, in each case, subject to certain exceptions. The 2015 revolving credit facility will terminate in June 2020; provided, however, that it shall terminate on the 91 st day prior to the maturity of the 2018 Notes, the 4.20% Notes, the 2019 Notes and the 4.60% Notes, if on such 91 st day, the applicable notes are not redeemed, repaid, discharged, defeased or otherwise refinanced in full. The 2015 revolving credit facility contains affirmative and negative covenants, which are customary for financings of this type, including, among other things, limits on the ability of the Company, AIO or any restricted subsidiary to, subject to certain exceptions, incur liens, incur debt, make restricted payments, make investments or merge, consolidate or dispose of all or substantially all its assets. In addition, the 2015 revolving credit facility contains customary events of default and cross-default provisions, as well as financial covenants (interest coverage and total leverage ratios). As of December 31, 2015, we were in compliance with our interest coverage and total leverage ratios under the 2015 revolving credit facility, and based on then applicable interest rates, the entire $400.0 2015 revolving credit facility could have been drawn down without violating any covenant. Letters of Credit At both December 31, 2015 and December 31, 2014 , we also had letters of credit outstanding totaling $12.9 , 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. Long-Term Credit Ratings Our long-term credit ratings are Ba2 (Negative Outlook) for corporate family debt, and Ba3 (Negative Outlook) for senior unsecured debt, with Moody's; B+ (Stable Outlook) with S&P; and B+ (Negative Outlook) with Fitch, which are below investment grade. We do not believe these long-term credit ratings will have a material impact on our near-term liquidity. However, any 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, and likely result in an increase in financing costs, including interest expense under certain of our debt instruments, and less favorable covenants and financial terms under our financing arrangements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The tables below present the changes in AOCI by component and the reclassifications out of AOCI during 2015 and 2014: Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Total Balance at December 31, 2014 $ (677.0 ) $ (3.2 ) $ (4.3 ) $ (533.1 ) $ (1,217.6 ) Other comprehensive (loss) income other than reclassifications (273.0 ) — — 40.7 (232.3 ) 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 $1.2 (2) — — — 81.8 81.8 Total reclassifications into earnings — 1.9 — 81.8 83.7 Balance at December 31, 2015 $ (950.0 ) $ (1.3 ) $ (4.3 ) $ (410.6 ) $ (1,366.2 ) 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 ) (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 losses of $21.9 and $18.2 for 2015 and 2014, respectively, and net gain of $.2 for 2013 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 (Loss). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: 2015 2014 2013 United States $ (230.3 ) $ (185.0 ) $ (397.0 ) Foreign 253.0 385.8 674.9 Total $ 22.7 $ 200.8 $ 277.9 The U.S. loss before taxes, for the years ended December 31, 2015, 2014 and 2013, does not include dividend income from foreign subsidiaries. The provision for income taxes for the years ended December 31 was as follows: 2015 2014 2013 Federal: Current $ 41.6 $ 57.3 $ 75.7 Deferred 668.3 207.9 (180.7 ) 709.9 265.2 (105.0 ) Foreign: Current 132.3 252.0 221.4 Deferred (24.3 ) (11.4 ) 98.3 108.0 240.6 319.7 State and other: Current 0.7 (.4 ) (1.2 ) Deferred 0.6 39.9 (3.1 ) 1.3 39.5 (4.3 ) Total $ 819.2 $ 545.3 $ 210.4 The foreign provision for income taxes includes the U.S. tax benefit on foreign earnings of $.0 and $3.5 , and the U.S. tax cost on foreign earnings of $9.9 for the years ended December 31, 2015, 2014 and 2013, respectively. The effective tax rate for the years ended December 31 was as follows: 2015 2014 2013 Statutory federal rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.5 7.0 (.5 ) Tax on foreign income 141.4 (6.5 ) (9.8 ) Tax on uncertain tax positions 8.2 17.3 (1.3 ) Venezuela devaluation and highly inflationary accounting 168.1 27.4 16.5 FCPA accrual — (7.1 ) 11.2 China goodwill impairment — — 4.9 Reorganizations (173.5 ) — — Net change in valuation allowances 3,395.6 193.9 18.4 Blocked income 29.3 3.5 2.3 Imputed royalties 11.9 1.2 .9 Research credits (8.9 ) (1.0 ) (.5 ) Other (7.9 ) .8 (1.4 ) Effective tax rate 3,601.7 % 271.5 % 75.7 % In the fourth quarter of 2015, the Company recognized a benefit of $18.7 associated with the implementation of foreign tax planning strategies which is reflected within the "Reorganizations" line above. We completed the implementation of these tax planning strategies and expect to recognize an additional benenfit of approximately $30 in the first quarter of 2016. 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: 2015 2014 Deferred tax assets: Accrued expenses and reserves $ 183.4 $ 220.3 Pension and postretirement benefits 129.2 160.0 Asset revaluations 13.3 12.1 Capitalized expenses 171.0 175.9 Depreciation and amortization 29.3 16.9 Deferred loss on foreign currency 44.3 40.3 Share-based compensation 62.7 62.0 Restructuring initiatives 21.7 24.2 Postemployment benefits 5.1 6.8 Tax loss carryforwards 781.9 844.2 Foreign tax credit carryforwards 689.6 622.3 Minimum tax and business credit carryforwards 56.5 57.1 All other 58.5 54.4 Valuation allowance (1,972.1 ) (1,362.6 ) Total deferred tax assets 274.4 933.9 Deferred tax liabilities: Depreciation and amortization (13.8 ) (24.6 ) Unremitted foreign earnings (89.2 ) (14.3 ) Prepaid expenses (7.0 ) (8.7 ) Capitalized interest (9.2 ) (9.5 ) All other (4.6 ) (25.8 ) Total deferred tax liabilities (123.8 ) (82.9 ) Net deferred tax assets $ 150.6 $ 851.0 The December 31, 2014 presentation of deferred tax balances has been revised to include $120.6 of state net operating loss deferred tax asset and related valuation allowance of $120.6 as well as $39.0 of net state deferred tax assets for various temporary differences and a related valuation allowance of $39.0 . This did not have an impact on our Consolidated Balance Sheet for all periods presented. Deferred tax assets (liabilities) at December 31 were classified as follows: 2015 2014 Deferred tax assets: Prepaid expenses and other $ — $ 205.2 Other assets 172.8 678.8 Total deferred tax assets 172.8 884.0 Deferred tax liabilities: Income taxes — (.3 ) Long-term income taxes (22.2 ) (32.7 ) Total deferred tax liabilities (22.2 ) (33.0 ) Net deferred tax assets $ 150.6 $ 851.0 See Note 2, New Accounting Standards, for discussion on our adoption of ASU 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes . At December 31, 2015, we had recognized deferred tax assets of $746.1 relating to U.S. business credit carryforwards (excess foreign tax credits, minimum tax credits, research and experimentation credits and investment tax credits) for which a valuation allowance of $746.1 has been provided, deferred tax assets relating to foreign tax loss carryforwards of $656.9 , for which a valuation allowance of $651.7 has been provided and deferred tax assets relating to state tax loss carryforwards of $125.0 for which a valuation allowance of $125.0 has been provided. The foreign tax loss carryforwards as of December 31, 2015 were $2,302.1 , of which $2,134.6 are not subject to expiration and $167.5 are subject to expiration between 2016 and 2030. The state tax loss carryforwards as of December 31, 2015 were $1,750.0 which are subject to expiration between 2016 and 2035. The U.S. foreign tax credit carryforwards of $689.6 are subject to expiration between 2018 and 2025; the U.S. minimum tax credits of $35.9 are not subject to expiration; the U.S. research and experimentation credits of $16.3 are subject to expiration between 2027 and 2035 and the U.S. investment tax credits of $4.3 are subject to expiration between 2020 and 2030. At December 31, 2015, 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 the balance of our undistributed earnings of foreign subsidiaries and for the tax effect of earnings that were actually repatriated to the U.S. during the year. We also adjusted our deferred tax liability to exclude deferred tax assets of $94.9 associated with our foreign earnings that we do not plan to repatriate within the foreseeable future. The deferred tax liability associated with the Company’s undistributed earnings increased by $74.9 , resulting in a deferred tax liability balance of $89.2 related to the incremental tax cost on $1.4 billion of undistributed foreign earnings at December 31, 2015. 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 may result in the utilization of a portion of our excess foreign tax credit carryforwards in the year of repatriation; therefore the utilization of our foreign tax credit carryforwards 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 tax liability as local regulations restrict cash distributions denominated in U.S. dollars. At December 31, 2015, the valuation allowance primarily represents amounts for all U.S. deferred tax assets, certain foreign tax loss carryforwards and certain other foreign deferred tax assets. The recognition of deferred tax assets was based on the evaluation of current and estimated future profitability of the operations, reversal of deferred tax liabilities and the likelihood of utilizing tax credit and/or loss carryforwards. Tax planning strategies were also considered and evaluated as support for the realization of deferred tax assets. Where these sources of income existed along with sufficient positive evidence that indicated it was more likely than not that such sources of income could be relied upon, then the deferred tax assets were not reduced by a valuation allowance. The net increase in the valuation allowance during 2015 of $609.5 was primarily due to the recording of the valuation allowances for U.S. deferred tax assets (discussed further below), partially offset by the increase in the deferred tax liability for unremitted earnings of foreign subsidiaries discussed above. In addition, the net increase in the valuation allowance was also attributable to additional valuation allowances for deferred tax assets outside of the U.S., primarily in Russia, which was largely due to lower earnings and the impact of foreign exchange losses on working capital balances. During the first and second quarters of 2015, the Company recorded a $31.3 charge and a $3.2 benefit, respectively, associated with valuation allowances, to adjust our U.S. deferred tax assets to an amount that was “more likely than not” to be realized. These adjustments were primarily caused by fluctuations of the U.S. dollar against currencies of some of our key markets. During the third quarter of 2015, we recorded an additional valuation allowance on our remaining U.S. deferred tax assets of $649.5 . The increase in the valuation allowance resulted from management’s determination that it was no longer more likely than not to realize the tax benefits expected to be obtained from tax planning strategies associated with an anticipated accelerated receipt in the U.S. of foreign source income. As the U.S. dollar had further strengthened against currencies of some of our key markets during the third quarter of 2015, the benefits associated with the Company’s tax planning strategies were no longer sufficient for the Company to continue to conclude that its tax planning strategies were prudent. In the absence of any alternative prudent tax planning strategies and other sources of future taxable income, it was determined that a full valuation allowance should be recorded. Although the Company continues to expect that it will generate taxable income and tax liability in the U.S., the Company is expected to offset its current and future tax liability with foreign tax credits, and as a result, the expected level of future taxable income and tax liability is not adequate to realize the benefit of previously recorded deferred tax assets. Although the Company may not be able to recognize a financial statement benefit associated with its deferred tax assets, the Company will continue to manage and plan for the utilization of its deferred tax assets to avoid the expiration of deferred tax assets that have limited lives. In conjunction with the expected separation of North America, approximately $235.0 of deferred tax assets and a related valuation allowance of $235.0 will be reflected as a deferred tax asset associated with the Company’s investment in NewCo. There are also U.S. state net operating loss and investment tax credit deferred tax assets of $129.3 and a related valuation allowance of $129.3 which may not be capable of being fully utilized before expiration by the Company after the separation of North America due to the elimination of the U.S. operations in substantially all state taxing jurisdictions. Uncertain Tax Positions At December 31, 2015 , we had $53.0 of total gross unrecognized tax benefits of which approximately $33.7 would favorably impact the provision for income taxes, if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 31, 2012 $ 32.0 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 (2.3 ) Balance at December 31, 2013 26.0 Additions based on tax positions related to the current year 1.4 Additions for tax positions of prior years 37.7 Reductions for tax positions of prior years (4.7 ) Reductions due to lapse of statute of limitations (1.7 ) Reductions due to settlements with tax authorities (2.0 ) Balance at December 31, 2014 56.7 Additions based on tax positions related to the current year 3.5 Additions for tax positions of prior years 5.7 Reductions for tax positions of prior years (1.5 ) Reductions due to lapse of statute of limitations (0.4 ) Reductions due to settlements with tax authorities (11.0 ) Balance at December 31, 2015 $ 53.0 We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. We recorded expense of $2.8 , $.9 and $ .9 for interest and penalties, net of taxes during 2015, 2014 and 2013, respectively. At December 31, 2015 and December 31, 2014 we had $6.6 and $4.4 recorded for interest and penalties, net of tax benefit. We file income tax returns in the U.S. and foreign jurisdictions. As of December 31, 2015, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: Jurisdiction Open Years Brazil 2010-2015 Mexico 2009-2015 Poland 2010-2015 Russia 2011-2015 United States (Federal) 2014-2015 We anticipate that it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $1 to $18.1 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, 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, 2015 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other $ 1.2 Accounts payable $ 1.1 Total derivatives not designated as hedges $ 1.2 $ 1.1 Total derivatives $ 1.2 $ 1.1 The following table presents the fair value of derivative instruments outstanding at December 31, 2014 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other $ .6 Accounts payable $ 4.9 Total derivatives not designated as hedges $ .6 $ 4.9 Total derivatives $ .6 $ 4.9 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, 2015 and 2014, 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 2% and approximately 5% of our debt portfolio at December 31, 2015 and 2014, 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 Operations. For the years ended December 31, 2015 and December 31, 2014, the net impact of the gain amortization was $ 14.6 and $ 14.4 , 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, 2015, the unamortized deferred gain associated with the January 2013 interest-rate swap termination was $35.4 , and was classified 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 Operations. For the years ended December 31, 2015 and 2014, the net impact of the gain amortization was $6.6 and $6.3 , respectively. The interest-rate swap agreements were terminated in order to increase our ratio of fixed-rate debt. At December 31, 2015, the unamortized deferred gain associated with the March 2012 interest-rate swap termination was $22.8 , and was classified within long-term debt in the Consolidated Balance Sheets. 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, 2015 and 2014, we do not have undesignated interest-rate swap agreements. 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 notes due in 2013 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 Operations over five years and $18.8 are being amortized over ten years. As of December 31, 2015 , 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, 2015 and 2014 , treasury lock agreements impacted AOCI as follows: 2015 2014 Pre-tax net unamortized losses at beginning of year (1) $ (5.9 ) $ (7.8 ) Reclassification of net losses to earnings 1.9 1.9 Pre-tax net unamortized losses at end of year (1) $ (4.0 ) $ (5.9 ) (1) Amounts above exclude taxes of $2.7 for each period presented, which will be recognized in earnings at the end of the ten-year amortization period. Foreign Currency Risk We use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At December 31, 2015 , we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $127.9 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 2015 and 2014 , we recorded losses of $2.7 and $14.9 , respectively, in other expense, net in the Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. Also during 2015 and 2014 , we recorded a loss of $2.5 and a gain of $16.6 , respectively, related to the intercompany loans, caused by changes in foreign currency exchange rates. Credit Risk of Financial Instruments At times, 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 derivatives are typically comprised of over-the-counter forward contracts, swaps or options with major international financial institutions. Although our theoretical credit risk is the replacement cost at the then estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote and that such losses, if any, would not be material. Non-performance of the counterparties on the balance of all the foreign exchange agreements would have resulted in a write-off of $1.2 at December 31, 2015 . 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, 2015 | |
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, 2015 : Level 1 Level 2 Total Assets: Available-for-sale securities $ 2.8 $ — $ 2.8 Foreign exchange forward contracts — 1.2 1.2 Total $ 2.8 $ 1.2 $ 4.0 Liabilities: Foreign exchange forward contracts $ — $ 1.1 $ 1.1 Total $ — $ 1.1 $ 1.1 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 — .6 .6 Total $ 2.7 $ .6 $ 3.3 Liabilities: Foreign exchange forward contracts $ — $ 4.9 $ 4.9 Total $ — $ 4.9 $ 4.9 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 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, 2015 - Egypt Goodwill During the 2015 year-end close process, we completed our annual impairment assessment of the fair value of goodwill related to Egypt and subsequently determined that the goodwill associated with Egypt was impaired. Accordingly, a non-cash impairment charge of $6.9 was recorded to reduce the carrying amount of goodwill. There is no amount remaining associated with goodwill for our Egypt reporting unit as a result of this impairment charge. The impairment analyses performed for goodwill and intangible assets require several estimates in computing the estimated fair value of a reporting unit, an indefinite-lived intangible asset, and a finite-lived intangible asset. 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 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 Egypt during this impairment assessment 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 Egypt, we forecasted revenue and the resulting cash flows over five years using a DCF model which included a terminal value at the end of the projection period. We believed that a five-year period was a reasonable amount of time in order to return Egypt's cash flows to normalized, sustainable levels. March 31, 2015 - Venezuela Long-Lived Assets The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2015, and indicates the placement in the fair value hierarchy of the valuation techniques utilized to determine such fair value: Level 1 Level 2 Level 3 Total Assets: Venezuela long-lived assets $ — $ — $ 15.7 $ 15.7 Total $ — $ — $ 15.7 $ 15.7 In February 2015, we reviewed Avon Venezuela's long-lived assets to determine whether the carrying amount of the assets was recoverable. Based on our expected cash flows associated with the asset group, we determined that the carrying amount of the assets, carried at their historical U.S. dollar cost basis, was not recoverable. As such, an impairment charge of $90.3 to selling, general and administrative expenses in the Latin America segment was recorded to reflect the write-down of the long-lived assets to their estimated fair value, which was $15.7 at March 31, 2015. The fair value of Avon Venezuela's long-lived assets was determined using both market and cost valuation approaches. The valuation analysis performed required several estimates, including market conditions and inflation rates. 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: 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 2.8 $ 2.8 $ 2.7 $ 2.7 Debt maturing within one year (1) (55.2 ) (55.2 ) (121.7 ) (121.7 ) Long-term debt (1) (2,159.6 ) (1,622.7 ) (2,428.7 ) (2,207.2 ) Foreign exchange forward contracts .1 .1 (4.3 ) (4.3 ) (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 - 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. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
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, as amended and restated (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 55,000,000 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: 2015 2014 2013 Compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units $ 51.2 $ 38.9 $ 43.3 Total income tax benefit recognized for share-based arrangements 4.1 3.2 14.9 All of the compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units, including those that will be funded with treasury shares and those that have not resulted in a fair value measurement date, for 2015 , 2014 and 2013 was recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. Stock Options There were no stock options granted since 2012. A summary of stock options as of December 31, 2015 , and changes during 2015 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 17,158 $ 31.74 Granted — — Exercised — — Forfeited (6 ) 18.25 Expired (5,504 ) 38.20 Outstanding at December 31, 2015 11,648 $ 28.70 2.9 $ — Exercisable at December 31, 2015 11,018 $ 28.18 2.9 $ — We recognize expense on stock options using a graded vesting method, which recognizes the associated expense based on the timing of option vesting dates. At December 31, 2015 , there was no unrecognized compensation cost related to stock options outstanding. Cash proceeds, tax obligations and intrinsic value related to total stock options exercised during 2014 and 2013 , were as follows: 2014 2013 Cash proceeds from stock options exercised $ .2 $ 19.4 Tax obligation realized for stock options exercised — (1.8 ) Intrinsic value of stock options exercised — 6.4 Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units The fair value of restricted stock units, and performance restricted stock units granted in 2013 and 2014, was determined based on the closing price of our common stock on the date of grant. The fair value of the performance restricted stock units granted in 2015 was determined using a Monte-Carlo simulation that estimates the fair value based on the Company's share price activity, expected term of the award, risk-free interest rate, expected dividends and the expected volatility of the stock of the Company. In 2013, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions over three years. 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 over three years. We have adjusted the compensation cost recognized to-date to reflect our estimated performance. In 2015, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions over two years ("2015 PRSUs"). In addition, if the performance conditions are achieved above target, these performance restricted stock units are subject to a market condition in which the number of performance restricted stock units that vest will be limited to the target amount if the Company’s absolute total shareholder return during the three-year service period is negative. If the performance conditions are achieved, the range of possible payouts of these performance restricted stock units is limited to a minimum of 50% of target to a maximum of 150% of target. We currently believe that the achievement of the performance conditions is probable. A summary of restricted stock and restricted stock units at December 31, 2015 , and changes during 2015 , is as follows: Restricted Stock And Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2015 4,995 $ 16.80 Granted 2,938 7.91 Vested (1,084 ) 18.14 Forfeited (827 ) 14.09 December 31, 2015 6,022 $ 12.62 A summary of performance restricted stock units at December 31, 2015 , and changes during 2015 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2015 (1) 4,976 $ 17.53 Granted 2,013 7.49 Vested — — Forfeited (1,655 ) 18.32 December 31, 2015 (1) 5,334 $ 13.51 (1) Based on initial target payout. The total fair value of restricted stock units that vested during 2015 was $10.1 , based upon market prices on the vesting dates. At December 31, 2015 , there was approximately $45.4 of unrecognized compensation cost related to these 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 1.7 years. In addition to the amounts in the table above, later in 2015, we granted 1,123,183 performance restricted stock units that would vest and settle in 2016 only upon the satisfaction of certain performance conditions through 2015. As of December 31, 2015, the terms of this award have not yet resulted in a fair value measurement date. During 2015, we recognized compensation cost of $1.6 for these performance restricted stock units. At December 31, 2015, there was $3.0 of unrecognized compensation cost related to these performance restricted stock units. Restricted Stock Units and Performance Restricted Stock Units Funded With Treasury Shares In March 2015 and April 2012, we granted 489,596 and 200,000 restricted stock units, respectively, that will be funded with treasury shares, outside of the 2013 Plan and 2010 Plan, in reliance upon The New York Stock Exchange rules. The restricted stock units granted in March 2015 have a weighted-average grant-date fair value of $9.00 and vest and settle ratably over three years. The restricted stock units granted in April 2012 have a weighted-average grant-date fair value of $21.69 and vest and settle ratably over five years. During 2015, 40,000 of these restricted stock units vested, and 569,596 of these restricted stock units were outstanding at December 31, 2015. During 2015, 2014 and 2013, we recognized compensation cost of $ 2.7 , $.8 and $1.4 , respectively, for these restricted stock units. At December 31, 2015 , there was $2.5 of unrecognized compensation cost related to these restricted stock units. In March 2015, we granted 121,951 performance restricted stock units that will be funded with treasury shares, outside of the 2013 Plan, in reliance upon The New York Stock Exchange rules. These performance restricted stock units have a weighted-average grant-date fair value of $7.49 and the same terms exist for these awards as the 2015 PRSUs discussed above. All of these performance restricted stock units were outstanding at December 31, 2015. During 2015, we recognized compensation cost of $.2 for these performance restricted stock units. At December 31, 2015, there was $.7 of unrecognized compensation cost related to these performance restricted stock units. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
