Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
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, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 440,373,865 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.7 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Net sales | $ 5,565.1 | $ 5,578.8 | $ 6,076.5 | ||
Other revenue | 150.5 | 138.9 | 84 | ||
Total revenue | 5,715.6 | 5,717.7 | 6,160.5 | ||
Costs, expenses and other: | |||||
Cost of sales | 2,203.3 | 2,257 | 2,445.4 | ||
Selling, general and administrative expenses | 3,239 | 3,138.8 | 3,543.2 | ||
Impairment of goodwill | 0 | 0 | 6.9 | ||
Operating profit | 273.3 | 321.9 | 165 | ||
Interest expense | 140.8 | 136.6 | 120.5 | ||
(Gain) loss on extinguishment of debt | 0 | (1.1) | 5.5 | ||
Interest income | (14.8) | (15.8) | (12.5) | ||
Other expense, net | 26.6 | 171 | 73.7 | ||
Gain on sale of business | 0 | 0 | (44.9) | ||
Total other expenses | 152.6 | 290.7 | 142.3 | ||
Income from continuing operations, before taxes | 120.7 | 31.2 | [1] | 22.7 | |
Income taxes | (100.7) | (124.6) | (819.2) | ||
Income (loss) from continuing operations, net of tax | 20 | [2] | (93.4) | [1],[2] | (796.5) |
Loss from discontinued operations, net of tax | 0 | (14) | (349.1) | ||
Net income (loss) | 20 | (107.4) | (1,145.6) | ||
Net loss (income) attributable to noncontrolling interests | 2 | (0.2) | (3.3) | ||
Net income (loss) attributable to Avon | $ 22 | [2] | $ (107.6) | [1],[2] | $ (1,148.9) |
Loss per share: | |||||
Basic from continuing operations | $ 0 | [2],[3] | $ (0.25) | [1],[2],[3] | $ (1.81) |
Basic from discontinued operations | 0 | (0.03) | (0.79) | ||
Basic attributable to Avon | 0 | (0.29) | (2.60) | ||
Diluted from continuing operations | 0 | [2],[3] | (0.25) | [1],[2],[3] | (1.81) |
Diluted from discontinued operations | 0 | (0.03) | (0.79) | ||
Diluted attributable to Avon | $ 0 | $ (0.29) | $ (2.60) | ||
Weighted-average shares outstanding: | |||||
Basic | 439.7 | 437 | 435.2 | ||
Diluted | 439.7 | 437 | 435.2 | ||
[1] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. | ||||
[2] | (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. | ||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ 20 | $ (107.4) | $ (1,145.6) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 82 | 38.6 | (275) |
Change in derivative losses on cash flow hedges, net of taxes | 0 | 1.3 | 1.9 |
Amortization of net actuarial loss and prior service cost, net of taxes | 15.6 | 287.3 | 81.8 |
Adjustments of net actuarial loss and prior service cost, net of taxes | 8.9 | 3.1 | 40.7 |
Other comprehensive income, equity method investment, net of taxes | 1.2 | 2.2 | 0 |
Total other comprehensive income (loss), net of taxes | 107.7 | 332.5 | (150.6) |
Comprehensive income (loss) | 127.7 | 225.1 | (1,296.2) |
Less: comprehensive loss attributable to noncontrolling interests | (1.5) | (2.1) | (1.6) |
Comprehensive income (loss) attributable to Avon | $ 129.2 | $ 227.2 | $ (1,294.6) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Change in derivative losses on cash flow hedges, taxes | $ 0 | $ 2.7 | $ 0 |
Amortization of net actuarial losses and prior service cost, taxes | 0.8 | 10.9 | 1.2 |
Adjustments of net actuarial losses and prior service cost, taxes | $ 2.1 | $ 7.1 | $ 3.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash, including cash equivalents of $116.7 and $79.4 | $ 881.5 | $ 654.4 |
Accounts receivable (less allowances of $138.6 and $131.1) | 457.2 | 458.9 |
Inventories | 598.2 | 586.4 |
Prepaid expenses and other | 296.4 | 291.3 |
Current assets of discontinued operations | 0 | 1.3 |
Total current assets | 2,233.3 | 1,992.3 |
Property, plant and equipment, at cost | ||
Land | 31.3 | 29.5 |
Buildings and improvements | 646 | 621.5 |
Equipment | 804.6 | 773.1 |
Property, plant and equipment, at cost | 1,481.9 | 1,424.1 |
Less accumulated depreciation | (779.2) | (712.8) |
Property, plant and equipment, net, total | 702.7 | 711.3 |
Goodwill | 95.7 | 93.6 |
Other assets | 666.2 | 621.7 |
Total assets | 3,697.9 | 3,418.9 |
Current Liabilities | ||
Debt maturing within one year | 25.7 | 18.1 |
Accounts payable | 832.2 | 768.1 |
Accrued compensation | 130.3 | 129.2 |
Other accrued liabilities | 405.6 | 401.9 |
Sales and taxes other than income | 153 | 147 |
Income taxes | 12.8 | 10.7 |
Current liabilities of discontinued operations | 0 | 10.7 |
Total current liabilities | 1,559.6 | 1,485.7 |
Long-term debt | 1,872.2 | 1,875.8 |
Employee benefit plans | 150.6 | 164.5 |
Long-term sales taxes and taxes other than income | 193.1 | 124.5 |
Long-term income taxes | 84.9 | 78.6 |
Other liabilities | 84.4 | 81.3 |
Total liabilities | 3,944.8 | 3,810.4 |
Commitments and contingencies (Notes 15 and 18) | ||
Series C convertible preferred stock | 467.8 | 444.7 |
Shareholders’ Deficit | ||
Common stock, par value $.25 - authorized 1,500 shares; issued 758.7 and 754.9 shares | 189.7 | 188.8 |
Additional paid-in capital | 2,291.2 | 2,273.9 |
Retained earnings | 2,320.3 | 2,322.2 |
Accumulated other comprehensive loss | (926.2) | (1,033.2) |
Treasury stock, at cost (318.4 and 317.3 shares) | (4,600) | (4,599.7) |
Total Avon shareholders’ deficit | (725) | (848) |
Noncontrolling interest | 10.3 | 11.8 |
Total shareholders’ deficit | (714.7) | (836.2) |
Total liabilities, series C convertible preferred stock and shareholders’ deficit | $ 3,697.9 | $ 3,418.9 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash equivalents | $ 116.7 | $ 79.4 |
Allowances | $ 138.6 | $ 131.1 |
Common stock, par value | $ 0.25 | $ 0.25 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 758,700,000 | 754,900,000 |
Treasury stock | 318,400,000 | 317,300,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Cash Flows from Operating Activities | |||||||
Net income (loss) | $ 20 | $ (107.4) | $ (1,145.6) | ||||
Loss from discontinued operations, net of tax | 0 | 14 | 349.1 | ||||
Income (loss) from continuing operations, net of tax | 20 | [1] | (93.4) | [1],[2] | (796.5) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation | 84.3 | 83.3 | 94 | ||||
Amortization | 29.7 | 30.6 | 32.1 | ||||
Provision for doubtful accounts | 221.9 | 190.5 | 144.1 | ||||
Provision for obsolescence | 36.7 | 36.5 | 45.4 | ||||
Share-based compensation | 24.2 | 24 | 51.2 | ||||
Foreign exchange losses | 18.1 | 6.1 | 44.3 | ||||
Deferred income taxes | (30.2) | (8.5) | 644.6 | ||||
Charge for Venezuelan monetary assets and liabilities | 0 | 0 | (4.2) | ||||
Charge for Venezuelan non-monetary assets | 0 | 0 | 101.7 | ||||
Loss on deconsolidation of Venezuela | 0 | 120.5 | 0 | ||||
Pre-tax gain on sale of business | 0 | 0 | (44.9) | ||||
Impairment of goodwill | 0 | 0 | 6.9 | ||||
Other | 39.6 | (3.3) | 11.6 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (214.6) | (216.6) | (184.7) | ||||
Inventories | (19.2) | (28.6) | (106.6) | ||||
Prepaid expenses and other | 14.8 | 16.8 | 8.7 | ||||
Accounts payable and accrued liabilities | 12.3 | (17.6) | 80.4 | ||||
Income and other taxes | 4.1 | (4.7) | 50.7 | ||||
Noncurrent assets and liabilities | 29.5 | (7.6) | (87.4) | ||||
Net cash provided by operating activities of continuing operations | 271.2 | 128 | 91.4 | ||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (97.3) | (93) | (92.4) | ||||
Disposal of assets | 5.9 | 13.3 | 8.2 | ||||
Distribution from New Avon LLC | 22 | 0 | 0 | ||||
Net proceeds from sale of business | 0 | 0 | 208.3 | ||||
Purchases of investments | 0 | 0 | (35.3) | ||||
Net proceeds from sale of investments | 0 | 0 | 53.7 | ||||
Reduction of cash due to Venezuela deconsolidation | 0 | (4.5) | 0 | ||||
Other investing activities | (0.2) | 1.5 | 0 | ||||
Net cash (used) provided by investing activities of continuing operations | (69.6) | (82.7) | 142.5 | ||||
Cash Flows from Financing Activities | |||||||
Cash dividends | 0 | 0 | (108.8) | ||||
Debt, net (maturities of three months or less) | 10.3 | (36.4) | (59.1) | ||||
Proceeds from debt | 0 | 508.7 | 7.6 | ||||
Repayment of debt | (2.9) | (733) | (261.2) | ||||
Repurchase of common stock | (7.2) | (5.6) | (3.1) | ||||
Net proceeds from the sale of series C convertible preferred stock | 0 | 426.3 | 0 | ||||
Other financing activities | (0.2) | (23) | (5.9) | ||||
Net cash provided (used) by financing activities of continuing operations | 0 | 137 | (430.5) | ||||
Cash Flows from Discontinued Operations | |||||||
Net cash (used) provided by operating activities of discontinued operations | (8.6) | (67.6) | 20.7 | ||||
Net cash used by investing activities of discontinued operations | 0 | (94.6) | (4.2) | ||||
Net cash used by financing activities of discontinued operations | 0 | 0 | (15) | ||||
Net cash (used) provided by discontinued operations | (8.6) | (162.2) | 1.5 | ||||
Effect of exchange rate changes on cash and cash equivalents | 34.1 | (50.4) | (80.7) | ||||
Net increase (decrease) in cash and cash equivalents | 227.1 | (30.3) | (275.8) | ||||
Cash and equivalents at beginning of year | [3] | 654.4 | [4] | 684.7 | [4] | 960.5 | |
Cash and equivalents at end of year | [4] | 881.5 | 654.4 | [3] | 684.7 | [3] | |
Cash paid for: | |||||||
Interest | 141.7 | 142.8 | 128.6 | ||||
Income taxes, net of refunds received | $ 132.2 | $ 143.3 | $ 162.5 | ||||
[1] | (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. | ||||||
[2] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. | ||||||
[3] | Includes cash and cash equivalents of discontinued operations of $(2.2) and $24.1 at the beginning of the year in 2016 and 2015, respectively. | ||||||
[4] | Includes cash and cash equivalents of discontinued operations of $(2.2) at the end of the year in 2015. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows Parenthetical (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents of discontinued operations | $ (2.2) | $ 24.1 |
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] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member]Retained Earnings [Member] | |
Shareholders' Equity at Period Start 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) | (1,148.9) | ||||||||
Net income attributable to noncontrolling interests | 3.3 | 3.3 | ||||||||
Net income (loss) | (1,145.6) | |||||||||
Other comprehensive income (loss) attributable to parent | (148.6) | |||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | (2) | |||||||||
Other comprehensive income (loss) | (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 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income attributable to Avon | (107.6) | [1],[2] | (107.6) | |||||||
Net income attributable to noncontrolling interests | 0.2 | 0.2 | ||||||||
Net income (loss) | (107.4) | |||||||||
Other comprehensive income (loss) attributable to parent | 333 | |||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | (0.5) | |||||||||
Other comprehensive income (loss) | 332.5 | |||||||||
Dividends | (18.3) | (18.3) | ||||||||
Exercise/ vesting of share-based compensation, value | 23.2 | $ 0.9 | 22.3 | $ 0 | ||||||
Exercise/ vesting of share-based compensation, shares | 3.5 | 0 | ||||||||
Repurchase of common stock, value | (5.6) | $ (5.6) | ||||||||
Repurchase of common stock, shares | 1.4 | |||||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (1.8) | (1.8) | ||||||||
Income tax benefits - stock transactions | (2.4) | (2.4) | ||||||||
Shareholders' Equity at Period End at Dec. 31, 2016 | (836.2) | $ 188.8 | 2,273.9 | 2,322.2 | (1,033.2) | $ (4,599.7) | 11.8 | |||
Balance, shares at Dec. 31, 2016 | 754.9 | 317.3 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income attributable to Avon | 22 | [2] | 22 | |||||||
Net income attributable to noncontrolling interests | (2) | (2) | ||||||||
Net income (loss) | 20 | |||||||||
Other comprehensive income (loss) attributable to parent | 107 | |||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 0.7 | |||||||||
Other comprehensive income (loss) | 107.7 | |||||||||
Preferred Dividends Accrued | $ (23.1) | $ (23.1) | ||||||||
Exercise/ vesting of share-based compensation, value | 24.3 | $ 1 | 17.3 | (0.8) | $ 6.8 | |||||
Stock Repurchased During Period, Shares | 0 | |||||||||
Stock Repurchased During Period, Value | $ (0.1) | |||||||||
Exercise/ vesting of share-based compensation, shares | 3.8 | (0.5) | ||||||||
Repurchase of common stock, value | (7.2) | $ (7.1) | ||||||||
Repurchase of common stock, shares | 1.6 | |||||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (0.2) | (0.2) | ||||||||
Shareholders' Equity at Period End at Dec. 31, 2017 | $ (714.7) | $ 189.7 | $ 2,291.2 | $ 2,320.3 | $ (926.2) | $ (4,600) | $ 10.3 | |||
Balance, shares at Dec. 31, 2017 | 758.7 | 318.4 | ||||||||
[1] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. | |||||||||
[2] | (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity Parentheticals (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends per share | $ 0 | $ 0 | $ 0.24 |
Purchases and sales of noncontrolling interests, net of dividends paid | $ 0.2 | $ 1.8 | $ 2.9 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Sales are made to the ultimate consumer principally by independent Representatives. In December 2015, we entered into definitive agreements with affiliates of Cerberus Capital Management L.P. ("Cerberus"), which included a $435 investment in Avon by an affiliate of Cerberus through the purchase of our convertible preferred stock and the separation of the North America business (including approximately $100 of cash, subject to certain adjustments) from Avon into New Avon LLC ("New Avon"), a privately-held company that is majority-owned and managed by an affiliate of Cerberus. These transactions closed in March 2016 and Avon retained approximately 20% ownership in New Avon. The North American business, which represented the Company's operations in the United States ("U.S."), Canada and Puerto Rico, was previously its own reportable segment and has been presented as discontinued operations for all periods. 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. As a result of this transaction, all of our consolidated revenue is derived from operations of subsidiaries outside of the U.S. 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 rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment. Foreign Currency Financial statements of foreign subsidiaries operating in other than highly inflationary economies are translated at year-end exchange rates for assets and liabilities and average exchange rates during the year for income and expense accounts. The resulting translation adjustments are recorded within accumulated other comprehensive income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the U.S. dollar is required to be used as the functional currency. At December 31, 2017, none of our consolidated Avon subsidiaries are 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 our 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 Currency restrictions enacted by the Venezuelan government since 2003 have impacted the ability of Avon Venezuela to obtain foreign currency to pay for imported products. In 2010, we began accounting for our operations in Venezuela under accounting guidance associated with highly inflationary economies. Venezuela's restrictive foreign exchange control regulations and our Venezuelan operations' increasingly limited access to U.S. dollars resulted in lack of exchangeability between the Venezuelan bolivar and the U.S. dollar, and restricted our Venezuelan operations' ability to pay dividends and settle intercompany obligations. The severe currency controls imposed by the Venezuelan government significantly limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings. We expected that this lack of exchangeability would continue for the foreseeable future, and as a result, we concluded that, effective March 31, 2016, this condition was other-than-temporary and we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations. As a result, since March 31, 2016, we have accounted for our Venezuelan operations using the cost method of accounting. As a result of the change to the cost method of accounting, in the first quarter of 2016, we recorded a loss of $ 120.5 in other expense, net. The loss was comprised of $ 39.2 in net assets of the Venezuelan business and $ 81.3 in accumulated foreign currency translation adjustments within AOCI (shareholders' deficit) associated with foreign currency changes before Venezuela was accounted for as a highly inflationary economy. The net assets of the Venezuelan business were comprised of inventories of $ 23.7 , property, plant and equipment, net of $ 15.0 , other assets of $ 11.4 , accounts receivable of $ 4.6 , cash of $ 4.5 , and accounts payable and accrued liabilities of $20.0 . Our Consolidated Balance Sheets no longer include the assets and liabilities of our Venezuelan operations. We no longer include the results of our Venezuelan operations in our Consolidated Financial Statements, and will include income relating to our Venezuelan operations only to the extent that we receive cash for dividends or royalties remitted by Avon Venezuela. In February 2015, the Venezuelan government announced the creation of a new foreign exchange system referred to as the SIMADI exchange ("SIMADI"), which represented the rate which better reflected the economics of Avon Venezuela's business activity, in comparison to the other then available exchange rates; as such, we concluded that we should utilize the SIMADI exchange rate to remeasure our Venezuelan operations. 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 had 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 net monetary assets. 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 caused a disproportionate expense as these assets were 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 needed 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. 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, as well as revenue from the sale of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016, and ongoing royalties from the licensing of our name and products. Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are generally high-quality, short-term money market instruments with an original maturity of three months or less and consist of time deposits with a number of U.S. and non-U.S. commercial banks and money market fund investments. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We classify inventory into various categories based upon its stage in the product life cycle, future marketing sales plans and the disposition process. We assign a degree of obsolescence risk to products based on this classification to estimate the level of obsolescence provision. 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. Brochure costs and associated fees that are presented as prepaid expenses and other were $26.6 at December 31, 2017 and $27.2 at December 31, 2016 . Additionally, paper stock is purchased in advance of creating the brochures. Prepaid expenses and other include paper supply of $5.6 at December 31, 2017 and $4.3 at December 31, 2016 . Brochure costs expensed to selling, general and administrative expenses amounted to $244.0 in 2017, $244.7 in 2016 and $256.6 in 2015. The fees charged to Representatives recorded as a reduction to selling, general and administrative expenses amounted to $139.4 in 2017, $138.6 in 2016 and $141.9 in 2015. Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, 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. 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 $85.2 at December 31, 2017 and $83.9 at December 31, 2016 . The amortization expense associated with capitalized software was $ 29.5 , $ 30.5 and $ 31.0 for the years ended December 31, 2017, 2016 and 2015, respectively. We evaluate our property, plant and equipment and capitalized software for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated pre-tax undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate. See above for more information on Avon Venezuela's long-lived assets. Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the 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. See Note 19, Goodwill for more information regarding the goodwill impairment in Egypt during 2015. Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: • Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. • Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI 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 our Consolidated Statements of Operations. Realized gains and losses on a derivative are reported in our 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 our 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 our 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 9, Income Taxes for more information. In accordance with guidance issued by the Financial Accounting Standards Board ("FASB"), on a provisional basis we are choosing to treat the U.S. income tax consequences of Global Intangible Low-Taxed Income ("GILTI") as a period cost in future years. As a result, as of December 31, 2017, no deferred income taxes have been provided. The Company will continue to monitor this election and make a final determination of the prospective permanent or temporary treatment of GILTI during the one-year measurement period ending on December 22, 2018 allowed in accordance with Securities and Exchange Commission Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). Uncertain Tax Positions We recognize the benefit of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. We record interest expense and penalties payable to relevant tax authorities in income taxes in our Consolidated Statements of Operations. Selling, General and Administrative Expenses Selling, general and administrative expenses include costs associated with selling; marketing; distribution, including shipping and handling costs; advertising; net brochure costs; research and development; information technology; and other administrative costs, including finance, legal and human resource functions. Shipping and Handling Shipping and handling costs are expensed as incurred and amounted to $530.8 in 2017 , $489.3 in 2016 and $538.8 in 2015 . Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $118.4 in 2017 , $108.9 in 2016 and $128.0 in 2015 . Research and Development Research and development costs are expensed as incurred and amounted to $52.9 in 2017 , $52.1 in 2016 and $61.9 in 2015 . 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 the fair value of premium-priced stock options. We account for forfeitures on share-based payments as they occur. 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 the discount rate applied to plan obligations, the expected rate of return on plan assets, the rate of compensation increase of plan participants, price inflation, cost-of-living adjustments, mortality rates and certain other demographic assumptions, and other factors. Actual results that differ from assumptions are accumulated and amortized to expense over future periods and, therefore, generally affect recognized expense in future periods. We recognize the funded status of pension and other postretirement benefit plans in our Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over 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. 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 our 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 an earnings (loss) allocation formula that determines earnings (loss) per share for common stock, and earnings (loss) allocated to convertible preferred stock and participating securities, as appropriate. The earnings allocated to convertible preferred stock are the larger of 1) the preferred dividends accrued in the year or 2) the percentage of earnings from continuing operations allocable to the preferred stock as if they had been converted to common stock. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents to the extent any dividends are declared and paid on our common stock. 