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 $4.0 in 2015 , $5.0 in 2014 and $5.5 in 2013 , 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 made additional contributions to a Retirement Savings Account ("RSA") within the PSA. Such contributions will range from 3% to 6% of a participant's eligible compensation depending on the sum of the participant's age and length of service (as of December 31 of the prior year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own contributions to the PSA. A participant will be vested in the RSA generally after 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"), is 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. As part of the separation of the North America business, we will transfer certain pension liabilities under the PRA associated with current and former employees of the North America business and certain other former Avon employees, along with a portion of the assets held by the U.S. defined benefit pension plan, to a defined benefit pension plan sponsored by the new privately-held company. We will also transfer certain other postretirement liabilities (namely, retiree medical and supplemental pension liabilities) in respect of such employees and former employees. We will continue to retain certain U.S. pension and other postretirement liabilities primarily associated with employees who are actively employed by Avon outside of the North America business. Prior to this separation, our net periodic benefit costs for the U.S. pension and postretirement benefit plans were allocated between Discontinued Operations and Global and Other Expenses as the plan includes both North America and U.S. Corporate Avon associates. 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 , of which $33.6 are associated with discontinued operations. 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. In October 2015, we announced changes to our postretirement medical benefits offered to U.S. retirees to be effective as of January 1, 2016. The changes to the retiree medical benefits reduced the plan’s obligations by $9.0 , of which $8.3 are associated with discontinued operations. This amount is being amortized as a negative prior service cost over the average future service of active participants which is approximately 8 years. 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 2015 2014 2015 2014 2015 2014 Change in Benefit Obligation: Beginning balance $ (705.2 ) $ (668.3 ) $ (777.6 ) $ (734.3 ) $ (93.4 ) $ (93.8 ) Service cost (13.0 ) (14.1 ) (5.3 ) (6.0 ) (.7 ) (.7 ) Interest cost (25.1 ) (27.8 ) (23.6 ) (31.0 ) (3.7 ) (4.1 ) Actuarial (loss) gain 44.4 (124.6 ) 54.3 (123.4 ) 5.7 (2.0 ) Plan participant contributions — — — — (2.5 ) (2.8 ) Benefits paid 92.1 129.1 35.6 45.5 7.9 9.3 Plan amendments — 2.0 — — 9.0 — Curtailments — (1.4 ) .2 — — .3 Settlements — — — .7 — — Special termination benefits — (.1 ) — — — (.2 ) Foreign currency changes and other — — 48.7 70.9 1.1 .6 Ending balance $ (606.8 ) $ (705.2 ) $ (667.7 ) $ (777.6 ) $ (76.6 ) $ (93.4 ) Change in Plan Assets: Beginning balance $ 506.5 $ 531.1 $ 607.9 $ 608.7 $ — $ — Actual return on plan assets (13.7 ) 54.5 16.3 62.8 — — Company contributions 7.6 50.0 21.6 27.4 5.4 6.5 Plan participant contributions — — — — 2.5 2.8 Benefits paid (92.1 ) (129.1 ) (35.6 ) (45.5 ) (7.9 ) (9.3 ) Foreign currency changes and other — — (33.9 ) (45.5 ) — — Ending balance $ 408.3 $ 506.5 $ 576.3 $ 607.9 $ — $ — Funded Status: Funded status at end of year (1) $ (198.5 ) $ (198.7 ) $ (91.4 ) $ (169.7 ) $ (76.6 ) $ (93.4 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 8.1 $ 2.7 $ — $ — Accrued compensation (6.6 ) (9.0 ) (1.6 ) (3.7 ) (6.9 ) (8.0 ) Employee benefit plans liability (191.9 ) (189.7 ) (97.9 ) (168.7 ) (69.7 ) (85.4 ) Net amount recognized (1) $ (198.5 ) $ (198.7 ) $ (91.4 ) $ (169.7 ) $ (76.6 ) $ (93.4 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 310.2 $ 380.0 $ 239.6 $ 302.5 $ 15.5 $ 23.2 Prior service credit (1.4 ) (2.1 ) (1.2 ) (1.4 ) (29.1 ) (24.6 ) Total pretax amount recognized $ 308.8 $ 377.9 $ 238.4 $ 301.1 $ (13.6 ) $ (1.4 ) Supplemental Information: Accumulated benefit obligation $ 601.7 $ 701.6 $ 185.0 $ 735.0 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 606.8 $ 705.2 $ 207.3 $ 750.8 N/A N/A Fair value plan assets 408.3 506.5 107.8 584.1 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 606.8 $ 705.2 $ 186.3 $ 770.1 N/A N/A Accumulated benefit obligation 601.7 701.6 173.7 744.7 N/A N/A Fair value plan assets 408.3 506.5 93.7 597.6 N/A N/A (1) Includes $145.7 and $148.0 of the U.S. pension plans at December 31, 2015 and 2014, respectively, and $53.6 and $68.6 of the postretirement benefit plans net liability (related to the U.S.) at December 31, 2015 and 2014, respectively, which are included in discontinued operations. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the table above. The U.S. pension plans include a funded qualified plan and unfunded non-qualified plans. As of December 31, 2015 , the U.S. qualified pension plan had benefit obligations of $578.4 and plan assets of $408.3 , of which $507.6 and $374.8 , respectively, are included in discontinued operations. As of December 31, 2014 , the U.S. qualified pension plan had benefit obligations of $673.1 and plan assets of $506.5 , of which $544.7 and $411.6 , respectively, are included in discontinued operations. 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 2015 2014 2013 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Service cost $ 13.0 $ 14.1 $ 15.7 $ 5.3 $ 6.0 $ 9.2 $ .7 $ .7 $ 1.4 Interest cost 25.1 27.8 27.5 23.6 31.0 31.4 3.7 4.1 4.3 Expected return on plan assets (32.6 ) (35.8 ) (37.4 ) (36.4 ) (36.4 ) (33.9 ) — — — Amortization of prior service credit (.7 ) (.3 ) (.3 ) (.1 ) (.1 ) (.3 ) (4.0 ) (4.4 ) (4.7 ) Amortization of net actuarial losses 43.7 45.1 47.2 8.4 6.5 8.5 1.8 1.3 2.3 Amortization of transition obligation — — — .1 — — — — — Settlements/curtailments 27.9 38.0 — .5 2.7 (4.3 ) — (2.7 ) (1.8 ) Other — — — — — — — — — Net periodic benefit cost (2) $ 76.4 $ 88.9 $ 52.7 $ 1.4 $ 9.7 $ 10.6 $ 2.2 $ (1.0 ) $ 1.5 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial losses (gains) $ 1.8 $ 105.9 $ (80.8 ) $ (34.2 ) $ 97.0 $ (6.0 ) $ (5.6 ) $ 2.0 $ (22.5 ) Prior service (credit) cost — (2.0 ) — — — — (9.0 ) — (1.3 ) Amortization of prior service credit .7 .3 .3 .1 .1 7.9 4.0 7.2 7.0 Amortization of net actuarial losses (71.6 ) (81.5 ) (47.2 ) (9.1 ) (9.9 ) (13.4 ) (1.8 ) (1.6 ) (3.1 ) Amortization of transition obligation — — — (.1 ) — — — — — Foreign currency changes — — — (19.4 ) (28.0 ) 4.2 .2 .1 (.1 ) Total recognized in other comprehensive (loss) income* $ (69.1 ) $ 22.7 $ (127.7 ) $ (62.7 ) $ 59.2 $ (7.3 ) $ (12.2 ) $ 7.7 $ (20.0 ) Total recognized in net periodic benefit cost and other comprehensive (loss) income $ 7.3 $ 111.6 $ (75.0 ) $ (61.3 ) $ 68.9 $ 3.3 $ (10.0 ) $ 6.7 $ (18.5 ) (2) Includes $53.7 , $62.6 and $35.2 of the U.S. pension plans in 2015, 2014 and 2013, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2015, 2014 and 2013, which are included in discontinued operations. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the table above. * Amounts represent the pre-tax effect classified within other comprehensive (loss) income. The net of tax amounts are classified within the Consolidated Statements of Comprehensive Income (Loss). As a result of the lump-sum payments made to former employees that were vested and participated in the PRA, in the third quarter of 2015, we recorded a settlement charge of $23.8 . These lump sum payments were made from our plan assets and were not the result of a specific offer to participants of our PRA as described below. Because the settlement threshold was exceeded in the third quarter of 2015, a settlement charge of $4.1 was also recorded in the fourth quarter of 2015, as a result of additional payments from the PRA. These settlement charges were allocated between Global Expenses and Discontinued Operations. In an effort to reduce our pension benefit obligations, in March 2014, we offered former employees who were vested and participated 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 Discontinued Operations. The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost during 2016 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss (3) $ 33.8 $ 6.9 $ 1.2 Prior service credit (3) (.5 ) (.1 ) (5.1 ) (3) The table above reflects the amounts in AOCI that would be recognized as components of net periodic benefit cost during 2016 if Avon North America were owned for the entire year. The estimated loss on sale includes approximately $260 of net actuarial losses, partially offset by approximately $1 of prior service costs related to the U.S. pension plans and approximately $14 of net actuarial losses, more than offset by approximately $26 of prior service costs related to U.S. postretirement benefit plans. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the table above. See Note 3, Discontinued Operations and Divestitures. 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 2015 2014 2015 2014 2015 2014 Discount rate 4.19 % 3.83 % 3.69 % 3.27 % 4.50 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 3.26 % 3.20 % N/A N/A The discount rate used for determining the present value of future pension obligations for each individual defined benefit pension plan is based on a review of bonds that receive a high-quality rating from a recognized rating agency. The discount rates for our more significant plans, including the PRA, were based on the internal rates of return for a portfolio of high-quality bonds with maturities that are consistent with the projected future benefit payment obligations of each plan. The weighted-average discount rate for U.S. and non-U.S. defined benefit pension plans determined on this basis has increased to 3.92% at December 31, 2015 , from 3.54% at December 31, 2014 . Amounts associated with the pension plan in Canada and postretirement benefit plans in Canada and Puerto Rico, which are associated with discontinued operations, have been excluded from all amounts. Weighted-average assumptions used to determine net benefit cost recorded in the Consolidated Statements of Operations for the years ended December 31 were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.83 % 4.54 % 3.55 % 3.27 % 4.59 % 4.69 % 4.20 % 4.97 % 4.00 % Rate of compensation increase 4.00 % 4.00 % 3.86 % 3.20 % 3.70 % 3.95 % N/A N/A N/A Rate of return on assets 7.25 % 7.50 % 7.75 % 6.55 % 6.33 % 6.64 % 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, 2015 , the assumed rate of return on assets globally was 6.87% , which represents the weighted-average rate of return on all plan assets, including the U.S. and non-U.S. defined benefit pension plans. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are associated with discontinued operations, have been excluded from all amounts. The assumed rate of return for determining 2015 net costs for the U.S. defined benefit pension plan was 7.25% . 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 3% to 5% in the long term) and approximately 30% in equity securities and high yield securities (which are expected to earn approximately 5% to 7% 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 6.55% for determining 2015 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, 2015 and 2014 , 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 2016 2015 2014 2016 2015 2014 Equity securities 30 % 27 % 28 % 23 % 23 % 61 % Debt securities 70 69 69 72 72 37 Real Estate — — — — — — Other — 4 3 5 5 2 Total 100 % 100 % 100 % 100 % 100 % 100 % Amounts associated with the pension plan in Canada, which are included in discontinued operations, have been excluded from all amounts in the table above. The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2015 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 13.3 $ 13.3 International equity — 79.5 79.5 Emerging markets — 16.5 16.5 — 109.3 109.3 Fixed Income Securities: Corporate bonds — 156.8 156.8 Government securities — 126.8 126.8 — 283.6 283.6 Cash 12.2 — 12.2 Derivatives — 3.2 3.2 Total (4) $ 12.2 $ 396.1 $ 408.3 (4) Includes $374.8 which is included in discontinued operations at December 31, 2015. Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 24.1 $ — $ 24.1 International equity — 109.7 — 109.7 — 133.8 — 133.8 Fixed Income Securities: Corporate bonds — 206.5 — 206.5 Government securities — 197.7 — 197.7 Other — 11.1 — 11.1 — 415.3 — 415.3 Other: Cash 11.5 — — 11.5 Derivatives — 13.9 — 13.9 Real estate — — 1.0 1.0 Other — — .8 .8 11.5 13.9 1.8 27.2 Total $ 11.5 $ 563.0 $ 1.8 $ 576.3 Amounts associated with the pension plan in Canada, which are included in discontinued operations, have been excluded from all amounts in the table above. 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 18.0 — 18.0 Derivatives — (1.8 ) (1.8 ) Total (5) $ 18.0 $ 488.5 $ 506.5 (5) Includes $411.6 which is included in discontinued operations at December 31, 2014. Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 93.5 $ — $ 93.5 International equity — 277.2 — 277.2 — 370.7 — 370.7 Fixed Income Securities: Corporate bonds — 82.1 — 82.1 Government securities — 111.8 — 111.8 Other — 28.8 — 28.8 — 222.7 — 222.7 Other: Cash 12.6 — — 12.6 Real estate — — 1.0 1.0 Other — — .9 .9 12.6 — 1.9 14.5 Total $ 12.6 $ 593.4 $ 1.9 $ 607.9 Amounts associated with the pension plan in Canada, which are included in discontinued operations, have been excluded from all amounts in the table above. 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, 2014 $ 2.3 Actual return on plan assets held (.3 ) Foreign currency changes (.1 ) Balance as of December 31, 2014 1.9 Actual return on plan assets held .1 Foreign currency changes (.2 ) Balance as of December 31, 2015 $ 1.8 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 investment committee. In 2015, similar investment strategies were 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 related to continuing operations in the range of $25 to $30 to our U.S. defined benefit pension and postretirement plans and in the range of $20 to $25 to our non-U.S. defined benefit pension and postretirement plans during 2016 . 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 2016 (6) $ 64.2 $ 30.1 $ 94.3 $ 6.9 2017 (6) 64.5 30.2 94.7 6.7 2018 (6) 51.7 31.7 83.4 6.5 2019 (6) 49.3 32.6 81.9 6.3 2020 (6) 48.5 32.9 81.4 6.1 2021-2025 (6) 212.9 180.6 393.5 27.1 (6) Approximately 80% of the expected U.S. Pension Plan benefit payments and approximately 70% of the expected postretirement benefit payments included in the table above are associated with discontinued operations. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are associated with discontinued operations, have been excluded from all amounts in the table above. Postretirement Benefits For 2015 , the assumed rate of future increases in the per capita cost of health care benefits (the health care cost trend rate) was 8.6% for all claims and is assumed to gradually decrease each year thereafter to 5.1% (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 Point Increase 1 Percentage Point Decrease Effect on total of service and interest cost components $ — $ — Effect on postretirement benefit obligation .1 (.1 ) 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 $18.2 at December 31, 2015 and $25.2 at December 31, 2014 , of which $6.0 and $9.0 , respectively, are included in discontinued operations, and the remaining was included in employee benefit plans in the Consolidated Balance Sheets. Amounts associated with postemployment benefits in Canada, which are included in discontinued operations, have been excluded from all amounts. 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 $.5 in 2015 , $1.3 in 2014 and $1.2 in 2013 . The benefit obligation under the DCP was $34.5 at December 31, 2015 and $45.5 at December 31, 2014 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 $6.3 in 2015 , $7.1 in 2014 and $7.6 in 2013 . The benefit obligation under these programs was $28.4 at December 31, 2015 and $32.1 at December 31, 2014 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: 2015 2014 Corporate-owned life insurance policies $ 32.7 $ 32.2 Cash and cash equivalents .7 1.4 Total $ 33.4 $ 33.6 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 Operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
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; 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, and marketing, costs in connection with the ongoing compliance with the deferred prosecution agreement (the "DPA") and the consent to settlement (the "Consent"), prior professional and related fees associated with the Foreign Corrupt Practices Act ("FCPA") investigations and compliance reviews, the prior accrual for the settlements related to the FCPA investigations, and settlement charges associated with the U.S. pension plan. 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, costs in connection with the ongoing compliance with the DPA and the Consent, prior professional and related fees associated with the FCPA investigations and compliance reviews, the prior accrual for the settlements related to the FCPA investigations, 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) 2015 2014 2013 Total Revenue Operating Profit (Loss) Total Revenue Operating Profit (Loss) Total Revenue Operating Profit (Loss) Latin America $ 3,260.4 $ 103.1 $ 4,239.5 $ 279.8 $ 4,840.5 $ 478.6 Europe, Middle East & Africa 2,272.3 217.1 2,705.8 300.9 2,898.4 406.7 Asia Pacific 627.8 35.3 702.7 20.9 757.9 (12.1 ) Total from operations 6,160.5 355.5 7,648.0 601.6 8,496.8 873.2 Global and other — (190.5 ) — (167.3 ) — (333.4 ) Total $ 6,160.5 $ 165.0 $ 7,648.0 $ 434.3 $ 8,496.8 $ 539.8 Total Assets 2015 2014 2013 Latin America $ 1,543.0 $ 2,033.0 $ 2,432.7 Europe, Middle East & Africa 910.4 1,170.6 1,370.9 Asia Pacific 317.0 390.8 441.7 Total from continuing operations 2,770.4 3,594.4 4,245.3 Total from discontinued operations* 371.2 426.0 524.6 Global and other 637.9 1,476.4 1,722.4 Total assets* $ 3,779.5 $ 5,496.8 $ 6,492.3 * Total assets from discontinued operations and total assets at December 31, 2015 and 2014 in the table above exclude the $100.0 receivable from continuing operations that was presented within current assets of discontinued operations. See Note 3, Discontinued Operations and Divestitures. Capital Expenditures 2015 2014 2013 Latin America $ 55.3 $ 82.6 $ 94.1 Europe, Middle East & Africa 18.4 19.0 20.0 Asia Pacific 3.5 3.3 6.6 Total from operations 77.2 104.9 120.7 Global and other 15.2 21.4 69.0 Total capital expenditures $ 92.4 $ 126.3 $ 189.7 Depreciation and Amortization 2015 2014 2013 Latin America $ 51.0 $ 70.9 $ 72.2 Europe, Middle East & Africa 31.0 40.0 46.6 Asia Pacific 13.6 17.3 21.9 Total from operations 95.6 128.2 140.7 Global and other 30.5 41.2 47.0 Total depreciation and amortization $ 126.1 $ 169.4 $ 187.7 Total Revenue by Major Country A major country is defined as one with total revenues greater than 10% of consolidated total revenues. 2015 2014 2013 Brazil $ 1,252.6 $ 1,909.3 $ 2,014.0 All other 4,907.9 5,738.7 6,482.8 Total $ 6,160.5 $ 7,648.0 $ 8,496.8 Long-Lived Assets by Major Country A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets, and also includes our country of domicile (the U.S.). Long-lived assets primarily includes property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities and long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility. 2015 2014 2013 Brazil $ 302.7 $ 361.9 $ 421.5 U.S. 225.9 250.0 265.6 All other 597.3 969.8 1,112.9 Total $ 1,125.9 $ 1,581.7 $ 1,800.0 |
Leases and Commitments Leases a
Leases and Commitments Leases and Commitments (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2016 $ 72.3 $ 143.8 2017 55.3 96.2 2018 45.3 63.0 2019 39.3 53.7 2020 33.9 50.2 Later years 100.2 49.3 Sublease rental income (33.3 ) N/A Total $ 313.0 $ 456.2 Rent expense was $74.4 in 2015 , $90.7 in 2014 and $109.6 in 2013 . Plant construction, expansion and modernization projects with an estimated cost to complete of approximately $39.9 were in progress at December 31, 2015 . |
Restructuring Initiatives
Restructuring Initiatives | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives Transformation Plan In January 2016, we announced a transformation plan (the "Transformation Plan"), which includes cost reduction efforts to continue to improve our cost structure and to enable us to reinvest in growth. As a result of this plan, we have targeted pre-tax annualized cost savings of approximately $350 after three years, with an estimated $200 from supply chain reductions and an estimated $150 from other cost reductions, which are expected to be achieved through restructuring actions as well as other cost-savings strategies that will not result in restructuring charges. We plan to reinvest a portion of these cost savings in growth initiatives, including media, social selling and information technology systems that will help us modernize our business. We initiated the Transformation Plan in order to enable us to achieve our long-term goals of double-digit operating margin and mid single-digit constant-dollar revenue growth. As part of the Transformation Plan, we identified certain actions beginning in the fourth quarter of 2015 that we believe will reduce ongoing costs, primarily consisting of global headcount reductions relating to an information technology infrastructure outsourcing initiative. As a result of these restructuring actions approved-to-date, we have recorded total costs to implement these restructuring initiatives of $22.4 before taxes, during 2015 in selling, general and administrative expenses, in the Consolidated Statements of Operations. These costs to implement consisted of $21.4 of employee-related costs due to severance benefits and $1.0 of implementation costs for professional service fees and were recorded in Corporate. The liability balance for the employee-related costs associated with these restructuring actions as of December 31, 2015 is $21.4 . The majority of cash payments, if applicable, associated with these charges are expected to be made during 2016. The additional charges not yet incurred associated with the restructuring actions approved to-date of approximately $10 before taxes are expected to be recorded primarily in 2016. In connection with the restructuring actions approved to-date associated with the Transformation Plan, we expect to realize annualized savings of approximately $10 to $15 (before tax). We expect to begin to realize savings in 2018 and are expected to achieve the annualized savings beginning in 2019. The annualized savings represent the net reduction of expenses that will no longer be incurred by Avon. At this time we are unable to quantify the total costs to implement these restructuring initiatives that will be incurred through the time the Transformation Plan is fully implemented. Additional Restructuring Charges 2015 As a result of the then-current economic environment, including the impact of foreign currency movements and inflation on our expenses, and in an effort to continue to improve our cost structure, we identified certain actions during 2015 that we believe will reduce ongoing costs. These actions primarily consisted of global headcount reductions. As a result of these restructuring actions, we recorded total costs to implement these restructuring initiatives of $29.7 before taxes, during 2015 in selling, general and administrative expenses, in the Consolidated Statements of Operations. There are no material remaining costs for restructuring actions approved-to-date as the actions associated with these various restructuring initiatives are substantially complete. In connection with these restructuring actions, we expect to realize annualized savings of approximately $30 before taxes. We began to realize savings in the second quarter of 2015 and have achieved the annualized savings beginning in the third quarter of 2015. The annualized savings represent the net reduction of expenses that will no longer be incurred by Avon. Costs to implement of $29.7 were recorded during 2015 and consisted of the following: • charge of $22.1 for employee-related costs due to severance benefits; and • implementation costs of $7.6 primarily for professional service fees associated with Corporate and Asia Pacific. The majority of cash payments, if applicable, associated with these charges were made during 2015. The liability balance, which primarily consists of employee-related costs, for these various restructuring initiatives as of December 31, 2015 is as follows: Total 2015 charges $ 24.9 Adjustments (2.8 ) Cash payments (17.8 ) Foreign exchange (.3 ) Balance at December 31, 2015 $ 4.0 The charges approved to date under these various restructuring initiatives by reportable business segment were as follows: Latin America Europe, Middle East & Africa Asia Pacific Corporate Total Charges incurred on approved initiatives $ 2.9 $ 4.2 $ 5.8 $ 9.2 $ 22.1 In addition to the charges included in the tables above, we have incurred other costs to implement restructuring initiatives such as professional services fees. $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, which included the North America business which has since been presented as discontinued operations for all periods presented. 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. As a result of the restructuring actions associated with the $400M Cost Savings Initiative, we recorded total costs to implement these restructuring initiatives of $165.7 before taxes. There are no significant remaining costs for restructuring actions approved-to-date as the actions associated with the $400M Cost Savings Initiative are substantially complete. In connection with the restructuring actions associated with the $400M Cost Savings Initiative, we have realized substantially all of the annualized savings of approximately $215 to $225 before taxes. As part of the $400M Cost Savings Initiative we also realized benefits from other cost-savings strategies that were not the result of restructuring charges (including reductions in legal costs). For market closures, the annualized savings represented 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 represented 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 material. Restructuring Charges – 2015 During 2015, we recorded a benefit of $3.5 related to the $400M Cost Savings Initiative, in selling, general and administrative expenses, in the Consolidated Statements of Operations. The costs consisted of the following: • net benefit of $4.4 primarily for employee-related benefits, associated with severance; • implementation costs of $.9 primarily related to professional service fees associated with our Europe, Middle East & Africa and Asia Pacific businesses; • benefit of $.4 primarily related to the accumulated foreign currency translation adjustments associated with Asia Pacific markets; • accelerated depreciation of $.3 associated with the closure and rationalization of certain facilities; and • contract termination and other charge of $.1 , primarily related to Asia Pacific. The majority of cash payments, if applicable, associated with these charges were made in 2015 and the remaining are expected to be made during 2016. Restructuring Charges – 2014 During 2014, we recorded total costs to implement of $83.9 related to the $400M Cost Savings Initiative, in selling, general and administrative expenses, in the Consolidated Statements of Operations. The costs consisted of the following: • net charge of $ 57.9 primarily for employee-related costs, including severance benefits; • accelerated depreciation of $ 12.2 associated with the closure and rationalization of certain facilities and other assets; • contract termination and other 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; • implementation costs of $3.8 primarily related to professional service fees; and • charge of $3.7 primarily related to the accumulated foreign currency translation adjustments associated with the closure of the France market. Restructuring Charges – 2013 During 2013, we recorded total costs to implement of $ 52.6 related to the $400M Cost Savings Initiative, and the costs consisted of the following: • net charge of $ 45.3 primarily for employee-related costs, including severance and pension benefits; • contract termination and other charges of $4.6 , primarily related to the costs associated with our exit from the Republic of Ireland market; • accelerated depreciation of $ 3.4 associated with the closure and rationalization of certain facilities; • 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 $3.5 for professional service fees; and • net benefit of $.7 due to inventory adjustments in the first and second quarters of 2013. Of the total costs to implement, $ 53.3 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 Operations. The liability balance for the $400M Cost Savings Initiative as of December 31, 2015 is as follows: Employee- Related Costs Inventory/ Asset Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/ Other Total Balance at December 31, 2012 $ 19.0 $ — $ — $ 1.7 $ 20.7 2013 Charges 45.5 .1 (3.5 ) 5.1 47.2 Adjustments (.2 ) (.8 ) — (.5 ) (1.5 ) Cash payments (40.5 ) — — (4.8 ) (45.3 ) Non-cash write-offs 2.0 .7 3.5 — 6.2 Foreign exchange .1 — — .1 .2 Balance at December 31, 2013 $ 25.9 $ — $ — $ 1.6 $ 27.5 2014 Charges 64.2 — 3.7 7.4 75.3 Adjustments (6.3 ) — — (1.1 ) (7.4 ) Cash payments (44.8 ) — — (6.9 ) (51.7 ) Non-cash write-offs .2 — (3.7 ) — (3.5 ) Foreign exchange (2.1 ) — — (.1 ) (2.2 ) Balance at December 31, 2014 $ 37.1 $ — $ — $ .9 $ 38.0 2015 Charges .6 — (.4 ) .3 .5 Adjustments (5.0 ) — — (.1 ) (5.1 ) Cash payments (25.8 ) — — (.6 ) (26.4 ) Non-cash write-offs .4 — .4 — .8 Foreign exchange (1.5 ) — — (.1 ) (1.6 ) Balance at December 31, 2015 $ 5.8 $ — $ — $ .4 $ 6.2 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: Employee- Related Costs Inventory/ Asset Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/ Other Total Total charges incurred $ 126.1 $ .7 $ (.2 ) $ 12.9 $ 139.5 The charges, net of adjustments, of initiatives under the $400M Cost Savings Initiative by reportable business segment were as follows: Latin America Europe, Middle East & Africa Asia Pacific Corporate Total 2012 $ 12.9 $ 1.1 $ 12.9 $ 3.6 $ 30.5 2013 11.1 15.6 1.3 17.7 45.7 2014 24.5 19.9 6.5 17.1 68.0 2015 (1.3 ) (1.2 ) (.2 ) (2.0 ) (4.7 ) Total charges incurred $ 47.2 $ 35.4 $ 20.5 $ 36.4 $ 139.5 As noted previously, we have recorded total costs to implement of $ 165.7 before taxes under the $400M Cost Savings Initiative. The amounts shown in the tables above as total charges incurred relate to initiatives that have been approved and recorded in the financial statements. No material additional charges are expected to be incurred. In addition to the charges included in the tables above, we have incurred other costs to implement restructuring initiatives such as other professional services and accelerated depreciation. Other Restructuring Initiatives During 2015, 2014 and 2013, we recorded net charges of $.5 , $2.1 and $.8 , respectively, in selling, general and administrative expenses, in the Consolidated Statements of Operations, associated with the restructuring programs launched in 2005 and 2009 and the restructuring initiative launched in 2012 (the "Other Restructuring Initiatives"), each of which are substantially complete. The liability balance associated with the Other Restructuring Initiatives, which primarily consists of contract termination costs, as of December 31, 2015 is not material. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [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 U.S. Securities and Exchange Commission (the "SEC") and the U.S. Department of Justice (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 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 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 Company remains in compliance with the DPA during its term, the charges against the Company will be dismissed with prejudice. 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. Under the DPA and the Consent, among other things, the Company agreed to have a compliance monitor (the "monitor"). During July 2015, the Company engaged a monitor, who had been approved by the DOJ and SEC. With the approval of the DOJ and the SEC, the monitor can be replaced by the Company after 18 months, if the Company agrees to undertake self-reporting obligations for the remainder of the monitoring period. The monitoring period is scheduled to expire in July 2018. There can be no assurance as to whether or when the DOJ and the SEC will approve replacing the monitor with the Company’s self-reporting. 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 above, for up to one year. The monitor is assessing and monitoring the Company's compliance with the terms of the DPA and the 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 additional time and attention on these matters by members of our management, which may divert their time from the operation of our business. Assuming the monitor is replaced by a self-reporting period, the Company’s self-reporting obligations may be costly or time-consuming. While the costs have not been significant to date, we currently cannot estimate the costs that we are likely to incur in connection with ongoing compliance with the DPA and the Consent, including the monitorship, 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. These costs could be significant. 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 and following the federal court's dismissal, an additional action was subsequently filed in New York state court on May 1, 2015 ( Sylvia Pritika, 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. 651479/2015)). 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. On April 28, 2015, an action was filed to seek enforcement of demands for the inspection of certain of the Company’s books and records ( Belle Cohen v. Avon Products, Inc. (filed in the New York Supreme Court, New York County, Index No. 651418/2015)). The parties have reached agreements to settle the derivative and books and records actions. The terms of settlement include certain corporate governance measures as well as releases of claims. The Company has accrued approximately $4 with respect to these matters, which the Company expects will be paid by insurance. Settlement is conditioned upon court approval of the proposed resolution of the derivative actions. In the event that the court does not approve the settlement of the derivative actions, or that the agreements are otherwise terminated before becoming final, 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. The parties have reached an agreement on a settlement of this class action. The terms of settlement include releases by members of the class of claims against the Company and the individual defendants and payment of $62 . Under the terms of the settlement, approximately $60 of the settlement was paid by the Company's insurers and approximately $2 was paid by the Company (which represented the remaining deductible under the Company’s applicable insurance policy) into escrow. On August 21, 2015, the court granted preliminary approval of the settlement, and on December 1, 2015 the court held a hearing to consider final approval of the settlement and expressed an intent to grant final approval. However, the court has not yet entered a final judgment approving the settlement. If the settlement is not approved by the court, or is otherwise terminated before it is finalized, the Company will be unable to predict the outcome of this matter. Furthermore, in that event, it is reasonably possible that the Company may incur a loss in connection with this matter, which the Company is unable to reasonably estimate. Between December 23, 2014 and March 12, 2015, two purported class actions were filed in the United States District Court for the Southern District of New York -- Poovathur v. Avon Products, Inc., et al. ( No. 14-CV-10083) and McCoy et al. v. Avon Products, Inc., et al. ( No. 15-CV-01828) asserting claims under the Employee Retirement Income Security Act ("ERISA") against the Company, the Plan's administrator, benefits board and investment committee, and certain individuals alleged to have served as Plan fiduciaries. On April 8, 2015, the Court consolidated the two actions and recaptioned the consolidated case as In re 2014 Avon Products, Inc. ERISA Litigation, ( No. 14-CV-10083). On May 8, 2015, plaintiffs filed a consolidated complaint, asserting claims for alleged breach of fiduciary duty and failure to monitor under ERISA on behalf of a purported class of participants in and beneficiaries of the Plan who invested in and/or held shares of the Avon Common Stock Fund between July 31, 2006 and May 1, 2014 and between December 14, 2011 and the present. Plaintiffs seek, inter alia , certain monetary relief, damages, and declaratory, injunctive and other equitable relief. On July 9, 2015, Defendants moved to dismiss the consolidated complaint. The parties have reached an agreement on a settlement of this class action. The terms of settlement include releases by members of the class of claims against the Company and the individual defendants and payment of approximately $6 . Under the terms of the settlement, approximately $5 of the settlement will be paid by the Company’s insurer and approximately $1 will be paid by the Company (which represents the remaining deductible under the Company’s applicable insurance policy). Certain documentation relating to the settlement has not yet been finalized, and the settlement is subject to court approval. If the settlement is not approved by the court, or is otherwise terminated before it is finalized, the Company will be unable to predict the outcome of this matter. Furthermore, in that event, it is reasonably possible that the Company may incur a loss in connection with this matter, which the Company is unable to reasonably estimate. 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 $258 , 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 $23 from approximately $55 , including penalties and accrued interest. We appealed this decision to the second administrative level, which ruled in favor of Avon in March 2015 and canceled the 2002 IPI assessment. The 2002 IPI assessment remains subject to appeal by the government. 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 2009 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. We believe that the likelihood that the 2002 IPI assessment will be upheld on any further appeal 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, 2015, 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, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets Q4 2015 Egypt Impairment Assessment During the 2015 year-end close process, our analysis of the Egypt business indicated an impairment as the carrying value of the business exceeded the estimated fair value. This was primarily the result of reducing our long-term projections of the business. During 2015, Egypt performed generally in line with our revenue and earnings projections, which assumed growth as compared to 2014. However, as a result of currency restrictions for the payment of goods in Egypt, we lowered our long-term revenue and earnings projections for the business. Accordingly, a non-cash before tax impairment charge of $6.9 ( $6.9 after tax) was recorded to reduce the carrying amount of goodwill. There is no amount remaining associated with goodwill for our Egypt reporting unit as a result of this impairment charge. Q3 2015 Liz Earle Divestiture As a result of the sale of Liz Earle in July 2015, we disposed of goodwill and other intangible assets, net of $124.3 and $28.2 , respectively. Other intangible assets, net included indefinite-lived trademarks of $23.6 , licensing agreements of $3.0 and customer relationships of $1.6 . See Note 3, Discontinued Operations and Divestitures for additional information. Q3 2013 China Impairment Assessment During the first half of 2013, China performed generally in line with our revenue and earnings projections. As assumed in our 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 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 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 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 2013 impairment analysis. This reduction in future expectations led to an impairment of $42.1 being recorded in the third quarter of 2013. Key Assumptions - Egypt and China Key assumptions used in measuring the fair value of Egypt and 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 Egypt and China, we forecasted revenue and the resulting cash flows over five years and ten years, respectively, using a DCF model which included a terminal value at the end of the projection period. We believed that a five-year period and a ten-year period was a reasonable amount of time in order to return cash flows of Egypt and China, respectively, to normalized, sustainable levels. Goodwill Latin America Europe, Middle East & Africa Asia Pacific Total Gross balance at December 31, 2014 $ 90.7 $ 156.0 $ 85.0 $ 331.7 Accumulated impairments — — (82.4 ) (82.4 ) Net balance at December 31, 2014 $ 90.7 $ 156.0 $ 2.6 $ 249.3 Changes during the period ended December 31, 2015: Divestitures $ — $ (124.3 ) $ — $ (124.3 ) Impairment — (6.9 ) — (6.9 ) Foreign exchange (21.8 ) (4.0 ) — (25.8 ) Gross balance at December 31, 2015 $ 68.9 $ 27.7 $ 85.0 $ 305.9 Accumulated impairments — (6.9 ) (82.4 ) (89.3 ) Net balance at December 31, 2015 $ 68.9 $ 20.8 $ 2.6 $ 92.3 Other intangible assets 2015 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Finite-Lived Intangible Assets Customer relationships $ 21.5 $ (21.5 ) $ 33.0 $ (31.1 ) Licensing agreements 26.2 (26.2 ) 43.4 (39.9 ) Noncompete agreements 6.3 (6.3 ) 7.2 (7.2 ) Indefinite-Lived Trademarks — — 23.6 — Total $ 54.0 $ (54.0 ) $ 107.2 $ (78.2 ) Aggregate amortization expense was $4.4 for the year ended December 31, 2013. Aggregate amortization expense was not material for the years ended December 31, 2015 and 2014, and is not expected to be material for future periods. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information At December 31, 2015 and 2014 , prepaid expenses and other included the following: Prepaid expenses and other 2015 2014 Prepaid taxes and tax refunds receivable $ 96.3 $ 155.9 Receivables other than trade 69.6 70.6 Prepaid brochure costs, paper and other literature 64.5 72.1 Short-term investments 2.4 21.0 Deferred tax assets (Note 2 and Note 7) — 205.2 Other 63.3 65.9 Prepaid expenses and other $ 296.1 $ 590.7 At December 31, 2015 and 2014 , other assets included the following: Other assets 2015 2014 Deferred tax assets (Note 2 and Note 7) $ 172.8 $ 678.8 Long-term receivables 162.1 149.5 Capitalized software (Note 1) 82.4 91.6 Investments 36.3 36.4 Tooling (plates and molds associated with our beauty products) 15.3 20.7 Other intangible assets, net (Note 16) — 29.1 Other 30.2 28.2 Other assets $ 499.1 $ 1,034.3 |
Results of Operations by Quarte
Results of Operations by Quarter (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Results of Operations by Quarter (Unaudited) | Results of Operations by Quarter (Unaudited) 2015 First Second Third Fourth Year Total revenue $ 1,552.1 $ 1,564.9 $ 1,436.2 $ 1,607.3 $ 6,160.5 Gross profit 940.4 953.9 877.2 943.6 3,715.1 Operating (loss) profit (1) (32.9 ) 89.7 45.3 62.9 165.0 (Loss) income from continuing operations, before taxes (2) (76.7 ) 61.2 31.0 7.2 22.7 (Loss) income from continuing operations, net of tax (3) (142.6 ) 28.9 (668.0 ) (14.8 ) (796.5 ) (Loss) income from discontinued operations, net of tax (3.8 ) .8 (29.0 ) (317.1 ) (349.1 ) Net income attributable to noncontrolling interests (.9 ) (.9 ) — (1.5 ) (3.3 ) Net (loss) income attributable to Avon $ (147.3 ) $ 28.8 $ (697.0 ) $ (333.4 ) $ (1,148.9 ) (Loss) earnings per common share from continuing operations Basic $ (.33 ) $ .06 $ (1.51 ) $ (.04 ) $ (1.81 ) (4) Diluted (.33 ) .06 (1.51 ) (.04 ) (1.81 ) (4) 2014 First Second Third Fourth Year Total revenue $ 1,887.9 $ 1,884.5 $ 1,861.5 $ 2,014.1 $ 7,648.0 Gross profit 1,048.5 1,189.8 1,165.0 1,237.8 4,641.1 Operating (loss) profit (1) (47.4 ) 110.7 196.2 174.8 434.3 (Loss) income from continuing operations, before taxes (2) (136.8 ) 83.3 153.4 100.9 200.8 (Loss) income from continuing operations, net of tax (3) (165.5 ) 29.4 97.0 (305.4 ) (344.5 ) Loss from discontinued operations, net of tax (1.7 ) (9.5 ) (5.0 ) (24.2 ) (40.4 ) Net income attributable to noncontrolling interests (1.1 ) (.9 ) (.6 ) (1.1 ) (3.7 ) Net (loss) income attributable to Avon $ (168.3 ) $ 19.0 $ 91.4 $ (330.7 ) $ (388.6 ) (Loss) earnings per common share from continuing operations Basic $ (.38 ) $ .07 $ .22 $ (.70 ) $ (.79 ) (4) Diluted (.38 ) .07 .22 (.70 ) (.79 ) (4) (1) Operating (loss) profit was impacted by the following: 2015 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 27.2 2.9 (1.9 ) 20.9 49.1 Total costs to implement restructuring initiatives $ 27.2 $ 2.9 $ (1.9 ) $ 20.9 $ 49.1 Venezuelan special items $ 106.4 $ 6.2 $ 5.7 $ 1.9 $ 120.2 Pension settlement charge $ — $ — $ 6.2 $ 1.1 $ 7.3 Other items $ — $ — $ — $ 3.1 $ 3.1 Asset impairment and other charges $ — $ — $ — $ 6.9 $ 6.9 2014 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 17.2 41.5 .8 27.1 86.6 Total costs to implement restructuring initiatives $ 17.2 $ 41.5 $ .8 $ 27.1 $ 86.6 Venezuelan special items $ 115.7 $ 18.0 $ 2.0 $ 1.4 $ 137.1 FCPA accrual $ 46.0 $ — $ — $ — $ 46.0 Pension settlement charge $ — $ 6.1 $ 1.4 $ 2.0 $ 9.5 (2) In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ( $51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility. In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an 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. (3) (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1 . This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4 , primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7 , which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies. In addition, (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. (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 37 through 45, "Segment Review - Latin America" within MD&A on pages 46 through 50, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 11, Employee Benefit Plans, Note 16, Goodwill and Intangible Assets, Note 15, Contingencies, Note 3, Discontinued Operations and Divestitures and Note 7, Income Taxes, for more information on these items. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
VALUATION AND QUALIFYING ACCOUNTS | AVON PRODUCTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2015 , 2014 and 2013 Additions (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Revenue Deductions Balance at End of Period 2015 Allowance for doubtful accounts receivable $ 93.7 $ 144.1 $ — $ (160.2 ) (1) $ 77.6 Allowance for sales returns 13.2 — 190.8 (194.9 ) (2) 9.1 Allowance for inventory obsolescence 98.9 45.4 — (73.0 ) (3) 71.3 Deferred tax asset valuation allowance 1,362.6 609.5 (4) — — 1,972.1 2014 Allowance for doubtful accounts receivable $ 118.4 $ 171.1 $ — $ (195.8 ) (1) $ 93.7 Allowance for sales returns 14.5 — 240.9 (242.2 ) (2) 13.2 Allowance for inventory obsolescence 113.9 78.4 — (93.4 ) (3) 98.9 Deferred tax asset valuation allowance 942.1 420.5 (4) — — 1,362.6 2013 Allowance for doubtful accounts receivable $ 121.3 $ 209.2 $ — $ (212.1 ) (1) $ 118.4 Allowance for sales returns 23.2 — 274.2 (282.9 ) (2) 14.5 Allowance for inventory obsolescence 134.4 82.0 — (102.5 ) (3) 113.9 Deferred tax asset valuation allowance 786.1 156.0 (4) — — 942.1 (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 a30
Description of the Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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 primarily in one channel, direct selling. Our reportable segments are based on geographic operations in three regions: Latin America; Europe, Middle East & Africa; and Asia Pacific. In addition, we operate our business in North America, which has been presented as discontinued operations for all periods presented and is discussed further below. 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, property, plant and equipment 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 income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the United States ("U.S.") dollar is required to be used as the functional currency. At December 31, 2015, 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 Operations. 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 2015, the Venezuelan government announced that a new foreign exchange system was created, referred to as the SIMADI exchange ("SIMADI"). SIMADI began operating on February 12, 2015. There are multiple legal mechanisms in Venezuela to exchange currency. As SIMADI represents the rate which better reflects the economics of Avon Venezuela's business activity, in comparison to the other available exchange rates, we concluded that we should utilize the SIMADI exchange rate to remeasure our Venezuelan operations effective February 12, 2015. As a result of the change to the SIMADI rate, which caused the recognition of a devaluation of approximately 70% as compared to the exchange rate we used previously, we recorded an after-tax benefit of $3.4 (a benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) in the first quarter of 2015, 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 SIMADI rate, at the applicable rate at the time of their 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 by $18.5 during 2015. Also as a result of the change to the SIMADI rate, we determined that an adjustment of $11.4 to cost of sales was needed to reflect certain non-monetary assets, primarily inventories, at their net realizable value, which was recorded in the first quarter of 2015. In addition, in February 2015, we reviewed Avon Venezuela's long-lived assets to determine whether the carrying amount of the assets was recoverable. Based on our expected cash flows associated with the asset group, we determined that the carrying amount of the assets, carried at their historical U.S. dollar cost basis, was not recoverable. As such, an impairment charge of $90.3 to selling, general and administrative expenses was recorded to reflect the write-down of the long-lived assets to their estimated fair value of $15.7 , which was recorded in the first quarter of 2015. The fair value of Avon Venezuela's long-lived assets was determined using both market and cost valuation approaches. The valuation analysis performed required several estimates, including market conditions and inflation rates. In February 2014, the Venezuelan government announced a foreign exchange system which began operating on March 24, 2014, referred to as the SICAD II exchange ("SICAD II"). As SICAD II represented the rate which better reflected the economics of Avon Venezuela's business activity, in comparison to the other available exchange rates, 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 their 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 by $21.4 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, primarily inventories, at their net realizable value, which was recorded in the first quarter of 2014. Effective February 13, 2013, the Venezuelan government devalued its currency by approximately 32% and as such we recorded an 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 by $49.6 . |
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 three to four weeks for most markets. |
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. See above for more information on Avon Venezuela's long-lived assets. 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 2015, 2014 or 2013. |
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 $82.4 at December 31, 2015 and $91.6 at December 31, 2014 . The amortization expense associated with capitalized software was $ 31.0 , $ 44.8 and $ 50.8 for the years ended December 31, 2015, 2014 and 2013, respectively. 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 carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate. |
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 discounted cash flow ("DCF") approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of 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 would 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 Egypt. |
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 Operations. 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 Operations. 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 Operations. |
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. We record interest expense and penalties payable to relevant tax authorities in income taxes in the Consolidated Statements of Operations. |
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 |
Advertising | Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred |
Research and Development | Research and Development Research and development costs are expensed as incurred and amounted to $61.9 in 2015 , $64.7 in 2014 and $66.9 in 2013 . 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 Monte-Carlo simulation to calculate the fair value of performance restricted stock units with market conditions and 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. |
Revisions | Revisions We revised our Consolidated Statements of Cash Flows to correct the presentation of certain financing activities, specifically a decrease of $65.6 in repayment of debt, a decrease of $70.0 in proceeds from debt, and an increase of $4.4 in debt, net for the year ended December 31, 2014. This revision did not impact cash flows from operating activities, our Consolidated Statements of Operations, our Consolidated Statements of Comprehensive Income (Loss) or our Consolidated Balance Sheets. 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 2015, we recorded out-of-period adjustments which decreased income from continuing operations by approximately $8 before tax (approximately $14 after tax). We evaluated the total out-of-period adjustments impacting 2015, 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 2014, we recorded out-of-period adjustments in our Latin America segment (primarily related to revenue and selling, general and administrative expenses) which increased income from continuing operations by approximately $15 before tax. The total out-of-period adjustments increasing income from continuing operations during 2014 was approximately $13 before tax (approximately $6 after tax), and the total out-of-period adjustments decreasing income from discontinued operations during 2014 was approximately $7 after tax. 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. |
Earnings per Share | Earnings (Loss) per Share We compute earnings (loss) per share ("EPS") using the two-class method, which is a earnings (loss) allocation formula that determines earnings (loss) per share for common stock and participating securities. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents. We compute basic EPS by dividing net income (loss) 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. |
Description of the Business a31