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) 2017 2016 2015 Numerator from continuing operations: Income (loss) from continuing operations less amounts attributable to noncontrolling interests $ 22.0 $ (93.6 ) $ (799.8 ) Less: Earnings (loss) allocated to participating securities .3 (1.2 ) (10.9 ) Less: Earnings allocated to convertible preferred stock 23.1 18.4 — Loss from continuing operations allocated to common shareholders (1.4 ) (110.8 ) (788.9 ) Numerator from discontinued operations: Loss from discontinued operations less amounts attributable to noncontrolling interests $ — $ (14.0 ) $ (349.1 ) Less: Loss allocated to participating securities — (.2 ) (4.7 ) Loss from discontinued operations allocated to common shareholders — (13.8 ) (344.4 ) Numerator attributable to Avon: Net income (loss) attributable to Avon less amounts attributable to noncontrolling interests $ 22.0 $ (107.6 ) $ (1,148.9 ) Less: Earnings (loss) allocated to participating securities .3 (1.4 ) (15.7 ) Less: Earnings allocated to convertible preferred stock 23.1 18.4 — Loss attributable to Avon allocated to common shareholders (1.4 ) (124.6 ) (1,133.2 ) Denominator: Basic EPS weighted-average shares outstanding 439.7 437.0 435.2 Diluted effect of assumed conversion of stock options — — — Diluted effect of assumed conversion of preferred stock — — — Diluted EPS adjusted weighted-average shares outstanding 439.7 437.0 435.2 Loss per Common Share from continuing operations: Basic $ (.00 ) $ (.25 ) $ (1.81 ) Diluted (.00 ) (.25 ) (1.81 ) Loss per Common Share from discontinued operations: Basic $ .00 $ (.03 ) $ (.79 ) Diluted .00 (.03 ) (.79 ) Loss per Common Share attributable to Avon: Basic $ (.00 ) $ (.29 ) $ (2.60 ) Diluted (.00 ) (.29 ) (2.60 ) Amounts in the table above may not necessarily sum due to rounding. During the years ended December 31, 2017, we did not include stock options to purchase 16.9 million shares of Avon common stock in the calculation of diluted EPS because the exercise prices of those options were greater than the average market price, and therefore, their inclusion would be anti-dilutive. During the years ended December 31, 2016 and 2015, we did not include stock options to purchase 14.2 million shares and 12.7 million shares of Avon common stock, respectively, in the calculations of diluted EPS as we had a loss from continuing operations, net of tax and the inclusion of these shares would decrease the net loss per share. Since the inclusion of such shares would be anti-dilutive, these are excluded from the calculation. For the years ended December 31, 2017 and 2016, it is more dilutive to assume the series C convertible preferred stock is not converted into common stock; therefore, the weighted-average shares outstanding were not adjusted by the as-if converted series C convertible preferred stock because the effect would be anti-dilutive. The inclusion of the series C convertible preferred stock would increase the net earnings per share for the year ended December 31, 2017 and decrease the net loss per share for the year ended December 31, 2016. If the as-if converted series C convertible preferred stock had been dilutive, approximately 87.1 million additional shares would have been included in the diluted weighted average number of shares outstanding for the years ended December 31, 2017 and 2016. There were no shares of series C convertible preferred stock outstanding for the year ended December 31, 2015. See Note 17, Series C Convertible Preferred Stock. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Standards New Accounting Standards Implemented In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation , which is intended to simplify the accounting for share-based payment transactions. This new guidance changes several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures and employer-tax withholding requirements. ASU 2016-09 also clarifies the Statements of Cash Flows presentation for certain components of share-based payment awards. We adopted this new accounting guidance in the first quarter of 2017, which did not have a material impact on our Consolidated Financial Statements. Accounting Standards to be Implemented ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , as a new Topic, Accounting Standards Codification Topic ("ASC") 606. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new accounting guidance may be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We will be adopting this new accounting guidance as a cumulative-effect adjustment to equity as of January 1, 2018. Based on our evaluation, we expect to: • consider some of our sales incentive programs as a separate deliverable and allocate a portion of the sales transaction price to this deliverable, and thus defer a portion of the sales transaction price until the incentive prize is redeemed; • consider some of our prospective discounts achieved based on sales targets as a separate deliverable and allocate a portion of the sales transaction prices to this deliverable, thus deferring a portion of the sales transaction price until future discounts are realized; • adjust the manner in which we present our allowance for sales returns in our Consolidated Balance Sheets, to reflect a refund liability and a returns asset; • reflect fees paid by Representatives to the Company for items such as brochures, sales aids and late payments as revenue, rather than as a reduction to selling, general and administrative expenses ("SG&A"), as these represent separate performance obligations; • reflect certain of the costs associated with the fees paid by the Representative in cost of sales, rather than SG&A; and • recharacterize certain costs related to sales incentives, brochures and sales aids in our Consolidated Balance Sheets from prepaid expenses and other to inventories. We estimate that the cumulative-effect adjustment upon adoption of the new revenue recognition standard as of January 1, 2018 will be: • a reduction to equity of approximately $50 to $60 before taxes ( $35 to $45 after tax), with a corresponding impact to deferred taxes of approximately $10 to $20 ; • a reduction to prepaid expenses and other of approximately $50 to $60 ; • an increase to inventories of approximately $35 to $45 ; and • an increase to other accrued liabilities of approximately $35 to $45 due to the net impact of the establishment of a contract liability for deferred revenue where satisfaction of our performance obligation is not yet complete, which is partially offset by a reduction in the sales incentive accrual. This cumulative-effect adjustment impacting our Consolidated Balance Sheets is primarily driven by sales incentives and brochures. The other changes resulting from the new revenue recognition standard are estimated to not be material. As a result of adopting this new accounting guidance, we estimate that had we adopted the new standard as of January 1, 2017, the impact on our full-year 2017 Consolidated Statement of Operations would have been: • an increase in total revenue by approximately 5% ; • a decrease in gross margin by approximately 300 to 450 basis points; and • a decrease in operating margin by approximately 10 to 30 basis points. These impacts are associated with reclassifications of items in our Consolidated Statements of Operations only, which will have no impact on operating profit. These impacts do not reflect the impact due to the change in timing of recognition of revenue and associated costs that would be deferred until sales incentive programs and prospective discounts are fulfilled, which we do not believe is material to the estimated 2017 impacts discussed above. If we had adopted the new standard as of January 1, 2017, we believe that the cumulative-effect adjustment at that time would reasonably approximate the cumulative-effect adjustment calculated as of January 1, 2018 noted above. In addition, upon adoption, we do not expect the change in timing of recognition of revenue and associated costs to have a significant impact on our full-year Consolidated Statements of Operations; however, the impact may vary depending on the types of incentive programs, the volume of incentives offered, and the timing of the programs. ASU 2017-07, Compensation - Retirement Benefits In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits . This new guidance requires entities to (1) disaggregate the service cost component from the other components of net periodic benefit costs and present it with other current employee compensation costs in our Consolidated Statements of Operations and (2) present the other components of net periodic benefit costs below operating profit in other expense, net. We intend to adopt this new accounting guidance effective January 1, 2018. The new accounting guidance is applied retrospectively and will increase our operating profit by $7.9 and $2.1 , for the years ended December 31, 2017 and 2016, respectively, but will have no impact on net income (loss). ASU 2016-02, Leases In February 2016, the FASB issued ASU 2016-02, Leases , which requires all assets and liabilities arising from leases to be recognized in our Consolidated Balance Sheets. We intend to adopt this new accounting guidance effective January 1, 2019. While we are still evaluating the full effect that adopting this new accounting guidance will have on our Consolidated Financial Statements, we believe that it will significantly increase the assets and liabilities in our Consolidated Balance Sheets. |
Discontinued Operations and Div
Discontinued Operations and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
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 an investment agreement providing for a $435.0 investment by Cleveland Apple Investor L.P. (“Cerberus Investor”) (an affiliate of Cerberus) in the Company through the purchase of perpetual convertible preferred stock (see Note 17, Series C Convertible Preferred Stock) and a separation and investment agreement providing for the separation of the Company's North America business, which represented the Company's operations in the U.S., Canada and Puerto Rico, from the Company into New Avon, a privately-held company that is majority-owned and managed by Cerberus NA Investor LLC (“Cerberus NA”) (an affiliate of Cerberus). These transactions closed on March 1, 2016. Proceeds from the sale of the perpetual convertible preferred stock were used to fund the $100 cash contribution into New Avon, approximately $250 was used to reduce debt, and the remainder was 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. During 2016, Cerberus NA contributed approximately $170 of cash into New Avon in exchange for 80.1% of its ownership interests. The Company contributed (i) assets primarily related to our North America business (including approximately $100 of cash, subject to certain adjustments), (ii) certain assumed liabilities (primarily pension and postretirement liabilities) of our North America business and (iii) the employees of our North America business into New Avon in exchange for a 19.9% ownership interest of New Avon. The Company received approximately $6 of cash from New Avon as part of a customary working capital adjustment. 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. During the fourth quarter of 2015, the Company recorded an estimated loss on sale of discontinued operations of $340.0 before tax ( $340.0 after tax) as the carrying value exceeded the estimated fair value less costs to sell. During 2016, the Company recognized an additional loss on sale of $15.6 before tax ( $5.4 after tax), respectively. The cumulative loss on sale of $355.6 before tax ( $345.4 after tax) represents the net assets contributed into New Avon, 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 New Avon, at closing, which was $42.5 . In 2016, New Avon entered into a perpetual, irrevocable royalty-free licensing agreement with the Company for the use of the Avon brand and certain other intellectual property. Also in 2016, Avon and New Avon also entered into a transition services agreement which covers, among other things, information technology, financial services and human resources, as well as other commercial agreements, including research and development, product supply and a sublease of office space from Avon to New Avon. See Note 5, Related Party Transactions. The major classes of financial statement components comprising the loss on discontinued operations, net of tax for North America are shown below: Years ended December 31, 2016 2015 Total revenue $ 135.2 $ 1,012.5 Cost of sales 53.2 404.0 Selling, general and administrative expenses 91.5 606.2 Operating (loss) income (9.5 ) 2.3 Other income (expense) items .6 (3.2 ) Loss from discontinued operations, before tax (8.9 ) (.9 ) Loss on sale of discontinued operations, before tax (15.6 ) (340.0 ) Income taxes 10.5 (8.2 ) Loss from discontinued operations, net of tax $ (14.0 ) $ (349.1 ) There were no amounts recorded in discontinued operations for the year ended December 31, 2017. 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 our 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 7, Debt and Other Financing for additional information. |
Investment in New Avon (Notes)
Investment in New Avon (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENT IN NEW AVON In connection with the separation of the Company's North America business (as discussed in Note 3, Discontinued Operations and Divestitures), which closed on March 1, 2016, the Company retained a 19.9% ownership interest in New Avon. The Company has accounted for its ownership interest in New Avon using the equity method of accounting, which resulted in the Company recognizing its proportionate share of New Avon's income or loss and other comprehensive income or loss. Our recorded investment balance in New Avon at December 31, 2017 was zero . During the years ended December 31, 2017 and 2016, the Company's proportionate share of the losses of New Avon was $20.2 and $11.9 , of which $11.5 and $11.9 , respectively, of these amounts was recorded within other expense, net. In addition, during the third quarter of 2017, the Company received a cash distribution of $22.0 from New Avon, which reduced our recorded investment balance in New Avon. During the third quarter of 2017, we recorded only $1.7 of the Company's proportionate share of the losses in New Avon, as this reduced our recorded investment balance in New Avon to zero. As a result, we did not record our proportionate share of New Avon's loss during the fourth quarter of 2017. If New Avon experiences future losses while our recorded investment balance is zero, we would not record our proportionate share of such loss. In addition, the Company's proportionate share of the post-separation other comprehensive income of New Avon was benefits of $.1 and $2.2 during the years ended December 31, 2017 and 2016, respectively, and was recorded within other comprehensive income (loss). The Company also recorded an additional loss of $.5 within other expense, net and a benefit of $1.1 within other comprehensive income (loss), during the year ended December 31, 2017, primarily associated with purchase accounting adjustments reported by New Avon. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions The following tables present the related party transactions with New Avon and affiliates of Cerberus. There are no other related party transactions. New Avon is majority owned and managed by Cerberus NA. See Note 3, Discontinued Operations and Note 4, Investment in New Avon for further details. Year Ended December 31, Year Ended December 31, 2017 2016 Statement of Operations Data Revenue from sale of product to New Avon (1) $ 32.5 $ 29.2 Gross profit from sale of product to New Avon (1) $ 1.9 $ 2.3 Cost of sales for purchases from New Avon (2) $ 3.8 $ 4.6 Selling, general and administrative expenses: Transition services, intellectual property, research and development and subleases (3) $ (32.2 ) $ (35.3 ) Project management team (4) 2.6 2.7 Net reduction of selling, general and administrative expenses $ (29.6 ) $ (32.6 ) December 31, 2017 December 31, 2016 Balance Sheet Data Inventories (5) $ .4 $ 1.0 Receivables due from New Avon (6) $ 9.8 $ 11.6 Payables due to New Avon (7) $ .2 $ .7 Payables due to an affiliate of Cerberus (8) $ .4 $ .6 (1) The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $32.5 and $29.2 , within other revenue, and gross profit of $1.9 and $2.3 associated with this agreement during the years ended December 31, 2017 and 2016, respectively. (2) New Avon also supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $3.2 and $5.6 from New Avon associated with this agreement during the years ended December 31, 2017 and 2016, respectively, and recorded $3.8 and $4.6 associated with these purchases within cost of sales during the years ended December 31, 2017 and 2016, respectively. (3) The Company also entered into a transition services agreement to provide certain services to New Avon, as well as an intellectual property ("IP") license agreement, an agreement for technical support and innovation and subleases for office space. In addition, New Avon performed certain services for the Company under a similar transition services agreement which expired during the third quarter of 2017. The Company recorded a net $32.2 and $35.3 reduction of selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively, which generally represents a recovery of the related costs. (4) The Company also entered into agreements with an affiliate of Cerberus, which provide for the secondment of Cerberus affiliate personnel to the Company's project management team responsible for assisting with the execution of the transformation plan (the "Transformation Plan") announced in January 2016. The Company recorded $2.6 and $2.7 in selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively. See Note 16, Restructuring Initiatives for additional information related to the Transformation Plan. (5) Inventories relate to purchases from New Avon, associated with the manufacturing and supply agreement, which have not yet been sold, and were classified within inventories in our Consolidated Balance Sheets. (6) The receivables due from New Avon relate to the agreements for transition services, the IP license, research and development and subleases for office space, as well as the manufacturing and supply agreement, and were classified within prepaid expenses and other in our Consolidated Balance Sheets. (7) The payables due to New Avon relate to the manufacturing and supply agreement, and were classified within other accrued liabilities in our Consolidated Balance Sheets. (8) The payables due to an affiliate of Cerberus relate to the agreement for the project management team, and were classified within other accrued liabilities in our Consolidated Balance Sheets. In addition, the Company also issued standby letters of credit to the lessors of certain equipment, a lease for which was transferred to New Avon in connection with the separation of the Company's North America business. The initial liability for the estimated value of such standby letters of credit was $2.1 , which was included in the additional loss on sale of the North America business recognized in loss from discontinued operations, net of tax in our Consolidated Statements of Operations during the year ended December 31, 2016. At December 31, 2017 and 2016, the Company has a liability of $1.4 and $1.6 , respectively, for the estimated value of such standby letters of credit. The reduction of this estimated liability of $.2 and $.5 was recognized in other expense, net in our Consolidated Statements of Operations during the years ended December 31, 2017 and 2016, respectively. See Note 17, Series C Convertible Preferred Stock, for discussion of preferred shares issued to Cerberus Investor. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories at December 31 consisted of the following: 2017 2016 Raw materials $ 190.6 $ 179.3 Finished goods 407.6 407.1 Total $ 598.2 $ 586.4 |
Debt and Other Financing
Debt and Other Financing | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instruments [Abstract] | |
Debt and Other Financing | Debt and Other Financing Debt Debt at December 31 consisted of the following: 2017 2016 Debt maturing within one year: Notes payable $ 22.6 $ 13.5 Current portion of long-term debt 3.1 4.6 Total $ 25.7 $ 18.1 Long-term debt: 6.50% Notes, due March 2019 $ 237.2 $ 236.8 4.60% Notes, due March 2020 408.8 408.2 7.875% Senior Secured Notes, due August 2022 492.6 491.0 5.00% Notes, due March 2023 484.5 483.7 Other debt, payable through 2025 with interest from .5% to 11.3% 5.2 9.0 6.95% Notes, due March 2043 241.0 240.8 Total 1,869.3 1,869.5 Unamortized deferred gain - swap terminations 6.0 10.9 Less current portion (3.1 ) (4.6 ) Total long-term debt $ 1,872.2 $ 1,875.8 Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 23.0% at December 31, 2017 and 11.0% at December 31, 2016 . Other debt included obligations under capital leases of $4.0 at December 31, 2017 and $7.6 at December 31, 2016 , 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"). In March 2008, we issued $350.0 principal amount of 6.50% Notes due March 1, 2019 (the "6.50% Notes"). Interest on the 2013 Notes is payable semi-annually on March 15 and September 15 of each year, and interest on the 6.50% Notes is payable semi-annually on March 1 and September 1 of each year. In August 2015, we prepaid the entire principal amount of our 2.375% Notes 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 before tax 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 and Moody's since issuance of the 2013 Notes, the interest rates on these notes have increased by the maximum allowable increase. In August 2016, we completed cash tender offers which resulted in a reduction of principal of $108.6 of our 5.75% Notes due March 1, 2018 (the "5.75% Notes"), $73.8 of our 4.20% Notes due July 15, 2018 (the "4.20% Notes"), $68.1 of our 6.50% Notes and $50.1 of our 4.60% Notes. In connection with the cash tender offers, we incurred a gain on extinguishment of debt of $3.9 before tax in the third quarter of 2016, consisting of a deferred gain of $12.8 associated with the March 2012 and January 2013 interest-rate swap agreement terminations (see Note 10, Financial Instruments and Risk Management), partially offset by the $5.8 of early tender premium paid for the cash tender offers, $1.2 of a deferred loss associated with treasury lock agreements designated as cash flow hedges of the anticipated interest payments on the 5.75% Notes (see Note 10, Financial Instruments and Risk Management), $1.0 of deal costs and the write-off of $.9 of debt issuance costs and discounts related to the initial issuances of the notes that were the subject of the cash tender offers. In October 2016, we repurchased $44.0 of our 6.50% Notes, $44.0 of our 4.20% Notes, $40.0 of our 4.60% Notes and $35.2 of our 5.75% Notes. The aggregate repurchase price was equal to the principal amount of the notes, plus a premium of $6.2 and accrued interest of $1.1 . In connection with these repurchases of debt, we incurred a loss on extinguishment of debt of $1.0 before tax in the fourth quarter of 2016 consisting of the $6.2 premium paid for the repurchases, $.5 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased and $.4 for a deferred loss associated with treasury lock agreements designated as cash flow hedges of the anticipated interest payments on the 5.75% Notes (see Note 10, Financial Instruments and Risk Management), partially offset by a deferred gain of approximately $6.1 associated with the March 2012 and January 2013 interest-rate swap agreement terminations (see Note 10, Financial Instruments and Risk Management). On November 30, 2016, we prepaid the remaining principal amount of our 4.20% Notes and 5.75% Notes. The prepayment price was equal to the remaining principal amount of $132.2 for our 4.20% Notes and $106.2 for our 5.75% Notes, plus a make-whole premium of $12.1 for both series of notes and accrued interest of $3.6 for both series of notes. In connection with the prepayment of our 4.20% Notes and 5.75% Notes, we incurred a loss on extinguishment of debt of $2.9 before tax in the fourth quarter of 2016 consisting of the $12.1 make-whole premium, $1.0 of a deferred loss associated with treasury lock agreements designated as cash flow hedges of the anticipated interest payments on the 5.75% Notes (see Note 10, Financial Instruments and Risk Management) and the write-off of $.3 of debt issuance costs and discounts related to the initial issuances of the notes that were prepaid, partially offset by a deferred gain of $10.5 associated with the January 2013 interest-rate swap agreement termination (see Note 10, Financial Instruments and Risk Management). In December 2016, we repurchased $11.1 of our 5.00% Notes and $6.2 of our 6.95% Notes, and the aggregate repurchase price was equal to the principal amount of the notes, less a discount received of $1.3 and plus accrued interest of $.3 . In connection with this repurchase of debt, we incurred a gain on extinguishment of debt of $1.1 before tax in the fourth quarter of 2016 consisting of the $1.3 discount received for the repurchases, partially offset by $.2 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased. At December 31, 2017 and 2016, the carrying values of our public notes were comprised of the following: 2017 2016 Remaining Principal Unamortized Discounts Unamortized Debt Issuance Costs Total Remaining Principal Unamortized Discounts Unamortized Debt Issuance Costs Total 6.50% Notes, due March 2019 $ 237.9 $ (.4 ) $ (.3 ) $ 237.2 $ 237.9 $ (.7 ) $ (.4 ) $ 236.8 4.60% Notes, due March 2020 409.9 (.2 ) (.9 ) 408.8 409.9 (.3 ) (1.4 ) 408.2 5.00% Notes, due March 2023 488.9 (2.5 ) (1.9 ) 484.5 488.9 (2.9 ) (2.3 ) 483.7 6.95% Notes, due March 2043 243.8 (.6 ) (2.2 ) 241.0 243.8 (.6 ) (2.4 ) 240.8 The indentures governing our outstanding notes described above contain certain customary covenants and 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 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, at such time, the outstanding notes are rated below investment grade. Senior Secured Notes In August 2016, Avon International Operations, Inc. (“AIO”), a wholly-owned domestic subsidiary of the Company, issued, in a private placement exempt from registration under the Securities Act of 1933, as amended, $500.0 in aggregate principal amount of 7.875% Senior Secured Notes, which will mature on August 15, 2022 (the "Senior Secured Notes"). Interest on our Senior Secured Notes is payable semi-annually on February 15 and August 15 of each year. The carrying value of our Senior Secured Notes represented the $500.0 principal amount, net of unamortized debt issuance costs of $ 7.4 and $9.0 at December 31, 2017 and 2016, respectively. This represents the total debt for AIO at December 31, 2017 and 2016. All obligations of AIO under our Senior Secured Notes are unconditionally guaranteed by each current and future wholly-owned domestic restricted subsidiary of the Company that is a guarantor under the 2015 facility and fully guaranteed on an unsecured basis by the Company. The obligations of AIO and the subsidiary guarantors are secured by first priority liens on and security interest in substantially all of the assets of AIO and the subsidiary guarantors, in each case, subject to certain exceptions. The indenture governing our Senior Secured Notes contains certain customary covenants and restrictions as well as customary events of default and cross-default provisions. The indenture also contains a covenant requiring AIO and its restricted subsidiaries to, at the end of each year, own at least a certain percentage of the total assets of API and its restricted subsidiaries, subject to certain qualifications. Further, we would be required to make an offer to repurchase all of our Senior Secured 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. Maturities of Long-Term Debt Annual maturities of long-term debt, which includes our notes and capital leases outstanding at December 31, 2017 , are as follows: 2018 2019 2020 2021 2022 2023 and Beyond Total Maturities $ 2.9 $ 238.6 $ 410.1 $ .1 $ 500.0 $ 732.8 $ 1,884.5 Other Financing Revolving Credit Facility In June 2015, AIO entered into a five-year $400.0 senior secured revolving credit facility (the “2015 facility”). Borrowings under the 2015 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. In December 2017, AIO entered into an amendment to the 2015 facility, which, among other things, modified the financial covenants (interest coverage and total leverage ratios) to provide the Company additional flexibility. The 2015 facility may be used for general corporate purposes. As of December 31, 2017, there were no amounts outstanding under the 2015 facility. The 2015 facility replaced the Company's previous $1 billion unsecured revolving credit facility (the "2013 facility"). In the second quarter of 2015, $2.5 before tax was recorded for the write-off of issuance costs related to the 2013 facility. All obligations of AIO under the 2015 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) fully guaranteed on an unsecured basis by the Company. The obligations of AIO and the subsidiary guarantors are secured by first priority liens on and security interest in substantially all of the assets of AIO and the subsidiary guarantors, in each case, subject to certain exceptions. The 2015 facility will terminate in June 2020; provided, however, that it shall terminate on the 91 st day prior to the maturity of the 6.50% Notes (as defined above) and the 4.60% Notes (as defined above), if on such 91 st day, the applicable notes are not redeemed, repaid, discharged, defeased or otherwise refinanced in full. The 2015 facility contains affirmative and negative covenants, which are customary for secured financings of this type, as well as financial covenants (interest coverage and total leverage ratios). As of December 31, 2017, we were in compliance with our interest coverage and total leverage ratios under the 2015 facility, as amended. The amount of the facility available to be drawn down on is reduced by any standby letters of credit granted by AIO, which, as of December 31, 2017, was approximately $38 . As of December 31, 2017, based on then applicable interest rates, the entire amount of the remaining 2015 facility, which is approximately $362 , could have been drawn down without violating any covenant. Letters of Credit At December 31, 2017 and December 31, 2016 , we also had letters of credit outstanding totaling $37.7 and $45.9 , respectively. The balances at December 31, 2017 and 2016 primarily relate to letters of credit issued to lessors of certain equipment, a lease for which was transferred to New Avon in connection with the separation of the Company's North America business. The balances at December 31, 2017 and December 31, 2016 also include letters of credit which guarantee various insurance activities. Long-Term Credit Ratings Our long-term credit ratings are: Moody’s ratings of Stable Outlook with B1 for corporate family debt, B3 for senior unsecured debt, and Ba1 for our Senior Secured Notes; S&P ratings of Stable Outlook with B for corporate family debt and senior unsecured debt and BB- for our Senior Secured Notes; and Fitch rating of Negative Outlook with B+, each of 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, and less favorable covenants and financial terms under our financing arrangements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 and 2016: Foreign Currency Translation Adjustments Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2016 $ (910.9 ) $ (4.3 ) $ (120.2 ) $ 2.2 $ (1,033.2 ) Other comprehensive income other than reclassifications 81.3 — 8.9 1.2 91.4 Reclassifications into earnings: Amortization of net actuarial loss and prior service cost, net of tax of $.8 (1) — — 15.6 — 15.6 Total reclassifications into earnings — — 15.6 — 15.6 Balance at December 31, 2017 $ (829.6 ) $ (4.3 ) $ (95.7 ) $ 3.4 $ (926.2 ) Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2015 $ (950.0 ) $ (1.3 ) $ (4.3 ) $ (410.6 ) $ — $ (1,366.2 ) Other comprehensive (loss) income other than reclassifications (34.9 ) — — 3.1 2.2 (29.6 ) Reclassifications into earnings: Derivative losses on cash flow hedges, net of tax of $2.7 (2) — 1.3 — — — 1.3 Amortization of net actuarial loss and prior service cost, net of tax of $.7 (1) — — — 17.3 — 17.3 Deconsolidation of Venezuela, net of tax of $0.0 81.3 — — .8 — 82.1 Separation of North America, net of tax of $10.2 (10.0 ) — — 269.2 — 259.2 Closure of Thailand market 2.7 — — — — 2.7 Total reclassifications into earnings 74.0 1.3 — 287.3 — 362.6 Balance at December 31, 2016 $ (910.9 ) $ — $ (4.3 ) $ (120.2 ) $ 2.2 $ (1,033.2 ) (1) Gross amount reclassified to pension and postretirement expense, within selling, general and administrative expenses, and related taxes reclassified to income taxes. (2) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. Foreign exchange net gain of $16.3 for 2017 and net losses of $ 23.7 and $21.9 for 2016 and 2015, respectively, resulting from the translation of actuarial losses and prior service cost recorded in AOCI, are included in changes in foreign currency translation adjustments in our Consolidated Statements of Comprehensive Income (Loss). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: 2017 2016 2015 United States $ (147.6 ) $ (403.0 ) $ (230.3 ) Foreign 268.3 434.2 253.0 Total $ 120.7 $ 31.2 $ 22.7 The provision for income taxes for the years ended December 31 was as follows: 2017 2016 2015 Federal: Current $ — $ — $ — Deferred (34.0 ) — 668.3 Total Federal (34.0 ) — 668.3 Foreign: Current 130.6 128.5 173.9 Deferred 3.8 (4.2 ) (24.3 ) Total Foreign 134.4 124.3 149.6 State and Local: Current .3 .3 .7 Deferred — — .6 Total State and other .3 .3 1.3 Total $ 100.7 $ 124.6 $ 819.2 The effective tax rate for the years ended December 31 was as follows: 2017 2016 2015 Statutory federal rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit .2 .6 2.5 Tax on foreign income 6.0 (24.4 ) 141.4 Tax on uncertain tax positions (3.6 ) 34.1 8.2 Venezuela deconsolidation, devaluation and highly inflationary accounting — 23.9 168.1 Reorganizations — (93.6 ) (173.5 ) U.S. Tax Reform (24.7 ) — — Net change in valuation allowances 62.4 375.1 3,395.6 Imputed royalties and associated non-deductible expenses 9.5 50.3 41.2 Research credits (1.3 ) (5.4 ) (8.9 ) Other (.1 ) 3.8 (.8 ) Effective tax rate 83.4 % 399.4 % 3,608.8 % As a result of the enactment of the Tax Cuts and Jobs Act in the U.S., the Company recognized a net income tax benefit of $ 29.9 associated with the following items which are reflected in the “U.S. Tax Reform” line above: $ 33.5 for a valuation allowance release associated with minimum tax credits which can be utilized and/or refunded in the future and $ 3.6 for an uncertain tax position for potential withholding taxes on the repatriation of unremitted earnings. In addition, there was no impact on our financial position or results associated with each of the following: a write-off of deferred tax assets due to the rate change from 35% to 21% and their associated valuation allowance of $ 161.4 ; a reversal of deferred tax liabilities and recording of a valuation allowance of $ 66.7 associated with unremitted earnings; establishment of deferred tax assets for other miscellaneous withholding tax items and their associated valuation allowance of $ 5.5 ; and a one-time tax on offshore earnings and the associated utilization of foreign tax credits of $ 2.9 . Included in the net change in valuation allowance above, we released valuation allowances of $25.5 associated with a number of markets in Europe, Middle East & Africa as a result of a business model change related to the move of the Company's headquarters from the U.S. to the UK. In the fourth quarter of 2015, the Company recognized a benefit of $18.7 associated with the initial stages of implementation of foreign tax planning strategies which is reflected within the "Reorganizations" line above. We completed the implementation of these tax planning strategies and recognized an additional benefit of $29.3 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: 2017 2016 Deferred tax assets: Tax loss and deduction carryforwards $ 2,022.1 $ 2,033.0 Tax credit carryforwards 981.0 874.0 All other future deductions 471.0 744.0 Valuation allowance (3,217.7 ) (3,296.0 ) Total deferred tax assets 256.4 355.0 Deferred tax liabilities $ (74.9 ) $ (215.1 ) Net deferred tax assets $ 181.5 $ 139.9 Deferred tax assets (liabilities) at December 31 were classified as follows: 2017 2016 Deferred tax assets: Other assets $ 203.8 $ 162.1 Total deferred tax assets 203.8 162.1 Deferred tax liabilities: Long-term income taxes $ (22.3 ) $ (22.2 ) Total deferred tax liabilities (22.3 ) (22.2 ) Net deferred tax assets $ 181.5 $ 139.9 At December 31, 2017, we had recognized deferred tax assets of $981.0 relating to tax credit carryforwards (U.S. foreign tax credits, minimum tax credits, research and experimentation credits and other tax credits) for which a valuation allowance of $946.7 has been provided. The tax credit carryforwards consist of U.S. foreign tax credits of $912.6 which are subject to expiration between 2018 and 2027 ; U.S. minimum tax credits of $35.9 which are not subject to expiration; U.S. research and experimentation credits of $19.6 which are subject to expiration between 2027 and 2037 and other tax credits of $12.9 which are subject to expiration between 2018 and 2032 . At December 31, 2017, we had recognized deferred tax assets of $2,022.1 relating to foreign and state tax loss carryforwards for which a valuation allowance of $1,961.5 has been provided. The deferred tax assets relating to tax loss carryforwards consist of $1,922.2 of foreign tax loss carryforwards, for which a valuation allowance of $1,861.6 has been provided, and $99.9 of state tax loss carryforwards, for which a valuation allowance of $99.9 has been provided. The foreign tax loss carryforwards at December 31, 2017 were $7,448.4 , of which $7,060.4 are not subject to expiration and $388.0 are subject to expiration between 2018 and 2034 . The state tax loss carryforwards at December 31, 2017, after taking into consideration the estimated effects of pre-apportionment states, were $1,512.4 which are subject to expiration between 2018 and 2037 . At December 31, 2017, as a result of our U.S. liquidity profile, we continue to assert that our foreign earnings are not indefinitely reinvested. Accordingly, we adjusted our deferred tax liability to account for our 2017 undistributed earnings of foreign subsidiaries and for the tax effect of earnings that were actually repatriated to the U.S. during the year. The net impact on the deferred tax liability associated with the Company’s undistributed earnings is a decrease of $64.4 , resulting in a deferred tax liability balance of $22.6 related to the incremental tax cost on approximately $1.5 billion of undistributed foreign earnings at December 31, 2017. The $64.4 decrease was primarily a result of the enactment of the Tax Cuts and Jobs Act in the U.S. At December 31, 2017, the valuation allowance primarily represents amounts for substantially 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. Following a valuation allowance recorded in 2014 to reduce our U.S. deferred tax assets to an amount that is "more likely than not" to be realized, during 2015, the Company recorded an additional valuation allowance for the remaining U.S. deferred tax assets of $669.7 . 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 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 from intercompany transactions and consequently, 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. Uncertain Tax Positions At December 31, 2017 , we had $48.6 of total gross unrecognized tax benefits of which approximately $46.0 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, 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 (.4 ) Reductions due to settlements with tax authorities (11.0 ) Balance at December 31, 2015 53.0 Additions based on tax positions related to the current year 1.8 Additions for tax positions of prior years 9.4 Reductions for tax positions of prior years (2.8 ) Reductions due to lapse of statute of limitations (.7 ) Reductions due to settlements with tax authorities (2.0 ) Balance at December 31, 2016 58.7 Additions based on tax positions related to the current year 1.4 Additions for tax positions of prior years 17.6 Reductions for tax positions of prior years (7.9 ) Reductions due to lapse of statute of limitations (3.1 ) Reductions due to settlements with tax authorities (18.0 ) Balance at December 31, 2017 $ 48.6 We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. We did not record any expenses for interest and penalties, net of taxes during the year ended December 31, 2017, and recorded expenses $2.5 and $ 2.8 for interest and penalties, net of taxes during the years ended December 31, 2016 and 2015, respectively. At December 31, 2017 and December 31, 2016 we had $9.9 and $9.3 , respectively, recorded for interest and penalties, net of tax benefit. The unrecognized tax benefits, including interest and penalties, were classified within long-term income taxes in our Consolidated Balance Sheets. We file income tax returns in the U.S. and foreign jurisdictions. As of December 31, 2017, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: Jurisdiction Open Years Brazil 2012-2017 Mexico 2012-2017 Philippines 2014-2017 Poland 2012-2017 Russia 2014-2017 United Kingdom 2016-2017 United States (Federal) 2016-2017 We anticipate that it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $5 to $8 within the next twelve months due to the closure of tax years by expiration of the statute of limitations, audit closures and settlements Given the timing of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, the SEC issued guidance under SAB 118 directing taxpayers to consider the impact of the new legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effects resulting from the change in law. Except for the impact of remeasuring our deferred tax assets at the 21% rate, we accounted for all other impacts of the new legislation, including but not limited to effects on existing deferred taxes and valuation allowances, a one-time tax on offshore earnings, potential changes to and impact of our indefinite reinvestment assertion, and the measurement of deferred taxes on foreign unremitted earnings, on a provisional basis on our financial statements. The amounts reported represent our best estimate given the data we have available and based on our interpretation of the U.S. legislation. The U.S. Treasury is expected to issue guidance on the application of certain provisions that may impact our calculations. We are still accumulating data to finalize the underlying calculations and will finalize these provisional amounts, taking into account any clarifying interpretations expected from Treasury, by December 22, 2018 in accordance with SAB 118. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
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 transactions. We do not enter into derivative financial instruments for trading or speculative purposes, nor are we a party to leveraged derivatives. The master agreements governing our derivative contracts generally contain standard provisions that could trigger early termination of the contracts in certain circumstances, 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 in our Consolidated Balance Sheets at their fair values. The derivative instruments outstanding were immaterial at December 31, 2017 and 2016. 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. At December 31, 2017 and 2016, we do not have any interest-rate swap agreements. Approximately 1% of our debt portfolio at December 31, 2017 and 2016, 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 was amortized as a reduction to interest expense over the remaining term of the underlying debt obligations. During the year ended December 31, 2016, the net impact of the gain amortization was $ 35.4 , including $23.6 related to the extinguishment of debt (see Note 7, Debt and Other Financing). At December 31, 2017, there is no unamortized deferred gain associated with the January 2013 interest-rate swap termination, as the underlying debt obligations have been paid. 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. During the years ended December 31, 2017 and 2016, the net impact of the gain amortization was $4.9 and $11.9 , respectively, including $5.8 related to the extinguishment of debt during the year ended December 31, 2016 (see Note 7, Debt and Other Financing). At December 31, 2017, the unamortized deferred gain associated with the March 2012 interest-rate swap termination was $6.0 , and was classified within long-term debt in our Consolidated Balance Sheets. 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 our Consolidated Statements of Operations over five years and $18.8 were being amortized over ten years. During the year ended December 31, 2016, we accelerated the recognition of $2.6 of the losses on the 2007 locks related to the extinguishment of debt (see Note 7, Debt and Other Financing). As a result, there are no more unamortized deferred losses relating to the treasury lock agreements in AOCI. For the year ended December 31, 2016 , treasury lock agreements impacted AOCI as follows: 2016 Pre-tax net unamortized deferred losses at beginning of year (1) $ (4.0 ) Reclassification of net losses to earnings 4.0 Pre-tax net unamortized deferred losses at end of year $ — (1) Amounts above exclude taxes of $2.7 at the beginning of year in 2016. Foreign Currency Risk We may use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At December 31, 2017 , we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $39 for various currencies. We may 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 the years ended December 31, 2017 and 2016 , we recorded a gain of $3.0 and and a loss of $13.5 , respectively, in other expense, net in our Consolidated Statements of Operations related to these undesignated foreign exchange forward contracts. Also during the years ended December 31, 2017 and 2016 , we recorded a loss of $5.2 and a gain of $10.4 , respectively, related to the associated 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 $.2 at December 31, 2017 . 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, 2017 | |