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For each of the three years ended December 31 the components of basic and diluted EPS were as follows: (Shares in millions) 2015 2014 2013 Numerator from continuing operations: (Loss) income from continuing operations less amounts attributable to noncontrolling interests $ (799.8 ) $ (348.1 ) $ 63.0 Less: Loss (income) allocated to participating securities 10.9 4.2 (.6 ) (Loss) income from continuing operations allocated to common shareholders (788.9 ) (343.9 ) 62.4 Numerator from discontinued operations: Loss from discontinued operations less amounts attributable to noncontrolling interests $ (349.1 ) $ (40.5 ) $ (119.4 ) Less: Loss allocated to participating securities 4.7 .6 1.2 Loss from discontinued operations allocated to common shareholders (344.4 ) (39.9 ) (118.2 ) Numerator attributable to Avon: Loss attributable to Avon less amounts attributable to noncontrolling interests $ (1,148.9 ) $ (388.6 ) $ (56.4 ) Less: Loss allocated to participating securities 15.7 4.7 .6 Loss attributable to Avon allocated to common shareholders (1,133.2 ) (383.9 ) (55.8 ) Denominator: Basic EPS weighted-average shares outstanding 435.2 434.5 433.4 Diluted effect of assumed conversion of stock options — — .8 Diluted EPS adjusted weighted-average shares outstanding 435.2 434.5 434.2 (Loss) Income per Common Share from continuing operations: Basic $ (1.81 ) $ (.79 ) $ .14 Diluted (1.81 ) (.79 ) .14 Loss per Common Share from discontinued operations: Basic $ (.79 ) $ (.09 ) $ (.27 ) Diluted (.79 ) (.09 ) (.27 ) Loss per Common Share attributable to Avon: Basic $ (2.60 ) $ (.88 ) $ (.13 ) Diluted (2.60 ) (.88 ) (.13 ) |
Discontinued Operations and D32
Discontinued Operations and Divestitures Discontinued Operations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Silpada [Member] | |
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 Silpada discontinued operations is shown below: Year ended December 31, 2013 Total revenue $ 54.5 Operating loss (4) (81.0 ) (4) Operating loss 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. |
North America [Member] | |
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] | The major classes of financial statement components comprising the loss on discontinued operations, before tax for North America are shown below: Year ended December 31, 2015 2014 2013 Total revenue $ 1,012.5 $ 1,203.4 $ 1,458.2 Cost of sales 404.0 492.4 599.7 Selling, general and administrative expenses (1) 606.2 745.2 971.1 Operating income (loss) (1) 2.3 (34.2 ) (112.6 ) Other expense items 3.2 2.4 2.7 Loss from discontinued operations, before tax (1) (.9 ) (36.6 ) (115.3 ) Loss on sale of discontinued operations, before tax (340.0 ) — — Loss from discontinued operations, before tax (1) $ (340.9 ) $ (36.6 ) $ (115.3 ) (1) Includes a capitalized software impairment charge of $117.2 during 2013, as discussed below. The carrying amount of the major classes of assets and liabilities for North America discontinued operations at December 31, 2015 and 2014 are shown below: 2015 2014 Cash and cash equivalents $ (2.2 ) $ 24.1 Receivable from continuing operations (2) 100.0 100.0 Accounts receivable, net 41.4 47.9 Inventories 128.2 114.5 Prepaid expenses and other 23.7 27.6 Current assets of discontinued operations $ 291.1 $ 314.1 Property, plant and equipment, net $ 171.8 $ 194.2 Other assets 8.3 17.7 Noncurrent assets of discontinued operations $ 180.1 $ 211.9 Debt maturing within one year $ 5.9 $ 15.4 Accounts payable 78.4 89.1 Accrued compensation 18.2 35.6 Other accrued liabilities (3) 380.6 59.7 Other classes of current liabilities that are not major 6.6 7.8 Current liabilities of discontinued operations $ 489.7 $ 207.6 Long-term debt $ 29.3 $ 35.2 Employee benefit plans 228.2 252.2 Other liabilities .2 7.0 Other classes of noncurrent liabilities that are not major 2.5 2.6 Noncurrent liabilities of discontinued operations $ 260.2 $ 297.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories at December 31 consisted of the following: 2015 2014 Raw materials $ 180.5 $ 232.9 Finished goods 443.5 474.8 Total $ 624.0 $ 707.7 |
Debt and Other Financing (Table
Debt and Other Financing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Schedule of Debt [Table Text Block] | Debt at December 31 consisted of the following: 2015 2014 Debt maturing within one year: Notes payable $ 50.4 $ 116.0 Current portion of long-term debt 4.8 5.7 Total $ 55.2 $ 121.7 Long-term debt: 2.375% Notes, due March 2016 $ — $ 249.9 5.75% Notes, due March 2018 249.8 249.7 4.20% Notes, due July 2018 249.8 249.7 6.50% Notes, due March 2019 348.6 348.2 Other debt, payable through 2025 with interest from .4% to 7.8% 12.7 12.8 4.60% Notes, due March 2020 499.6 499.4 5.00% Notes, due March 2023 496.5 496.0 6.95% Notes, due March 2043 249.3 249.3 Total 2,106.3 2,355.0 Amortization of swap termination 58.1 79.4 Less current portion (4.8 ) (5.7 ) Total long-term debt $ 2,159.6 $ 2,428.7 |
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) and capital leases outstanding at December 31, 2015 , are as follows: 2016 2017 2018 2019 2020 2021 and Beyond Total Maturities $ 4.8 $ 3.6 $ 503.2 $ 350.1 $ 500.0 $ 751.0 $ 2,112.7 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014: Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Total Balance at December 31, 2014 $ (677.0 ) $ (3.2 ) $ (4.3 ) $ (533.1 ) $ (1,217.6 ) Other comprehensive (loss) income other than reclassifications (273.0 ) — — 40.7 (232.3 ) 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 $1.2 (2) — — — 81.8 81.8 Total reclassifications into earnings — 1.9 — 81.8 83.7 Balance at December 31, 2015 $ (950.0 ) $ (1.3 ) $ (4.3 ) $ (410.6 ) $ (1,366.2 ) 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 ) (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, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | |
Deferred Tax Assets (Liabilities) Classification | |
Income from Continuing Operations before Taxes | (Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: 2015 2014 2013 United States $ (230.3 ) $ (185.0 ) $ (397.0 ) Foreign 253.0 385.8 674.9 Total $ 22.7 $ 200.8 $ 277.9 |
Provision for Income Taxes | The provision for income taxes for the years ended December 31 was as follows: 2015 2014 2013 Federal: Current $ 41.6 $ 57.3 $ 75.7 Deferred 668.3 207.9 (180.7 ) 709.9 265.2 (105.0 ) Foreign: Current 132.3 252.0 221.4 Deferred (24.3 ) (11.4 ) 98.3 108.0 240.6 319.7 State and other: Current 0.7 (.4 ) (1.2 ) Deferred 0.6 39.9 (3.1 ) 1.3 39.5 (4.3 ) Total $ 819.2 $ 545.3 $ 210.4 |
Effective Tax Rate | The effective tax rate for the years ended December 31 was as follows: 2015 2014 2013 Statutory federal rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.5 7.0 (.5 ) Tax on foreign income 141.4 (6.5 ) (9.8 ) Tax on uncertain tax positions 8.2 17.3 (1.3 ) Venezuela devaluation and highly inflationary accounting 168.1 27.4 16.5 FCPA accrual — (7.1 ) 11.2 China goodwill impairment — — 4.9 Reorganizations (173.5 ) — — Net change in valuation allowances 3,395.6 193.9 18.4 Blocked income 29.3 3.5 2.3 Imputed royalties 11.9 1.2 .9 Research credits (8.9 ) (1.0 ) (.5 ) Other (7.9 ) .8 (1.4 ) Effective tax rate 3,601.7 % 271.5 % 75.7 % |
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, 2012 $ 32.0 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 (2.3 ) Balance at December 31, 2013 26.0 Additions based on tax positions related to the current year 1.4 Additions for tax positions of prior years 37.7 Reductions for tax positions of prior years (4.7 ) Reductions due to lapse of statute of limitations (1.7 ) Reductions due to settlements with tax authorities (2.0 ) Balance at December 31, 2014 56.7 Additions based on tax positions related to the current year 3.5 Additions for tax positions of prior years 5.7 Reductions for tax positions of prior years (1.5 ) Reductions due to lapse of statute of limitations (0.4 ) Reductions due to settlements with tax authorities (11.0 ) Balance at December 31, 2015 $ 53.0 |
Tax Years Remaining | Jurisdiction Open Years Brazil 2010-2015 Mexico 2009-2015 Poland 2010-2015 Russia 2011-2015 United States (Federal) 2014-2015 |
Financial Instruments and Ris37
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other $ 1.2 Accounts payable $ 1.1 Total derivatives not designated as hedges $ 1.2 $ 1.1 Total derivatives $ 1.2 $ 1.1 The following table presents the fair value of derivative instruments outstanding at December 31, 2014 : Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives not designated as hedges: Foreign exchange forward contracts Prepaid expenses and other $ .6 Accounts payable $ 4.9 Total derivatives not designated as hedges $ .6 $ 4.9 Total derivatives $ .6 $ 4.9 |
Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income | For the years ended December 31, 2015 and 2014 , treasury lock agreements impacted AOCI as follows: 2015 2014 Pre-tax net unamortized losses at beginning of year (1) $ (5.9 ) $ (7.8 ) Reclassification of net losses to earnings 1.9 1.9 Pre-tax net unamortized losses at end of year (1) $ (4.0 ) $ (5.9 ) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Nonrecurring [Table Text Block] | March 31, 2015 - Venezuela Long-Lived Assets The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2015, and indicates the placement in the fair value hierarchy of the valuation techniques utilized to determine such fair value: Level 1 Level 2 Level 3 Total Assets: Venezuela long-lived assets $ — $ — $ 15.7 $ 15.7 Total $ — $ — $ 15.7 $ 15.7 |
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, 2015 : Level 1 Level 2 Total Assets: Available-for-sale securities $ 2.8 $ — $ 2.8 Foreign exchange forward contracts — 1.2 1.2 Total $ 2.8 $ 1.2 $ 4.0 Liabilities: Foreign exchange forward contracts $ — $ 1.1 $ 1.1 Total $ — $ 1.1 $ 1.1 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 — .6 .6 Total $ 2.7 $ .6 $ 3.3 Liabilities: Foreign exchange forward contracts $ — $ 4.9 $ 4.9 Total $ — $ 4.9 $ 4.9 |
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: 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 2.8 $ 2.8 $ 2.7 $ 2.7 Debt maturing within one year (1) (55.2 ) (55.2 ) (121.7 ) (121.7 ) Long-term debt (1) (2,159.6 ) (1,622.7 ) (2,428.7 ) (2,207.2 ) Foreign exchange forward contracts .1 .1 (4.3 ) (4.3 ) (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 - 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. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | For the years ended December 31: 2015 2014 2013 Compensation cost for stock options, stock appreciation rights, performance restricted stock units and restricted stock units $ 51.2 $ 38.9 $ 43.3 Total income tax benefit recognized for share-based arrangements 4.1 3.2 14.9 |
Schedule of Options Activity During Period | A summary of stock options as of December 31, 2015 , and changes during 2015 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2015 17,158 $ 31.74 Granted — — Exercised — — Forfeited (6 ) 18.25 Expired (5,504 ) 38.20 Outstanding at December 31, 2015 11,648 $ 28.70 2.9 $ — Exercisable at December 31, 2015 11,018 $ 28.18 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 and 2013 , were as follows: 2014 2013 Cash proceeds from stock options exercised $ .2 $ 19.4 Tax obligation realized for stock options exercised — (1.8 ) Intrinsic value of stock options exercised — 6.4 |
Schedule of Restricted Stock and Units Activity During Period | A summary of restricted stock and restricted stock units at December 31, 2015 , and changes during 2015 , is as follows: Restricted Stock And Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2015 4,995 $ 16.80 Granted 2,938 7.91 Vested (1,084 ) 18.14 Forfeited (827 ) 14.09 December 31, 2015 6,022 $ 12.62 |
Schedule of Share-Based Compensation Performance Restricted Stock Units Activity | A summary of performance restricted stock units at December 31, 2015 , and changes during 2015 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2015 (1) 4,976 $ 17.53 Granted 2,013 7.49 Vested — — Forfeited (1,655 ) 18.32 December 31, 2015 (1) 5,334 $ 13.51 (1) Based on initial target payout. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2015 2014 2015 2014 Change in Benefit Obligation: Beginning balance $ (705.2 ) $ (668.3 ) $ (777.6 ) $ (734.3 ) $ (93.4 ) $ (93.8 ) Service cost (13.0 ) (14.1 ) (5.3 ) (6.0 ) (.7 ) (.7 ) Interest cost (25.1 ) (27.8 ) (23.6 ) (31.0 ) (3.7 ) (4.1 ) Actuarial (loss) gain 44.4 (124.6 ) 54.3 (123.4 ) 5.7 (2.0 ) Plan participant contributions — — — — (2.5 ) (2.8 ) Benefits paid 92.1 129.1 35.6 45.5 7.9 9.3 Plan amendments — 2.0 — — 9.0 — Curtailments — (1.4 ) .2 — — .3 Settlements — — — .7 — — Special termination benefits — (.1 ) — — — (.2 ) Foreign currency changes and other — — 48.7 70.9 1.1 .6 Ending balance $ (606.8 ) $ (705.2 ) $ (667.7 ) $ (777.6 ) $ (76.6 ) $ (93.4 ) Change in Plan Assets: Beginning balance $ 506.5 $ 531.1 $ 607.9 $ 608.7 $ — $ — Actual return on plan assets (13.7 ) 54.5 16.3 62.8 — — Company contributions 7.6 50.0 21.6 27.4 5.4 6.5 Plan participant contributions — — — — 2.5 2.8 Benefits paid (92.1 ) (129.1 ) (35.6 ) (45.5 ) (7.9 ) (9.3 ) Foreign currency changes and other — — (33.9 ) (45.5 ) — — Ending balance $ 408.3 $ 506.5 $ 576.3 $ 607.9 $ — $ — Funded Status: Funded status at end of year (1) $ (198.5 ) $ (198.7 ) $ (91.4 ) $ (169.7 ) $ (76.6 ) $ (93.4 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 8.1 $ 2.7 $ — $ — Accrued compensation (6.6 ) (9.0 ) (1.6 ) (3.7 ) (6.9 ) (8.0 ) Employee benefit plans liability (191.9 ) (189.7 ) (97.9 ) (168.7 ) (69.7 ) (85.4 ) Net amount recognized (1) $ (198.5 ) $ (198.7 ) $ (91.4 ) $ (169.7 ) $ (76.6 ) $ (93.4 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 310.2 $ 380.0 $ 239.6 $ 302.5 $ 15.5 $ 23.2 Prior service credit (1.4 ) (2.1 ) (1.2 ) (1.4 ) (29.1 ) (24.6 ) Total pretax amount recognized $ 308.8 $ 377.9 $ 238.4 $ 301.1 $ (13.6 ) $ (1.4 ) Supplemental Information: Accumulated benefit obligation $ 601.7 $ 701.6 $ 185.0 $ 735.0 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 606.8 $ 705.2 $ 207.3 $ 750.8 N/A N/A Fair value plan assets 408.3 506.5 107.8 584.1 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 606.8 $ 705.2 $ 186.3 $ 770.1 N/A N/A Accumulated benefit obligation 601.7 701.6 173.7 744.7 N/A N/A Fair value plan assets 408.3 506.5 93.7 597.6 N/A N/A (1) Includes $145.7 and $148.0 of the U.S. pension plans at December 31, 2015 and 2014, respectively, and $53.6 and $68.6 of the postretirement benefit plans net liability (related to the U.S.) at December 31, 2015 and 2014, respectively, which are included in discontinued operations. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the table above. |
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 2015 2014 2013 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Service cost $ 13.0 $ 14.1 $ 15.7 $ 5.3 $ 6.0 $ 9.2 $ .7 $ .7 $ 1.4 Interest cost 25.1 27.8 27.5 23.6 31.0 31.4 3.7 4.1 4.3 Expected return on plan assets (32.6 ) (35.8 ) (37.4 ) (36.4 ) (36.4 ) (33.9 ) — — — Amortization of prior service credit (.7 ) (.3 ) (.3 ) (.1 ) (.1 ) (.3 ) (4.0 ) (4.4 ) (4.7 ) Amortization of net actuarial losses 43.7 45.1 47.2 8.4 6.5 8.5 1.8 1.3 2.3 Amortization of transition obligation — — — .1 — — — — — Settlements/curtailments 27.9 38.0 — .5 2.7 (4.3 ) — (2.7 ) (1.8 ) Other — — — — — — — — — Net periodic benefit cost (2) $ 76.4 $ 88.9 $ 52.7 $ 1.4 $ 9.7 $ 10.6 $ 2.2 $ (1.0 ) $ 1.5 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial losses (gains) $ 1.8 $ 105.9 $ (80.8 ) $ (34.2 ) $ 97.0 $ (6.0 ) $ (5.6 ) $ 2.0 $ (22.5 ) Prior service (credit) cost — (2.0 ) — — — — (9.0 ) — (1.3 ) Amortization of prior service credit .7 .3 .3 .1 .1 7.9 4.0 7.2 7.0 Amortization of net actuarial losses (71.6 ) (81.5 ) (47.2 ) (9.1 ) (9.9 ) (13.4 ) (1.8 ) (1.6 ) (3.1 ) Amortization of transition obligation — — — (.1 ) — — — — — Foreign currency changes — — — (19.4 ) (28.0 ) 4.2 .2 .1 (.1 ) Total recognized in other comprehensive (loss) income* $ (69.1 ) $ 22.7 $ (127.7 ) $ (62.7 ) $ 59.2 $ (7.3 ) $ (12.2 ) $ 7.7 $ (20.0 ) Total recognized in net periodic benefit cost and other comprehensive (loss) income $ 7.3 $ 111.6 $ (75.0 ) $ (61.3 ) $ 68.9 $ 3.3 $ (10.0 ) $ 6.7 $ (18.5 ) (2) Includes $53.7 , $62.6 and $35.2 of the U.S. pension plans in 2015, 2014 and 2013, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2015, 2014 and 2013, which are included in discontinued operations. Amounts associated with the pension and postretirement benefit plans in Canada and the postretirement benefit plan in Puerto Rico, which are included in discontinued operations, have been excluded from all amounts in the table above. |
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 2016 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss (3) $ 33.8 $ 6.9 $ 1.2 Prior service credit (3) (.5 ) (.1 ) (5.1 ) |
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 2015 2014 2015 2014 2015 2014 Discount rate 4.19 % 3.83 % 3.69 % 3.27 % 4.50 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 3.26 % 3.20 % 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 Operations for the years ended December 31 were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.83 % 4.54 % 3.55 % 3.27 % 4.59 % 4.69 % 4.20 % 4.97 % 4.00 % Rate of compensation increase 4.00 % 4.00 % 3.86 % 3.20 % 3.70 % 3.95 % N/A N/A N/A Rate of return on assets 7.25 % 7.50 % 7.75 % 6.55 % 6.33 % 6.64 % 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, 2015 and 2014 , 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 2016 2015 2014 2016 2015 2014 Equity securities 30 % 27 % 28 % 23 % 23 % 61 % Debt securities 70 69 69 72 72 37 Real Estate — — — — — — Other — 4 3 5 5 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, 2015 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 13.3 $ 13.3 International equity — 79.5 79.5 Emerging markets — 16.5 16.5 — 109.3 109.3 Fixed Income Securities: Corporate bonds — 156.8 156.8 Government securities — 126.8 126.8 — 283.6 283.6 Cash 12.2 — 12.2 Derivatives — 3.2 3.2 Total (4) $ 12.2 $ 396.1 $ 408.3 (4) Includes $374.8 which is included in discontinued operations at December 31, 2015. Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 24.1 $ — $ 24.1 International equity — 109.7 — 109.7 — 133.8 — 133.8 Fixed Income Securities: Corporate bonds — 206.5 — 206.5 Government securities — 197.7 — 197.7 Other — 11.1 — 11.1 — 415.3 — 415.3 Other: Cash 11.5 — — 11.5 Derivatives — 13.9 — 13.9 Real estate — — 1.0 1.0 Other — — .8 .8 11.5 13.9 1.8 27.2 Total $ 11.5 $ 563.0 $ 1.8 $ 576.3 Amounts associated with the pension plan in Canada, which are included in discontinued operations, have been excluded from all amounts in the table above. 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 18.0 — 18.0 Derivatives — (1.8 ) (1.8 ) Total (5) $ 18.0 $ 488.5 $ 506.5 (5) Includes $411.6 which is included in discontinued operations at December 31, 2014. Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 93.5 $ — $ 93.5 International equity — 277.2 — 277.2 — 370.7 — 370.7 Fixed Income Securities: Corporate bonds — 82.1 — 82.1 Government securities — 111.8 — 111.8 Other — 28.8 — 28.8 — 222.7 — 222.7 Other: Cash 12.6 — — 12.6 Real estate — — 1.0 1.0 Other — — .9 .9 12.6 — 1.9 14.5 Total $ 12.6 $ 593.4 $ 1.9 $ 607.9 |
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, 2014 $ 2.3 Actual return on plan assets held (.3 ) Foreign currency changes (.1 ) Balance as of December 31, 2014 1.9 Actual return on plan assets held .1 Foreign currency changes (.2 ) Balance as of December 31, 2015 $ 1.8 |
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 2016 (6) $ 64.2 $ 30.1 $ 94.3 $ 6.9 2017 (6) 64.5 30.2 94.7 6.7 2018 (6) 51.7 31.7 83.4 6.5 2019 (6) 49.3 32.6 81.9 6.3 2020 (6) 48.5 32.9 81.4 6.1 2021-2025 (6) 212.9 180.6 393.5 27.1 |
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 Point Increase 1 Percentage Point Decrease Effect on total of service and interest cost components $ — $ — Effect on postretirement benefit obligation .1 (.1 ) |
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: 2015 2014 Corporate-owned life insurance policies $ 32.7 $ 32.2 Cash and cash equivalents .7 1.4 Total $ 33.4 $ 33.6 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Total Revenue & Operating Profit by Reporting Segment | Total Revenue & Operating Profit (Loss) 2015 2014 2013 Total Revenue Operating Profit (Loss) Total Revenue Operating Profit (Loss) Total Revenue Operating Profit (Loss) Latin America $ 3,260.4 $ 103.1 $ 4,239.5 $ 279.8 $ 4,840.5 $ 478.6 Europe, Middle East & Africa 2,272.3 217.1 2,705.8 300.9 2,898.4 406.7 Asia Pacific 627.8 35.3 702.7 20.9 757.9 (12.1 ) Total from operations 6,160.5 355.5 7,648.0 601.6 8,496.8 873.2 Global and other — (190.5 ) — (167.3 ) — (333.4 ) Total $ 6,160.5 $ 165.0 $ 7,648.0 $ 434.3 $ 8,496.8 $ 539.8 |
Total Assets | Total Assets 2015 2014 2013 Latin America $ 1,543.0 $ 2,033.0 $ 2,432.7 Europe, Middle East & Africa 910.4 1,170.6 1,370.9 Asia Pacific 317.0 390.8 441.7 Total from continuing operations 2,770.4 3,594.4 4,245.3 Total from discontinued operations* 371.2 426.0 524.6 Global and other 637.9 1,476.4 1,722.4 Total assets* $ 3,779.5 $ 5,496.8 $ 6,492.3 |
Capital Expenditures | Capital Expenditures 2015 2014 2013 Latin America $ 55.3 $ 82.6 $ 94.1 Europe, Middle East & Africa 18.4 19.0 20.0 Asia Pacific 3.5 3.3 6.6 Total from operations 77.2 104.9 120.7 Global and other 15.2 21.4 69.0 Total capital expenditures $ 92.4 $ 126.3 $ 189.7 |
Depreciation and Amortization | Depreciation and Amortization 2015 2014 2013 Latin America $ 51.0 $ 70.9 $ 72.2 Europe, Middle East & Africa 31.0 40.0 46.6 Asia Pacific 13.6 17.3 21.9 Total from operations 95.6 128.2 140.7 Global and other 30.5 41.2 47.0 Total depreciation and amortization $ 126.1 $ 169.4 $ 187.7 |
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. 2015 2014 2013 Brazil $ 1,252.6 $ 1,909.3 $ 2,014.0 All other 4,907.9 5,738.7 6,482.8 Total $ 6,160.5 $ 7,648.0 $ 8,496.8 |
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, and also includes our country of domicile (the U.S.). Long-lived assets primarily includes property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil consist primarily of property, plant and equipment related to manufacturing and distribution facilities and long-lived assets in the U.S. consist primarily of property, plant and equipment, including our global research and development facility. 2015 2014 2013 Brazil $ 302.7 $ 361.9 $ 421.5 U.S. 225.9 250.0 265.6 All other 597.3 969.8 1,112.9 Total $ 1,125.9 $ 1,581.7 $ 1,800.0 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule Of Minimum Rental Commitments And Purchase Obligations | Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2016 $ 72.3 $ 143.8 2017 55.3 96.2 2018 45.3 63.0 2019 39.3 53.7 2020 33.9 50.2 Later years 100.2 49.3 Sublease rental income (33.3 ) N/A Total $ 313.0 $ 456.2 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Restructuring Initiatives 2015 [Member] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The liability balance, which primarily consists of employee-related costs, for these various restructuring initiatives as of December 31, 2015 is as follows: Total 2015 charges $ 24.9 Adjustments (2.8 ) Cash payments (17.8 ) Foreign exchange (.3 ) Balance at December 31, 2015 $ 4.0 |
Schedule of Restructuring Charges Reportable by Business Segment [Table Text Block] | The charges approved to date under these various restructuring initiatives by reportable business segment were as follows: Latin America Europe, Middle East & Africa Asia Pacific Corporate Total Charges incurred on approved initiatives $ 2.9 $ 4.2 $ 5.8 $ 9.2 $ 22.1 |
$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, 2015 is as follows: Employee- Related Costs Inventory/ Asset Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/ Other Total Balance at December 31, 2012 $ 19.0 $ — $ — $ 1.7 $ 20.7 2013 Charges 45.5 .1 (3.5 ) 5.1 47.2 Adjustments (.2 ) (.8 ) — (.5 ) (1.5 ) Cash payments (40.5 ) — — (4.8 ) (45.3 ) Non-cash write-offs 2.0 .7 3.5 — 6.2 Foreign exchange .1 — — .1 .2 Balance at December 31, 2013 $ 25.9 $ — $ — $ 1.6 $ 27.5 2014 Charges 64.2 — 3.7 7.4 75.3 Adjustments (6.3 ) — — (1.1 ) (7.4 ) Cash payments (44.8 ) — — (6.9 ) (51.7 ) Non-cash write-offs .2 — (3.7 ) — (3.5 ) Foreign exchange (2.1 ) — — (.1 ) (2.2 ) Balance at December 31, 2014 $ 37.1 $ — $ — $ .9 $ 38.0 2015 Charges .6 — (.4 ) .3 .5 Adjustments (5.0 ) — — (.1 ) (5.1 ) Cash payments (25.8 ) — — (.6 ) (26.4 ) Non-cash write-offs .4 — .4 — .8 Foreign exchange (1.5 ) — — (.1 ) (1.6 ) Balance at December 31, 2015 $ 5.8 $ — $ — $ .4 $ 6.2 |
Schedule of Restructuring and Related Costs | The following table presents the restructuring charges incurred to-date, net of adjustments, under our $400M Cost Savings Initiative: Employee- Related Costs Inventory/ Asset Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/ Other Total Total charges incurred $ 126.1 $ .7 $ (.2 ) $ 12.9 $ 139.5 |
Schedule of Restructuring Charges Reportable by Business Segment [Table Text Block] | The charges, net of adjustments, of initiatives under the $400M Cost Savings Initiative by reportable business segment were as follows: Latin America Europe, Middle East & Africa Asia Pacific Corporate Total 2012 $ 12.9 $ 1.1 $ 12.9 $ 3.6 $ 30.5 2013 11.1 15.6 1.3 17.7 45.7 2014 24.5 19.9 6.5 17.1 68.0 2015 (1.3 ) (1.2 ) (.2 ) (2.0 ) (4.7 ) Total charges incurred $ 47.2 $ 35.4 $ 20.5 $ 36.4 $ 139.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Adjustments to Goodwill | Goodwill Latin America Europe, Middle East & Africa Asia Pacific Total Gross balance at December 31, 2014 $ 90.7 $ 156.0 $ 85.0 $ 331.7 Accumulated impairments — — (82.4 ) (82.4 ) Net balance at December 31, 2014 $ 90.7 $ 156.0 $ 2.6 $ 249.3 Changes during the period ended December 31, 2015: Divestitures $ — $ (124.3 ) $ — $ (124.3 ) Impairment — (6.9 ) — (6.9 ) Foreign exchange (21.8 ) (4.0 ) — (25.8 ) Gross balance at December 31, 2015 $ 68.9 $ 27.7 $ 85.0 $ 305.9 Accumulated impairments — (6.9 ) (82.4 ) (89.3 ) Net balance at December 31, 2015 $ 68.9 $ 20.8 $ 2.6 $ 92.3 |
Schedule of Intangible Assets | Other intangible assets 2015 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Finite-Lived Intangible Assets Customer relationships $ 21.5 $ (21.5 ) $ 33.0 $ (31.1 ) Licensing agreements 26.2 (26.2 ) 43.4 (39.9 ) Noncompete agreements 6.3 (6.3 ) 7.2 (7.2 ) Indefinite-Lived Trademarks — — 23.6 — Total $ 54.0 $ (54.0 ) $ 107.2 $ (78.2 ) |
Supplemental Balance Sheet In45
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Prepaid Expenses and Other | At December 31, 2015 and 2014 , prepaid expenses and other included the following: Prepaid expenses and other 2015 2014 Prepaid taxes and tax refunds receivable $ 96.3 $ 155.9 Receivables other than trade 69.6 70.6 Prepaid brochure costs, paper and other literature 64.5 72.1 Short-term investments 2.4 21.0 Deferred tax assets (Note 2 and Note 7) — 205.2 Other 63.3 65.9 Prepaid expenses and other $ 296.1 $ 590.7 |
Components of Other Assets | At December 31, 2015 and 2014 , other assets included the following: Other assets 2015 2014 Deferred tax assets (Note 2 and Note 7) $ 172.8 $ 678.8 Long-term receivables 162.1 149.5 Capitalized software (Note 1) 82.4 91.6 Investments 36.3 36.4 Tooling (plates and molds associated with our beauty products) 15.3 20.7 Other intangible assets, net (Note 16) — 29.1 Other 30.2 28.2 Other assets $ 499.1 $ 1,034.3 |
Results of Operations by Quar46
Results of Operations by Quarter (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Financial Results of Operations by Quarter | 2015 First Second Third Fourth Year Total revenue $ 1,552.1 $ 1,564.9 $ 1,436.2 $ 1,607.3 $ 6,160.5 Gross profit 940.4 953.9 877.2 943.6 3,715.1 Operating (loss) profit (1) (32.9 ) 89.7 45.3 62.9 165.0 (Loss) income from continuing operations, before taxes (2) (76.7 ) 61.2 31.0 7.2 22.7 (Loss) income from continuing operations, net of tax (3) (142.6 ) 28.9 (668.0 ) (14.8 ) (796.5 ) (Loss) income from discontinued operations, net of tax (3.8 ) .8 (29.0 ) (317.1 ) (349.1 ) Net income attributable to noncontrolling interests (.9 ) (.9 ) — (1.5 ) (3.3 ) Net (loss) income attributable to Avon $ (147.3 ) $ 28.8 $ (697.0 ) $ (333.4 ) $ (1,148.9 ) (Loss) earnings per common share from continuing operations Basic $ (.33 ) $ .06 $ (1.51 ) $ (.04 ) $ (1.81 ) (4) Diluted (.33 ) .06 (1.51 ) (.04 ) (1.81 ) (4) 2014 First Second Third Fourth Year Total revenue $ 1,887.9 $ 1,884.5 $ 1,861.5 $ 2,014.1 $ 7,648.0 Gross profit 1,048.5 1,189.8 1,165.0 1,237.8 4,641.1 Operating (loss) profit (1) (47.4 ) 110.7 196.2 174.8 434.3 (Loss) income from continuing operations, before taxes (2) (136.8 ) 83.3 153.4 100.9 200.8 (Loss) income from continuing operations, net of tax (3) (165.5 ) 29.4 97.0 (305.4 ) (344.5 ) Loss from discontinued operations, net of tax (1.7 ) (9.5 ) (5.0 ) (24.2 ) (40.4 ) Net income attributable to noncontrolling interests (1.1 ) (.9 ) (.6 ) (1.1 ) (3.7 ) Net (loss) income attributable to Avon $ (168.3 ) $ 19.0 $ 91.4 $ (330.7 ) $ (388.6 ) (Loss) earnings per common share from continuing operations Basic $ (.38 ) $ .07 $ .22 $ (.70 ) $ (.79 ) (4) Diluted (.38 ) .07 .22 (.70 ) (.79 ) (4) (1) Operating (loss) profit was impacted by the following: 2015 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 27.2 2.9 (1.9 ) 20.9 49.1 Total costs to implement restructuring initiatives $ 27.2 $ 2.9 $ (1.9 ) $ 20.9 $ 49.1 Venezuelan special items $ 106.4 $ 6.2 $ 5.7 $ 1.9 $ 120.2 Pension settlement charge $ — $ — $ 6.2 $ 1.1 $ 7.3 Other items $ — $ — $ — $ 3.1 $ 3.1 Asset impairment and other charges $ — $ — $ — $ 6.9 $ 6.9 2014 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 17.2 41.5 .8 27.1 86.6 Total costs to implement restructuring initiatives $ 17.2 $ 41.5 $ .8 $ 27.1 $ 86.6 Venezuelan special items $ 115.7 $ 18.0 $ 2.0 $ 1.4 $ 137.1 FCPA accrual $ 46.0 $ — $ — $ — $ 46.0 Pension settlement charge $ — $ 6.1 $ 1.4 $ 2.0 $ 9.5 (2) In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ( $51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility. In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an 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. (3) (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1 . This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4 , primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7 , which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies. In addition, (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. (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 37 through 45, "Segment Review - Latin America" within MD&A on pages 46 through 50, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 11, Employee Benefit Plans, Note 16, Goodwill and Intangible Assets, Note 15, Contingencies, Note 3, Discontinued Operations and Divestitures and Note 7, Income Taxes, for more information on these items. |
Components Impacting Results of Operations | (1) Operating (loss) profit was impacted by the following: 2015 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 27.2 2.9 (1.9 ) 20.9 49.1 Total costs to implement restructuring initiatives $ 27.2 $ 2.9 $ (1.9 ) $ 20.9 $ 49.1 Venezuelan special items $ 106.4 $ 6.2 $ 5.7 $ 1.9 $ 120.2 Pension settlement charge $ — $ — $ 6.2 $ 1.1 $ 7.3 Other items $ — $ — $ — $ 3.1 $ 3.1 Asset impairment and other charges $ — $ — $ — $ 6.9 $ 6.9 2014 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ — $ — $ — $ — Selling, general and administrative expenses 17.2 41.5 .8 27.1 86.6 Total costs to implement restructuring initiatives $ 17.2 $ 41.5 $ .8 $ 27.1 $ 86.6 Venezuelan special items $ 115.7 $ 18.0 $ 2.0 $ 1.4 $ 137.1 FCPA accrual $ 46.0 $ — $ — $ — $ 46.0 Pension settlement charge $ — $ 6.1 $ 1.4 $ 2.0 $ 9.5 |
VALUATION AND QUALIFYING ACCO47
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation And Qualifying Accounts | Additions (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Revenue Deductions Balance at End of Period 2015 Allowance for doubtful accounts receivable $ 93.7 $ 144.1 $ — $ (160.2 ) (1) $ 77.6 Allowance for sales returns 13.2 — 190.8 (194.9 ) (2) 9.1 Allowance for inventory obsolescence 98.9 45.4 — (73.0 ) (3) 71.3 Deferred tax asset valuation allowance 1,362.6 609.5 (4) — — 1,972.1 2014 Allowance for doubtful accounts receivable $ 118.4 $ 171.1 $ — $ (195.8 ) (1) $ 93.7 Allowance for sales returns 14.5 — 240.9 (242.2 ) (2) 13.2 Allowance for inventory obsolescence 113.9 78.4 — (93.4 ) (3) 98.9 Deferred tax asset valuation allowance 942.1 420.5 (4) — — 1,362.6 2013 Allowance for doubtful accounts receivable $ 121.3 $ 209.2 $ — $ (212.1 ) (1) $ 118.4 Allowance for sales returns 23.2 — 274.2 (282.9 ) (2) 14.5 Allowance for inventory obsolescence 134.4 82.0 — (102.5 ) (3) 113.9 Deferred tax asset valuation allowance 786.1 156.0 (4) — — 942.1 (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 a48
Description of the Business and Summary of Significant Accounting Policies (Narrative) (Details) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($)channelregionshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Feb. 13, 2013 | |
Number of business channels | channel | 1 | |||||||
Number of regions where company has geographic operations | region | 3 | |||||||
Venezuela foreign currency devaluation | 70.00% | 88.00% | 32.00% | |||||
Exchange rate net charges, total | $ (3,400,000) | $ 41,800,000 | $ 50,700,000 | |||||
Exchange rate net charges on other expense, net | (4,200,000) | 53,700,000 | 34,100,000 | |||||
Exchange rate net charges on income taxes | 800,000 | (11,900,000) | $ 16,600,000 | |||||
Venezuelan non-monetary assets remeasurement in operating profit | $ 18,500,000 | $ 21,400,000 | $ 49,600,000 | |||||
Charge for Venezuelan non-monetary assets | 11,400,000 | $ 115,700,000 | 101,700,000 | 115,700,000 | 0 | |||
Impairment of Venezuela long-lived assets | 90,300,000 | |||||||
Property, plant and equipment, net | $ 766,900,000 | 766,900,000 | 1,036,800,000 | |||||
Prepaid expenses and other | 296,100,000 | 296,100,000 | 590,700,000 | |||||
Brochure costs | 256,600,000 | 309,400,000 | 348,000,000 | |||||
Brochure income | $ 141,900,000 | 173,200,000 | 188,100,000 | |||||
Capitalization period of software | 5 years | |||||||
Capitalized software | $ 82,400,000 | $ 82,400,000 | 91,600,000 | |||||
Amortization of capitalized software | $ 31,000,000 | 44,800,000 | 50,800,000 | |||||
Minimum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 80.00% | 80.00% | ||||||
Maximum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 125.00% | 125.00% | ||||||
Shipping and handling costs | $ 538,800,000 | 695,800,000 | 784,500,000 | |||||
Advertising costs | 128,000,000 | 166,400,000 | 174,300,000 | |||||
Research and development costs | $ 61,900,000 | $ 64,700,000 | $ 66,900,000 | |||||
Amortization period for gains and losses, period 1 | 3 years | |||||||
Amortization period for gains and losses, period 2 | 5 years | |||||||
Stock Options Excluded from Computation of Earnings Per Share Due to Net Loss, Including Options With Higher Exercise Prices than Average Market Price | shares | 12.7 | 18 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 17.5 | |||||||
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] | ||||||||
Prepaid brochures, campaign period | 21 days | |||||||
Number of years used in calculating the estimated fair value of reporting units | 5 years | |||||||
Minimum [Member] | Office Equipment [Member] | ||||||||
Estimated useful lives | 5 years | |||||||
Maximum [Member] | ||||||||
Prepaid brochures, campaign period | 28 days | |||||||
Number of years used in calculating the estimated fair value of reporting units | 10 years | |||||||
Maximum [Member] | Office Equipment [Member] | ||||||||
Estimated useful lives | 10 years | |||||||
Deferred Brochure Costs [Member] | ||||||||
Prepaid expenses and other | $ 25,800,000 | $ 25,800,000 | $ 27,800,000 | |||||
Paper Supply [Member] | ||||||||
Prepaid expenses and other | 3,800,000 | $ 3,800,000 | 6,200,000 | |||||
VENEZUELA | ||||||||
Property, plant and equipment, net | $ 15,700,000 | |||||||
Repayments of debt [Member] | ||||||||
Prior Period Reclassification Adjustment | 65,600,000 | |||||||
Proceeds from debt [Member] | ||||||||
Prior Period Reclassification Adjustment | 70,000,000 | |||||||
Debt, net [Member] | ||||||||
Prior Period Reclassification Adjustment | 4,400,000 | |||||||
Affiliated Entity [Member] | ||||||||
Sale of convertible preferred stock | $ 435,000,000 | |||||||
North America [Member] | ||||||||
Percentage of ownership after transaction | 20.00% | 19.90% | ||||||
Treasury Locks [Member] | ||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 2,700,000 | $ 2,700,000 | $ 2,700,000 | $ 2,700,000 |
Description of the Business a49
Description of the Business and Summary of Significant Accounting Policies Out of Period (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revisions and Out-of-Period Items | ||
Out Of Period Adjustment | $ 8 | $ (13) |
Out of Period Adjustment After Tax | $ 14 | (6) |
Out of Period Adjustment After Tax, Discontinued Operations | 7 | |
Latin America [Member] | ||
Revisions and Out-of-Period Items | ||
Out Of Period Adjustment | $ (15) |
Description of the Business a50
Description of the Business and Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [1],[2] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1],[2] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | [2] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Numerator from continuing operations: | |||||||||||||||||||||
(Loss) income from continuing operations less amounts attributable to noncontrolling interests | $ (799.8) | $ (348.1) | $ 63 | ||||||||||||||||||
Less: Loss (income) allocated to participating securities | 10.9 | 4.2 | (0.6) | ||||||||||||||||||
(Loss) income from continuing operations allocated to common shareholders | (788.9) | (343.9) | 62.4 | ||||||||||||||||||
Numerator from discontinued operations: | |||||||||||||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | (349.1) | (40.5) | (119.4) | ||||||||||||||||||
Less: Loss allocated to participating securities | 4.7 | 0.6 | 1.2 | ||||||||||||||||||
Loss from discontinued operations allocated to common shareholders | (344.4) | (39.9) | (118.2) | ||||||||||||||||||
Numerator attributable to Avon: | |||||||||||||||||||||
Loss attributable to Avon less amounts attributable to noncontrolling interests | $ (333.4) | $ (697) | $ 28.8 | $ (147.3) | $ (330.7) | $ 91.4 | $ 19 | $ (168.3) | (1,148.9) | [1],[2] | (388.6) | [1],[2] | (56.4) | ||||||||
Less: Loss allocated to participating securities | 15.7 | 4.7 | 0.6 | ||||||||||||||||||
Loss attributable to Avon allocated to common shareholders | $ (1,133.2) | $ (383.9) | $ (55.8) | ||||||||||||||||||
Denominator: | |||||||||||||||||||||
Basic EPS weighted-average shares outstanding | 435.2 | 434.5 | 433.4 | ||||||||||||||||||
Diluted effect of assumed conversion of stock options | 0 | 0 | 0.8 | ||||||||||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 435.2 | 434.5 | 434.2 | ||||||||||||||||||
(Loss) Income per Common Share from continuing operations: | |||||||||||||||||||||
Basic from continuing operations | $ (0.04) | [3] | $ (1.51) | [3] | $ 0.06 | [3] | $ (0.33) | [3] | $ (0.70) | [3] | $ 0.22 | [3] | $ 0.07 | [3] | $ (0.38) | [3] | $ (1.81) | [1],[2],[3] | $ (0.79) | [1],[2],[3] | $ 0.14 |
Diluted from continuing operations | $ (0.04) | [3] | $ (1.51) | [3] | $ 0.06 | [3] | $ (0.33) | [3] | $ (0.70) | [3] | $ 0.22 | [3] | $ 0.07 | [3] | $ (0.38) | [3] | (1.81) | [1],[2],[3] | (0.79) | [1],[2],[3] | 0.14 |
Loss per Common Share from discontinued operations: | |||||||||||||||||||||
Basic from discontinued operations | (0.79) | (0.09) | (0.27) | ||||||||||||||||||
Diluted from discontinued operations | (0.79) | (0.09) | (0.27) | ||||||||||||||||||
Loss per Common Share attributable to Avon: | |||||||||||||||||||||
Basic attributable to Avon | (2.60) | (0.88) | (0.13) | ||||||||||||||||||
Diluted attributable to Avon | $ (2.60) | $ (0.88) | $ (0.13) | ||||||||||||||||||
[1] | (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies.In addition, (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. | ||||||||||||||||||||
[2] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate. | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
Discontinued Operations and D51
Discontinued Operations and Divestitures (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 17, 2015 | Dec. 31, 2015 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Investment in discontinued operations through purchase of convertible preferred stock | $ 435 | |||||||||
Proceeds for issuance of membership interests | 170 | |||||||||
Cash contribution into privately-held company | $ 100 | |||||||||
Convertible Preferred Stock, Terms of Conversion | The $435 investment by Cleveland Investor in the Company will be in exchange for perpetual convertible preferred stock with an optional conversion price for holders of $5.00 per share and a dividend that accrues at a rate of 5% per annum, subject to increase upon certain events. The dividend is payable at the Company's option in (i) cash, (ii) subject to certain conditions, in common shares or (iii) subject to certain conditions, upon conversion of shares in Series C Preferred Stock, in shares of our non-voting, non-convertible Series D Preferred Stock, par value $1.00 per share (the "Series D Preferred Stock"). Any such shares of Series D Preferred Stock issued would have similar preferential rights. | |||||||||
Expected Amount of Proceeds on Sale to be used to Reduce Debt | $ 250 | |||||||||
Net deferred tax assets | $ 150.6 | $ 150.6 | 150.6 | $ 851 | ||||||
Valuation allowance | 1,972.1 | 1,972.1 | 1,972.1 | 1,362.6 | ||||||
Gain on sale of business | 44.9 | 0 | $ 0 | |||||||
Gain on sale of business, after tax | 51.6 | |||||||||
Liz Earle [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of business | 215 | |||||||||
Disposition of Business, Expenses | 5 | |||||||||
Gain on sale of business | 44.9 | |||||||||
Gain on sale of business, after tax | 51.6 | |||||||||
Silpada [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Discontinued Operations, loss on sale of business, before tax | $ 0.4 | $ 79 | 79.4 | |||||||
Discontinued Operations, loss on sale of business, after tax | $ 50 | 50.4 | ||||||||
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 | |||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Principal amount of debt | $ 250 | $ 250 | $ 250 | |||||||
Interest rate, stated percentage | 2.375% | 2.375% | 2.375% | |||||||
SMT [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Capitalized software impairment | $ 117.2 | |||||||||
Capitalized software impairment, net of tax | $ 74.1 | |||||||||
NewCo [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Implied value of ownership interests | 43 | 43 | 43 | |||||||
Valuation allowance | 235 | 235 | 235 | |||||||
Discontinued Operations, Disposed of by Sale [Member] | North America Segment [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Optional conversion price for holders (in dollars per share) | $ 5 | |||||||||
Dividend accrual, percentage | 5.00% | |||||||||
Net deferred tax assets | 19.4 | 19.4 | 19.4 | 15.6 | ||||||
Valuation allowance | $ 19.4 | 19.4 | $ 19.4 | 9.1 | ||||||
Series D Preferred Stock [Member] | Discontinued Operations, Disposed of by Sale [Member] | North America Segment [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Series D Preferred Stock, par value (in dollars per share) | $ 1 | |||||||||
North America [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Discontinued Operation, Equity Method Investment Amount Not Retained after Disposal, Ownership Interest | 80.10% | |||||||||
Percentage of ownership after transaction | 20.00% | 19.90% | ||||||||
Discontinued Operations, loss on sale of business, before tax | 340 | $ 340 | $ 0 | $ 0 | ||||||
Discontinued Operations, loss on sale of business, after tax | $ 340 |
Discontinued Operations and D52
Discontinued Operations and Divestitures Discontinued Operations Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ (2.2) | $ (2.2) | $ 24.1 | $ 17.9 | $ 19.9 | ||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 291.1 | 291.1 | 314.1 | ||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 180.1 | 180.1 | 211.9 | ||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 489.7 | 489.7 | 207.6 | ||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 260.2 | 260.2 | 297 | ||||||||
North America [Member] | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Total revenue | 1,012.5 | 1,203.4 | 1,458.2 | ||||||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 404 | 492.4 | 599.7 | ||||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 606.2 | 745.2 | 971.1 | ||||||||
Operating loss | 2.3 | (34.2) | [1] | (112.6) | |||||||
Disposal Group, Including Discontinued Operation, Other Expense | 3.2 | 2.4 | 2.7 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (340.9) | (36.6) | [1] | (115.3) | |||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | (2.2) | (2.2) | 24.1 | ||||||||
Discontinued Operations, Receivable from Continuing Operations | 100 | 100 | 100 | [2] | |||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 41.4 | 41.4 | 47.9 | ||||||||
Disposal Group, Including Discontinued Operation, Inventory, Current | 128.2 | 128.2 | 114.5 | ||||||||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets, Current | 23.7 | 23.7 | 27.6 | ||||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 291.1 | 291.1 | 314.1 | ||||||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | 171.8 | 171.8 | 194.2 | ||||||||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 8.3 | 8.3 | 17.7 | ||||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 180.1 | 180.1 | 211.9 | ||||||||
Disposal Group, Including Discontinued Operation, Debt, Current | 5.9 | 5.9 | 15.4 | ||||||||
Disposal Group, Including Discontinued Operation, Accounts Payable, Current | 78.4 | 78.4 | 89.1 | ||||||||
Disposal Group, Including Discontinued Operation, Employee Related Liabilities, Current | 18.2 | 18.2 | 35.6 | ||||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 380.6 | [3] | 380.6 | [3] | 59.7 | ||||||
Disposal Group, Including Discontinued Operation, Current Liabilities not major | 6.6 | 6.6 | 7.8 | ||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 489.7 | 489.7 | 207.6 | ||||||||
Disposal Group, Including Discontinued Operation, Debt, Noncurrent | 29.3 | 29.3 | 35.2 | ||||||||
Disposal Group, Including Discontinued Operation, Pension and Postretirement Liabilities, Noncurrent | 228.2 | 228.2 | 252.2 | ||||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent | 0.2 | 0.2 | 7 | ||||||||
Disposal Group, Including Discontinued Operation, Noncurrent liabilities not major | 2.5 | 2.5 | 2.6 | ||||||||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 260.2 | 260.2 | 297 | ||||||||
Silpada [Member] | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Total revenue | 54.5 | ||||||||||
Operating loss | [4] | (81) | |||||||||
Discontinued Operations, loss on sale of business, before tax | $ (0.4) | $ (79) | (79.4) | ||||||||
North America [Member] | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax | (0.9) | (36.6) | (115.3) | ||||||||
Discontinued Operations, loss on sale of business, before tax | $ (340) | $ (340) | $ 0 | $ 0 | |||||||
[1] | Includes a capitalized software impairment charge of $117.2 during 2013, as discussed below. | ||||||||||
[2] | Represents the expected cash contribution by the Company into NewCo to be made at close of the transactions. | ||||||||||
[3] | Includes the accrual for the estimated loss on sale at December 31, 2015. | ||||||||||
[4] | Operating loss 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 $.4 before tax recorded in the third quarter of 2013. |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Raw materials | $ 180.5 | $ 232.9 |
Finished goods | 443.5 | 474.8 |
Total | $ 624 | $ 707.7 |
Debt and Other Financing (Narra
Debt and Other Financing (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2015 | Jul. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Apr. 15, 2013 | Mar. 29, 2013 | Jun. 30, 2012 | Jun. 30, 2009 | Mar. 31, 2008 | Jun. 30, 2003 | May. 31, 2003 | |
Short-term Debt, Weighted Average Interest Rate | 4.00% | 4.00% | 4.00% | 4.20% | |||||||||||||||||
Obligations under capital leases | $ 11,700,000 | $ 11,700,000 | $ 11,700,000 | $ 11,600,000 | |||||||||||||||||
2.375% Notes Make-Whole Premium | $ 5,000,000 | ||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 2,500,000 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt | (5,500,000) | 0 | $ (86,000,000) | ||||||||||||||||||
2014 Notes prepayment percent | 100.00% | ||||||||||||||||||||
2014 Notes accrued interest paid April 2013 | $ 3,400,000 | ||||||||||||||||||||
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 outstanding under the revolving credit facility | 0 | 0 | 0 | ||||||||||||||||||
Letters of credit outstanding | 12,900,000 | 12,900,000 | $ 12,900,000 | 12,900,000 | |||||||||||||||||
Credit ratings | Our long-term credit ratings are Ba2 (Negative Outlook) for corporate family debt, and Ba3 (Negative Outlook) for senior unsecured debt, with Moody's; B+ (Stable Outlook) with S&P; and B+ (Negative Outlook) with Fitch, which are below investment grade. | ||||||||||||||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 250,000,000 | $ 250,000,000 | |||||||||||||||||||
Interest rate, stated percentage | 2.375% | 2.375% | |||||||||||||||||||
Prepayment percent | 100.00% | ||||||||||||||||||||
Accrued Interest Paid on Extinguishment of 2.375% Notes | $ 3,100,000 | ||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 500,000 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (5,500,000) | ||||||||||||||||||||
Unamortized discount to face value | 100,000 | ||||||||||||||||||||
Private Senior Notes | $ 0 | $ 0 | $ 0 | 249,900,000 | |||||||||||||||||
2013 Notes [Member] | |||||||||||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | 0.75% | 1.75% | ||||||||||||||||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | |||||||||||||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 4.60% | ||||||||||||||||||||
Unamortized discount to face value | $ 400,000 | $ 400,000 | $ 400,000 | 600,000 | |||||||||||||||||
Private Senior Notes | 499,600,000 | 499,600,000 | 499,600,000 | 499,400,000 | |||||||||||||||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | |||||||||||||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 5.00% | ||||||||||||||||||||
Unamortized discount to face value | 3,500,000 | 3,500,000 | 3,500,000 | 4,000,000 | |||||||||||||||||
Private Senior Notes | 496,500,000 | 496,500,000 | 496,500,000 | 496,000,000 | |||||||||||||||||
Four Point Eight Percent Notes, Due March Two Thousand Thirteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 250,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 4.80% | ||||||||||||||||||||
Four Point Six Two Five Percent Notes, Due May Two Thousand Thirteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 125,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 4.625% | ||||||||||||||||||||
Five Point Six Two Five Percent Notes, Due March Two Thousand Fourteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 5.625% | ||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | 1,100,000 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (13,000,000) | ||||||||||||||||||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 250,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 5.75% | ||||||||||||||||||||
Unamortized discount to face value | 200,000 | 200,000 | 200,000 | 300,000 | |||||||||||||||||
Private Senior Notes | 249,800,000 | 249,800,000 | 249,800,000 | 249,700,000 | |||||||||||||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 250,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 4.20% | ||||||||||||||||||||
Unamortized discount to face value | 200,000 | 200,000 | 200,000 | 300,000 | |||||||||||||||||
Private Senior Notes | 249,800,000 | 249,800,000 | 249,800,000 | 249,700,000 | |||||||||||||||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | |||||||||||||||||||||
Principal amount of debt | $ 350,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 6.50% | ||||||||||||||||||||
Unamortized discount to face value | 1,400,000 | 1,400,000 | 1,400,000 | 1,800,000 | |||||||||||||||||
Private Senior Notes | 348,600,000 | 348,600,000 | 348,600,000 | 348,200,000 | |||||||||||||||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | |||||||||||||||||||||
Principal amount of debt | $ 250,000,000 | ||||||||||||||||||||
Interest rate, stated percentage | 6.95% | ||||||||||||||||||||
Unamortized discount to face value | 700,000 | 700,000 | 700,000 | 700,000 | |||||||||||||||||
Private Senior Notes | 249,300,000 | 249,300,000 | $ 249,300,000 | 249,300,000 | |||||||||||||||||
2013 Notes [Member] | |||||||||||||||||||||
Debt Instrument, Interest Rate Terms | The indenture governing the 2013 Notes contains interest rate adjustment provisions depending on the long-term credit ratings assigned to the 2013 Notes with S&P and Moody's. As described in the indenture, the interest rates on the 2013 Notes increase by .25% for each one-notch downgrade below investment grade on each of our long-term credit ratings assigned to the 2013 Notes by S&P or Moody's. These adjustments are limited to a total increase of 2% above the respective interest rates in effect on the date of issuance of the 2013 Notes. | ||||||||||||||||||||
2013 Notes [Member] | Notes Payable [Member] | |||||||||||||||||||||
Debt Instrument, Covenant, Increase In Interest Rate For Every One-Notch Downgrade Of Long-Term Credit Ratings Below Investment Grade | 0.25% | ||||||||||||||||||||
Debt Instrument, Covenant, Maximum Aggregate Increase In Interest Rate Related To Downgrade Of Long-Term Credit Ratings Below Investment Grade | 2.00% | ||||||||||||||||||||
All Notes Outstanding, Except 4.20% Notes [Member] | Notes Payable [Member] | |||||||||||||||||||||
Debt Instrument, Covenant, Minimum Required Offer To Repurchase, Percentage Of Aggregate Principal Amount | 101.00% | ||||||||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Interest Rate Terms | Borrowings under the 2015 revolving credit facility bear interest, at our option, at a rate per annum equal to LIBOR plus 250 basis points or a floating base rate plus 150 basis points, in each case subject to adjustment based upon a leverage-based pricing grid. | ||||||||||||||||||||
Line of credit facility | 400,000,000 | 400,000,000 | $ 400,000,000 | ||||||||||||||||||
2013 Revolving Credit Facility [Member] | |||||||||||||||||||||
Line of credit facility | $ 1,000,000,000 | ||||||||||||||||||||
Amount drawn under credit facility | $ 0 | $ 0 | |||||||||||||||||||
Termination penalty on revolving credit facility | $ 0 | $ 0 | $ 0 | ||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 3,400,000 | ||||||||||||||||||||
Gain (loss) on extinguishment of debt | (71,400,000) | ||||||||||||||||||||
Private Senior Notes | $ 535,000,000 | ||||||||||||||||||||
Term Loan [Member] | |||||||||||||||||||||
Gain (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 | $ 550,000,000 | ||||||||||||||||||||
Term Loan [Member] | Long-term Debt [Member] | |||||||||||||||||||||
Repayments of Long-term Debt | $ 39,400,000 | ||||||||||||||||||||
LIBOR [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||||||||||||||||
Base Rate [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Debt and Other Financing (Debt)
Debt and Other Financing (Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2009 | Mar. 31, 2008 | Jun. 30, 2003 | |
Notes payable | $ 50.4 | $ 116 | |||||
Current portion of long-term debt | 4.8 | 5.7 | |||||
Total debt maturing within one year | 55.2 | 121.7 | |||||
Total | 2,106.3 | 2,355 | |||||
Amortization of swap termination | 58.1 | 79.4 | |||||
Less current portion | (4.8) | (5.7) | |||||
Total long-term debt | 2,159.6 | 2,428.7 | |||||
Letters of credit outstanding | 12.9 | 12.9 | |||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||
Notes | 0 | 249.9 | |||||
Interest rate, stated percentage | 2.375% | 2.375% | |||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | |||||||
Notes | 249.8 | 249.7 | |||||