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 Other than our defined benefit pension and postretirement plan assets, the assets and liabilities measured at fair value on a recurring basis are comprised of foreign exchange forward contracts (see Note 10, Financial Instruments and Risk Management) and available-for-sale securities, which were immaterial at December 31, 2017 and 2016. See Note 13, Employee Benefit Plans, for the fair value hierarchy for our plan assets. The available-for-sale securities include securities held in a trust in order to fund future benefit payments for non-qualified retirement plans (see Note 13, Employee Benefit Plans). Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, available-for-sale securities, short-term investments, accounts receivable, debt maturing within one year, accounts payable, long-term debt and foreign exchange forward contracts. The carrying value for cash and cash equivalents, accounts receivable, accounts payable and short-term investments approximate fair value because of the short-term nature of these instruments. The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at December 31 consisted of the following: 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 3.7 $ 3.7 $ 2.8 $ 2.8 Debt maturing within one year (1) (25.7 ) (25.7 ) (18.1 ) (18.1 ) Long-term debt (1) (1,872.2 ) (1,718.6 ) (1,875.8 ) (1,877.5 ) Foreign exchange forward contracts — — (2.4 ) (2.4 ) (1) The carrying value of debt maturing within one year and long-term debt is presented net of debt issuance costs and 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, 2017 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans The Avon Products, Inc. 2013 Stock Incentive Plan, as amended and restated (the “2013 Plan”) and the Avon Products, Inc. 2016 Omnibus Incentive Plan (the "2016 Plan"), which are shareholder-approved plans, provide for several types of share-based incentive compensation awards including stock options, restricted stock, restricted stock units and performance restricted stock units. Following shareholder approval of the 2016 Plan in May 2016, there were no further awards made under the 2013 Plan. 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 stock appreciation right ("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. Under the 2016 Plan, the maximum number of shares that may be awarded is 48,000,000 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 2.4 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 under the 2016 Plan, and restricted stock units and performance restricted stock units under the 2013 Plan and the 2016 Plan. We also have outstanding stock options under our prior shareholder-approved plans. Stock option awards are granted with an exercise price generally equal to the closing market price of our stock at the date of grant. Stock options generally vest in thirds over the three -year period following each option grant date and have ten -year contractual terms. Restricted stock units granted to Associates generally vest and settle after three years. Restricted stock units awarded to non-management directors vest in approximately one year and settle upon a director's departure from the Board of Directors. Performance restricted stock units generally vest after three years only upon the satisfaction of certain performance conditions. For the years ended December 31: 2017 2016 2015 Compensation cost for stock options, performance restricted stock units and restricted stock units $ 24.2 $ 24.0 $ 51.2 Total income tax benefit recognized for share-based arrangements 1.4 1.9 4.1 All of the compensation cost for stock options, performance restricted stock units and restricted stock units, including those that will be funded with treasury shares, for 2017 , 2016 and 2015 was recorded in selling, general and administrative expenses in our Consolidated Statements of Operations. Stock Options During 2017 and 2016, we granted premium-priced stock options, in which the exercise price was equal to a 25% premium and 30% premium, respectively, from the closing market price of our stock price at the date of grant. The premium-priced stock options vest on a three-year graded vesting schedule. The fair value of each premium-priced stock option is estimated on the date of grant using a Monte-Carlo simulation. When estimating the fair value of each option, we used the following weighted-average assumptions for options granted during the years ended December 31, 2017 and 2016: 2017 2016 Risk-free rate (1) 2.1% 1.6% Expected term (2) 7 years 7 years Expected Avon volatility (3) 41% 39% Expected dividends —% —% (1) The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. (2) The expected term of the option was based on the vesting terms of the respective option and a contractual life of 10 years. (3) Expected Avon volatility was based on the daily historical volatility of our stock price, over a period similar to the expected life of the option. The weighted-average grant-date fair value per share of options granted were $1.54 and $1.37 during 2017 and 2016, respectively. There were no stock options granted during 2015. A summary of stock options as of December 31, 2017 , and changes during 2017 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 14,824 $ 20.09 Granted 6,785 5.32 Exercised — — Forfeited 2,505 5.52 Expired 1,939 34.50 Outstanding at December 31, 2017 17,165 $ 14.95 5.6 $ — Exercisable at December 31, 2017 8,518 $ 22.27 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, 2017 , there was $4.8 of unrecognized compensation cost related to stock options outstanding. That cost is expected to be recognized over a weighted-average period of 2.0 years. There were no stock options exercised during 2017, 2016 or 2015. Restricted Stock, Restricted Stock Units and Performance Restricted Stock Units During 2017 and 2016, we granted performance restricted stock units that would vest and settle after three years based on the relative total shareholder return of our common stock against companies included in the S&P 400 index as of the date of grant over a three year performance period ("2017 PRSUs" and "2016 PRSUs", respectively). The grant date fair value per share of these awards already reflects the estimated probability of achieving the market condition, and therefore we record the expense ratably over the performance period. During 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. We have adjusted the compensation cost recognized to-date to reflect our performance, which reflects an estimated payout below target, and as such, the absolute total shareholder return market condition will not impact the number of performance restricted stock units that vest. The fair value of the 2017 PRSUs, 2016 PRSUs and 2015 PRSUs was estimated on the date of grant using a Monte-Carlo simulation that estimates the fair value based on the Company's share price activity, expected term of the award, risk-free interest rate, expected dividends and the expected volatility of the stock of the Company. When estimating the fair value of the 2017 PRSUs, 2016 PRSUs and the 2015 PRSUs, we used the following weighted-average assumptions: 2017 PRSUs 2016 PRSUs 2015 PRSUs Risk-free rate (1) 1.6% 1.1% 1.1% Expected Avon volatility (2) 61% 56% 38% Expected average volatility (3) 29% 28% N/A Expected dividends —% —% 3% (1) The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. (2) Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs and the three year service period of the 2015 PRSUs. (3) Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs. The weighted-average grant-date fair value per share of the 2017 PRSUs, 2016 PRSUs and 2015 PRSUs was $4.52 , $4.42 and $7.49 , respectively. A summary of restricted stock and restricted stock units at December 31, 2017 , and changes during 2017 , is as follows: Restricted Stock And Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2017 5,356 $ 8.64 Granted 2,813 4.05 Vested (2,387 ) 11.41 Forfeited (978 ) 5.36 December 31, 2017 4,804 $ 5.26 A summary of performance restricted stock units at December 31, 2017 , and changes during 2017 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2017 (1) 4,922 $ 8.99 Granted 1,869 4.21 Vested (1,478 ) 14.69 Forfeited (957 ) 6.68 December 31, 2017 (1) 4,356 $ 5.50 (1) Based on initial target payout. The total fair value of restricted stock units and performance restricted stock units that vested during 2017 was $15.2 , based upon market prices on the vesting dates. At December 31, 2017 , there was $14.0 of unrecognized compensation cost related to these restricted stock, restricted stock units and performance restricted stock units compensation arrangements outstanding. That cost is expected to be recognized over a weighted-average period of 1.8 years. Later in 2015, we granted 1,123,183 performance restricted stock units that vested and settled in 2016 only upon the satisfaction of certain performance conditions through 2015. The terms of this award did not result in a fair value measurement date until 2016. During 2016 and 2015, we recognized compensation cost of $2.0 and $1.6 , respectively, for these performance restricted stock units. As this award vested and settled in 2016, no additional compensation cost was recognized in 2017. 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 our shareholder-approved plans, 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 had a weighted-average grant-date fair value of $21.69 and vested and settled ratably over five years. During 2017, 366,397 of these restricted stock units vested, and there were no restricted stock units were outstanding at December 31, 2017. During 2017, 2016 and 2015, we recognized compensation cost of $ .8 , $1.7 and $2.7 , respectively, for these restricted stock units. At December 31, 2017 , there was no unrecognized compensation cost related to these restricted stock units as the awards had vested. 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. 101,625 of these performance restricted stock units were outstanding at December 31, 2017. During 2017, 2016 and 2015, we recognized compensation cost of $ .1 , $.1 and $.2 , respectively, for these performance restricted stock units. At December 31, 2017 , there was an immaterial amount of unrecognized compensation cost related to these performance restricted stock units. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans We offer a defined contribution plan for employees in the United Kingdom ("UK"), which allows eligible participants to contribute eligible compensation through payroll deductions. We double employee contributions up to the first 5% of eligible compensation and therefore the maximum level provided by Avon is 10% of eligible compensation. We made matching contributions in cash to the UK defined contribution plan of $ 6.7 in 2017, $ 6.5 in 2016 and $ 7.6 in 2015, which follow the same investment allocation that the participant has selected for his or her own contributions. We also offer a qualified defined contribution plan for U.S.-based employees, the Avon Personal Savings Account Plan (the "PSA"), which allows eligible participants to contribute up to 25% of eligible compensation through payroll deductions. We match employee contributions dollar for dollar up to the first 3% of eligible compensation and fifty cents for each dollar contributed from 4% to 6% of eligible compensation. We made matching contributions in cash to the PSA of $2.6 in 2017 , $3.8 in 2016 and $4.0 in 2015 , which follow the same investment allocation that the participant has selected for his or her own contributions. Prior to the separation of the North America business, the costs associated with the contributions to the PSA were allocated between Discontinued Operations and Global as the plan included both North America and U.S. Corporate Avon associates. See Note 3, Discontinued Operations and Divestitures. For U.S.-based employees hired on or after January 1, 2015, we made additional contributions to a Retirement Savings Account ("RSA") within the PSA. Such contributions will range from 3% to 6% of a participant's eligible compensation depending on the sum of the participant's age and length of service (as of December 31 of the prior year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own contributions to the PSA. A participant will be vested in the RSA generally after 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. Our largest non-U.S. defined benefit pension plan is in the UK. The UK defined benefit pension plan is closed to employees hired on or after April 1, 2013. The U.S. defined benefit pension plan, the Avon Products, Inc. Personal Retirement Account Plan (the "PRA"), is closed to employees hired on or after January 1, 2015. Qualified retirement benefits for U.S.-based employees hired on or after January 1, 2015 will be provided solely through the PSA, as described above. As part of the separation of the North America business, in 2016 we transferred $499.6 of pension liabilities under the PRA associated with current and former employees of the North America business and certain other former Avon employees, along with $355.9 of assets held by the PRA, to a defined benefit pension plan sponsored by New Avon. We also transferred $60.4 of other postretirement liabilities (namely, retiree medical and supplemental pension liabilities) in respect of such employees and former employees. See Note 3, Discontinued Operations and Divestitures. We continue to retain certain U.S. pension and other postretirement liabilities primarily associated with employees who are actively employed by Avon in the U.S. providing services other than with respect to the North America business. 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 as the plan included both North America and U.S. Corporate Avon associates. We provide health care benefits, subject to certain limitations, to certain retired associates in the U.S. and certain foreign countries. In the U.S., such health care benefits for Corporate Avon associates hired on or before January 1, 2005 are in the form of a health reimbursement account. U.S. Corporate Avon associates hired after January 1, 2005 are not eligible for retiree health care benefits. Such retiree health care benefits for current and former employees of the North America business and certain other former Avon employees based in the U.S. were transferred to New Avon. We recognize the funded status of defined benefit pension and other postretirement benefit plans on the balance sheet. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over 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 2017 2016 2017 2016 2017 2016 Change in Benefit Obligation: Beginning balance $ (87.6 ) $ (606.8 ) $ (652.9 ) $ (667.7 ) $ (26.0 ) $ (76.6 ) Service cost (4.3 ) (6.4 ) (4.6 ) (5.0 ) (.1 ) (.1 ) Interest cost (3.0 ) (6.5 ) (18.0 ) (21.8 ) (1.3 ) (1.7 ) Actuarial (loss) gain .6 (7.5 ) (15.5 ) (95.9 ) .3 2.6 Benefits paid 5.4 26.0 42.5 37.3 .4 1.4 Plan amendments — — — — — (1.0 ) Curtailments — .2 — 1.0 — — Settlements — — — — — — Special termination benefits — — — — — (.1 ) Divestitures — 509.9 — — — 50.1 Venezuela deconsolidation — — — 1.5 — — Foreign currency changes and other — 3.5 (65.7 ) 97.7 (1.5 ) (.6 ) Ending balance $ (88.9 ) $ (87.6 ) $ (714.2 ) $ (652.9 ) $ (28.2 ) $ (26.0 ) Change in Plan Assets: Beginning balance $ 51.4 $ 408.3 $ 613.7 $ 576.3 $ — $ — Actual return on plan assets 5.5 .7 49.9 153.6 — — Company contributions 11.6 26.6 19.7 20.0 .4 1.4 Benefits paid (5.4 ) (26.0 ) (42.5 ) (37.3 ) (.4 ) (1.4 ) Divestitures — (355.9 ) — — — — Foreign currency changes and other — (2.3 ) 64.6 (98.9 ) — — Ending balance $ 63.1 $ 51.4 $ 705.4 $ 613.7 $ — $ — Funded Status: Funded status at end of year $ (25.8 ) $ (36.2 ) $ (8.8 ) $ (39.2 ) $ (28.2 ) $ (26.0 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 82.0 $ 54.8 $ — $ — Accrued compensation (1.0 ) (1.7 ) (2.2 ) (1.4 ) (2.7 ) (2.4 ) Employee benefit plans liability (24.8 ) (34.5 ) (88.6 ) (92.6 ) (25.5 ) (23.6 ) Net amount recognized $ (25.8 ) $ (36.2 ) $ (8.8 ) $ (39.2 ) $ (28.2 ) $ (26.0 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 41.4 $ 49.5 $ 176.8 $ 176.5 $ 1.2 $ 1.7 Prior service credit (.2 ) (.2 ) (.9 ) (1.0 ) (1.3 ) (1.6 ) Total pretax amount recognized $ 41.2 $ 49.3 $ 175.9 $ 175.5 $ (.1 ) $ .1 Supplemental Information: Accumulated benefit obligation $ 85.9 $ 85.2 $ 199.8 $ 182.3 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 88.9 $ 87.6 $ 216.7 $ 200.8 N/A N/A Fair value plan assets 63.1 51.4 125.9 106.8 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 88.9 $ 87.6 $ 202.0 $ 182.8 N/A N/A Accumulated benefit obligation 85.9 85.2 191.9 172.8 N/A N/A Fair value plan assets 63.1 51.4 114.0 92.9 N/A N/A The U.S. pension plans include a funded qualified plan (the PRA) and unfunded non-qualified plans. At December 31, 2017, the PRA had benefit obligations of $76.7 and plan assets of $63.1 . At December 31, 2016 , the PRA had benefit obligations of $75.5 and plan assets of $51.4 . We believe we have adequate investments and cash flows to fund the liabilities associated with the unfunded non-qualified plans. The Non-U.S. pension plans include a funded qualified pension plan in the UK. At December 31, 2017, the UK qualified pension plan had benefit obligations of $494.0 and plan assets of $573.6 . At December 31, 2016, the UK qualified pension plan had benefit obligations of $448.6 and plan assets of $502.0 . 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 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Periodic Benefit Cost: Service cost $ 4.3 $ 6.4 $ 13.0 $ 4.6 $ 5.0 $ 5.3 $ .1 $ .1 $ .7 Interest cost 3.0 6.5 25.1 18.0 21.8 23.6 1.3 1.7 3.7 Expected return on plan assets (3.2 ) (8.2 ) (32.6 ) (28.2 ) (33.0 ) (36.4 ) — — — Amortization of prior service credit (.1 ) (.2 ) (.7 ) (.1 ) (.1 ) (.1 ) (.3 ) (1.2 ) (4.0 ) Amortization of net actuarial losses 5.2 10.8 43.7 7.6 6.5 8.4 .1 .3 1.8 Amortization of transition obligation — — — — — .1 — — — Settlements/curtailments — .1 27.9 3.7 .3 .5 — (.1 ) — Other — — — (.7 ) — — 1.6 — — Net periodic benefit cost (1) $ 9.2 $ 15.4 $ 76.4 $ 4.9 $ .5 $ 1.4 $ 2.8 $ .8 $ 2.2 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial (gains) losses $ (2.9 ) $ 13.6 $ 1.8 $ (7.4 ) $ (24.6 ) $ (34.2 ) $ (.3 ) $ (2.6 ) $ (5.6 ) Prior service cost (credit) — — — — — — 1.0 (9.0 ) Amortization of prior service credit .1 1.3 .7 .1 .1 .1 .3 26.7 4.0 Amortization of net actuarial losses (5.2 ) (274.4 ) (71.6 ) (11.3 ) (7.8 ) (9.1 ) (.1 ) (11.3 ) (1.8 ) Amortization of transition obligation — — — — — (.1 ) — — — Foreign currency changes — — — 18.9 (29.6 ) (19.4 ) — (.1 ) .2 Total recognized in other comprehensive (loss) income* $ (8.0 ) $ (259.5 ) $ (69.1 ) $ .3 $ (61.9 ) $ (62.7 ) $ (.1 ) $ 13.7 $ (12.2 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1.2 $ (244.1 ) $ 7.3 $ 5.2 $ (61.4 ) $ (61.3 ) $ 2.7 $ 14.5 $ (10.0 ) (1) Includes $4.4 and $53.7 of the U.S. pension plans in 2016 and 2015, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016 and 2015, 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 our Consolidated Statements of Comprehensive Income (Loss). In addition to the amounts in the table above, during the second quarter of 2017, we recorded an $18.2 charge for a loss contingency related to a non-U.S. pension plan, for which an amendment to the plan that occurred in a prior year may not have been appropriately implemented. As a result of lump-sum payments made to former employees who 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. Such payments fully settled our pension plan obligation to those participants who elected to receive such payment. These settlement charges were allocated between Global and discontinued operations. The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost during 2018 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss $ 5.2 $ 7.2 $ .1 Prior service credit — (.1 ) (.3 ) Assumptions Weighted-average assumptions used to determine benefit obligations recorded in our Consolidated Balance Sheets as of December 31 were as follows: Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits 2017 2016 2017 2016 2017 2016 Discount rate 3.48 % 3.67 % 2.56 % 2.69 % 4.75 % 5.33 % Rate of compensation increase 4.00 % 4.00 % 2.71 % 2.79 % 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 UK defined benefit pension plan and the PRA, were based on the internal rates of return for a portfolio of high-quality bonds with maturities that are consistent with the projected future benefit payment obligations of each plan. The weighted-average discount rate for U.S. and non-U.S. defined benefit pension plans determined on this basis has decreased to 2.66% at December 31, 2017 , from 2.81% at December 31, 2016 . Effective as of January 1, 2018, we are changing the method we use to estimate the service and interest cost components of net periodic benefit cost for the PRA and the majority of our significant non-U.S. pension plans, including the UK defined benefit pension plan. Historically, including in 2017, we estimated the service and interest cost components using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Beginning in 2018, we have now elected to use a full yield curve approach in the estimation of these components of net periodic benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. We have made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates, which we believe will result in a more precise measurement of service and interest costs. This change does not affect the measurement of our benefit obligation and does not impact our 2017 net periodic benefit cost. We will account for this change in estimate on a prospective basis beginning in 2018. We do not expect this change to result in a material reduction of our future net periodic benefit costs. Weighted-average assumptions used to determine net benefit cost recorded in our Consolidated Statements of Operations for the years ended December 31 were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.67 % 4.19 % 3.83 % 2.69 % 3.58 % 3.27 % 5.33 % 4.50 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.79 % 2.94 % 3.20 % N/A N/A N/A Rate of return on assets 5.50 % 7.00 % 7.25 % 5.09 % 6.40 % 6.55 % 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 generally evaluate the expected rate of return on plan assets annually and adjust as necessary. In determining the net cost for the year ended December 31, 2017 , the assumed rate of return on assets globally was 5.12% , which represents the weighted-average rate of return on all plan assets. 