Interest rate, stated percentage | 5.75% | ||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | |||||||
Notes | 249.8 | 249.7 | |||||
Interest rate, stated percentage | 4.20% | ||||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | |||||||
Notes | 348.6 | 348.2 | |||||
Interest rate, stated percentage | 6.50% | ||||||
Other, payable through 2024 with interest from .6% to 7.4% [Member] | |||||||
Other debt | $ 12.7 | 12.8 | |||||
Interest rate, stated percentage, minimum | 0.40% | ||||||
Interest rate, stated percentage, maximum | 7.80% | ||||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | |||||||
Notes | $ 499.6 | 499.4 | |||||
Interest rate, stated percentage | 4.60% | ||||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | |||||||
Notes | 496.5 | 496 | |||||
Interest rate, stated percentage | 5.00% | ||||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | |||||||
Notes | $ 249.3 | $ 249.3 | |||||
Interest rate, stated percentage | 6.95% |
Debt and Other Financing (Matur
Debt and Other Financing (Maturities of Long-Term Debt) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Instruments [Abstract] | |
Maturities, 2016 | $ 4.8 |
Maturities, 2017 | 3.6 |
Maturities, 2018 | 503.2 |
Maturities, 2019 | 350.1 |
Maturities, 2020 | 500 |
Maturities, 2021 and Beyond | 751 |
Total Maturities | $ 2,112.7 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Exchange Gains (Losses) From Translation Of Acturial Losses and Prior Service Credit | $ (21.9) | $ (18.2) | $ 0.2 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Loss) (Components of Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Balance at Period Start | $ (1,217.6) | $ (870.4) | ||||
Other comprehensive loss other than reclassifications | (232.3) | (434.9) | ||||
Reclassifications into earnings | ||||||
Change in derivative losses on cash flow hedges, net of taxes | 1.9 | [1] | 1.9 | [1] | $ 1.7 | |
Amortization of net actuarial loss and prior service cost, net of tax | [2] | 81.8 | 85.8 | |||
Total reclassifications into earnings | 83.7 | 87.7 | ||||
Balance at Period End | (1,366.2) | (1,217.6) | (870.4) | |||
Change in derivative losses on cash flow hedges, taxes | 0 | 0 | 0.9 | |||
Amortization of net actuarial loss and prior service cost, tax | 1.2 | 2.5 | ||||
Foreign Currency Gain (Loss) [Member] | ||||||
Balance at Period Start | (677) | (429.3) | ||||
Other comprehensive loss other than reclassifications | (273) | (247.7) | ||||
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 tax | 0 | 0 | ||||
Total reclassifications into earnings | 0 | 0 | ||||
Balance at Period End | (950) | (677) | (429.3) | |||
Cash Flow Hedging [Member] | ||||||
Balance at Period Start | (3.2) | (5.1) | ||||
Other comprehensive loss other than reclassifications | 0 | 0 | ||||
Reclassifications into earnings | ||||||
Change in derivative losses on cash flow hedges, net of taxes | [1] | 1.9 | 1.9 | |||
Amortization of net actuarial loss and prior service cost, net of tax | 0 | 0 | ||||
Total reclassifications into earnings | 1.9 | 1.9 | ||||
Balance at Period End | (1.3) | (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 tax | 0 | 0 | ||||
Total reclassifications into earnings | 0 | 0 | ||||
Balance at Period End | (4.3) | (4.3) | (4.3) | |||
Defined Benefit Plans [Domain] | ||||||
Balance at Period Start | (533.1) | (431.7) | ||||
Other comprehensive loss other than reclassifications | 40.7 | (187.2) | ||||
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 tax | [2] | 81.8 | 85.8 | |||
Total reclassifications into earnings | 81.8 | 85.8 | ||||
Balance at Period End | $ (410.6) | $ (533.1) | $ (431.7) | |||
[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) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Income taxes | $ 18.7 | $ (819.2) | $ (545.3) | $ (210.4) | ||||||
Deferred tax assets, net operating loss | 781.9 | $ 844.2 | 781.9 | 844.2 | ||||||
Valuation allowance | 1,972.1 | 1,362.6 | 1,972.1 | 1,362.6 | ||||||
Foreign tax credit carryforwards | 689.6 | 622.3 | 689.6 | 622.3 | ||||||
Deferred tax liabilities, undistributed foreign earnings | 89.2 | 14.3 | 89.2 | 14.3 | ||||||
Undistributed earnings of foreign subsidiaries | 1,400 | 1,400 | ||||||||
Net increase (decrease) in valuation allowance | $ 649.5 | $ 3.2 | $ (31.3) | 383.5 | 609.5 | |||||
U.S. tax cost on foreign earnings | 0 | (3.5) | 9.9 | |||||||
FCPA Settlement, Tax Benefit | 18.5 | |||||||||
Total gross unrecognized tax benefits | 53 | 56.7 | 53 | 56.7 | 26 | $ 32 | ||||
Unrecognized tax benefits that would impact effective tax rate | 33.7 | 33.7 | ||||||||
Accrued interest and penalties | 6.6 | $ 4.4 | 6.6 | 4.4 | ||||||
Expense for interest and penalties | 2.8 | $ 0.9 | $ 0.9 | |||||||
Foreign [Member] | ||||||||||
Valuation allowance | 651.7 | 651.7 | ||||||||
Operating loss carryforwards | 2,302.1 | 2,302.1 | ||||||||
Beginning [Member] | ||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 1 | 1 | ||||||||
Ending [Member] | ||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | $ 18 | 18 | ||||||||
UNITED STATES | ||||||||||
Net increase (decrease) in valuation allowance | $ 641.6 | $ (3.2) | $ 31.3 | $ 685.1 | ||||||
Forecast [Member] | ||||||||||
Income taxes | $ 30 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations before Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [1] | Jun. 30, 2015 | Mar. 31, 2015 | [1] | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
United States | $ (230.3) | $ (185) | $ (397) | |||||||||||||
Foreign | 253 | 385.8 | 674.9 | |||||||||||||
Income from continuing operations, before taxes | $ 7.2 | $ 31 | $ 61.2 | $ (76.7) | $ 100.9 | $ 153.4 | $ 83.3 | $ (136.8) | $ 22.7 | [1] | $ 200.8 | [1] | $ 277.9 | |||
[1] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an after-tax loss of $41.8 ($53.7 in other expense, net, and a benefit of $11.9 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SICAD II rate. |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal, Current | $ 41.6 | $ 57.3 | $ 75.7 | |
Federal, Deferred | 668.3 | 207.9 | (180.7) | |
Federal, Total | 709.9 | 265.2 | (105) | |
Foreign, Current | 132.3 | 252 | 221.4 | |
Foreign, Deferred | (24.3) | (11.4) | 98.3 | |
Foreign, Total | 108 | 240.6 | 319.7 | |
State and other, Current | 0.7 | (0.4) | (1.2) | |
State and other, Deferred | 0.6 | 39.9 | (3.1) | |
State and other, Total | 1.3 | 39.5 | (4.3) | |
Total | $ (18.7) | $ 819.2 | $ 545.3 | $ 210.4 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 2.50% | 7.00% | (0.50%) |
Taxes on foreign income, including translation | 141.40% | (6.50%) | (9.80%) |
Audit settlements, statute expirations and amended returns | 8.20% | 17.30% | (1.30%) |
Venezuela devaluation and highly inflationary accounting | 168.10% | 27.40% | 16.50% |
FCPA accrual | 0.00% | (7.10%) | 11.20% |
China goodwill impairment | 0.00% | 0.00% | 4.90% |
Reserves for uncertain tax positions | (173.50%) | 0.00% | 0.00% |
Net change in valuation allowances | 3395.60% | 193.90% | 18.40% |
Blocked income | 29.30% | 3.50% | 2.30% |
Effective Income Tax Rate Reconciliation, Royalties, Percent | 11.90% | 1.20% | 0.90% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Research and Development, Percent | (8.90%) | (1.00%) | (0.50%) |
Other | (7.90%) | 0.80% | (1.40%) |
Effective tax rate | 3601.70% | 271.50% | 75.70% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets (Liabilities) Resulting From Temporary Differences) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accrued expenses and reserves | $ 183.4 | $ 220.3 |
Pension and postretirement benefits | 129.2 | 160 |
Asset revaluations | 13.3 | 12.1 |
Capitalized expenses | 171 | 175.9 |
Depreciation and amortization | 29.3 | 16.9 |
Deferred loss on foreign currency | 44.3 | 40.3 |
Share-based compensation | 62.7 | 62 |
Restructuring initiatives | 21.7 | 24.2 |
Postemployment benefits | 5.1 | 6.8 |
Tax loss carryforwards | 781.9 | 844.2 |
Foreign tax credit carryforwards | 689.6 | 622.3 |
Minimum tax and business credit carryforwards | 56.5 | 57.1 |
All other | 58.5 | 54.4 |
Valuation allowance | (1,972.1) | (1,362.6) |
Total deferred tax assets | 274.4 | 933.9 |
Deferred tax liabilities: | ||
Depreciation and amortization | (13.8) | (24.6) |
Unremitted foreign earnings | (89.2) | (14.3) |
Prepaid expenses | (7) | (8.7) |
Capitalized interest | (9.2) | (9.5) |
All other | (4.6) | (25.8) |
Total deferred tax liabilities | (123.8) | (82.9) |
Net deferred tax assets | $ 150.6 | $ 851 |
Income Taxes (Deferred Tax As64
Income Taxes (Deferred Tax Assets (Liabilities) Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax assets, net operating loss | $ 844.2 | $ 781.9 | |||
Valuation allowance | 1,362.6 | 1,972.1 | |||
Net state deferred tax assets for various temporary differences | 39 | ||||
Deferred tax assets, foreign tax loss carryforwards | 656.9 | ||||
Deferred tax assets, state tax loss carryforwards | 125 | ||||
Deferred tax liability adjustment, foreign earnings not to be repatriated within the foreseeable future | 94.9 | ||||
Increase in deferred tax liability, undistributed earnings | 74.9 | ||||
Deferred tax liabilities, undistributed foreign earnings | 14.3 | 89.2 | |||
Undistributed earnings of foreign subsidiaries | 1,400 | ||||
Net increase (decrease) in valuation allowance | $ 649.5 | $ 3.2 | $ (31.3) | 383.5 | 609.5 |
State Deferred Tax Assets For Various Temporary Differences [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 39 | ||||
Domestic Country [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 746.1 | ||||
Deferred tax assets, credit carryforwards | 746.1 | ||||
Foreign [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 651.7 | ||||
Operating loss carryforwards | 2,302.1 | ||||
Operating loss carryforwards, not subject to expiration | 2,134.6 | ||||
Operating loss carryforwards, subject to expiration | 167.5 | ||||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax assets, net operating loss | 120.6 | ||||
Valuation allowance | $ 120.6 | 125 | |||
Operating loss carryforwards | 1,750 | ||||
Foreign Tax Credit Carryforward [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforward | 689.6 | ||||
Alternative Minimum Tax Credit Carryforward [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforward | 35.9 | ||||
Research Tax Credit Carryforward [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforward | 16.3 | ||||
Investment Tax Credit Carryforward [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforward | 4.3 | ||||
NewCo [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 235 | ||||
Gross deferred tax assets | 235 | ||||
NewCo [Member] | State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Valuation allowance | 129.3 | ||||
Gross deferred tax assets | $ 129.3 |
Income Taxes (Deferred Tax As65
Income Taxes (Deferred Tax Assets (Liabilities) Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Prepaid expenses and other | $ 0 | $ 205.2 |
Other assets | 172.8 | 678.8 |
Total deferred tax assets | 172.8 | 884 |
Deferred tax liabilities: | ||
Income taxes | 0 | (0.3) |
Long-term income taxes | (22.2) | (32.7) |
Total deferred tax liabilities | (22.2) | (33) |
Net deferred tax assets | $ 150.6 | $ 851 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, beginning balance | $ 56.7 | $ 26 | |
Additions based on tax positions related to the current year | 3.5 | 1.4 | $ 5.3 |
Additions for tax positions of prior years | 5.7 | 37.7 | 1.9 |
Reductions for tax positions of prior years | (1.5) | (4.7) | (7.8) |
Reductions due to lapse of statute of limitations | (0.4) | (1.7) | (3.1) |
Reductions due to settlements with tax authorities | (11) | (2) | (2.3) |
Unrecognized tax benefits, ending balance | $ 53 | $ 56.7 | $ 26 |
Income Taxes (Tax Years Remaini
Income Taxes (Tax Years Remaining) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Beginning [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,010 |
Beginning [Member] | Mexico [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,009 |
Beginning [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,010 |
Beginning [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,011 |
Beginning [Member] | UNITED STATES | |
Open Tax Years by Major Tax Jurisdiction | 2,014 |
Ending [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,015 |
Ending [Member] | Mexico [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,015 |
Ending [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,015 |
Ending [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,015 |
Ending [Member] | UNITED STATES | |
Open Tax Years by Major Tax Jurisdiction | 2,015 |
Financial Instruments and Ris68
Financial Instruments and Risk Management (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Mar. 31, 2012 | |
Total exposure to floating rate interest rates | 2.00% | 5.00% | |||
Unrealized gains on interest-rate swap agreements | $ 58.1 | $ 79.4 | |||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 0 | 0 | $ (0.7) | ||
Hedge loss reclassified to interest expense | 120.5 | 108.8 | $ 117.9 | ||
Net losses on derivative hedges expected to be reclassified from AOCI to earnings | 1.9 | ||||
Loss written-off resulting from non-performance of counterparties | 1.2 | ||||
Foreign Exchange Contract [Member] | |||||
Notional amounts of derivative contracts | 127.9 | ||||
Gain (Loss) in other expense from undesignated foreign currency exchange contracts | (2.7) | (14.9) | |||
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 | (2.5) | 16.6 | |||
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] | 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 | 35.4 | 90.4 | |||
Interest Rate Swap Termination Fee | $ 2.3 | ||||
Amortization of Deferred Hedge Gains | 14.6 | 14.4 | |||
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 | 22.8 | 46.1 | |||
Interest Rate Swap Termination Fee | $ 2.5 | ||||
Amortization of Deferred Hedge Gains | $ 6.6 | $ 6.3 |
Financial Instruments and Ris69
Financial Instruments and Risk Management (Schedule of Fair Value of All Derivative Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 1.2 | $ 0.6 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1.1 | 4.9 |
Derivative Asset, Fair Value | 1.2 | 0.6 |
Derivative Liability, Fair Value | 1.1 | 4.9 |
Foreign Exchange Contract [Member] | Accounts Payable [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1.1 | 4.9 |
Foreign Exchange Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 1.2 | $ 0.6 |
Financial Instruments and Ris70
Financial Instruments and Risk Management (Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Reclassification of net losses to earnings, net of taxes | $ 1.9 | [1] | $ 1.9 | [1] | $ 1.7 | |
Treasury Locks [Member] | ||||||
Balance at Period Start | [2] | (5.9) | (7.8) | |||
Reclassification of net losses to earnings, net of taxes | 1.9 | 1.9 | ||||
Balance at Period End | [2] | (4) | (5.9) | (7.8) | ||
Net unamortized losses at beginning of year, tax effect | 2.7 | 2.7 | ||||
Reclassification of net losses to earnings, tax effect | 0 | 0 | ||||
Net unamortized losses at end of year, tax effect | $ 2.7 | $ 2.7 | $ 2.7 | |||
[1] | Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. | |||||
[2] | Amounts above exclude taxes of $2.7 for each period presented, which will be recognized in earnings at the end of the ten-year amortization period. |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill, impairment loss | $ 6.9 | |||
Impairment of Venezuela long-lived assets | $ 90.3 | |||
Property, plant and equipment, net | $ 766.9 | 766.9 | $ 1,036.8 | |
EGYPT | ||||
Goodwill, impairment loss | $ 6.9 | $ 6.9 | ||
VENEZUELA | ||||
Property, plant and equipment, net | 15.7 | |||
Fair Value, Inputs, Level 3 [Member] | VENEZUELA | ||||
Property, plant and equipment, net | $ 15.7 | |||
EGYPT | ||||
Number of years used in calculating the estimated fair value of reporting units | 5 years |
Fair Value (Fair Value Assets a
Fair Value (Fair Value Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Total Assets | $ 4 | $ 3.3 |
Total Liabilities | 1.1 | 4.9 |
Available-for-sale Securities [Member] | ||
Available-for-sale securities | 2.8 | 2.7 |
Foreign Exchange Contract [Member] | ||
Foreign exchange forward contracts, assets | 1.2 | 0.6 |
Foreign exchange forward contracts, liabilities | 1.1 | 4.9 |
Level 1 [Member] | ||
Total Assets | 2.8 | 2.7 |
Total Liabilities | 0 | 0 |
Level 1 [Member] | Available-for-sale Securities [Member] | ||
Available-for-sale securities | 2.8 | 2.7 |
Level 1 [Member] | Foreign Exchange Contract [Member] | ||
Foreign exchange forward contracts, assets | 0 | 0 |
Foreign exchange forward contracts, liabilities | 0 | 0 |
Level 2 [Member] | ||
Total Assets | 1.2 | 0.6 |
Total Liabilities | 1.1 | 4.9 |
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 | 1.2 | 0.6 |
Foreign exchange forward contracts, liabilities | $ 1.1 | $ 4.9 |
Fair Value (Fair Value Assets73
Fair Value (Fair Value Assets and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Property, plant and equipment, net | $ 766.9 | $ 1,036.8 | |
VENEZUELA | |||
Property, plant and equipment, net | $ 15.7 | ||
Assets, Fair Value Disclosure, Nonrecurring | 15.7 | ||
VENEZUELA | Level 1 [Member] | |||
Property, plant and equipment, net | 0 | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | ||
VENEZUELA | Level 2 [Member] | |||
Property, plant and equipment, net | 0 | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | ||
VENEZUELA | Fair Value, Inputs, Level 3 [Member] | |||
Property, plant and equipment, net | 15.7 | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 15.7 |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Carrying Amount [Member] | |||
Available-for-sale securities | $ 2.8 | $ 2.7 | |
Debt maturing within one year | [1] | (55.2) | (121.7) |
Long-term debt | [1] | (2,159.6) | (2,428.7) |
Foreign exchange forward contracts | 0.1 | (4.3) | |
Fair Value [Member] | |||
Available-for-sale securities | 2.8 | 2.7 | |
Debt maturing within one year | (55.2) | (121.7) | |
Long-term debt | (1,622.7) | (2,207.2) | |
Foreign exchange forward contracts | $ 0.1 | $ (4.3) | |
[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. |
Share-Based Compensation Plan75
Share-Based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Dec. 31, 2012shares | ||
Compensation cost for share-based payments | $ | $ 51.2 | $ 38.9 | $ 43.3 | ||
Restricted Stock Units [Member] | |||||
Fair value vested during period | $ | $ 10.1 | ||||
Granted, restricted stock and units | 2,938,000 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 7.91 | ||||
Vested, restricted stock and units | 1,084,000 | ||||
Nonvested, ending balance, restricted stock and units | 6,022,000 | 4,995,000 | |||
Performance Restricted Stock Units [Member] | |||||
Granted, restricted stock and units | 2,013,000 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 7.49 | ||||
Vested, restricted stock and units | 0 | ||||
Nonvested, ending balance, restricted stock and units | [1] | 5,334,000 | 4,976,000 | ||
Restricted Stock Units and Performance Restricted Stock Units [Member] | |||||
Unrecognized compensation cost | $ | $ 45.4 | ||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 8 months 12 days | ||||
2010 Plan [Member] | |||||
Multiplier for grant award | 2.33 | ||||
Maximum award, number of shares | 32,000,000 | ||||
Two Thousand And Thirteen Plan [Member] | |||||
Multiplier for grant award | 3.13 | ||||
Maximum award, number of shares | 55,000,000 | ||||
Restricted Stock Units - Treasury Stock [Member] | |||||
Unrecognized compensation cost | $ | $ 2.5 | ||||
Vested, restricted stock and units | 40,000 | ||||
Nonvested, ending balance, restricted stock and units | [1] | 569,596 | |||
Compensation cost for share-based payments | $ | $ 2.7 | $ 0.8 | $ 1.4 | ||
2013 [Member] | Performance Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2013, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions over three years. | ||||
2014 [Member] | Performance Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2014, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions over three years. | ||||
2015 [Member] | Performance Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2015, we granted performance restricted stock units that would vest and settle after three years only upon the satisfaction of certain performance conditions over two years ("2015 PRSUs"). In addition, if the performance conditions are achieved above target, these performance restricted stock units are subject to a market condition in which the number of performance restricted stock units that vest will be limited to the target amount if the Company’s absolute total shareholder return during the three-year service period is negative. If the performance conditions are achieved, the range of possible payouts of these performance restricted stock units is limited to a minimum of 50% of target to a maximum of 150% of target. | ||||
2015 [Member] | Restricted Stock Units - Treasury Stock [Member] | |||||
Vesting period, years | 3 years | ||||
Granted, restricted stock and units | 489,596 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 9 | ||||
2015 [Member] | Performance Restricted Stock Units - Treasury Stock [Member] | |||||
Unrecognized compensation cost | $ | $ 0.7 | ||||
Granted, restricted stock and units | 121,951 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 7.49 | ||||
Nonvested, ending balance, restricted stock and units | [1] | 121,951 | |||
Compensation cost for share-based payments | $ | $ 0.2 | ||||
Late 2015 [Member] | Performance Restricted Stock Units [Member] | |||||
Unrecognized compensation cost | $ | $ 3 | ||||
Granted, restricted stock and units | 1,123,183 | ||||
Compensation cost for share-based payments | $ | $ 1.6 | ||||
2012 [Member] | Restricted Stock Units - Treasury Stock [Member] | |||||
Vesting period, years | 5 years | ||||
Granted, restricted stock and units | 200,000 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 21.69 | ||||
2010 Plan [Member] | Stock Options [Member] | |||||
Vesting period, years | 3 years | ||||
Contractual term, years | 10 years | ||||
2010 Plan [Member] | SARs [Member] | |||||
Vesting period, years | 3 years | ||||
2010 Plan [Member] | Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
2010 Plan [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
2010 Plan [Member] | Director [Member] | Restricted Stock Units [Member] | |||||
Vesting period, years | 1 year | ||||
2013 Plan [Member] | Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 3 years | ||||
2013 Plan [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 3 years | ||||
2015 PRSUs [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 2 years | ||||
Minimum [Member] | |||||
Target payout, percentage | 50.00% | ||||
Maximum [Member] | |||||
Target payout, percentage | 150.00% | ||||
[1] | Based on initial target payout. |
Share-Based Compensation Plan76
Share-Based Compensation Plans (Schedule of Compensation Cost and Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 51.2 | $ 38.9 | $ 43.3 |
Total income tax benefit recognized for share-based arrangements | $ 4.1 | $ 3.2 | $ 14.9 |
Share-Based Compensation Plan77
Share-Based Compensation Plans (Schedule of Summary of Stock Options) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Outstanding, beginning balance, in shares | shares | 17,158 |
Granted, in shares | shares | 0 |
Exercised, in shares | shares | 0 |
Forfeited, in shares | shares | (6) |
Expired, in shares | shares | (5,504) |
Outstanding, ending balance, in shares | shares | 11,648 |
Exercisable, ending balance, in shares | shares | 11,018 |
Outstanding, beginning balance, weighted-average exercise price | $ / shares | $ 31.74 |
Granted, weighted-average exercise price | $ / shares | 0 |
Exercised, weighted-average exercise price | $ / shares | 0 |
Forfeited, weighted-average exercise price | $ / shares | 18.25 |
Expired, weighted-average exercise price | $ / shares | 38.20 |
Outstanding, ending balance, weighted-average exercise price | $ / shares | 28.70 |
Exercisable, ending balance, weighted-average exercise price | $ / shares | $ 28.18 |
Outstanding, ending balance, weighted-average contractual term, years | 2 years 10 months 24 days |
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 |
Share-Based Compensation Plan78
Share-Based Compensation Plans (Schedule of Cash Proceeds, Tax Benefits and Intrinsic Value Related to Stock Options) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash proceeds from stock option exercised | $ 0.2 | $ 19.4 |
Tax obligation realized for stock options exercised | 0 | (1.8) |
Intrinsic value of stock options exercised | $ 0 | $ 6.4 |
Share-Based Compensation Plan79
Share-Based Compensation Plans (Schedule of Summary of Restricted Stock and Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested, beginning balance, restricted stock and units | shares | 4,995 |
Granted, restricted stock and units | shares | 2,938 |
Vested, restricted stock and units | shares | (1,084) |
Forfeited, restricted stock and units | shares | (827) |
Nonvested, ending balance, restricted stock and units | shares | 6,022 |
Nonvested, beginning balance, weighted-average grant- date fair value | $ / shares | $ 16.80 |
Granted, weighted-average grant-date fair value | $ / shares | 7.91 |
Vested, weighted-average grant-date fair value | $ / shares | 18.14 |
Forfeited, weighted average grant-date fair value | $ / shares | 14.09 |
Nonvested, ending balance, weighted-average grant-date fair value | $ / shares | $ 12.62 |
Share-Based Compensation Plan80
Share-Based Compensation Plans (Schedule of Summary of Performance Restricted Stock Units) (Details) - Performance Restricted Stock Units [Member] shares in Thousands | 12 Months Ended | |
Dec. 31, 2015$ / sharesshares | ||
Nonvested, beginning balance, restricted stock and units | shares | 4,976 | [1] |
Granted, restricted stock and units | shares | 2,013 | |
Vested, restricted stock and units | shares | 0 | |
Forfeited, restricted stock and units | shares | (1,655) | |
Nonvested, ending balance, restricted stock and units | shares | 5,334 | [1] |
Nonvested, beginning balance, weighted-average grant- date fair value | $ / shares | $ 17.53 | |
Granted, weighted-average grant-date fair value | $ / shares | 7.49 | |
Vested, weighted-average grant-date fair value | $ / shares | 0 | |
Forfeited, weighted average grant-date fair value | $ / shares | 18.32 | |
Nonvested, ending balance, weighted-average grant-date fair value | $ / shares | $ 13.51 | |
[1] | Based on initial target payout. |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2016USD ($)Years | Aug. 31, 2009USD ($)Years | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Change in plan obligations, due to retiree medical benefits reduction | $ 36.3 | |||||||||||||
Average future service of active participants, years | Years | 12 | |||||||||||||
Change in plan obligations, due to retiree life insurance benefits reduction | $ 27.7 | |||||||||||||
Remaining term of plan, years | Years | 3.3 | |||||||||||||
Amortization period for gains and losses, period 1 | 3 years | |||||||||||||
Amortization period for gains and losses, period 2 | 5 years | |||||||||||||
Pension settlement charge | $ (1.1) | $ (6.2) | $ 0 | $ 0 | $ (2) | $ (1.4) | $ (6.1) | $ 0 | $ (7.3) | $ (9.5) | ||||
Assumed health care trend rate | 8.60% | |||||||||||||
Ultimate health care trend rate | 5.10% | |||||||||||||
Year that rate reaches ultimate trend rate | 2,022 | 2,022 | ||||||||||||
Postemployment benefits liability | $ 18.2 | $ 25.2 | $ 18.2 | $ 25.2 | ||||||||||
Defined Benefit Pension Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Weighted average discount rate | 3.92% | 3.54% | 3.92% | 3.54% | ||||||||||
Rate of return on assets | 6.87% | |||||||||||||
Pension Benefits U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net amount recognized | [1] | $ (198.5) | $ (198.7) | $ (198.5) | $ (198.7) | |||||||||
Qualified pension plans, benefit obligations | 606.8 | 705.2 | 606.8 | 705.2 | $ 668.3 | |||||||||