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 above. A significant portion of our pension plan assets relate to the UK defined benefit pension plan. The assumed rate of return for determining 2017 net periodic benefit cost for the UK defined benefit pension plan was 5.15% . In addition, the 2018 rate of return assumption for the UK defined benefit pension plan was based on an asset allocation of approximately 80% in corporate and government bonds and mortgage-backed securities (which are expected to earn approximately 2% to 4% in the long-term) and approximately 20% in equity securities, emerging market debt and high yield securities (which are expected to earn approximately 5% to 9% in the long-term). In addition to the physical assets, the asset portfolio for the UK defined benefit pension plan has derivative instruments which increase our exposure to fixed income (in order to better match liabilities) and, to a lesser extent, impact our equity exposure. Historically, the pension plan with the most significant pension plan assets was the PRA. The assumed rate of return for determining 2017 net periodic benefit cost for the PRA was 5.50% . In addition, the 2018 rate of return assumption for the PRA was based on an asset allocation of approximately 70% in corporate and government bonds (which are expected to earn approximately 3% to 5% in the long-term) and approximately 30% in equity securities (which are expected to earn approximately 6% to 8% in the long-term). Similar assessments were performed in determining rates of return on other non-U.S. defined benefit pension plan assets, to arrive at our weighted-average assumed rate of return of 5.09% for determining 2017 net cost for all non-US defined benefit pension plan assets. Plan Assets Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2017 and 2016 , 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 2018 2017 2016 2018 2017 2016 Equity securities 30 % 30 % 28 % 20 % 18 % 22 % Debt securities 70 70 69 70 77 68 Other — — 3 10 6 10 Total 100 % 100 % 100 % 100 % 100 % 100 % The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2017 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 7.4 $ 7.4 International equity — 9.7 9.7 Emerging markets — 2.0 2.0 — 19.1 19.1 Fixed Income Securities: Corporate bonds — 31.8 31.8 Government securities — 12.2 12.2 — 44.0 44.0 Cash — — — Total $ — $ 63.1 $ 63.1 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 33.9 $ — $ 33.9 International equity — 91.1 — 91.1 — 125.0 — 125.0 Fixed Income Securities: Corporate bonds — 223.9 — 223.9 Government securities — 236.0 — 236.0 Other — 79.9 — 79.9 — 539.8 — 539.8 Other Cash 29.3 — — 29.3 Derivatives — 9.8 — 9.8 Real estate — — .9 .9 Other — — .6 .6 29.3 9.8 1.5 40.6 Total $ 29.3 $ 674.6 $ 1.5 $ 705.4 The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2016 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 7.9 $ 7.9 International equity — 6.3 6.3 Emerging markets $ — 1.5 1.5 — 15.7 15.7 Fixed Income Securities: Corporate bonds — 25.7 25.7 Government securities — 9.9 9.9 — 35.6 35.6 Cash .1 — .1 Total (3) $ .1 $ 51.3 $ 51.4 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 27.7 $ — $ 27.7 International equity — 107.6 — 107.6 — 135.3 — 135.3 Fixed Income Securities: Corporate bonds — 194.8 — 194.8 Government securities — 192.8 — 192.8 Other — 32.0 — 32.0 — 419.6 — 419.6 Other: Cash 23.2 — — 23.2 Derivatives — 34.1 — 34.1 Real estate — — .9 .9 Other — — .6 .6 23.2 34.1 1.5 58.8 Total $ 23.2 $ 589.0 $ 1.5 $ 613.7 A reconciliation of the beginning and ending balances for our Level 3 investments is provided in the table below: Amount Balance at January 1, 2016 $ 1.8 Actual return on plan assets held (.2 ) Foreign currency changes (.1 ) Balance at December 31, 2016 1.5 Actual return on plan assets held (.1 ) Foreign currency changes .1 Balance at December 31, 2017 $ 1.5 Investments in equity securities classified as Level 1 in the fair value hierarchy are valued at quoted market prices. Investments in equity securities classified as Level 2 in the fair value hierarchy include collective funds that are valued at quoted market prices for non-active securities. Fixed income securities are based on broker quotes for non-active securities. Mutual funds are valued at quoted market prices. Real estate is valued by reference to investment and leasing transactions at similar types of property, supplemented by third party appraisals. Derivative instruments are not publicly traded and each derivative contract is specifically negotiated with a unique financial counterparty. The derivative instruments are valued based upon valuation statements received from the financial counterparties, which use underlying yield curves or market indices. The overall objective of the plan assets associated with the PRA and the UK defined benefit pension plan is to provide the means to pay benefits to participants and their beneficiaries in the amounts and at the times called for by the plan. This is expected to be achieved through the investment of our contributions and other trust assets and by utilizing investment policies designed to achieve adequate funding over a reasonable period of time. In some of our defined benefit pension plans, we have adopted investment strategies which are designed to match the movements in the pension liability through an increased allocation towards debt securities. In addition, we also utilize derivative instruments in our UK defined benefit pension plans to 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. Pension trust assets are invested so as to achieve a return on investment, based on levels of liquidity and investment risk that are prudent and reasonable as circumstances change from time to time. While we recognize the importance of the preservation of capital, we also adhere to the theory of capital market pricing which maintains that varying degrees of investment risk should be rewarded with compensating returns. Consequently, prudent risk-taking is justifiable. The asset allocation decision includes consideration of the non-investment aspects of the PRA and the UK defined benefit pension plan, including future retirements, lump-sum elections, growth in the number of participants, company contributions, and cash flow. These characteristics of the plan place certain demands upon the level, risk, and required growth of trust assets. We regularly conduct analyses of the plan’s current and likely future financial status by forecasting assets, liabilities, benefits and company contributions over time. In so doing, the impact of alternative investment policies upon the plan’s financial status is measured and an asset mix which balances asset returns and risk is selected. Our decision with regard to asset mix is reviewed periodically. Asset mix guidelines include target allocations and permissible ranges for each asset category. Assets are monitored on an ongoing basis and rebalanced as required to maintain an asset mix within the permissible ranges. The guidelines will change from time to time, based on an ongoing evaluation of the factors discussed above. Cash flows We expect to make contributions related to continuing operations in the range of $10 to $15 to our 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 2018 . 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 2018 $ 13.1 $ 29.7 $ 42.8 $ 2.7 2019 9.6 30.5 40.1 2.6 2020 8.6 31.5 40.1 2.6 2021 8.3 32.2 40.5 2.5 2022 7.9 44.6 52.5 2.4 2023-2027 26.6 227.1 253.7 10.0 Postemployment Benefits We provide postemployment benefits, which include salary continuation, severance benefits, disability benefits and continuation of health care benefits to eligible former employees. The accrued cost for such postemployment benefits was $9.7 and $15.0 at December 31, 2017 and 2016, respectively, and was included in employee benefit plans in our Consolidated Balance Sheets. Supplemental Retirement Programs In the U.S., in addition to qualified retirement plans (i.e., the PSA and the PRA), we also maintain unfunded non-qualified plans. We offer a non-qualified deferred compensation plan, the Avon Products, Inc. Deferred Compensation Plan (the "DCP"), for certain higher paid key employees. The DCP is an unfunded, unsecured plan for which obligations are paid to participants out of our general assets. The DCP allows for the deferral of up to 50% of a participant’s base salary, the deferral of up to 100% of incentive compensation bonuses, and the deferral of contributions that would normally have been made to the PSA but are not deferred because the amount was in excess of U.S. Internal Revenue Code limits on contributions to the PSA. Participants may elect to have their deferred compensation invested in one or more of three permitted investment alternatives. Expense associated with the DCP was $1.4 in 2017 , $1.0 in 2016 and $.5 in 2015 . The benefit obligation under the DCP was $21.0 at December 31, 2017 and $26.1 at December 31, 2016 and was included in other liabilities and accrued compensation in our 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 ("BRP"). under which non-qualified supplemental pension benefits are paid to higher paid key employees in addition to amounts received under our qualified defined benefit retirement plan, which is subject to IRS limitations on covered compensation. The SERP has not been offered to new employees in the last eight years, and the BRP is closed to employees hired on or after January 1, 2015 in conjunction with the closure of the PRA. The annual cost of these programs has been included in the determination of the net periodic benefit cost shown previously and amounted to $3.0 in 2017 , $3.9 in 2016 and $6.3 in 2015 . The benefit obligation under these programs was $12.3 at December 31, 2017 and $12.1 at December 31, 2016 and was included in employee benefit plans and accrued compensation in our Consolidated Balance Sheets. We also maintain a Supplemental Life Plan ("SLIP") under which additional death benefits ranging from $.4 to $2.0 are provided to certain active and retired officers. The SLIP has not been offered to new officers in over seven 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: 2017 2016 Corporate-owned life insurance policies $ 36.0 $ 34.9 Cash and cash equivalents 1.1 .3 Total $ 37.1 $ 35.2 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 our Consolidated Statements of Operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Information | Segment Information Our reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. The segments have similar business characteristics and each offers similar products through similar customer access methods. 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 segment profits or losses. Segment revenues primarily reflect direct sales of products to Representatives based on the Representative’s geographic location. We determine segment profit by deducting the related costs and expenses from segment revenue. In order to ensure comparability between periods, segment profit includes an allocation of global marketing expenses based on actual revenues. Segment profit excludes global expenses other than the allocation of marketing, costs to implement ("CTI") restructuring initiatives (see Note 16, Restructuring Initiatives), a loss contingency related to a non-U.S. pension plan (see Note 13, Employee Benefit Plans), certain significant asset impairment charges (see Note 19, Goodwill), and other items, which are not allocated to a particular segment, if applicable. This is consistent with the manner in which we assess our performance and allocate resources. Other operating segments and business activities include the business results for Liz Earle, which was sold in July 2015, Venezuela, as it was deconsolidated effective March 31, 2016, as well as markets that have been exited. Effective in the first quarter of 2017, given that we exited Thailand during 2016, the results of Thailand are now reported in Other operating segments and business activities for all periods presented, while previously the results had been reported in Asia Pacific. Other operating segments and business activities also include revenue from the sale of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016 and ongoing royalties from the licensing of our name and products. Summarized financial information concerning our reportable segments as of December 31 is shown in the following tables: Total Revenue 2017 2016 2015 Europe, Middle East & Africa $ 2,126.5 $ 2,138.2 $ 2,229.2 South Latin America 2,222.4 2,145.9 2,309.6 North Latin America 811.8 829.9 901.0 Asia Pacific 518.3 549.7 616.8 Total segment revenue 5,679.0 5,663.7 6,056.6 Other operating segments and business activities 36.6 54.0 103.9 Total revenue $ 5,715.6 $ 5,717.7 $ 6,160.5 Operating Profit 2017 2016 2015 Segment Profit Europe, Middle East & Africa $ 330.6 $ 329.9 $ 311.2 South Latin America 194.1 200.5 238.9 North Latin America 81.8 114.4 107.2 Asia Pacific 47.7 60.6 69.4 Total segment profit 654.2 705.4 726.7 Other operating segments and business activities 5.2 5.3 16.1 Unallocated global expenses (307.7 ) (338.6 ) (391.2 ) CTI restructuring initiatives (60.2 ) (77.4 ) (49.1 ) Loss contingency (18.2 ) — — Legal settlement (1) — 27.2 — Venezuelan special items — — (120.2 ) Pension settlement charge — — (7.3 ) Other items — — (3.1 ) Asset impairment and other charges — — (6.9 ) Operating profit $ 273.3 $ 321.9 $ 165.0 (1) In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ( $27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016. Total Assets 2017 2016 2015 Europe, Middle East & Africa $ 1,190.5 $ 949.3 $ 909.9 South Latin America 1,273.6 1,306.3 1,126.8 North Latin America 335.8 344.4 368.3 Asia Pacific 296.9 295.4 315.0 Total from reportable segments 3,096.8 2,895.4 2,720.0 Total from discontinued operations (2) — 1.3 371.2 Other operating segments .9 2.9 50.5 Global 600.2 519.3 628.7 Total assets (2) $ 3,697.9 $ 3,418.9 $ 3,770.4 (2) Total assets from discontinued operations and total assets at December 31, 2015 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 2017 2016 2015 Europe, Middle East & Africa $ 29.4 $ 18.8 $ 17.2 South Latin America 35.4 39.2 42.0 North Latin America 12.9 11.7 9.7 Asia Pacific 2.3 4.5 3.5 Total from reportable segments 80.0 74.2 72.4 Other operating segments — — 4.8 Global 17.3 18.8 15.2 Total capital expenditures $ 97.3 $ 93.0 $ 92.4 Depreciation and Amortization 2017 2016 2015 Europe, Middle East & Africa $ 29.9 $ 28.2 $ 29.0 South Latin America 34.3 30.9 34.2 North Latin America 13.6 13.1 14.2 Asia Pacific 9.3 11.1 13.4 Total from reportable segments 87.1 83.3 90.8 Other operating segments — .6 4.6 Global 26.9 30.0 30.7 Total depreciation and amortization $ 114.0 $ 113.9 $ 126.1 Total Revenue by Major Country A major country is defined as one with total revenues greater than 10% of consolidated total revenues. 2017 2016 2015 Brazil $ 1,263.8 $ 1,220.4 $ 1,252.6 All other 4,451.8 4,497.3 4,907.9 Total $ 5,715.6 $ 5,717.7 $ 6,160.5 Long-Lived Assets by Major Country A major country is defined as one with long-lived assets greater than 10% of consolidated long-lived assets, and also includes our country of domicile (the U.S.). Long-lived assets primarily include property, plant and equipment associated with our continuing operations. Long-lived assets in Brazil 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. 2017 2016 2015 Brazil $ 396.9 $ 400.9 $ 302.7 U.S. 174.4 196.1 225.9 All other 554.3 559.9 597.3 Total $ 1,125.6 $ 1,156.9 $ 1,125.9 |
Leases and Commitments Leases a
Leases and Commitments Leases and Commitments (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2018 $ 60.2 $ 190.1 2019 49.5 142.0 2020 39.0 79.3 2021 29.2 39.2 2022 27.1 19.9 Later years 66.6 8.6 Sublease rental income (75.5 ) N/A Total $ 196.1 $ 479.1 Rent expense was $66.2 in 2017 , $75.0 in 2016 and $74.4 in 2015 . Plant construction, expansion and modernization projects with an estimated cost to complete of $33.0 were in progress at December 31, 2017 . |
Restructuring Initiatives
Restructuring Initiatives | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives Transformation Plan In January 2016, we initiated a transformation plan ("the Transformation Plan"), which included cost reduction efforts to continue to improve our cost structure and to enable us to reinvest in growth. Under this plan, we had 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 were expected to be achieved through restructuring actions, as well as other cost-savings strategies that would not result in restructuring charges. We have reinvested and continue to 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 had initiated the Transformation Plan in an attempt to enable us to achieve our long-term goals of mid-single-digit constant-dollar revenue growth and low double-digit operating margin. As part of the Transformation Plan, we identified certain actions, that we believe will reduce ongoing costs, primarily consisting of global headcount reductions relating to operating model changes, as well as the closure of Australia, New Zealand and Thailand, which were smaller, under-performing markets. The operating model changes include the streamlining of our corporate functions to align with the current and future needs of the business and an information technology infrastructure outsourcing initiative. As a result of the restructuring actions approved-to-date, we have recorded total costs to implement these restructuring initiatives of $166.9 before taxes, of which $60.8 was recorded during the year ended December 31, 2017, in our Consolidated Statements of Operations. The additional charges not yet incurred associated with the restructuring actions approved to-date of approximately $15 to $20 before taxes are expected to be recorded primarily in 2018. At this time we are unable to quantify the total costs to implement the restructuring initiatives that will be incurred through the time the Transformation Plan is fully implemented as we have not yet identified all actions to be taken. Restructuring Charges - 2017 During the year ended December 31, 2017, we recorded costs to implement of $60.8 related to the Transformation Plan, in our Consolidated Statements of Operations. The costs consisted of the following: • net charge of $ 26.9 for employee-related costs, including severance benefits, of which $7.9 was associated with the closure of the Australia and New Zealand markets; • contract termination and other net charges of $ 27.3 , associated with vacating our previous corporate headquarters, including the impairment of fixed assets; • implementation costs of $ 4.1 primarily related to professional service fees; • accelerated depreciation of $ 1.9 ; and • inventory write-off of $ .6 primarily associated with the closure of the Australia and New Zealand markets. Of the total costs to implement during the year ended December 31, 2017, $ 60.2 was recorded in selling, general and administrative expenses and $ .6 was recorded in cost of sales. Restructuring Charges - 2016 During the year ended December 31, 2016, we recorded costs to implement of $83.7 related to the Transformation Plan, in our Consolidated Statements of Operations. The costs consisted of the following: • net charge of $62.6 for employee-related costs, including severance benefits; • contract termination and other net charges of $8.7 ; • implementation costs of $7.4 primarily related to professional service fees; • charge of $2.7 due to the accumulated foreign currency translation adjustments associated with the closure of the Thailand market; • accelerated depreciation of $1.9 ; and • inventory write-off of $.4 . Of the total costs to implement during the year ended December 31, 2016, $83.3 was recorded in selling, general and administrative expenses and $.4 was recorded in cost of sales. Restructuring Charges - 2015 During 2015, we recorded costs to implement of $22.4 related to the Transformation Plan in selling, general and administrative expenses, in our Consolidated Statements of Operations. The costs consisted of $21.4 of employee-related costs due to severance benefits and $1.0 of implementation costs for professional service fees. The liability balance for the Transformation Plan at December 31, 2017 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total 2015 charges $ 21.4 $ — $ — $ — $ 21.4 Balance at December 31, 2015 $ 21.4 $ — $ — $ — $ 21.4 2016 charges 73.4 .4 2.7 8.7 85.2 Adjustments (10.8 ) — — — (10.8 ) Cash payments (34.6 ) — — (5.9 ) (40.5 ) Non-cash write-offs — (.4 ) (2.7 ) — (3.1 ) Foreign exchange (.8 ) — — — (.8 ) Balance at December 31, 2016 $ 48.6 $ — $ — $ 2.8 $ 51.4 2017 charges $ 31.9 $ .6 $ — $ — $ 32.5 Adjustments (5.0 ) — — 27.3 22.3 Cash payments (34.8 ) — — (8.1 ) (42.9 ) Non-cash write-offs — (.6 ) — (14.0 ) (14.6 ) Foreign exchange .5 — — — .5 Balance at December 31, 2017 $ 41.2 $ — $ — $ 8.0 $ 49.2 The majority of cash payments, if applicable, associated with the year-end liability are expected to be made during 2018. The following table presents the restructuring charges incurred to date, under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan: Employee- Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total Charges incurred to-date on approved initiatives $ 110.9 $ 1.0 $ 2.7 $ 36.0 $ 150.6 Estimated charges to be incurred on approved initiatives 7.3 — 1.2 6.8 15.3 Total expected charges on approved initiatives $ 118.2 $ 1.0 $ 3.9 $ 42.8 $ 165.9 The charges, net of adjustments, of initiatives under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan, by reportable segment are as follows: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total 2015 $ — $ — $ — $ — $ 21.4 $ 21.4 2016 30.9 13.2 4.4 11.7 14.2 74.4 2017 .9 5.6 (.6 ) 8.0 40.9 54.8 Charges incurred to-date on approved initiatives 31.8 18.8 3.8 19.7 76.5 150.6 Estimated charges to be incurred on approved initiatives .5 — — 8.5 6.3 15.3 Total expected charges on approved initiatives $ 32.3 $ 18.8 $ 3.8 $ 28.2 $ 82.8 $ 165.9 The charges above are not included in segment profit, as this excludes costs to implement restructuring initiatives. We expect our total costs to implement restructuring on approved initiatives to be an estimated $ 180 to $ 185 before taxes under the Transformation Plan. The amounts shown in the tables above as charges recorded to-date relate to initiatives that have been approved and recorded in the financial statements as the costs are probable and estimable. The amounts shown in the tables above as total expected charges on approved initiatives represent charges recorded to-date plus charges yet to be recorded for approved initiatives as the relevant accounting criteria for recording an expense have not yet been met. In addition to the charges included in the tables above, we have incurred and will continue to incur other costs to implement restructuring initiatives such as professional services fees and accelerated depreciation. 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 would reduce ongoing costs. These actions primarily consisted of global headcount reductions. As a result of these restructuring actions, we recorded costs to implement of $28.7 before taxes, of which a net benefit of $ .2 was recorded in 2017, in selling, general and administrative expenses, in our Consolidated Statements of Operations. There are no material remaining costs for restructuring actions approved-to-date. Restructuring Charges – 2017 During 2017, we recorded a net benefit of $.2 in selling, general and administrative expenses, in our Consolidated Statements of Operations, primarily for employee-related costs due to severance benefits. Restructuring Charges – 2016 During 2016, we recorded a net benefit of $.8 in selling, general and administrative expenses, in our Consolidated Statements of Operations, primarily for employee-related costs due to severance benefits. Restructuring Charges - 2015 During 2015, we recorded costs to implement of $29.7 in selling, general and administrative expenses, in our Consolidated Statements of Operations. The costs 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 Global and Asia Pacific. The liability balance, which primarily consists of employee-related costs, for these various restructuring initiatives at December 31, 2017 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 2016 charges — Adjustments (.7 ) Cash payments (2.2 ) Foreign exchange — Balance at December 31, 2016 $ 1.1 2017 charges — Adjustments (.2 ) Cash payments (.5 ) Foreign exchange — Balance at December 31, 2017 $ .4 The majority of cash payments, if applicable, associated with this liability are expected to be made during 2018. The charges approved to date under these various restructuring initiatives by reportable business segment were as follows: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total Total charges incurred $ 4.2 $ 2.6 $ .2 $ 5.7 $ 8.4 $ 21.1 In addition to the charges included in the tables above, we have incurred other costs to implement restructuring initiatives such as professional services fees. Other Restructuring Initiatives During 2017, 2016 and 2015, we recorded net benefits of $.4 , $5.5 and $3.0 , respectively, primarily in selling, general and administrative expenses, in our 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 net benefit in 2016 primarily consisted of a net gain of $3.7 due to the sale of a distribution center in the U.S. The liability balance associated with the Other Restructuring Initiatives is not material at December 31, 2017. |
Series C Convertible Preferred