Qualified pension plans, plan assets | 408.3 | 506.5 | 408.3 | 506.5 | 531.1 | |||||||||
Net periodic benefit cost | [2] | 76.4 | $ 88.9 | $ 52.7 | ||||||||||
Pension settlement charge | $ 4.1 | $ 23.8 | $ 7.5 | $ 5.4 | $ 23.5 | |||||||||
Net actuarial loss | 33.8 | |||||||||||||
Expected prior service credit | $ (0.5) | |||||||||||||
Weighted average discount rate | 4.19% | 3.83% | 4.19% | 3.83% | ||||||||||
Rate of return on assets | 7.25% | 7.50% | 7.75% | |||||||||||
Expected benefit payments associated with discontinued operations, in percentage | 80.00% | 80.00% | ||||||||||||
Pension Benefits U.S. Plans [Member] | Corporate and Government Bonds [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
assumptions used calculating net periodic benefit allocation, debt securities allocation | 70.00% | |||||||||||||
Expected long term rate of return on debt securities, minimum | 3.00% | |||||||||||||
Expected long term rate of return on debt securities, maximum | 5.00% | |||||||||||||
Pension Benefits U.S. Plans [Member] | Equity Securities and High Yield Securities [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit, Equity Securities Allocation | 30.00% | |||||||||||||
Expected long term rate of return on equity securities, minimum | 5.00% | |||||||||||||
Expected long term rate of return on equity securities, maximum | 7.00% | |||||||||||||
Pension Benefits Non-U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net amount recognized | [1] | $ (91.4) | $ (169.7) | $ (91.4) | $ (169.7) | |||||||||
Qualified pension plans, benefit obligations | 667.7 | 777.6 | 667.7 | 777.6 | $ 734.3 | |||||||||
Qualified pension plans, plan assets | $ 576.3 | $ 607.9 | 576.3 | 607.9 | 608.7 | |||||||||
Net periodic benefit cost | [2] | 1.4 | $ 9.7 | $ 10.6 | ||||||||||
Net actuarial loss | 6.9 | |||||||||||||
Expected prior service credit | $ (0.1) | |||||||||||||
Weighted average discount rate | 3.69% | 3.27% | 3.69% | 3.27% | ||||||||||
Rate of return on assets | 6.55% | 6.33% | 6.64% | |||||||||||
U.S. Qualified Pension Plan [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Qualified pension plans, benefit obligations | $ 578.4 | $ 673.1 | $ 578.4 | $ 673.1 | ||||||||||
Qualified pension plans, plan assets | 408.3 | 506.5 | 408.3 | 506.5 | ||||||||||
Postretirement Benefits [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net amount recognized | [1] | (76.6) | (93.4) | (76.6) | (93.4) | |||||||||
Qualified pension plans, benefit obligations | 76.6 | 93.4 | 76.6 | 93.4 | $ 93.8 | |||||||||
Qualified pension plans, plan assets | $ 0 | $ 0 | 0 | 0 | 0 | |||||||||
Net periodic benefit cost | [2] | 2.2 | $ (1) | 1.5 | ||||||||||
Net actuarial loss | 1.2 | |||||||||||||
Expected prior service credit | $ (5.1) | |||||||||||||
Weighted average discount rate | 4.50% | 4.20% | 4.50% | 4.20% | ||||||||||
Expected benefit payments associated with discontinued operations, in percentage | 70.00% | 70.00% | ||||||||||||
Minimum [Member] | U.S. Pension and Postretirement Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Expected contributions related to continuing operations | $ 25 | |||||||||||||
Minimum [Member] | International Pension and Postretirement Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Expected contributions related to continuing operations | 20 | |||||||||||||
Maximum [Member] | U.S. Pension and Postretirement Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Expected contributions related to continuing operations | 30 | |||||||||||||
Maximum [Member] | International Pension and Postretirement Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Expected contributions related to continuing operations | 25 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Change in plan obligations, due to retiree medical benefits reduction | $ 9 | |||||||||||||
Average future service of active participants, years | Years | 8 | |||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Pension Benefits U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net periodic benefit cost | [2] | 53.7 | $ 62.6 | 35.2 | ||||||||||
Current Assets of Discontinued Operations [Member] | Pension Benefits U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Qualified pension plans, plan assets | $ 374.8 | $ 411.6 | 374.8 | 411.6 | ||||||||||
Current Assets of Discontinued Operations [Member] | U.S. Qualified Pension Plan [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Qualified pension plans, benefit obligations | 507.6 | 544.7 | 507.6 | 544.7 | ||||||||||
Qualified pension plans, plan assets | 374.8 | 411.6 | 374.8 | 411.6 | ||||||||||
Discontinued Operations, Disposed of by Sale [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Change in plan obligations, due to retiree medical benefits reduction | $ 33.6 | |||||||||||||
Postemployment benefits liability | 6 | 9 | 6 | 9 | ||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Pension Benefits U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net amount recognized | [1] | 145.7 | 148 | 145.7 | 148 | |||||||||
Discontinued Operations, Disposed of by Sale [Member] | Postretirement Benefits [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net amount recognized | [1] | $ 53.6 | $ 68.6 | 53.6 | 68.6 | |||||||||
Discontinued Operations, Disposed of by Sale [Member] | Subsequent Event [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Change in plan obligations, due to retiree medical benefits reduction | $ 8.3 | |||||||||||||
Discontinued Operations [Member] | Pension Benefits U.S. Plans [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net actuarial loss | 260 | |||||||||||||
Expected prior service credit | 1 | |||||||||||||
Discontinued Operations [Member] | Postretirement Benefits [Member] | ||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||
Net actuarial loss | 14 | |||||||||||||
Expected prior service credit | $ 26 | |||||||||||||
Personal Savings Account Plan [Member] | ||||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||||
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 | $ 4 | $ 5 | $ 5.5 | |||||||||||
Retirement Savings Account Plan [Member] | ||||||||||||||
Defined Contribution Plan Disclosure [Line Items] | ||||||||||||||
Employer match toward contributions, fifty cents for dollar, minimum | 3.00% | |||||||||||||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | |||||||||||||
Vesting period | 3 years | |||||||||||||
[1] | Includes $145.7 and $148.0 of the U.S. pension plans at December 31, 2015 and 2014, respectively, and $53.6 and $68.6 of the postretirement benefit plans net liability (related to the U.S.) at December 31, 2015 and 2014, respectively, which are included in discontinued operations. | |||||||||||||
[2] | Includes $53.7, $62.6 and $35.2 of the U.S. pension plans in 2015, 2014 and 2013, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2015, 2014 and 2013, which are included in discontinued operations. |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Benefit Obligations, Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Amount Recognized in Balance Sheet: | ||||
Other assets | $ 499.1 | $ 1,034.3 | ||
Accrued compensation | (157.6) | (174.9) | ||
Pension Benefits U.S. Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (705.2) | (668.3) | ||
Service cost | (13) | (14.1) | $ (15.7) | |
Interest cost | (25.1) | (27.8) | (27.5) | |
Actuarial (loss) gain | 44.4 | (124.6) | ||
Plan participant contributions | 0 | 0 | ||
Benefits paid | 92.1 | 129.1 | ||
Plan amendments | 0 | 2 | ||
Curtailments | 0 | (1.4) | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | (0.1) | ||
Foreign currency changes and other | 0 | 0 | ||
Ending balance | (606.8) | (705.2) | (668.3) | |
Change in Plan Assets: | ||||
Beginning balance | 506.5 | 531.1 | ||
Actual return on plan assets | (13.7) | 54.5 | ||
Company contributions | 7.6 | 50 | ||
Plan participant contributions | 0 | 0 | ||
Benefits paid | (92.1) | (129.1) | ||
Foreign currency changes and other | 0 | 0 | ||
Ending balance | 408.3 | 506.5 | 531.1 | |
Funded Status: | ||||
Funded status at end of year | [1] | (198.5) | (198.7) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 0 | 0 | ||
Accrued compensation | (6.6) | (9) | ||
Employee benefit plans liability | (191.9) | (189.7) | ||
Net amount recognized | [1] | (198.5) | (198.7) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 310.2 | 380 | ||
Prior service credit | (1.4) | (2.1) | ||
Total pretax amount recognized | 308.8 | 377.9 | ||
Supplemental Information: | ||||
Accumulated benefit obligation | 601.7 | 701.6 | ||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 606.8 | 705.2 | ||
Fair value plan assets | 408.3 | 506.5 | ||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 606.8 | 705.2 | ||
Accumulated benefit obligation | 601.7 | 701.6 | ||
Fair value plan assets | 408.3 | 506.5 | ||
Pension Benefits Non-U.S. Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (777.6) | (734.3) | ||
Service cost | (5.3) | (6) | (9.2) | |
Interest cost | (23.6) | (31) | (31.4) | |
Actuarial (loss) gain | 54.3 | (123.4) | ||
Plan participant contributions | 0 | 0 | ||
Benefits paid | 35.6 | 45.5 | ||
Plan amendments | 0 | 0 | ||
Curtailments | 0.2 | 0 | ||
Settlements | 0 | 0.7 | ||
Special termination benefits | 0 | 0 | ||
Foreign currency changes and other | 48.7 | 70.9 | ||
Ending balance | (667.7) | (777.6) | (734.3) | |
Change in Plan Assets: | ||||
Beginning balance | 607.9 | 608.7 | ||
Actual return on plan assets | 16.3 | 62.8 | ||
Company contributions | 21.6 | 27.4 | ||
Plan participant contributions | 0 | 0 | ||
Benefits paid | (35.6) | (45.5) | ||
Foreign currency changes and other | (33.9) | (45.5) | ||
Ending balance | 576.3 | 607.9 | 608.7 | |
Funded Status: | ||||
Funded status at end of year | [1] | (91.4) | (169.7) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 8.1 | 2.7 | ||
Accrued compensation | (1.6) | (3.7) | ||
Employee benefit plans liability | (97.9) | (168.7) | ||
Net amount recognized | [1] | (91.4) | (169.7) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 239.6 | 302.5 | ||
Prior service credit | (1.2) | (1.4) | ||
Total pretax amount recognized | 238.4 | 301.1 | ||
Supplemental Information: | ||||
Accumulated benefit obligation | 185 | 735 | ||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 207.3 | 750.8 | ||
Fair value plan assets | 107.8 | 584.1 | ||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 186.3 | 770.1 | ||
Accumulated benefit obligation | 173.7 | 744.7 | ||
Fair value plan assets | 93.7 | 597.6 | ||
Postretirement Benefits [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (93.4) | (93.8) | ||
Service cost | (0.7) | (0.7) | (1.4) | |
Interest cost | (3.7) | (4.1) | (4.3) | |
Actuarial (loss) gain | 5.7 | (2) | ||
Plan participant contributions | (2.5) | (2.8) | ||
Benefits paid | 7.9 | 9.3 | ||
Plan amendments | 9 | 0 | ||
Curtailments | 0 | 0.3 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | (0.2) | ||
Foreign currency changes and other | 1.1 | 0.6 | ||
Ending balance | (76.6) | (93.4) | (93.8) | |
Change in Plan Assets: | ||||
Beginning balance | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 5.4 | 6.5 | ||
Plan participant contributions | 2.5 | 2.8 | ||
Benefits paid | (7.9) | (9.3) | ||
Foreign currency changes and other | 0 | 0 | ||
Ending balance | 0 | 0 | $ 0 | |
Funded Status: | ||||
Funded status at end of year | [1] | (76.6) | (93.4) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 0 | 0 | ||
Accrued compensation | (6.9) | (8) | ||
Employee benefit plans liability | (69.7) | (85.4) | ||
Net amount recognized | [1] | (76.6) | (93.4) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 15.5 | 23.2 | ||
Prior service credit | (29.1) | (24.6) | ||
Total pretax amount recognized | $ (13.6) | $ (1.4) | ||
[1] | Includes $145.7 and $148.0 of the U.S. pension plans at December 31, 2015 and 2014, respectively, and $53.6 and $68.6 of the postretirement benefit plans net liability (related to the U.S.) at December 31, 2015 and 2014, respectively, which are included in discontinued operations. |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Foreign currency changes | $ 275 | $ 248.3 | $ 112.8 | |
Pension Benefits U.S. Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 13 | 14.1 | 15.7 | |
Interest cost | 25.1 | 27.8 | 27.5 | |
Expected return on plan assets | (32.6) | (35.8) | (37.4) | |
Amortization of prior service credit | (0.7) | (0.3) | (0.3) | |
Amortization of net actuarial losses | 43.7 | 45.1 | 47.2 | |
Amortization of transition obligation | 0 | 0 | 0 | |
Settlements/curtailments | 27.9 | 38 | 0 | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | [1] | 76.4 | 88.9 | 52.7 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial losses (gains) | 1.8 | 105.9 | (80.8) | |
Prior service (credit) cost | 0 | (2) | 0 | |
Amortization of prior service credit | 0.7 | 0.3 | 0.3 | |
Amortization of net actuarial losses | (71.6) | (81.5) | (47.2) | |
Amortization of transition obligation | 0 | 0 | 0 | |
Foreign currency changes | 0 | 0 | 0 | |
Total recognized in other comprehensive (loss) income | [2] | (69.1) | 22.7 | (127.7) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | 7.3 | 111.6 | (75) | |
Pension Benefits Non-U.S. Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 5.3 | 6 | 9.2 | |
Interest cost | 23.6 | 31 | 31.4 | |
Expected return on plan assets | (36.4) | (36.4) | (33.9) | |
Amortization of prior service credit | (0.1) | (0.1) | (0.3) | |
Amortization of net actuarial losses | 8.4 | 6.5 | 8.5 | |
Amortization of transition obligation | 0.1 | 0 | 0 | |
Settlements/curtailments | 0.5 | 2.7 | (4.3) | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | [1] | 1.4 | 9.7 | 10.6 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial losses (gains) | (34.2) | 97 | (6) | |
Prior service (credit) cost | 0 | 0 | 0 | |
Amortization of prior service credit | 0.1 | 0.1 | 7.9 | |
Amortization of net actuarial losses | (9.1) | (9.9) | (13.4) | |
Amortization of transition obligation | (0.1) | 0 | 0 | |
Foreign currency changes | (19.4) | (28) | 4.2 | |
Total recognized in other comprehensive (loss) income | [2] | (62.7) | 59.2 | (7.3) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | (61.3) | 68.9 | 3.3 | |
Postretirement Benefits [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 0.7 | 0.7 | 1.4 | |
Interest cost | 3.7 | 4.1 | 4.3 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service credit | (4) | (4.4) | (4.7) | |
Amortization of net actuarial losses | 1.8 | 1.3 | 2.3 | |
Amortization of transition obligation | 0 | 0 | 0 | |
Settlements/curtailments | 0 | (2.7) | (1.8) | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | [1] | 2.2 | (1) | 1.5 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial losses (gains) | (5.6) | 2 | (22.5) | |
Prior service (credit) cost | (9) | 0 | (1.3) | |
Amortization of prior service credit | 4 | 7.2 | 7 | |
Amortization of net actuarial losses | (1.8) | (1.6) | (3.1) | |
Amortization of transition obligation | 0 | 0 | 0 | |
Foreign currency changes | 0.2 | 0.1 | (0.1) | |
Total recognized in other comprehensive (loss) income | [2] | (12.2) | 7.7 | (20) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ (10) | $ 6.7 | $ (18.5) | |
[1] | Includes $53.7, $62.6 and $35.2 of the U.S. pension plans in 2015, 2014 and 2013, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2015, 2014 and 2013, which are included in discontinued operations. | |||
[2] | Amounts represent the pre-tax effect classified within other comprehensive (loss) income. The net of tax amounts are classified within the Consolidated Statements of Comprehensive Income (Loss). |
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) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Benefits U.S. Plans [Member] | |
Net actuarial loss | $ 33.8 |
Estimated prior service credit | (0.5) |
Pension Benefits Non-U.S. Plans [Member] | |
Net actuarial loss | 6.9 |
Estimated prior service credit | (0.1) |
Postretirement Benefits [Member] | |
Net actuarial loss | 1.2 |
Estimated prior service credit | $ (5.1) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Pension Plans [Member] | ||
Discount rate | 3.92% | 3.54% |
Pension Benefits U.S. Plans [Member] | ||
Discount rate | 4.19% | 3.83% |
Rate of compensation increase | 4.00% | 4.00% |
Pension Benefits Non-U.S. Plans [Member] | ||
Discount rate | 3.69% | 3.27% |
Rate of compensation increase | 3.26% | 3.20% |
Postretirement Benefits [Member] | ||
Discount rate | 4.50% | 4.20% |
Employee Benefit Plans (Weigh86
Employee Benefit Plans (Weighted-Average Assumptions used to Determine Net Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans [Member] | |||
Rate of return on assets | 6.87% | ||
Pension Benefits U.S. Plans [Member] | |||
Discount rate | 3.83% | 4.54% | 3.55% |
Rate of compensation increase | 4.00% | 4.00% | 3.86% |
Rate of return on assets | 7.25% | 7.50% | 7.75% |
Pension Benefits Non-U.S. Plans [Member] | |||
Discount rate | 3.27% | 4.59% | 4.69% |
Rate of compensation increase | 3.20% | 3.70% | 3.95% |
Rate of return on assets | 6.55% | 6.33% | 6.64% |
Postretirement Benefits [Member] | |||
Discount rate | 4.20% | 4.97% | 4.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans Target and Weighted-Average Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 100.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 100.00% | 100.00% |
Pension Benefits Non-U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 100.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 100.00% | 100.00% |
Equity Securities [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 30.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 27.00% | 28.00% |
Equity Securities [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 23.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 23.00% | 61.00% |
Debt Securities [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 70.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 69.00% | 69.00% |
Debt Securities [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 72.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 72.00% | 37.00% |
Real Estate Funds [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 0.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 0.00% | 0.00% |
Real Estate Funds [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 0.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 0.00% | 0.00% |
Other plan assets [Member] | Pension Benefits U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 0.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 4.00% | 3.00% |
Other plan assets [Member] | Pension Benefits Non-U.S. Plans [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 5.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 5.00% | 2.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Hierarchy for Pension and Postretirement Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 [Member] | |||
Fair value of plan assets | $ 1.8 | $ 1.9 | $ 2.3 |
Pension Benefits U.S. Plans [Member] | |||
Fair value of plan assets | 408.3 | 506.5 | 531.1 |
Pension Benefits U.S. Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 109.3 | 140.7 | |
Pension Benefits U.S. Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 13.3 | 21.5 | |
Pension Benefits U.S. Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 79.5 | 93.5 | |
Pension Benefits U.S. Plans [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 16.5 | 25.7 | |
Pension Benefits U.S. Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 283.6 | 349.6 | |
Pension Benefits U.S. Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 156.8 | 208.1 | |
Pension Benefits U.S. Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 126.8 | 141.5 | |
Pension Benefits U.S. Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 12.2 | 18 | |
Pension Benefits U.S. Plans [Member] | Derivatives [Member] | |||
Fair value of plan assets | 3.2 | (1.8) | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 12.2 | 18 | |
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] | 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 Fixed Income 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] | Cash [Member] | |||
Fair value of plan assets | 12.2 | 18 | |
Pension Benefits U.S. Plans [Member] | Level 1 [Member] | Derivatives [Member] | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 396.1 | 488.5 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 109.3 | 140.7 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 13.3 | 21.5 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 79.5 | 93.5 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 16.5 | 25.7 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 283.6 | 349.6 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 156.8 | 208.1 | |
Pension Benefits U.S. Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 126.8 | 141.5 | |
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] | Derivatives [Member] | |||
Fair value of plan assets | 3.2 | (1.8) | |
Pension Benefits Non-U.S. Plans [Member] | |||
Fair value of plan assets | 576.3 | 607.9 | $ 608.7 |
Pension Benefits Non-U.S. Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 133.8 | 370.7 | |
Pension Benefits Non-U.S. Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 24.1 | 93.5 | |
Pension Benefits Non-U.S. Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 109.7 | 277.2 | |
Pension Benefits Non-U.S. Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 415.3 | 222.7 | |
Pension Benefits Non-U.S. Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 206.5 | 82.1 | |
Pension Benefits Non-U.S. Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 197.7 | 111.8 | |
Pension Benefits Non-U.S. Plans [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 11.1 | 28.8 | |
Pension Benefits Non-U.S. Plans [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 27.2 | 14.5 | |
Pension Benefits Non-U.S. Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 11.5 | 12.6 | |
Pension Benefits Non-U.S. Plans [Member] | Real Estate [Member] | |||
Fair value of plan assets | 1 | 1 | |
Pension Benefits Non-U.S. Plans [Member] | Other [Member] | |||
Fair value of plan assets | 0.8 | 0.9 | |
Pension Benefits Non-U.S. Plans [Member] | Derivatives [Member] | |||
Fair value of plan assets | 13.9 | ||
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 11.5 | 12.6 | |
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] | 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 Fixed Income 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 Other Securities [Member] | |||
Fair value of plan assets | 11.5 | 12.6 | |
Pension Benefits Non-U.S. Plans [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 11.5 | 12.6 | |
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] | Derivatives [Member] | |||
Fair value of plan assets | 0 | ||
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 563 | 593.4 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 133.8 | 370.7 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 24.1 | 93.5 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 109.7 | 277.2 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 415.3 | 222.7 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 206.5 | 82.1 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 197.7 | 111.8 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 11.1 | 28.8 | |
Pension Benefits Non-U.S. Plans [Member] | Level 2 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 13.9 | 0 | |
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] | Derivatives [Member] | |||
Fair value of plan assets | 13.9 | ||
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | |||
Fair value of plan assets | 1.8 | 1.9 | |
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] | 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 Fixed Income 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 Other Securities [Member] | |||
Fair value of plan assets | 1.8 | 1.9 | |
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 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Other [Member] | |||
Fair value of plan assets | 0.8 | $ 0.9 | |
Pension Benefits Non-U.S. Plans [Member] | Level 3 [Member] | Derivatives [Member] | |||
Fair value of plan assets | $ 0 |
Employee Benefit Plans (Recon89
Employee Benefit Plans (Reconciliation of the Beginning and Ending Balances for Investments) (Details) - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 1.9 | $ 2.3 |
Actual return on plan assets held | 0.1 | (0.3) |
Foreign currency changes | (0.2) | (0.1) |
Ending balance | $ 1.8 | $ 1.9 |
Employee Benefit Plans (Total B
Employee Benefit Plans (Total Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension Benefits U.S. Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 64.2 |
2,017 | 64.5 |
2,018 | 51.7 |
2,019 | 49.3 |
2,020 | 48.5 |
2021 - 2025 | 212.9 |
Pension Benefits Non-U.S. Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 30.1 |
2,017 | 30.2 |
2,018 | 31.7 |
2,019 | 32.6 |
2,020 | 32.9 |
2021 - 2025 | 180.6 |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 94.3 |
2,017 | 94.7 |
2,018 | 83.4 |
2,019 | 81.9 |
2,020 | 81.4 |
2021 - 2025 | 393.5 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 6.9 |
2,017 | 6.7 |
2,018 | 6.5 |
2,019 | 6.3 |
2,020 | 6.1 |
2021 - 2025 | $ 27.1 |
Employee Benefit Plans (One-Per
Employee Benefit Plans (One-Percentage Point Change for all Postretirement Plans) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Effect on total of service and interest cost components, 1 percentage point increase | $ 0 |
Effect on total of service and interest cost components, 1 percentage point decrease | 0 |
Effect on postretirement benefit obligation, 1 percentage point increase | 0.1 |
Effect on postretirement benefit obligation, 1 percentage point decrease | $ (0.1) |
Employee Benefit Plans (Supplem
Employee Benefit Plans (Supplemental Retirement Programs) (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Maximum deferral of base salary | 50.00% | ||
Maximum deferral of incentive compensation bonuses | 100.00% | ||
Number of permitted investment alternatives | investment | 3 | ||
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Expenses associated with deferred compensation plan | $ 0.5 | $ 1.3 | $ 1.2 |
Deferred compensation liability | $ 34.5 | 45.5 | |
Supplemental Employee Retirement Plan [Member] | |||
Years since benefit was last offered to employees | 6 years | ||
Net periodic benefit cost SERP Restoration | $ 6.3 | 7.1 | $ 7.6 |
Benefit obligation SERP Restoration | $ 28.4 | $ 32.1 | |
Supplemental Life Plan [Member] | |||
Years since benefit was last offered to employees | 5 years | ||
Additional death benefits, minimum range | $ 0.4 | ||
Additional death benefits, maximum range | $ 2 |
Employee Benefit Plans (Assets
Employee Benefit Plans (Assets Held In Trust) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 33.4 | $ 33.6 |
Corporate-Owned Life Insurance Policies [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | 32.7 | 32.2 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 0.7 | $ 1.4 |
Segment Information (Total Reve
Segment Information (Total Revenue and Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total revenue | $ 1,607.3 | $ 1,436.2 | $ 1,564.9 | $ 1,552.1 | $ 2,014.1 | $ 1,861.5 | $ 1,884.5 | $ 1,887.9 | $ 6,160.5 | $ 7,648 | $ 8,496.8 |
Operating Profit (Loss) | 165 | 434.3 | 539.8 | ||||||||
Latin America [Member] | |||||||||||
Total revenue | 3,260.4 | 4,239.5 | 4,840.5 | ||||||||
Operating Profit (Loss) | 103.1 | 279.8 | 478.6 | ||||||||
Europe Middle East & Africa [Member] | |||||||||||
Total revenue | 2,272.3 | 2,705.8 | 2,898.4 | ||||||||
Operating Profit (Loss) | 217.1 | 300.9 | 406.7 | ||||||||
Asia Pacific [Member] | |||||||||||
Total revenue | 627.8 | 702.7 | 757.9 | ||||||||
Operating Profit (Loss) | 35.3 | 20.9 | (12.1) | ||||||||
Total from operations [Member] | |||||||||||
Total revenue | 6,160.5 | 7,648 | 8,496.8 | ||||||||
Operating Profit (Loss) | 355.5 | 601.6 | 873.2 | ||||||||
Global and other [Member] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Operating Profit (Loss) | $ (190.5) | $ (167.3) | $ (333.4) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | $ 3,779.5 | $ 5,496.8 | $ 6,492.3 |
Latin America [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 1,543 | 2,033 | 2,432.7 |
Europe Middle East & Africa [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 910.4 | 1,170.6 | 1,370.9 |
Asia Pacific [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 317 | 390.8 | 441.7 |
Total from operations [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 2,770.4 | 3,594.4 | 4,245.3 |
Total from discontinued operations [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 371.2 | 426 | 524.6 |
Global and other [Member] | |||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 637.9 | 1,476.4 | $ 1,722.4 |
Current Assets of Discontinued Operations [Member] | |||
Receivable from continuing operations | $ 100 | $ 100 |
Segment Information (Capital Ex
Segment Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total capital expenditures | $ 92.4 | $ 126.3 | $ 189.7 |
Latin America [Member] | |||
Total capital expenditures | 55.3 | 82.6 | 94.1 |
Europe Middle East & Africa [Member] | |||
Total capital expenditures | 18.4 | 19 | 20 |
Asia Pacific [Member] | |||
Total capital expenditures | 3.5 | 3.3 | 6.6 |
Total from operations [Member] | |||
Total capital expenditures | 77.2 | 104.9 | 120.7 |
Global and other [Member] | |||
Total capital expenditures | $ 15.2 | $ 21.4 | $ 69 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation and Amortization | $ 126.1 | $ 169.4 | $ 187.7 |
Latin America [Member] | |||
Depreciation and Amortization | 51 | 70.9 | 72.2 |
Europe Middle East & Africa [Member] | |||
Depreciation and Amortization | 31 | 40 | 46.6 |
Asia Pacific [Member] | |||
Depreciation and Amortization | 13.6 | 17.3 | 21.9 |
Total from operations [Member] | |||
Depreciation and Amortization | 95.6 | 128.2 | 140.7 |
Global and other [Member] | |||
Depreciation and Amortization | $ 30.5 | $ 41.2 | $ 47 |
Segment Information (Total Re98
Segment Information (Total Revenue by Major Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 1,607.3 | $ 1,436.2 | $ 1,564.9 | $ 1,552.1 | $ 2,014.1 | $ 1,861.5 | $ 1,884.5 | $ 1,887.9 | $ 6,160.5 | $ 7,648 | $ 8,496.8 |
Total from operations [Member] | |||||||||||
Revenues | 6,160.5 | 7,648 | 8,496.8 | ||||||||
Brazil [Member] | |||||||||||
Revenues | 1,252.6 | 1,909.3 | 2,014 | ||||||||
All other [Member] | |||||||||||
Revenues | $ 4,907.9 | $ 5,738.7 | $ 6,482.8 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets by Major Country) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Long-Lived Assets | $ 1,125.9 | $ 1,581.7 | $ 1,800 |
Brazil [Member] | |||
Long-Lived Assets | 302.7 | 361.9 | 421.5 |
UNITED STATES | |||
Long-Lived Assets | 225.9 | 250 | 265.6 |
All other [Member] | |||
Long-Lived Assets | $ 597.3 | $ 969.8 | $ 1,112.9 |
Leases and Commitments (Minimum
Leases and Commitments (Minimum Rental Commitments and Purchase Obligations) (Details) $ in Millions | Dec. 31, 2015USD ($) |
2016, Leases | $ 72.3 |
2017, Leases | 55.3 |
2018, Leases | 45.3 |
2019, Leases | 39.3 |
2020, Leases | 33.9 |
Later years, Leases | 100.2 |
Sublease rental income, Leases | (33.3) |
Total, Leases | 313 |
2016, Purchase Obligations | 143.8 |
2017, Purchase Obligations | 96.2 |
2018, Purchase Obligations | 63 |
2019, Purchase Obligations | 53.7 |
2020, Purchase Obligations | 50.2 |
Later years, Purchase Obligations | 49.3 |
Total, Purchase Obligations | $ 456.2 |
Leases and Commitments (Narrati
Leases and Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rent expense | $ 74.4 | $ 90.7 | $ 109.6 |
Estimated cost of plant construction, expansion and modernization projects | $ 39.9 |
Restructuring Initiatives (Narr
Restructuring Initiatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 39 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Restructuring and related cost, expected cost remaining | $ 10 | $ 10 | $ 10 | ||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 20.9 | $ (1.9) | $ 2.9 | $ 27.2 | $ 27.1 | $ 0.8 | $ 41.5 | $ 17.2 | 49.1 | $ 86.6 | |||
Charges incurred on approved initiatives | |||||||||||||
Cost of Sales [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Selling, General and Administrative Expenses [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 20.9 | $ (1.9) | $ 2.9 | $ 27.2 | 27.1 | $ 0.8 | $ 41.5 | $ 17.2 | 49.1 | 86.6 | |||
Transformation Plan [Member] | |||||||||||||
Expected annualized savings before taxes | $ 350 | ||||||||||||
Number of years too Realized Cost Savings | 3 years | ||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | $ 22.4 | ||||||||||||
Balance at December 31, 2015 | 21.4 | 21.4 | $ 21.4 | ||||||||||
Transformation Plan [Member] | Employee Related Costs [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 21.4 | ||||||||||||
Transformation Plan [Member] | Professional Service Fees [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 1 | ||||||||||||
Transformation Plan [Member] | Minimum [Member] | |||||||||||||
Expected annualized savings before taxes | 10 | ||||||||||||
Transformation Plan [Member] | Maximum [Member] | |||||||||||||
Expected annualized savings before taxes | 15 | ||||||||||||
Other Restructuring Initiatives 2015 [Member] | |||||||||||||
Expected annualized savings before taxes | 30 | ||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 29.7 | ||||||||||||
Balance at December 31, 2015 | 4 | 4 | 4 | ||||||||||
Charges incurred on approved initiatives | 22.1 | ||||||||||||
Other Restructuring Initiatives 2015 [Member] | Employee Related Costs [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 22.1 | ||||||||||||
Other Restructuring Initiatives 2015 [Member] | Professional Service Fees [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 7.6 | ||||||||||||
$400M Cost Savings Initiative [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (3.5) | 83.9 | $ 52.6 | 165.7 | |||||||||
Balance at December 31, 2015 | 6.2 | 38 | 6.2 | 38 | 27.5 | $ 20.7 | 6.2 | ||||||
Charges incurred on approved initiatives | (4.7) | 68 | 45.7 | 30.5 | 139.5 | ||||||||
$400M Cost Savings Initiative [Member] | Employee Related Costs [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (4.4) | 57.9 | 45.3 | ||||||||||
Balance at December 31, 2015 | 5.8 | 37.1 | 5.8 | 37.1 | 25.9 | 19 | 5.8 | ||||||
Charges incurred on approved initiatives | 126.1 | ||||||||||||
$400M Cost Savings Initiative [Member] | Accelerated Depreciation [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.3 | 12.2 | 3.4 | ||||||||||
$400M Cost Savings Initiative [Member] | Contract Terminations/ Other [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.1 | 6.3 | 4.6 | ||||||||||
Balance at December 31, 2015 | 0.4 | 0.9 | 0.4 | 0.9 | 1.6 | 1.7 | 0.4 | ||||||
Charges incurred on approved initiatives | 12.9 | ||||||||||||
$400M Cost Savings Initiative [Member] | Currency Translation Adjustment Write Offs [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.4) | 3.7 | (3.5) | ||||||||||
Balance at December 31, 2015 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Charges incurred on approved initiatives | (0.2) | ||||||||||||
$400M Cost Savings Initiative [Member] | Professional Service Fees [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.9 | 3.8 | 3.5 | ||||||||||
$400M Cost Savings Initiative [Member] | Inventory/ Asset Write-Offs [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.7) | ||||||||||||
Balance at December 31, 2015 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||
$400M Cost Savings Initiative [Member] | Minimum [Member] | |||||||||||||
Expected annualized savings before taxes | 215 | ||||||||||||
$400M Cost Savings Initiative [Member] | Maximum [Member] | |||||||||||||
Expected annualized savings before taxes | 225 | ||||||||||||
$400M Cost Savings Initiative [Member] | Cost of Sales [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.7) | ||||||||||||
$400M Cost Savings Initiative [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 53.3 | ||||||||||||
Other Restructuring Initiatives [Member] | |||||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.5 | 2.1 | 0.8 | ||||||||||
Corporate [Member] | Transformation Plan [Member] | |||||||||||||
Charges incurred on approved initiatives | 22.4 | ||||||||||||
Corporate [Member] | Other Restructuring Initiatives 2015 [Member] | |||||||||||||
Charges incurred on approved initiatives | 9.2 | ||||||||||||
Corporate [Member] | $400M Cost Savings Initiative [Member] | |||||||||||||
Charges incurred on approved initiatives | (2) | $ 17.1 | $ 17.7 | $ 3.6 | $ 36.4 | ||||||||
Supply Chain [Member] | Transformation Plan [Member] | |||||||||||||
Expected annualized savings before taxes | 200 | ||||||||||||
Other Costs [Member] | Transformation Plan [Member] | |||||||||||||
Expected annualized savings before taxes | $ 150 |
Restructuring Initiatives (Liab
Restructuring Initiatives (Liability Balance for 2015 Initiative) (Details) - Other Restructuring Initiatives 2015 [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
2015 charges | $ 24.9 |
Adjustments | (2.8) |
Cash payments | (17.8) |
Foreign exchange | (0.3) |
Balance at December 31, 2015 | $ 4 |
Restructuring Initiatives Restr
Restructuring Initiatives Restructuring Charges by Reportable Segment for 2015 Initiative (Details) - USD ($) $ in Millions | 12 Months Ended | 39 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Charges incurred on approved initiatives | ||
Other Restructuring Initiatives 2015 [Member] | ||
Charges incurred on approved initiatives | $ 22.1 | |
Latin America [Member] | Other Restructuring Initiatives 2015 [Member] | ||
Charges incurred on approved initiatives | 2.9 | |
Europe Middle East & Africa [Member] | Other Restructuring Initiatives 2015 [Member] | ||
Charges incurred on approved initiatives | 4.2 | |
Asia Pacific [Member] | Other Restructuring Initiatives 2015 [Member] | ||
Charges incurred on approved initiatives | 5.8 | |
Corporate [Member] | Other Restructuring Initiatives 2015 [Member] | ||
Charges incurred on approved initiatives | $ 9.2 |
Restructuring Initiatives (L105
Restructuring Initiatives (Liability Balance for $400M Cost Savings Initiative) (Details) - $400M Cost Savings Initiative [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Opening Balance | $ 38 | $ 27.5 | $ 20.7 |
2015 charges | 0.5 | 75.3 | 47.2 |
Adjustments | (5.1) | (7.4) | (1.5) |
Cash payments | (26.4) | (51.7) | (45.3) |
Non-cash write-offs | 0.8 | (3.5) | 6.2 |
Foreign exchange | (1.6) | (2.2) | 0.2 |
Ending Balance | 6.2 | 38 | 27.5 |
Employee Related Costs [Member] | |||
Opening Balance | 37.1 | 25.9 | 19 |
2015 charges | 0.6 | 64.2 | 45.5 |
Adjustments | (5) | (6.3) | (0.2) |
Cash payments | (25.8) | (44.8) | (40.5) |
Non-cash write-offs | 0.4 | 0.2 | 2 |
Foreign exchange | (1.5) | (2.1) | 0.1 |
Ending Balance | 5.8 | 37.1 | 25.9 |
Inventory/ Asset Write-Offs [Member] | |||
Opening Balance | 0 | 0 | 0 |
2015 charges | 0 | 0 | 0.1 |
Adjustments | 0 | 0 | (0.8) |
Cash payments | 0 | 0 | 0 |
Non-cash write-offs | 0 | 0 | 0.7 |
Foreign exchange | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Currency Translation Adjustment Write Offs [Member] | |||
Opening Balance | 0 | 0 | 0 |
2015 charges | (0.4) | 3.7 | (3.5) |
Adjustments | 0 | 0 | 0 |
Cash payments | 0 | 0 | 0 |
Non-cash write-offs | 0.4 | (3.7) | 3.5 |
Foreign exchange | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Contract Terminations/ Other [Member] | |||
Opening Balance | 0.9 | 1.6 | 1.7 |
2015 charges | 0.3 | 7.4 | 5.1 |
Adjustments | (0.1) | (1.1) | (0.5) |
Cash payments | (0.6) | (6.9) | (4.8) |
Non-cash write-offs | 0 | 0 | 0 |
Foreign exchange | (0.1) | (0.1) | 0.1 |
Ending Balance | $ 0.4 | $ 0.9 | $ 1.6 |
Restructuring Initiatives Re106
Restructuring Initiatives Restructuring Charges Incurred to Date for $400M Cost Savings Initiative (Details) - USD ($) $ in Millions | 12 Months Ended | 39 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Charges incurred on approved initiatives | |||||
$400M Cost Savings Initiative [Member] | |||||
Charges incurred on approved initiatives | $ (4.7) | $ 68 | $ 45.7 | $ 30.5 | $ 139.5 |
$400M Cost Savings Initiative [Member] | Employee Related Costs [Member] | |||||
Charges incurred on approved initiatives | 126.1 | ||||
$400M Cost Savings Initiative [Member] | Inventory and Asset Write Offs [Member] | |||||
Charges incurred on approved initiatives | 0.7 | ||||
$400M Cost Savings Initiative [Member] | Currency Translation Adjustment Write Offs [Member] | |||||
Charges incurred on approved initiatives | (0.2) | ||||
$400M Cost Savings Initiative [Member] | Contract Terminations/ Other [Member] | |||||
Charges incurred on approved initiatives | $ 12.9 |
Restructuring Initiatives Re107
Restructuring Initiatives Restructuring Charges by Reportable Segment for $400M Cost Savings Initiative (Details) - USD ($) $ in Millions | 12 Months Ended | 39 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Charges incurred on approved initiatives | |||||
$400M Cost Savings Initiative [Member] | |||||
Charges incurred on approved initiatives | $ (4.7) | $ 68 | $ 45.7 | $ 30.5 | $ 139.5 |
$400M Cost Savings Initiative [Member] | Latin America [Member] | |||||
Charges incurred on approved initiatives | (1.3) | 24.5 | 11.1 | 12.9 | 47.2 |
$400M Cost Savings Initiative [Member] | Europe Middle East & Africa [Member] | |||||
Charges incurred on approved initiatives | (1.2) | 19.9 | 15.6 | 1.1 | 35.4 |
$400M Cost Savings Initiative [Member] | Asia Pacific [Member] | |||||
Charges incurred on approved initiatives | (0.2) | 6.5 | 1.3 | 12.9 | 20.5 |
$400M Cost Savings Initiative [Member] | Corporate [Member] | |||||
Charges incurred on approved initiatives | $ (2) | $ 17.1 | $ 17.7 | $ 3.6 | $ 36.4 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assessment for 2002 [Member] | ||||
Assessment of contingencies, including penalties and accruing interest, reduced | $ 23 | |||
Assessment of contingencies, prior to reductions | 55 | |||
Derivative actions [Member] | ||||
Estimated Litigation Liability | 4 | |||
Brockton [Member] | ||||
Litigation Settlement, Amount | 62 | |||
Litigation settlement amount, paid by insurers | 60 | |||
Payments for legal settlements | 2 | |||
ERISA [Member] | ||||
Estimated Litigation Liability | 1 | |||
Litigation Settlement, Amount | 6 | |||
Loss Contingency, Receivable, Current | 5 | |||
IPI [Member] | Assessment for 2012 [Member] | ||||
Assessment of contingencies, including penalties and accruing interest | $ 258 | |||
DOJ [Member] | FCPA [Member] | ||||
Litigation Settlement, Amount | $ 68 | |||
SEC [Member] | FCPA [Member] | ||||
Litigation Settlement, Amount | $ 67 | |||
Loss contingency, deferred prosecution, number of years | 3 years | |||
Monitoring period | 18 months |
Goodwill and Intangible Asse109
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 09, 2015 | |
Goodwill, impairment loss | $ 6.9 | ||||||
Goodwill | $ 92.3 | 92.3 | $ 249.3 | ||||
Indefinite-Lived Trademarks | 0 | 0 | 23.6 | ||||
China lower revenue than prior year results | 67.00% | 28.00% | |||||
China lower revenue than estimates utilized | 67.00% | ||||||
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 | 6.9 | $ 0 | $ 42.1 | ||||
Amortization of Intangible Assets | $ 4.4 | ||||||
EGYPT | |||||||
Goodwill, impairment loss | 6.9 | 6.9 | |||||
Goodwill, impairment loss, net of tax | 6.9 | ||||||
Goodwill | $ 0 | $ 0 | |||||
Liz Earle [Member] | |||||||
Goodwill | $ 124.3 | ||||||
Other Intangible Assets, Net | 28.2 | ||||||
Indefinite-Lived Trademarks | 23.6 | ||||||
Indefinite-Lived License Agreements | 3 | ||||||
Finite-Lived Customer Relationships, Gross | $ 1.6 | ||||||
China [Member] | |||||||
Goodwill, impairment loss | $ 38.4 | ||||||
Goodwill, impairment loss, net of tax | 38.4 | ||||||
Goodwill | 0 | ||||||
Impairment of Intangible Assets, Finite-lived | 3.7 | ||||||
Finite Lived Intangible Impairment Loss After Tax | 2.8 | ||||||
Finite-Lived Intangible Assets, Gross | 0 | ||||||
Impairment of goodwill and intangible assets | $ 42.1 |
Goodwill and Intangible Asse110
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Gross balance at period start | $ 331.7 |
Accumulated impairments at period start | (82.4) |
Net balance at period start | 249.3 |
Divestitures | (124.3) |
Impairment | (6.9) |
Foreign exchange | (25.8) |
Gross balance at period end | 305.9 |
Accumulated impairments at period end | (89.3) |
Net balance at period end | 92.3 |
Latin America [Member] | |
Gross balance at period start | 90.7 |
Accumulated impairments at period start | 0 |
Net balance at period start | 90.7 |
Divestitures | 0 |
Impairment | 0 |
Foreign exchange | (21.8) |
Gross balance at period end | 68.9 |
Accumulated impairments at period end | 0 |
Net balance at period end | 68.9 |
Europe Middle East & Africa [Member] | |
Gross balance at period start | 156 |
Accumulated impairments at period start | 0 |
Net balance at period start | 156 |
Divestitures | (124.3) |
Impairment | (6.9) |
Foreign exchange | (4) |
Gross balance at period end | 27.7 |
Accumulated impairments at period end | (6.9) |
Net balance at period end | 20.8 |
Asia Pacific [Member] | |
Gross balance at period start | 85 |
Accumulated impairments at period start | (82.4) |
Net balance at period start | 2.6 |
Divestitures | 0 |
Impairment | 0 |
Foreign exchange | 0 |
Gross balance at period end | 85 |
Accumulated impairments at period end | (82.4) |
Net balance at period end | $ 2.6 |
Goodwill and Intangible Asse111
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Amortization | $ (54) | $ (78.2) |
Indefinite-Lived Trademarks | 0 | 23.6 |
Total Gross Intangible Assets | 54 | 107.2 |
Customer Relationships [Member] | ||
Gross Amount | 21.5 | 33 |
Accumulated Amortization | (21.5) | (31.1) |
Licensing Agreements [Member] | ||
Gross Amount | 26.2 | 43.4 |
Accumulated Amortization | (26.2) | (39.9) |
Noncompete Agreements [Member] | ||
Gross Amount | 6.3 | 7.2 |
Accumulated Amortization | $ (6.3) | $ (7.2) |
Supplemental Balance Sheet I112
Supplemental Balance Sheet Information (Components of Prepaid Expenses and Other) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 96.3 | $ 155.9 |
Receivables other than trade | 69.6 | 70.6 |
Prepaid brochure costs, paper and other literature | 64.5 | 72.1 |
Short-term Investments | 2.4 | 21 |
Deferred tax assets (Note 2 and Note 7) | 0 | 205.2 |
Other | 63.3 | 65.9 |
Prepaid expenses and other | $ 296.1 | $ 590.7 |
Supplemental Balance Sheet I113
Supplemental Balance Sheet Information (Components of Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets, Noncurrent [Abstract] | ||
Deferred tax assets (Note 2 and Note 7) | $ 172.8 | $ 678.8 |
Long-term receivables | 162.1 | 149.5 |
Capitalized software (Note 1) | 82.4 | 91.6 |
Investments | 36.3 | 36.4 |
Tooling (plates and molds associated with our beauty products) | 15.3 | 20.7 |
Other intangible assets, net (Note 16) | 0 | 29.1 |
Other | 30.2 | 28.2 |
Other assets | $ 499.1 | $ 1,034.3 |
Results of Operations by Qua114
Results of Operations by Quarter (Unaudited) (Financial Results of Operations by Quarter) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||
Total revenue | $ 1,607.3 | $ 1,436.2 | $ 1,564.9 | $ 1,552.1 | $ 2,014.1 | $ 1,861.5 | $ 1,884.5 | $ 1,887.9 | $ 6,160.5 | $ 7,648 | $ 8,496.8 | ||||||||||
Gross profit | 943.6 | 877.2 | 953.9 | 940.4 | 1,237.8 | 1,165 | 1,189.8 | 1,048.5 | 3,715.1 | 4,641.1 | |||||||||||
Operating (loss) profit | 62.9 | 45.3 | 89.7 | (32.9) | 174.8 | 196.2 | 110.7 | (47.4) | 165 | 434.3 | 539.8 | ||||||||||
(Loss) income from continuing operations, before taxes | 7.2 | 31 | [1] | 61.2 | (76.7) | [1] | 100.9 | 153.4 | 83.3 | (136.8) | [1] | 22.7 | [1] | 200.8 | [1] | 277.9 | |||||
(Loss) income from continuing operations, net of tax | (14.8) | (668) | [1],[2] | 28.9 | [2] | (142.6) | [1],[2] | (305.4) | [2] | 97 | 29.4 | (165.5) | [1] | (796.5) | [1],[2] | (344.5) | [1],[2] | 67.5 | |||
Loss from discontinued operations, net of tax | (317.1) | (29) | 0.8 | (3.8) | (24.2) | (5) | (9.5) | (1.7) | (349.1) | (40.4) | (119.4) | ||||||||||
Net income attributable to noncontrolling interests | (1.5) | 0 | (0.9) | (0.9) | (1.1) | (0.6) | (0.9) | (1.1) | (3.3) | (3.7) | (4.5) | ||||||||||
Net (loss) income attributable to Avon | $ (333.4) | $ (697) | [1],[2] | $ 28.8 | [2] | $ (147.3) | [1],[2] | $ (330.7) | [2] | $ 91.4 | $ 19 | $ (168.3) | [1] | $ (1,148.9) | [1],[2] | $ (388.6) | [1],[2] | $ (56.4) | |||
(Loss) Earnings per Common Share from continuing operations: | |||||||||||||||||||||
Basic | $ (0.04) | [3] | $ (1.51) | [1],[2],[3] | $ 0.06 | [2],[3] | $ (0.33) | [1],[2],[3] | $ (0.70) | [2],[3] | $ 0.22 | [3] | $ 0.07 | [3] | $ (0.38) | [1],[3] | $ (1.81) | [1],[2],[3] | $ (0.79) | [1],[2],[3] | $ 0.14 |
Diluted | $ (0.04) | [3] | $ (1.51) | [1],[2],[3] | $ 0.06 | [2],[3] | $ (0.33) | [1],[2],[3] | $ (0.70) | [2],[3] | $ 0.22 | [3] | $ 0.07 | [3] | $ (0.38) | [1],[3] | $ (1.81) | [1],[2],[3] | $ (0.79) | [1],[2],[3] | $ 0.14 |
[1] | In addition to the items impacting operating (loss) profit above, (loss) income from continuing operations, before taxes during 2015 was impacted by an after-tax benefit of $3.4 (benefit of $4.2 in other expense, net, and a loss of $.8 in income taxes) recorded in the first quarter, primarily reflecting the write-down of monetary assets and liabilities due to the change to the SIMADI rate. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by the gain on sale of Liz Earle of $44.9 before tax ($51.6 after tax), primarily recorded in the third quarter. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by a loss on extinguishment of debt of $5.5 before tax in the third quarter caused by the make-whole premium and the write-off of debt issuance costs and discounts, associated with the prepayment of the 2.375% Notes (as defined in Note 5, Debt and Other Financing) and $2.5 before tax in the second quarter of 2015 associated with the write-off of issuance costs related to our previous $1 billion revolving credit facility.In addition, (loss) income from continuing operations, before taxes during 2014 was impacted by an 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. | ||||||||||||||||||||
[2] | (Loss) income from continuing operations, net of tax during 2015 was negatively impacted by an aggregate non-cash income tax charge of $685.1. This was primarily due to additional valuation allowances for U.S. deferred tax assets of $641.6 and $31.3 which were recorded in the third and first quarters of 2015, respectively, partially offset by a partial release of a valuation allowance for deferred tax assets of $3.2 which was recorded in the second quarter of 2015. The additional valuation allowances in the third and first quarters of 2015 was due to the continued strengthening of the U.S. dollar against currencies of some of our key markets and the impact on the benefits from our tax planning strategies associated with the realization of our deferred tax assets. The partial release of the valuation allowance in the second quarter of 2015 was due to the weakening of the U.S. dollar against currencies of some of our key markets. In addition, the non-cash income tax charge was due to additional valuation allowances for deferred tax assets outside of the U.S. of $15.4, primarily in Russia, which was recorded in the third quarter of 2015, which was largely due to lower earnings, which were significantly impacted by foreign exchange losses on working capital balances. In addition, (loss) income from continuing operations, before taxes during 2015 was impacted by an income tax benefit of $18.7, which was recorded in the fourth quarter of 2015, recognized as a result of the implementation of foreign tax planning strategies.In addition, (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 $18.5 net tax benefit recorded in the fourth quarter of 2014 related to the finalization of the FCPA settlements. | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
Results of Operations by Qua115
Results of Operations by Quarter (Unaudited) (Components Impacting Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total costs to implement restructuring initiatives | $ 20.9 | $ (1.9) | $ 2.9 | $ 27.2 | $ 27.1 | $ 0.8 | $ 41.5 | $ 17.2 | $ 49.1 | $ 86.6 |
Venezuelan special items | 1.9 | 5.7 | 6.2 | 106.4 | 1.4 | 2 | 18 | 115.7 | 120.2 | 137.1 |
Pension settlement charge | 1.1 | 6.2 | 0 | 0 | 2 | 1.4 | 6.1 | 0 | 7.3 | 9.5 |
Other items | 3.1 | 0 | 0 | 0 | 3.1 | |||||
Asset impairment and other charges | 6.9 | 0 | 0 | 0 | 6.9 | |||||
FCPA [Member] | ||||||||||
FCPA accrual | 0 | 0 | 0 | 46 | 46 | |||||
Pension Benefits U.S. Plans [Member] | ||||||||||
Pension settlement charge | (4.1) | (23.8) | (7.5) | (5.4) | (23.5) | |||||
Cost of Sales [Member] | ||||||||||
Total costs to implement restructuring initiatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Selling, General and Administrative Expenses [Member] | ||||||||||
Total costs to implement restructuring initiatives | $ 20.9 | $ (1.9) | $ 2.9 | $ 27.2 | $ 27.1 | $ 0.8 | $ 41.5 | $ 17.2 | $ 49.1 | $ 86.6 |
Results of Operations by Qua116
Results of Operations by Quarter (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Exchange rate net charges (benefit), total | $ (3.4) | $ 41.8 | $ 50.7 | ||||||||
Exchange rate net charges (benefit) on other expense, net | (4.2) | 53.7 | 34.1 | ||||||||
Exchange rate net charges on income taxes | 0.8 | $ (11.9) | $ 16.6 | ||||||||
Gain on sale of business | $ 44.9 | $ 0 | $ 0 | ||||||||
Gain on sale of business, after tax | 51.6 | ||||||||||
Loss on extinguishment of debt | 5.5 | 0 | $ 86 | ||||||||
Write off of Deferred Debt Issuance Cost | $ 2.5 | ||||||||||
Net increase (decrease) in valuation allowance | $ 649.5 | 3.2 | (31.3) | $ 383.5 | 609.5 | ||||||
Tax benefit due to tax planning strategies | $ 18.7 | ||||||||||
Non-Cash Income Tax Charge | 404.9 | ||||||||||
FCPA Settlement, Tax Benefit | 18.5 | ||||||||||
UNITED STATES | |||||||||||
Net increase (decrease) in valuation allowance | 641.6 | $ (3.2) | $ 31.3 | $ 685.1 | |||||||
Russia [Member] | |||||||||||
Net increase (decrease) in valuation allowance | 15.4 | ||||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||||||
Loss on extinguishment of debt | 5.5 | ||||||||||
Interest rate, stated percentage | 2.375% | 2.375% | |||||||||
Write off of Deferred Debt Issuance Cost | $ 0.5 | ||||||||||
2013 Revolving Credit Facility [Member] | |||||||||||
Line of credit facility | $ 1,000 | $ 1,000 |
VALUATION AND QUALIFYING ACC117
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts Receivable [Member] | ||||
Balance at Beginning of Period | $ 93.7 | $ 118.4 | $ 121.3 | |
Charged to Costs and Expenses | 144.1 | 171.1 | 209.2 | |
Charged to Revenue | 0 | 0 | 0 | |
Deductions | [1] | (160.2) | (195.8) | (212.1) |
Balance at End of Period | 77.6 | 93.7 | 118.4 | |
Allowance for Sales Returns [Member] | ||||
Balance at Beginning of Period | 13.2 | 14.5 | 23.2 | |
Charged to Costs and Expenses | 0 | 0 | 0 | |
Charged to Revenue | 190.8 | 240.9 | 274.2 | |
Deductions | [2] | (194.9) | (242.2) | (282.9) |
Balance at End of Period | 9.1 | 13.2 | 14.5 | |
Inventory Valuation Reserve [Member] | ||||
Balance at Beginning of Period | 98.9 | 113.9 | 134.4 | |
Charged to Costs and Expenses | 45.4 | 78.4 | 82 | |
Charged to Revenue | 0 | 0 | 0 | |
Deductions | [3] | (73) | (93.4) | (102.5) |
Balance at End of Period | 71.3 | 98.9 | 113.9 | |
Deferred Tax Asset Valuation Allowance [Member] | ||||
Balance at Beginning of Period | 1,362.6 | 942.1 | 786.1 | |
Charged to Costs and Expenses | [4] | 609.5 | 420.5 | 156 |
Charged to Revenue | 0 | 0 | 0 | |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | $ 1,972.1 | $ 1,362.6 | $ 942.1 | |
[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. |