Series C Convertible Preferred Stock (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Series C Convertible Preferred Stock On March 1, 2016, the Company issued and sold to Cerberus Investor 435,000 shares of newly issued series C preferred stock for an aggregate purchase price of $435.0 pursuant to an Investment Agreement, dated as of December 17, 2015, between the Company and Cerberus Investor. In connection with the issuance of the series C preferred stock, the Company incurred direct and incremental expenses of $8.7 , comprised of financial advisory fees and legal expenses, which reduced the carrying value of the series C preferred stock. Cumulative preferred dividends accrue daily on the series C preferred stock at a rate of 1.25% per quarter. The series C preferred stock had accrued unpaid dividends of $41.5 as of December 31, 2017. There were no dividends declared in the years ended December 31, 2017 and 2016. Dividend Rights . The series C preferred stock ranks senior to the shares of our common stock with respect to dividend rights and rights on the distribution of assets on any liquidation, dissolution or winding up of our affairs. The series C preferred stock has a liquidation preference of $1,000 per share, representing an aggregate liquidation preference of $435.0 upon issuance. Holders of series C preferred stock are entitled to participate on an as-converted basis in any dividends paid to the holders of shares of the Company’s common stock. In addition, cumulative preferred dividends accrue daily on the series C preferred stock and are payable at a rate of 1.25% per quarter (net of any dividends on the Company’s common stock and subject to increase up to a maximum rate of 5.00% per quarter if the Company breaches certain obligations). Except to the extent not otherwise previously paid by the Company, preferred dividends are payable on the seventh anniversary of the issuance date of the series C preferred stock as and when declared by the Board of Directors and at the end of each quarter thereafter. Accrued and unpaid preferred dividends may be paid, at the Company’s option, (i) in cash, (ii) subject to certain conditions, in shares of the Company’s common stock or (iii) upon conversion of shares of series C preferred stock, in shares of the Company’s non-voting, non-convertible Series D Preferred Stock. Any such shares of Series D Preferred Stock issued would have similar preferential rights. Conversion Features . series C preferred stock is convertible at the option of the holders at any time into shares of the Company’s common stock at an initial conversion price of $5.00 per share, subject to certain anti-dilution adjustments. Prior to receipt of applicable shareholder approval, shares of series C preferred stock are not convertible into more than 19.99% of the number of shares of common stock outstanding immediately prior to the issuance of the series C preferred stock, subject to certain anti-dilution adjustments. As of December 31, 2017, series C preferred stock was convertible into 87,051,524 shares of common stock. If at any time the volume weighted average price of the common stock exceeds $10.00 per share (subject to certain anti-dilution adjustments) for a period of 30 consecutive trading days, the Company may cause all of the series C preferred stock to be converted into shares of common stock based on the then applicable conversion price. Voting Rights . Holders of series C preferred stock are entitled to vote generally with the holders of common stock on an as-converted basis. Holders of series C preferred stock are also entitled to a separate class vote with respect to (i) the election of up to three directors to the Board of Directors, subject to maintaining certain levels of beneficial ownership of series C preferred stock and/or common stock, (ii) amendments to the Company’s organizational documents that have an adverse effect on the series C preferred stock, (iii) issuances by the Company of securities that are senior to, or equal in priority with, the series C preferred stock or (iv) the delisting of the Company’s common stock, other than in connection with a change of control event. Change of Control Put . Upon certain change of control events involving the Company, holders of series C preferred stock can require the Company to repurchase the series C preferred stock for an amount equal to the greater of (i) an amount in cash equal to 100% of the liquidation preference thereof plus all accrued but unpaid dividends or (ii) the consideration the holders would have received if they had converted their shares of series C preferred stock into common stock immediately prior to the change of control event. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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 Foreign Corrupt Practices Act ("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 and along with the compliance reviews, was completed in 2014. Following our voluntary reporting of the internal investigation to both the U.S. Department of Justice (the "DOJ") and the U.S. Securities and Exchange Commission (the "SEC") and our subsequent cooperation with those agencies, the United States District Court for the Southern District of New York (the "USDC") approved in December 2014 a deferred prosecution agreement (“DPA”) entered into between the Company and the DOJ related to charges of violations of the books and records and internal controls provisions of the FCPA. In addition, Avon Products (China) Co. Ltd., a subsidiary of the Company operating in China, pleaded guilty to conspiring to violate the books and records provision of the FCPA and was sentenced by the USDC to pay a $68 fine. The SEC also filed a complaint against the Company charging violations of the books and records and internal controls provisions of the FCPA and a consent to settlement (the "Consent") which was approved in a judgment entered by the USDC in January 2015, and included $67 in disgorgement and prejudgment interest. The DPA, the above-mentioned guilty plea and the Consent resolved the SEC’s and the DOJ’s investigations of the Company’s compliance with the FCPA and related U.S. laws in China and additional countries. The fine was paid in December 2014 and the payment to the SEC was made in January 2015. The DPA has expired, and the charges against the Company were dismissed with prejudice on February 5, 2018. 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 the SEC. The monitor recommended some changes to our policies and procedures that we have adopted and in August 2017, the monitor certified that the Company's compliance program was reasonably designed and implemented to detect and prevent violations of the anti-corruption laws and was functioning effectively, consistent with the requirements of the DPA and the Consent. The monitor has been replaced by the Company, which has undertaken self-reporting obligations for the remainder of the monitoring period. The Company submitted its first self-report to the DOJ and the SEC in January 2018. The Company will continue self-reporting to the SEC until the monitoring period expires, which is scheduled under the Consent to occur in July 2018. The third-party costs incurred in connection with ongoing compliance with self-reporting and the Consent have not been material to date. While we do not anticipate material costs going forward, the Company's self-reporting obligations may be costly and/or time-consuming. Brazilian Tax Assessments 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, which was officially closed in favor of Avon Brazil in July 2017. 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. As in the 2002 IPI case, the 2012 IPI assessment asserts 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 2012 IPI assessment is 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 appealed this decision to the second administrative level. The 2012 IPI assessment totals approximately $347 , including penalties and accrued interest. On October 3, 2017, Avon Brazil received a new tax assessment notice regarding IPI for 2014. The 2017 IPI assessment totals approximately $266 , including penalties and accrued interest. In line with the other assessments received in the past, the Brazilian tax authorities assert that the structure adopted in 2005 has no valid business purpose and that Avon Brazil did not observe minimum pricing rules to define the taxable basis of excise tax. Avon will vigorously contest this assessment, and presented the first defense on November 1, 2017. In the event that the 2012 and the 2017 IPI assessments are upheld, 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 and an adverse effect on the Company's Consolidated Statements of Cash Flows. 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 2010 are closed by statute). However, other similar IPI assessments involving different periods (1998-2001) have been canceled and officially closed in our favor by the second administrative level and in July 2017 we received the official cancellation of the 2002 assessment pursuant to the favorable decision discussed above. We believe that the likelihood that the 2012 and the 2017 IPI assessments will be upheld is reasonably possible. As stated above, we believe that the 2012 and 2017 IPI assessments are unfounded. At December 31, 2017, we have not recognized a liability for the 2012 or 2017 IPI assessments. Brazil IPI Tax on Cosmetics In May 2015, an Executive Decree on certain cosmetics went into effect in Brazil which increased the amount of IPI taxes that are to be remitted by Avon Brazil to the taxing authority on the sales of cosmetic products subject to IPI. Avon Brazil filed an objection to this IPI tax increase on the basis that it is not constitutional. In December 2016, Avon Brazil received a favorable decision from the Federal District Court regarding this objection. This decision has been appealed by the tax authorities. From May 2015 through April 2016, Avon Brazil remitted the taxes associated with this IPI tax increase into a judicial deposit which would be remitted to the taxing authorities in the event that we are not successful in our objection to the tax increase. In May 2016, Avon Brazil received a favorable preliminary decision on its objection to the tax and was granted a preliminary injunction. As a result, beginning in May 2016, Avon Brazil is no longer required to remit the taxes associated with IPI into a judicial deposit. While an increasing number of recent preliminary decisions have been in favor of the taxpayer, as of December 31, 2017, we have concluded that it is appropriate to continue to recognize the associated IPI taxes as a liability. At December 31, 2017, the liability to the taxing authorities for this IPI tax increase was approximately $193 and was classified within long-term sales taxes and taxes other than income in our Consolidated Balance Sheets, and the judicial deposit was approximately $74 and was classified within other assets in our Consolidated Balance Sheets. The net liability that does not have a corresponding judicial deposit was approximately $119 at December 31, 2017 and the interest associated with this net liability has been and will continue to be recognized in other expense, net. Our cash flow from operations has benefited as compared to our earnings as we have recognized the expense and associated interest related to this IPI tax in our Consolidated Statements of Operations; however, since May 2016, we have not made a corresponding cash payment into a judicial deposit based on the preliminary injunction that is still in force. An unfavorable ruling to our objection of this IPI tax increase would have an adverse effect on the Company's Consolidated Statements of Cash Flows as Avon Brazil would have to remit the liability owed to the taxing authorities. This amount would be partially offset by the amount of the judicial deposit held by Avon Brazil. We are not able to reliably predict the timing of the outcome of our objection to this tax increase. Talc-Related Litigation The Company has been named a defendant in numerous personal injury lawsuits filed in U.S. courts, alleging that certain talc products the Company sold in the past were contaminated with asbestos. Many of these actions involve a number of co-defendants from a variety of different industries, including manufacturers of cosmetics and manufacturers of other products that, unlike the Company’s products, were designed to contain asbestos. We believe that the claims against us are without merit. We are defending vigorously against these claims and will continue to do so. To date, there have been no findings of liability against the Company in any of these cases but we are unable to predict the ultimate outcome of each case. Additional similar cases arising out of the use of the Company's talc products are reasonably anticipated. At this time, we are unable to estimate our reasonably possible losses. Also, in light of the litigation’s inherent uncertainties, potential costs to litigate these cases are not known, but they may be significant, though some costs will be covered by insurance. Brazilian Labor-Related Litigation On an ongoing basis, the Company is subject to numerous and diverse labor-related lawsuits filed by employees in Brazil. These cases are assessed on an aggregated and ongoing basis based on historical outcomes of similar cases. The claims made are often for significantly larger sums than have historically been paid out by the Company. Our practice continues to be to recognize a liability based on our assessment of historical payments in similar cases. Our best estimate of the probable loss for such current cases at December 31, 2017 is approximately $17 and, accordingly, we have recognized a liability for this amount. 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, 2017, 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, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill 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. Key assumptions used in measuring the fair value of Egypt during the 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 cash flows of Egypt to normalized, sustainable levels. Goodwill Europe, Middle East & Africa South Latin America Asia Pacific Total Gross balance at December 31, 2016 $ 25.6 $ 72.3 $ 85.0 $ 182.9 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2016 $ 18.7 $ 72.3 $ 2.6 $ 93.6 Changes during the period ended December 31, 2017: Foreign exchange 1.7 .4 — 2.1 Gross balance at December 31, 2017 $ 27.3 $ 72.7 $ 85.0 $ 185.0 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2017 $ 20.4 $ 72.7 $ 2.6 $ 95.7 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information At December 31, 2017 and 2016 , prepaid expenses and other included the following: Components of Prepaid expenses and other 2017 2016 Prepaid taxes and tax refunds receivable $ 111.6 $ 99.3 Receivables other than trade 67.2 68.3 Prepaid brochure costs, paper and other literature 64.8 73.2 Other 52.8 50.5 Prepaid expenses and other $ 296.4 $ 291.3 At December 31, 2017 and 2016 , other assets included the following: Components of Other assets 2017 2016 Deferred tax assets (Note 9) $ 203.8 $ 162.1 Capitalized software (Note 1) 85.2 83.9 Judicial deposits other than Brazil IPI tax (see below) 82.2 78.0 Net overfunded pension plans (Note 13) 82.0 54.8 Long-term receivables 75.6 78.9 Judicial deposit for Brazil IPI tax on cosmetics (Note 18) 73.8 69.0 Trust assets associated with supplemental benefit plans (Note 13) 37.1 35.2 Tooling (plates and molds associated with our beauty products) 12.5 14.7 Investment in New Avon (Note 4) — 32.8 Other 14.0 12.3 Other assets $ 666.2 $ 621.7 |
Results of Operations by Quarte
Results of Operations by Quarter (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Results of Operations by Quarter (Unaudited) | Results of Operations by Quarter (Unaudited) 2017 First Second Third Fourth Year Total revenue $ 1,333.1 $ 1,395.9 $ 1,417.8 $ 1,568.8 $ 5,715.6 Gross profit 816.0 870.9 867.8 957.6 3,512.3 Operating profit (1) 28.7 31.6 83.0 130.0 273.3 (Loss) income from continuing operations, before taxes (6.7 ) (12.2 ) 48.0 91.6 120.7 (Loss) income from continuing operations, net of tax (3) (36.5 ) (45.8 ) 11.9 90.4 20.0 Net loss attributable to noncontrolling interests — .3 .6 1.1 2.0 Net (loss) income attributable to Avon $ (36.5 ) $ (45.5 ) $ 12.5 $ 91.5 $ 22.0 (Loss) earnings per common share from continuing operations Basic $ (.10 ) $ (.12 ) $ .01 $ .17 $ (.00 ) (4) Diluted (.10 ) (.12 ) .01 .17 (.00 ) (4) 2016 First Second Third Fourth Year Total revenue $ 1,306.5 $ 1,434.3 $ 1,408.8 $ 1,568.1 $ 5,717.7 Gross profit 787.7 869.3 857.9 945.8 3,460.7 Operating profit (1) 7.8 95.1 112.0 107.0 321.9 (Loss) income from continuing operations, before taxes (2) (158.1 ) 71.9 74.6 42.8 31.2 (Loss) income from continuing operations, net of tax (3) (155.8 ) 35.8 36.3 (9.7 ) (93.4 ) (Loss) income from discontinued operations, net of tax (9.6 ) (2.6 ) (.7 ) (1.1 ) (14.0 ) Net (income) loss attributable to noncontrolling interests (.5 ) (.2 ) .4 .1 (.2 ) Net (loss) income attributable to Avon $ (165.9 ) $ 33.0 $ 36.0 $ (10.7 ) $ (107.6 ) (Loss) earnings per common share from continuing operations Basic $ (.38 ) $ .07 $ .07 $ (.03 ) $ (.25 ) (4) Diluted (.38 ) .07 .07 (.03 ) (.25 ) (4) (1) Operating profit (loss) was impacted by the following: 2017 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ (.1 ) $ — $ — $ .7 $ .6 Selling, general and administrative expenses 10.1 20.3 6.2 23.0 59.6 Total costs to implement restructuring initiatives $ 10.0 $ 20.3 $ 6.2 $ 23.7 $ 60.2 Loss contingency $ — $ 18.2 $ — $ — $ 18.2 2016 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ .3 $ — $ .3 $ .6 Selling, general and administrative expenses 46.8 9.1 14.0 6.9 76.8 Total costs to implement restructuring initiatives $ 46.8 $ 9.4 $ 14.0 $ 7.2 $ 77.4 Legal settlement $ — $ — $ (27.2 ) $ — $ (27.2 ) In addition to the items impacting operating profit (loss) above: (2) (Loss) income from continuing operations, before taxes during 2016 was impacted by: • the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $ 120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $ 81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy; • a gain on extinguishment of debt of $ 3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016; • a loss on extinguishment of debt of $ 1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016; • a loss on extinguishment of debt of $ 2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and • a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. (3) (Loss) income from continuing operations, net of tax during 2017 was impacted by a $29.9 net income tax benefit recognized in the fourth quarter as a result of the enactment of the Tax Cuts and Jobs Act in the U.S., a release of valuation allowances of $25.5 associated with a number of markets in Europe, Middle East & Africa as a result of a business model change related to the move of the Company's headquarters from the U.S. to the UK, and a $10.4 benefit as a result of a favorable court decision in Brazil, partially offset by a charge of $16.0 associated with valuation allowances to adjust deferred tax assets in Mexico. (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6 , which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. (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 16, Restructuring Initiatives, "Results Of Operations - Consolidated" within MD&A on pages 36 through 45, Note 14, Segment Information, "Venezuela Discussion" within MD&A on pages 40 through 41, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 13, Employee Benefit Plans, Note 18, Contingencies, Note 7, Debt and Other Financing and Note 8, Income Taxes, for more information on these items. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
VALUATION AND QUALIFYING ACCOUNTS | AVON PRODUCTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2017 , 2016 and 2015 Additions (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Revenue Deductions Balance at End of Period 2017 Allowance for doubtful accounts receivable $ 122.9 $ 221.9 $ — $ (215.5 ) (1) $ 129.3 Allowance for sales returns 8.2 — 197.9 (196.8 ) (2) 9.3 Allowance for inventory obsolescence 58.4 36.7 — (33.8 ) (3) 61.3 Deferred tax asset valuation allowance 3,296.0 (78.4 ) (4) — — 3,217.6 2016 Allowance for doubtful accounts receivable $ 77.6 $ 190.5 $ — $ (145.2 ) (1) $ 122.9 Allowance for sales returns 9.1 — 186.9 (187.8 ) (2) 8.2 Allowance for inventory obsolescence 71.3 36.5 — (49.4 ) (3) 58.4 Deferred tax asset valuation allowance 2,090.1 1,205.9 (5) — — 3,296.0 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 1,480.6 609.5 (5) — — 2,090.1 (1) Accounts written off, net of recoveries and foreign currency translation adjustment. (2) Returned product reused or destroyed and foreign currency translation adjustment. (3) Obsolete inventory destroyed and foreign currency translation adjustment. (4) Decrease in valuation allowance primarily related to a partial release of the U.S. valuation allowance as a result of the enactment of the Tax Cuts and Jobs Act in the U.S. and the impact of a business model change related to the move of the Company's headquarters from the U.S. to the UK. (5) 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 a33
Description of the Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
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 four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Sales are made to the ultimate consumer principally by independent Representatives. In December 2015, we entered into definitive agreements with affiliates of Cerberus Capital Management L.P. ("Cerberus"), which included a $435 investment in Avon by an affiliate of Cerberus through the purchase of our convertible preferred stock and the separation of the North America business (including approximately $100 of cash, subject to certain adjustments) from Avon into New Avon LLC ("New Avon"), a privately-held company that is majority-owned and managed by an affiliate of Cerberus. These transactions closed in March 2016 and Avon retained approximately 20% ownership in New Avon. The North American business, which represented the Company's operations in the United States ("U.S."), Canada and Puerto Rico, was previously its own reportable segment and has been presented as discontinued operations for all periods. 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. As a result of this transaction, all of our consolidated revenue is derived from operations of subsidiaries outside of the U.S. |
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 rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment. |
Foreign Currency | Foreign Currency Financial statements of foreign subsidiaries operating in other than highly inflationary economies are translated at year-end exchange rates for assets and liabilities and average exchange rates during the year for income and expense accounts. The resulting translation adjustments are recorded within accumulated other comprehensive income (loss) ("AOCI"). Gains or losses resulting from the impact of changes in foreign currency rates on assets and liabilities denominated in a currency other than the functional currency are recorded in other expense, net. For financial statements of Avon subsidiaries operating in highly inflationary economies, the U.S. dollar is required to be used as the functional currency. At December 31, 2017, none of our consolidated Avon subsidiaries are 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 our 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 Currency restrictions enacted by the Venezuelan government since 2003 have impacted the ability of Avon Venezuela to obtain foreign currency to pay for imported products. In 2010, we began accounting for our operations in Venezuela under accounting guidance associated with highly inflationary economies. Venezuela's restrictive foreign exchange control regulations and our Venezuelan operations' increasingly limited access to U.S. dollars resulted in lack of exchangeability between the Venezuelan bolivar and the U.S. dollar, and restricted our Venezuelan operations' ability to pay dividends and settle intercompany obligations. The severe currency controls imposed by the Venezuelan government significantly limited our ability to realize the benefits from earnings of our Venezuelan operations and access the resulting liquidity provided by those earnings. We expected that this lack of exchangeability would continue for the foreseeable future, and as a result, we concluded that, effective March 31, 2016, this condition was other-than-temporary and we no longer met the accounting criteria of control in order to continue consolidating our Venezuelan operations. As a result, since March 31, 2016, we have accounted for our Venezuelan operations using the cost method of accounting. As a result of the change to the cost method of accounting, in the first quarter of 2016, we recorded a loss of $ 120.5 in other expense, net. The loss was comprised of $ 39.2 in net assets of the Venezuelan business and $ 81.3 in accumulated foreign currency translation adjustments within AOCI (shareholders' deficit) associated with foreign currency changes before Venezuela was accounted for as a highly inflationary economy. The net assets of the Venezuelan business were comprised of inventories of $ 23.7 , property, plant and equipment, net of $ 15.0 , other assets of $ 11.4 , accounts receivable of $ 4.6 , cash of $ 4.5 , and accounts payable and accrued liabilities of $20.0 . Our Consolidated Balance Sheets no longer include the assets and liabilities of our Venezuelan operations. We no longer include the results of our Venezuelan operations in our Consolidated Financial Statements, and will include income relating to our Venezuelan operations only to the extent that we receive cash for dividends or royalties remitted by Avon Venezuela. In February 2015, the Venezuelan government announced the creation of a new foreign exchange system referred to as the SIMADI exchange ("SIMADI"), which represented the rate which better reflected the economics of Avon Venezuela's business activity, in comparison to the other then available exchange rates; as such, we concluded that we should utilize the SIMADI exchange rate to remeasure our Venezuelan operations. 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 had 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 net monetary assets. 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 caused a disproportionate expense as these assets were 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 needed 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. |
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, as well as revenue from the sale of products to New Avon since the separation of the Company's North America business into New Avon on March 1, 2016, and ongoing royalties from the licensing of our name and products. |
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 net realizable value. Cost is determined using the first-in, first-out method. We classify inventory into various categories based upon its stage in the product life cycle, future marketing sales plans and the disposition process. We assign a degree of obsolescence risk to products based on this classification to estimate the level of obsolescence provision. |
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. Brochure costs and associated fees that are presented as prepaid expenses and other were $26.6 at December 31, 2017 and $27.2 at December 31, 2016 . Additionally, paper stock is purchased in advance of creating the brochures. Prepaid expenses and other include paper supply of $5.6 at December 31, 2017 and $4.3 at December 31, 2016 . Brochure costs expensed to selling, general and administrative expenses amounted to $244.0 in 2017, $244.7 in 2016 and $256.6 in 2015. The fees charged to Representatives recorded as a reduction to selling, general and administrative expenses amounted to $139.4 in 2017, $138.6 in 2016 and $141.9 in 2015. |
Property, Plant and Equipment | Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, 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. 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 $85.2 at December 31, 2017 and $83.9 at December 31, 2016 . The amortization expense associated with capitalized software was $ 29.5 , $ 30.5 and $ 31.0 for the years ended December 31, 2017, 2016 and 2015, respectively. We evaluate our property, plant and equipment and capitalized software for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated pre-tax undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the asset is determined using revenue and cash flow projections, and royalty and discount rates, as appropriate. See above for more information on Avon Venezuela's long-lived assets. |
Goodwill and Intangible Assets | Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the 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. See Note 19, Goodwill for more information regarding the goodwill impairment in Egypt during 2015. |
Financial Instruments | Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: • Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. • Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI 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 our Consolidated Statements of Operations. Realized gains and losses on a derivative are reported in our 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 our 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 our 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 9, Income Taxes for more information. In accordance with guidance issued by the Financial Accounting Standards Board ("FASB"), on a provisional basis we are choosing to treat the U.S. income tax consequences of Global Intangible Low-Taxed Income ("GILTI") as a period cost in future years. As a result, as of December 31, 2017, no deferred income taxes have been provided. The Company will continue to monitor this election and make a final determination of the prospective permanent or temporary treatment of GILTI during the one-year measurement period ending on December 22, 2018 allowed in accordance with Securities and Exchange Commission Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). |
Uncertain Tax Positions | Uncertain Tax Positions We recognize the benefit of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. We record interest expense and penalties payable to relevant tax authorities in income taxes in our Consolidated Statements of Operations. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include costs associated with selling; marketing; distribution, including shipping and handling costs; advertising; net brochure costs; research and development; information technology; and other administrative costs, including finance, legal and human resource functions. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are expensed as incurred and amounted to $530.8 in 2017 , $489.3 in 2016 and $538.8 in 2015 . |
Advertising | Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred and amounted to $118.4 in 2017 , $108.9 in 2016 and $128.0 in 2015 . |
Research and Development | Research and Development Research and development costs are expensed as incurred and amounted to $52.9 in 2017 , $52.1 in 2016 and $61.9 in 2015 . 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 the fair value of premium-priced stock 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 the discount rate applied to plan obligations, the expected rate of return on plan assets, the rate of compensation increase of plan participants, price inflation, cost-of-living adjustments, mortality rates and certain other demographic assumptions, and other factors. Actual results that differ from assumptions are accumulated and amortized to expense over future periods and, therefore, generally affect recognized expense in future periods. We recognize the funded status of pension and other postretirement benefit plans in our Consolidated Balance Sheets. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. The recognition of prior service costs or credits and net actuarial gains or losses, as well as subsequent changes in the funded status, are recognized as components of AOCI, net of tax, in shareholders’ equity, until they are amortized as a component of net periodic benefit cost. We recognize prior service costs or credits and actuarial gains and losses beyond a 10% corridor to earnings based on the estimated future service period of the participants. The determination of the 10% corridor utilizes a calculated value of plan assets for our more significant plans, whereby gains and losses are smoothed over 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. |
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 our 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 an earnings (loss) allocation formula that determines earnings (loss) per share for common stock, and earnings (loss) allocated to convertible preferred stock and participating securities, as appropriate. The earnings allocated to convertible preferred stock are the larger of 1) the preferred dividends accrued in the year or 2) the percentage of earnings from continuing operations allocable to the preferred stock as if they had been converted to common stock. Our participating securities are our grants of restricted stock and restricted stock units, which contain non-forfeitable rights to dividend equivalents to the extent any dividends are declared and paid on our common stock. 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 a34
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) 2017 2016 2015 Numerator from continuing operations: Income (loss) from continuing operations less amounts attributable to noncontrolling interests $ 22.0 $ (93.6 ) $ (799.8 ) Less: Earnings (loss) allocated to participating securities .3 (1.2 ) (10.9 ) Less: Earnings allocated to convertible preferred stock 23.1 18.4 — Loss from continuing operations allocated to common shareholders (1.4 ) (110.8 ) (788.9 ) Numerator from discontinued operations: Loss from discontinued operations less amounts attributable to noncontrolling interests $ — $ (14.0 ) $ (349.1 ) Less: Loss allocated to participating securities — (.2 ) (4.7 ) Loss from discontinued operations allocated to common shareholders — (13.8 ) (344.4 ) Numerator attributable to Avon: Net income (loss) attributable to Avon less amounts attributable to noncontrolling interests $ 22.0 $ (107.6 ) $ (1,148.9 ) Less: Earnings (loss) allocated to participating securities .3 (1.4 ) (15.7 ) Less: Earnings allocated to convertible preferred stock 23.1 18.4 — Loss attributable to Avon allocated to common shareholders (1.4 ) (124.6 ) (1,133.2 ) Denominator: Basic EPS weighted-average shares outstanding 439.7 437.0 435.2 Diluted effect of assumed conversion of stock options — — — Diluted effect of assumed conversion of preferred stock — — — Diluted EPS adjusted weighted-average shares outstanding 439.7 437.0 435.2 Loss per Common Share from continuing operations: Basic $ (.00 ) $ (.25 ) $ (1.81 ) Diluted (.00 ) (.25 ) (1.81 ) Loss per Common Share from discontinued operations: Basic $ .00 $ (.03 ) $ (.79 ) Diluted .00 (.03 ) (.79 ) Loss per Common Share attributable to Avon: Basic $ (.00 ) $ (.29 ) $ (2.60 ) Diluted (.00 ) (.29 ) (2.60 ) |
Discontinued Operations and D35
Discontinued Operations and Divestitures Discontinued Operations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, net of tax for North America are shown below: Years ended December 31, 2016 2015 Total revenue $ 135.2 $ 1,012.5 Cost of sales 53.2 404.0 Selling, general and administrative expenses 91.5 606.2 Operating (loss) income (9.5 ) 2.3 Other income (expense) items .6 (3.2 ) Loss from discontinued operations, before tax (8.9 ) (.9 ) Loss on sale of discontinued operations, before tax (15.6 ) (340.0 ) Income taxes 10.5 (8.2 ) Loss from discontinued operations, net of tax $ (14.0 ) $ (349.1 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | Year Ended December 31, Year Ended December 31, 2017 2016 Statement of Operations Data Revenue from sale of product to New Avon (1) $ 32.5 $ 29.2 Gross profit from sale of product to New Avon (1) $ 1.9 $ 2.3 Cost of sales for purchases from New Avon (2) $ 3.8 $ 4.6 Selling, general and administrative expenses: Transition services, intellectual property, research and development and subleases (3) $ (32.2 ) $ (35.3 ) Project management team (4) 2.6 2.7 Net reduction of selling, general and administrative expenses $ (29.6 ) $ (32.6 ) December 31, 2017 December 31, 2016 Balance Sheet Data Inventories (5) $ .4 $ 1.0 Receivables due from New Avon (6) $ 9.8 $ 11.6 Payables due to New Avon (7) $ .2 $ .7 Payables due to an affiliate of Cerberus (8) $ .4 $ .6 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories at December 31 consisted of the following: 2017 2016 Raw materials $ 190.6 $ 179.3 Finished goods 407.6 407.1 Total $ 598.2 $ 586.4 |
Debt and Other Financing (Table
Debt and Other Financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instruments [Abstract] | |
Schedule of Debt [Table Text Block] | Debt at December 31 consisted of the following: 2017 2016 Debt maturing within one year: Notes payable $ 22.6 $ 13.5 Current portion of long-term debt 3.1 4.6 Total $ 25.7 $ 18.1 Long-term debt: 6.50% Notes, due March 2019 $ 237.2 $ 236.8 4.60% Notes, due March 2020 408.8 408.2 7.875% Senior Secured Notes, due August 2022 492.6 491.0 5.00% Notes, due March 2023 484.5 483.7 Other debt, payable through 2025 with interest from .5% to 11.3% 5.2 9.0 6.95% Notes, due March 2043 241.0 240.8 Total 1,869.3 1,869.5 Unamortized deferred gain - swap terminations 6.0 10.9 Less current portion (3.1 ) (4.6 ) Total long-term debt $ 1,872.2 $ 1,875.8 |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | At December 31, 2017 and 2016, the carrying values of our public notes were comprised of the following: 2017 2016 Remaining Principal Unamortized Discounts Unamortized Debt Issuance Costs Total Remaining Principal Unamortized Discounts Unamortized Debt Issuance Costs Total 6.50% Notes, due March 2019 $ 237.9 $ (.4 ) $ (.3 ) $ 237.2 $ 237.9 $ (.7 ) $ (.4 ) $ 236.8 4.60% Notes, due March 2020 409.9 (.2 ) (.9 ) 408.8 409.9 (.3 ) (1.4 ) 408.2 5.00% Notes, due March 2023 488.9 (2.5 ) (1.9 ) 484.5 488.9 (2.9 ) (2.3 ) 483.7 6.95% Notes, due March 2043 243.8 (.6 ) (2.2 ) 241.0 243.8 (.6 ) (2.4 ) 240.8 |
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 and capital leases outstanding at December 31, 2017 , are as follows: 2018 2019 2020 2021 2022 2023 and Beyond Total Maturities $ 2.9 $ 238.6 $ 410.1 $ .1 $ 500.0 $ 732.8 $ 1,884.5 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 and 2016: Foreign Currency Translation Adjustments Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2016 $ (910.9 ) $ (4.3 ) $ (120.2 ) $ 2.2 $ (1,033.2 ) Other comprehensive income other than reclassifications 81.3 — 8.9 1.2 91.4 Reclassifications into earnings: Amortization of net actuarial loss and prior service cost, net of tax of $.8 (1) — — 15.6 — 15.6 Total reclassifications into earnings — — 15.6 — 15.6 Balance at December 31, 2017 $ (829.6 ) $ (4.3 ) $ (95.7 ) $ 3.4 $ (926.2 ) Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2015 $ (950.0 ) $ (1.3 ) $ (4.3 ) $ (410.6 ) $ — $ (1,366.2 ) Other comprehensive (loss) income other than reclassifications (34.9 ) — — 3.1 2.2 (29.6 ) Reclassifications into earnings: Derivative losses on cash flow hedges, net of tax of $2.7 (2) — 1.3 — — — 1.3 Amortization of net actuarial loss and prior service cost, net of tax of $.7 (1) — — — 17.3 — 17.3 Deconsolidation of Venezuela, net of tax of $0.0 81.3 — — .8 — 82.1 Separation of North America, net of tax of $10.2 (10.0 ) — — 269.2 — 259.2 Closure of Thailand market 2.7 — — — — 2.7 Total reclassifications into earnings 74.0 1.3 — 287.3 — 362.6 Balance at December 31, 2016 $ (910.9 ) $ — $ (4.3 ) $ (120.2 ) $ 2.2 $ (1,033.2 ) (1) Gross amount reclassified to pension and postretirement expense, within selling, general and administrative expenses, and related taxes reclassified to income taxes. (2) Gross amount reclassified to interest expense, and related taxes reclassified to income taxes. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income from Continuing Operations before Taxes | (Loss) income from continuing operations, before taxes for the years ended December 31 was as follows: 2017 2016 2015 United States $ (147.6 ) $ (403.0 ) $ (230.3 ) Foreign 268.3 434.2 253.0 Total $ 120.7 $ 31.2 $ 22.7 |
Provision for Income Taxes | The provision for income taxes for the years ended December 31 was as follows: 2017 2016 2015 Federal: Current $ — $ — $ — Deferred (34.0 ) — 668.3 Total Federal (34.0 ) — 668.3 Foreign: Current 130.6 128.5 173.9 Deferred 3.8 (4.2 ) (24.3 ) Total Foreign 134.4 124.3 149.6 State and Local: Current .3 .3 .7 Deferred — — .6 Total State and other .3 .3 1.3 Total $ 100.7 $ 124.6 $ 819.2 |
Effective Tax Rate | The effective tax rate for the years ended December 31 was as follows: 2017 2016 2015 Statutory federal rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit .2 .6 2.5 Tax on foreign income 6.0 (24.4 ) 141.4 Tax on uncertain tax positions (3.6 ) 34.1 8.2 Venezuela deconsolidation, devaluation and highly inflationary accounting — 23.9 168.1 Reorganizations — (93.6 ) (173.5 ) U.S. Tax Reform (24.7 ) — — Net change in valuation allowances 62.4 375.1 3,395.6 Imputed royalties and associated non-deductible expenses 9.5 50.3 41.2 Research credits (1.3 ) (5.4 ) (8.9 ) Other (.1 ) 3.8 (.8 ) Effective tax rate 83.4 % 399.4 % 3,608.8 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) resulting from temporary differences in the recognition of income and expense for tax and financial reporting purposes at December 31 consisted of the following: 2017 2016 Deferred tax assets: Tax loss and deduction carryforwards $ 2,022.1 $ 2,033.0 Tax credit carryforwards 981.0 874.0 All other future deductions 471.0 744.0 Valuation allowance (3,217.7 ) (3,296.0 ) Total deferred tax assets 256.4 355.0 Deferred tax liabilities $ (74.9 ) $ (215.1 ) Net deferred tax assets $ 181.5 $ 139.9 |
Deferred Tax Assets (Liabilities) Classification | Deferred tax assets (liabilities) at December 31 were classified as follows: 2017 2016 Deferred tax assets: Other assets $ 203.8 $ 162.1 Total deferred tax assets 203.8 162.1 Deferred tax liabilities: Long-term income taxes $ (22.3 ) $ (22.2 ) Total deferred tax liabilities (22.3 ) (22.2 ) Net deferred tax assets $ 181.5 $ 139.9 |
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, 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 (.4 ) Reductions due to settlements with tax authorities (11.0 ) Balance at December 31, 2015 53.0 Additions based on tax positions related to the current year 1.8 Additions for tax positions of prior years 9.4 Reductions for tax positions of prior years (2.8 ) Reductions due to lapse of statute of limitations (.7 ) Reductions due to settlements with tax authorities (2.0 ) Balance at December 31, 2016 58.7 Additions based on tax positions related to the current year 1.4 Additions for tax positions of prior years 17.6 Reductions for tax positions of prior years (7.9 ) Reductions due to lapse of statute of limitations (3.1 ) Reductions due to settlements with tax authorities (18.0 ) Balance at December 31, 2017 $ 48.6 |
Tax Years Remaining | As of December 31, 2017, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: Jurisdiction Open Years Brazil 2012-2017 Mexico 2012-2017 Philippines 2014-2017 Poland 2012-2017 Russia 2014-2017 United Kingdom 2016-2017 United States (Federal) 2016-2017 |
Financial Instruments and Ris41
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income | For the year ended December 31, 2016 , treasury lock agreements impacted AOCI as follows: 2016 Pre-tax net unamortized deferred losses at beginning of year (1) $ (4.0 ) Reclassification of net losses to earnings 4.0 Pre-tax net unamortized deferred losses at end of year $ — (1) Amounts above exclude taxes of $2.7 at the beginning of year in 2016 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of our remaining financial instruments at December 31 consisted of the following: 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 3.7 $ 3.7 $ 2.8 $ 2.8 Debt maturing within one year (1) (25.7 ) (25.7 ) (18.1 ) (18.1 ) Long-term debt (1) (1,872.2 ) (1,718.6 ) (1,875.8 ) (1,877.5 ) Foreign exchange forward contracts — — (2.4 ) (2.4 ) (1) The carrying value of debt maturing within one year and long-term debt is presented net of debt issuance costs and includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | For the years ended December 31: 2017 2016 2015 Compensation cost for stock options, performance restricted stock units and restricted stock units $ 24.2 $ 24.0 $ 51.2 Total income tax benefit recognized for share-based arrangements 1.4 1.9 4.1 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | When estimating the fair value of each option, we used the following weighted-average assumptions for options granted during the years ended December 31, 2017 and 2016: 2017 2016 Risk-free rate (1) 2.1% 1.6% Expected term (2) 7 years 7 years Expected Avon volatility (3) 41% 39% Expected dividends —% —% (1) The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. (2) The expected term of the option was based on the vesting terms of the respective option and a contractual life of 10 years. (3) Expected Avon volatility was based on the daily historical volatility of our stock price, over a period similar to the expected life of the option. |
Schedule of Options Activity During Period | A summary of stock options as of December 31, 2017 , and changes during 2017 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 14,824 $ 20.09 Granted 6,785 5.32 Exercised — — Forfeited 2,505 5.52 Expired 1,939 34.50 Outstanding at December 31, 2017 17,165 $ 14.95 5.6 $ — Exercisable at December 31, 2017 8,518 $ 22.27 2.9 $ — |
Schedule of Share-based Payment Award, Performance Restricted Stock Units, Valuation Assumptions [Table Text Block] | When estimating the fair value of the 2017 PRSUs, 2016 PRSUs and the 2015 PRSUs, we used the following weighted-average assumptions: 2017 PRSUs 2016 PRSUs 2015 PRSUs Risk-free rate (1) 1.6% 1.1% 1.1% Expected Avon volatility (2) 61% 56% 38% Expected average volatility (3) 29% 28% N/A Expected dividends —% —% 3% (1) The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. (2) Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs and the three year service period of the 2015 PRSUs. (3) Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs. |
Schedule of Restricted Stock and Units Activity During Period | A summary of restricted stock and restricted stock units at December 31, 2017 , and changes during 2017 , is as follows: Restricted Stock And Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2017 5,356 $ 8.64 Granted 2,813 4.05 Vested (2,387 ) 11.41 Forfeited (978 ) 5.36 December 31, 2017 4,804 $ 5.26 |
Schedule of Share-Based Compensation Performance Restricted Stock Units Activity | A summary of performance restricted stock units at December 31, 2017 , and changes during 2017 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2017 (1) 4,922 $ 8.99 Granted 1,869 4.21 Vested (1,478 ) 14.69 Forfeited (957 ) 6.68 December 31, 2017 (1) 4,356 $ 5.50 (1) Based on initial target payout. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2017 2016 2017 2016 Change in Benefit Obligation: Beginning balance $ (87.6 ) $ (606.8 ) $ (652.9 ) $ (667.7 ) $ (26.0 ) $ (76.6 ) Service cost (4.3 ) (6.4 ) (4.6 ) (5.0 ) (.1 ) (.1 ) Interest cost (3.0 ) (6.5 ) (18.0 ) (21.8 ) (1.3 ) (1.7 ) Actuarial (loss) gain .6 (7.5 ) (15.5 ) (95.9 ) .3 2.6 Benefits paid 5.4 26.0 42.5 37.3 .4 1.4 Plan amendments — — — — — (1.0 ) Curtailments — .2 — 1.0 — — Settlements — — — — — — Special termination benefits — — — — — (.1 ) Divestitures — 509.9 — — — 50.1 Venezuela deconsolidation — — — 1.5 — — Foreign currency changes and other — 3.5 (65.7 ) 97.7 (1.5 ) (.6 ) Ending balance $ (88.9 ) $ (87.6 ) $ (714.2 ) $ (652.9 ) $ (28.2 ) $ (26.0 ) Change in Plan Assets: Beginning balance $ 51.4 $ 408.3 $ 613.7 $ 576.3 $ — $ — Actual return on plan assets 5.5 .7 49.9 153.6 — — Company contributions 11.6 26.6 19.7 20.0 .4 1.4 Benefits paid (5.4 ) (26.0 ) (42.5 ) (37.3 ) (.4 ) (1.4 ) Divestitures — (355.9 ) — — — — Foreign currency changes and other — (2.3 ) 64.6 (98.9 ) — — Ending balance $ 63.1 $ 51.4 $ 705.4 $ 613.7 $ — $ — Funded Status: Funded status at end of year $ (25.8 ) $ (36.2 ) $ (8.8 ) $ (39.2 ) $ (28.2 ) $ (26.0 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 82.0 $ 54.8 $ — $ — Accrued compensation (1.0 ) (1.7 ) (2.2 ) (1.4 ) (2.7 ) (2.4 ) Employee benefit plans liability (24.8 ) (34.5 ) (88.6 ) (92.6 ) (25.5 ) (23.6 ) Net amount recognized $ (25.8 ) $ (36.2 ) $ (8.8 ) $ (39.2 ) $ (28.2 ) $ (26.0 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 41.4 $ 49.5 $ 176.8 $ 176.5 $ 1.2 $ 1.7 Prior service credit (.2 ) (.2 ) (.9 ) (1.0 ) (1.3 ) (1.6 ) Total pretax amount recognized $ 41.2 $ 49.3 $ 175.9 $ 175.5 $ (.1 ) $ .1 Supplemental Information: Accumulated benefit obligation $ 85.9 $ 85.2 $ 199.8 $ 182.3 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 88.9 $ 87.6 $ 216.7 $ 200.8 N/A N/A Fair value plan assets 63.1 51.4 125.9 106.8 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 88.9 $ 87.6 $ 202.0 $ 182.8 N/A N/A Accumulated benefit obligation 85.9 85.2 191.9 172.8 N/A N/A Fair value plan assets 63.1 51.4 114.0 92.9 N/A N/A |
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Periodic Benefit Cost: Service cost $ 4.3 $ 6.4 $ 13.0 $ 4.6 $ 5.0 $ 5.3 $ .1 $ .1 $ .7 Interest cost 3.0 6.5 25.1 18.0 21.8 23.6 1.3 1.7 3.7 Expected return on plan assets (3.2 ) (8.2 ) (32.6 ) (28.2 ) (33.0 ) (36.4 ) — — — Amortization of prior service credit (.1 ) (.2 ) (.7 ) (.1 ) (.1 ) (.1 ) (.3 ) (1.2 ) (4.0 ) Amortization of net actuarial losses 5.2 10.8 43.7 7.6 6.5 8.4 .1 .3 1.8 Amortization of transition obligation — — — — — .1 — — — Settlements/curtailments — .1 27.9 3.7 .3 .5 — (.1 ) — Other — — — (.7 ) — — 1.6 — — Net periodic benefit cost (1) $ 9.2 $ 15.4 $ 76.4 $ 4.9 $ .5 $ 1.4 $ 2.8 $ .8 $ 2.2 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial (gains) losses $ (2.9 ) $ 13.6 $ 1.8 $ (7.4 ) $ (24.6 ) $ (34.2 ) $ (.3 ) $ (2.6 ) $ (5.6 ) Prior service cost (credit) — — — — — — 1.0 (9.0 ) Amortization of prior service credit .1 1.3 .7 .1 .1 .1 .3 26.7 4.0 Amortization of net actuarial losses (5.2 ) (274.4 ) (71.6 ) (11.3 ) (7.8 ) (9.1 ) (.1 ) (11.3 ) (1.8 ) Amortization of transition obligation — — — — — (.1 ) — — — Foreign currency changes — — — 18.9 (29.6 ) (19.4 ) — (.1 ) .2 Total recognized in other comprehensive (loss) income* $ (8.0 ) $ (259.5 ) $ (69.1 ) $ .3 $ (61.9 ) $ (62.7 ) $ (.1 ) $ 13.7 $ (12.2 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 1.2 $ (244.1 ) $ 7.3 $ 5.2 $ (61.4 ) $ (61.3 ) $ 2.7 $ 14.5 $ (10.0 ) (1) Includes $4.4 and $53.7 of the U.S. pension plans in 2016 and 2015, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016 and 2015, 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 our Consolidated Statements of Comprehensive Income (Loss). |
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 2018 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss $ 5.2 $ 7.2 $ .1 Prior service credit — (.1 ) (.3 ) |
Weighted-Average Assumptions Used to Determine Benefit Obligations | Assumptions Weighted-average assumptions used to determine benefit obligations recorded in our Consolidated Balance Sheets as of December 31 were as follows: Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits 2017 2016 2017 2016 2017 2016 Discount rate 3.48 % 3.67 % 2.56 % 2.69 % 4.75 % 5.33 % Rate of compensation increase 4.00 % 4.00 % 2.71 % 2.79 % N/A N/A |
Weighted-Average Assumptions Used to Determine Net Benefit Cost | Weighted-average assumptions used to determine net benefit cost recorded in our Consolidated Statements of Operations for the years ended December 31 were as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.67 % 4.19 % 3.83 % 2.69 % 3.58 % 3.27 % 5.33 % 4.50 % 4.20 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.79 % 2.94 % 3.20 % N/A N/A N/A Rate of return on assets 5.50 % 7.00 % 7.25 % 5.09 % 6.40 % 6.55 % 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, 2017 and 2016 , 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 2018 2017 2016 2018 2017 2016 Equity securities 30 % 30 % 28 % 20 % 18 % 22 % Debt securities 70 70 69 70 77 68 Other — — 3 10 6 10 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, 2017 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 7.4 $ 7.4 International equity — 9.7 9.7 Emerging markets — 2.0 2.0 — 19.1 19.1 Fixed Income Securities: Corporate bonds — 31.8 31.8 Government securities — 12.2 12.2 — 44.0 44.0 Cash — — — Total $ — $ 63.1 $ 63.1 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 33.9 $ — $ 33.9 International equity — 91.1 — 91.1 — 125.0 — 125.0 Fixed Income Securities: Corporate bonds — 223.9 — 223.9 Government securities — 236.0 — 236.0 Other — 79.9 — 79.9 — 539.8 — 539.8 Other Cash 29.3 — — 29.3 Derivatives — 9.8 — 9.8 Real estate — — .9 .9 Other — — .6 .6 29.3 9.8 1.5 40.6 Total $ 29.3 $ 674.6 $ 1.5 $ 705.4 The following tables present the fair value hierarchy for pension assets measured at fair value on a recurring basis as of December 31, 2016 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 7.9 $ 7.9 International equity — 6.3 6.3 Emerging markets $ — 1.5 1.5 — 15.7 15.7 Fixed Income Securities: Corporate bonds — 25.7 25.7 Government securities — 9.9 9.9 — 35.6 35.6 Cash .1 — .1 Total (3) $ .1 $ 51.3 $ 51.4 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 27.7 $ — $ 27.7 International equity — 107.6 — 107.6 — 135.3 — 135.3 Fixed Income Securities: Corporate bonds — 194.8 — 194.8 Government securities — 192.8 — 192.8 Other — 32.0 — 32.0 — 419.6 — 419.6 Other: Cash 23.2 — — 23.2 Derivatives — 34.1 — 34.1 Real estate — — .9 .9 Other — — .6 .6 23.2 34.1 1.5 58.8 Total $ 23.2 $ 589.0 $ 1.5 $ 613.7 |
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 at January 1, 2016 $ 1.8 Actual return on plan assets held (.2 ) Foreign currency changes (.1 ) Balance at December 31, 2016 1.5 Actual return on plan assets held (.1 ) Foreign currency changes .1 Balance at December 31, 2017 $ 1.5 |
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 2018 $ 13.1 $ 29.7 $ 42.8 $ 2.7 2019 9.6 30.5 40.1 2.6 2020 8.6 31.5 40.1 2.6 2021 8.3 32.2 40.5 2.5 2022 7.9 44.6 52.5 2.4 2023-2027 26.6 227.1 253.7 10.0 |
Assets Held in Trust | We established a grantor trust to provide assets that may be used for the benefits payable under the SERP and SLIP. The trust is irrevocable and, although subject to creditors’ claims, assets contributed to the trust can only be used to pay such benefits with certain exceptions. The assets held in the trust are included in other assets and at December 31 consisted of the following: 2017 2016 Corporate-owned life insurance policies $ 36.0 $ 34.9 Cash and cash equivalents 1.1 .3 Total $ 37.1 $ 35.2 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Total Revenue | Total Revenue 2017 2016 2015 Europe, Middle East & Africa $ 2,126.5 $ 2,138.2 $ 2,229.2 South Latin America 2,222.4 2,145.9 2,309.6 North Latin America 811.8 829.9 901.0 Asia Pacific 518.3 549.7 616.8 Total segment revenue 5,679.0 5,663.7 6,056.6 Other operating segments and business activities 36.6 54.0 103.9 Total revenue $ 5,715.6 $ 5,717.7 $ 6,160.5 |
Operating Profit | Operating Profit 2017 2016 2015 Segment Profit Europe, Middle East & Africa $ 330.6 $ 329.9 $ 311.2 South Latin America 194.1 200.5 238.9 North Latin America 81.8 114.4 107.2 Asia Pacific 47.7 60.6 69.4 Total segment profit 654.2 705.4 726.7 Other operating segments and business activities 5.2 5.3 16.1 Unallocated global expenses (307.7 ) (338.6 ) (391.2 ) CTI restructuring initiatives (60.2 ) (77.4 ) (49.1 ) Loss contingency (18.2 ) — — Legal settlement (1) — 27.2 — Venezuelan special items — — (120.2 ) Pension settlement charge — — (7.3 ) Other items — — (3.1 ) Asset impairment and other charges — — (6.9 ) Operating profit $ 273.3 $ 321.9 $ 165.0 (1) In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ( $27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016. |
Total Assets | Total Assets 2017 2016 2015 Europe, Middle East & Africa $ 1,190.5 $ 949.3 $ 909.9 South Latin America 1,273.6 1,306.3 1,126.8 North Latin America 335.8 344.4 368.3 Asia Pacific 296.9 295.4 315.0 Total from reportable segments 3,096.8 2,895.4 2,720.0 Total from discontinued operations (2) — 1.3 371.2 Other operating segments .9 2.9 50.5 Global 600.2 519.3 628.7 Total assets (2) $ 3,697.9 $ 3,418.9 $ 3,770.4 (2) Total assets from discontinued operations and total assets at December 31, 2015 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 | Capital Expenditures 2017 2016 2015 Europe, Middle East & Africa $ 29.4 $ 18.8 $ 17.2 South Latin America 35.4 39.2 42.0 North Latin America 12.9 11.7 9.7 Asia Pacific 2.3 4.5 3.5 Total from reportable segments 80.0 74.2 72.4 Other operating segments — — 4.8 Global 17.3 18.8 15.2 Total capital expenditures $ 97.3 $ 93.0 $ 92.4 |
Depreciation and Amortization | Depreciation and Amortization 2017 2016 2015 Europe, Middle East & Africa $ 29.9 $ 28.2 $ 29.0 South Latin America 34.3 30.9 34.2 North Latin America 13.6 13.1 14.2 Asia Pacific 9.3 11.1 13.4 Total from reportable segments 87.1 83.3 90.8 Other operating segments — .6 4.6 Global 26.9 30.0 30.7 Total depreciation and amortization $ 114.0 $ 113.9 $ 126.1 |
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. 2017 2016 2015 Brazil $ 1,263.8 $ 1,220.4 $ 1,252.6 All other 4,451.8 4,497.3 4,907.9 Total $ 5,715.6 $ 5,717.7 $ 6,160.5 |
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 include 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. 2017 2016 2015 Brazil $ 396.9 $ 400.9 $ 302.7 U.S. 174.4 196.1 225.9 All other 554.3 559.9 597.3 Total $ 1,125.6 $ 1,156.9 $ 1,125.9 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule Of Minimum Rental Commitments And Purchase Obligations | Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2018 $ 60.2 $ 190.1 2019 49.5 142.0 2020 39.0 79.3 2021 29.2 39.2 2022 27.1 19.9 Later years 66.6 8.6 Sublease rental income (75.5 ) N/A Total $ 196.1 $ 479.1 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transformation Plan [Member] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The liability balance for the Transformation Plan at December 31, 2017 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total 2015 charges $ 21.4 $ — $ — $ — $ 21.4 Balance at December 31, 2015 $ 21.4 $ — $ — $ — $ 21.4 2016 charges 73.4 .4 2.7 8.7 85.2 Adjustments (10.8 ) — — — (10.8 ) Cash payments (34.6 ) — — (5.9 ) (40.5 ) Non-cash write-offs — (.4 ) (2.7 ) — (3.1 ) Foreign exchange (.8 ) — — — (.8 ) Balance at December 31, 2016 $ 48.6 $ — $ — $ 2.8 $ 51.4 2017 charges $ 31.9 $ .6 $ — $ — $ 32.5 Adjustments (5.0 ) — — 27.3 22.3 Cash payments (34.8 ) — — (8.1 ) (42.9 ) Non-cash write-offs — (.6 ) — (14.0 ) (14.6 ) Foreign exchange .5 — — — .5 Balance at December 31, 2017 $ 41.2 $ — $ — $ 8.0 $ 49.2 |
Schedule of Restructuring and Related Costs | The following table presents the restructuring charges incurred to date, under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan: Employee- Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total Charges incurred to-date on approved initiatives $ 110.9 $ 1.0 $ 2.7 $ 36.0 $ 150.6 Estimated charges to be incurred on approved initiatives 7.3 — 1.2 6.8 15.3 Total expected charges on approved initiatives $ 118.2 $ 1.0 $ 3.9 $ 42.8 $ 165.9 |
Schedule of Restructuring Charges Reportable by Business Segment [Table Text Block] | The charges, net of adjustments, of initiatives under the Transformation Plan, along with the estimated charges expected to be incurred on approved initiatives under the plan, by reportable segment are as follows: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total 2015 $ — $ — $ — $ — $ 21.4 $ 21.4 2016 30.9 13.2 4.4 11.7 14.2 74.4 2017 .9 5.6 (.6 ) 8.0 40.9 54.8 Charges incurred to-date on approved initiatives 31.8 18.8 3.8 19.7 76.5 150.6 Estimated charges to be incurred on approved initiatives .5 — — 8.5 6.3 15.3 Total expected charges on approved initiatives $ 32.3 $ 18.8 $ 3.8 $ 28.2 $ 82.8 $ 165.9 |
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 at December 31, 2017 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 2016 charges — Adjustments (.7 ) Cash payments (2.2 ) Foreign exchange — Balance at December 31, 2016 $ 1.1 2017 charges — Adjustments (.2 ) Cash payments (.5 ) Foreign exchange — Balance at December 31, 2017 $ .4 |
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: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total Total charges incurred $ 4.2 $ 2.6 $ .2 $ 5.7 $ 8.4 $ 21.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Adjustments to Goodwill | Europe, Middle East & Africa South Latin America Asia Pacific Total Gross balance at December 31, 2016 $ 25.6 $ 72.3 $ 85.0 $ 182.9 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2016 $ 18.7 $ 72.3 $ 2.6 $ 93.6 Changes during the period ended December 31, 2017: Foreign exchange 1.7 .4 — 2.1 Gross balance at December 31, 2017 $ 27.3 $ 72.7 $ 85.0 $ 185.0 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2017 $ 20.4 $ 72.7 $ 2.6 $ 95.7 |
Supplemental Balance Sheet In49
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Prepaid Expenses and Other | At December 31, 2017 and 2016 , prepaid expenses and other included the following: Components of Prepaid expenses and other 2017 2016 Prepaid taxes and tax refunds receivable $ 111.6 $ 99.3 Receivables other than trade 67.2 68.3 Prepaid brochure costs, paper and other literature 64.8 73.2 Other 52.8 50.5 Prepaid expenses and other $ 296.4 $ 291.3 |
Components of Other Assets | At December 31, 2017 and 2016 , other assets included the following: Components of Other assets 2017 2016 Deferred tax assets (Note 9) $ 203.8 $ 162.1 Capitalized software (Note 1) 85.2 83.9 Judicial deposits other than Brazil IPI tax (see below) 82.2 78.0 Net overfunded pension plans (Note 13) 82.0 54.8 Long-term receivables 75.6 78.9 Judicial deposit for Brazil IPI tax on cosmetics (Note 18) 73.8 69.0 Trust assets associated with supplemental benefit plans (Note 13) 37.1 35.2 Tooling (plates and molds associated with our beauty products) 12.5 14.7 Investment in New Avon (Note 4) — 32.8 Other 14.0 12.3 Other assets $ 666.2 $ 621.7 |
Results of Operations by Quar50
Results of Operations by Quarter (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Financial Results of Operations by Quarter | 2017 First Second Third Fourth Year Total revenue $ 1,333.1 $ 1,395.9 $ 1,417.8 $ 1,568.8 $ 5,715.6 Gross profit 816.0 870.9 867.8 957.6 3,512.3 Operating profit (1) 28.7 31.6 83.0 130.0 273.3 (Loss) income from continuing operations, before taxes (6.7 ) (12.2 ) 48.0 91.6 120.7 (Loss) income from continuing operations, net of tax (3) (36.5 ) (45.8 ) 11.9 90.4 20.0 Net loss attributable to noncontrolling interests — .3 .6 1.1 2.0 Net (loss) income attributable to Avon $ (36.5 ) $ (45.5 ) $ 12.5 $ 91.5 $ 22.0 (Loss) earnings per common share from continuing operations Basic $ (.10 ) $ (.12 ) $ .01 $ .17 $ (.00 ) (4) Diluted (.10 ) (.12 ) .01 .17 (.00 ) (4) 2016 First Second Third Fourth Year Total revenue $ 1,306.5 $ 1,434.3 $ 1,408.8 $ 1,568.1 $ 5,717.7 Gross profit 787.7 869.3 857.9 945.8 3,460.7 Operating profit (1) 7.8 95.1 112.0 107.0 321.9 (Loss) income from continuing operations, before taxes (2) (158.1 ) 71.9 74.6 42.8 31.2 (Loss) income from continuing operations, net of tax (3) (155.8 ) 35.8 36.3 (9.7 ) (93.4 ) (Loss) income from discontinued operations, net of tax (9.6 ) (2.6 ) (.7 ) (1.1 ) (14.0 ) Net (income) loss attributable to noncontrolling interests (.5 ) (.2 ) .4 .1 (.2 ) Net (loss) income attributable to Avon $ (165.9 ) $ 33.0 $ 36.0 $ (10.7 ) $ (107.6 ) (Loss) earnings per common share from continuing operations Basic $ (.38 ) $ .07 $ .07 $ (.03 ) $ (.25 ) (4) Diluted (.38 ) .07 .07 (.03 ) (.25 ) (4) |
Components Impacting Results of Operations | (1) Operating profit (loss) was impacted by the following: 2017 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ (.1 ) $ — $ — $ .7 $ .6 Selling, general and administrative expenses 10.1 20.3 6.2 23.0 59.6 Total costs to implement restructuring initiatives $ 10.0 $ 20.3 $ 6.2 $ 23.7 $ 60.2 Loss contingency $ — $ 18.2 $ — $ — $ 18.2 2016 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ — $ .3 $ — $ .3 $ .6 Selling, general and administrative expenses 46.8 9.1 14.0 6.9 76.8 Total costs to implement restructuring initiatives $ 46.8 $ 9.4 $ 14.0 $ 7.2 $ 77.4 Legal settlement $ — $ — $ (27.2 ) $ — $ (27.2 ) |
VALUATION AND QUALIFYING ACCO51
VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 Allowance for doubtful accounts receivable $ 122.9 $ 221.9 $ — $ (215.5 ) (1) $ 129.3 Allowance for sales returns 8.2 — 197.9 (196.8 ) (2) 9.3 Allowance for inventory obsolescence 58.4 36.7 — (33.8 ) (3) 61.3 Deferred tax asset valuation allowance 3,296.0 (78.4 ) (4) — — 3,217.6 2016 Allowance for doubtful accounts receivable $ 77.6 $ 190.5 $ — $ (145.2 ) (1) $ 122.9 Allowance for sales returns 9.1 — 186.9 (187.8 ) (2) 8.2 Allowance for inventory obsolescence 71.3 36.5 — (49.4 ) (3) 58.4 Deferred tax asset valuation allowance 2,090.1 1,205.9 (5) — — 3,296.0 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 1,480.6 609.5 (5) — — 2,090.1 (1) Accounts written off, net of recoveries and foreign currency translation adjustment. (2) Returned product reused or destroyed and foreign currency translation adjustment. (3) Obsolete inventory destroyed and foreign currency translation adjustment. (4) Decrease in valuation allowance primarily related to a partial release of the U.S. valuation allowance as a result of the enactment of the Tax Cuts and Jobs Act in the U.S. and the impact of a business model change related to the move of the Company's headquarters from the U.S. to the UK. (5) 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 a52
Description of the Business and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | Dec. 17, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($)channelregionshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Number of business channels | channel | 1 | ||||||
Number of regions where company has geographic operations | region | 4 | ||||||
Loss on deconsolidation of Venezuela | $ 0 | $ (120.5) | $ 0 | ||||
Venezuela foreign currency devaluation | 70.00% | ||||||
Exchange rate net charges, total | $ (3.4) | ||||||
Exchange rate net charges on other expense, net | (4.2) | ||||||
Exchange rate net charges on income taxes | 0.8 | ||||||
Venezuelan non-monetary assets remeasurement in operating profit | 18.5 | ||||||
Charge for Venezuelan non-monetary assets | 11.4 | 0 | 0 | 101.7 | |||
Property, plant and equipment, net | 702.7 | 711.3 | |||||
Prepaid expenses and other | 296.4 | 291.3 | |||||
Brochure costs | 244 | 244.7 | 256.6 | ||||
Brochure income | $ 139.4 | 138.6 | 141.9 | ||||
Capitalization period of software | 5 years | ||||||
Capitalized software | $ 85.2 | 83.9 | |||||
Amortization of capitalized software | $ 29.5 | 30.5 | 31 | ||||
Minimum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 80.00% | ||||||
Maximum cumulative rate percentage of fair value derivative to qualify as highly effective derivative instrument | 125.00% | ||||||
Shipping and handling costs | $ 530.8 | 489.3 | 538.8 | ||||
Advertising costs | 118.4 | 108.9 | 128 | ||||
Research and development costs | $ 52.9 | $ 52.1 | $ 61.9 | ||||
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 | 16,900,000 | 14,200,000 | 12,700,000 | ||||
Temporary Equity, Conversion, Common Stock Equivalent | shares | 87,051,524 | 87,100,000 | |||||
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 | $ 26.6 | $ 27.2 | |||||
Paper Supply [Member] | |||||||
Prepaid expenses and other | $ 5.6 | $ 4.3 | |||||
Affiliated Entity [Member] | |||||||
Sale of convertible preferred stock | $ 435 | ||||||
Avon Venezuela [Member] | |||||||
Impairment of Venezuela long-lived assets | 90.3 | ||||||
Property, plant and equipment, net | $ 15.7 | ||||||
Deconsolidation, Carrying Value Of Net Assets | $ 39.2 | ||||||
Deconsolidation, Foreign Currency Translation Adjustments | (81.3) | ||||||
Other Expense [Member] | Avon Venezuela [Member] | |||||||
Loss on deconsolidation of Venezuela | (120.5) | ||||||
Inventories [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | 23.7 | ||||||
Property, Plant and Equipment [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | 15 | ||||||
Accounts Payable and Accrued Liabilities [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | 20 | ||||||
Other Assets [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | 11.4 | ||||||
Accounts Receivable [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | 4.6 | ||||||
Cash [Member] | Avon Venezuela [Member] | |||||||
Deconsolidation, Carrying Value Of Net Assets | $ 4.5 | ||||||
Discontinued Operations [Member] | North America Segment [Member] | |||||||
Sale of convertible preferred stock | $ 435 | ||||||
Cash contribution into privately-held company | $ 100 | ||||||
Percentage of ownership after transaction | 19.90% |
Description of the Business a53
Description of the Business and Summary of Significant Accounting Policies Out of Period (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Revisions and Out-of-Period Items | |
Out Of Period Adjustment | $ 8 |
Out of Period Adjustment After Tax | $ 14 |
Description of the Business a54
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, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||
Numerator from continuing operations: | |||||||||||||||||||||
Income (loss) from continuing operations less amounts attributable to noncontrolling interests | $ 22 | $ (93.6) | $ (799.8) | ||||||||||||||||||
Less: Earnings (loss) allocated to participating securities | 0.3 | (1.2) | (10.9) | ||||||||||||||||||
Less: Earnings allocated to convertible preferred stock | 23.1 | 18.4 | 0 | ||||||||||||||||||
Loss from continuing operations allocated to common shareholders | (1.4) | (110.8) | (788.9) | ||||||||||||||||||
Numerator from discontinued operations: | |||||||||||||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | 0 | (14) | (349.1) | ||||||||||||||||||
Less: Loss allocated to participating securities | 0 | (0.2) | (4.7) | ||||||||||||||||||
Loss from discontinued operations allocated to common shareholders | 0 | (13.8) | (344.4) | ||||||||||||||||||
Numerator attributable to Avon: | |||||||||||||||||||||
Net income (loss) attributable to Avon less amounts attributable to noncontrolling interests | $ 91.5 | $ 12.5 | $ (45.5) | $ (36.5) | $ (10.7) | $ 36 | $ 33 | $ (165.9) | 22 | [1] | (107.6) | [1],[2] | (1,148.9) | ||||||||
Less: Earnings (loss) allocated to participating securities | 0.3 | (1.4) | (15.7) | ||||||||||||||||||
Less: Earnings allocated to convertible preferred stock | 23.1 | 18.4 | 0 | ||||||||||||||||||
Loss attributable to Avon allocated to common shareholders | $ (1.4) | $ (124.6) | $ (1,133.2) | ||||||||||||||||||
Denominator: | |||||||||||||||||||||
Basic EPS weighted-average shares outstanding | 439.7 | 437 | 435.2 | ||||||||||||||||||
Diluted effect of assumed conversion of stock options | 0 | 0 | 0 | ||||||||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 0 | 0 | ||||||||||||||||||
Diluted EPS adjusted weighted-average shares outstanding | 439.7 | 437 | 435.2 | ||||||||||||||||||
Loss per Common Share from continuing operations: | |||||||||||||||||||||
Basic from continuing operations | $ 0.17 | [3] | $ 0.01 | [3] | $ (0.12) | [3] | $ (0.10) | [3] | $ (0.03) | [3] | $ 0.07 | [3] | $ 0.07 | [3] | $ (0.38) | [3] | $ 0 | [1],[3] | $ (0.25) | [1],[2],[3] | $ (1.81) |
Diluted from continuing operations | $ 0.17 | [3] | $ 0.01 | [3] | $ (0.12) | [3] | $ (0.10) | [3] | $ (0.03) | [3] | $ 0.07 | [3] | $ 0.07 | [3] | $ (0.38) | [3] | 0 | [1],[3] | (0.25) | [1],[2],[3] | (1.81) |
Loss per Common Share from discontinued operations: | |||||||||||||||||||||
Basic from discontinued operations | 0 | (0.03) | (0.79) | ||||||||||||||||||
Diluted from discontinued operations | 0 | (0.03) | (0.79) | ||||||||||||||||||
Loss per Common Share attributable to Avon: | |||||||||||||||||||||
Basic attributable to Avon | 0 | (0.29) | (2.60) | ||||||||||||||||||
Diluted attributable to Avon | $ 0 | $ (0.29) | $ (2.60) | ||||||||||||||||||
[1] | (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. | ||||||||||||||||||||
[2] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Sales [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement - estimated percentage impact | 5.00% | ||
Operating Income (Loss) [Member] | Accounting Standards Update 2017-07 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 7.9 | $ 2.1 | |
Minimum [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (35) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Deferred Taxes | 10 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Prepaids and Other Assets | 50 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Inventories | 35 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Other Accrued Liabilities | 35 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets, pre-tax | (50) | ||
Minimum [Member] | Gross margin [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement - estimated percentage impact | (3.00%) | ||
Minimum [Member] | Operating margin [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement - estimated percentage impact | (0.10%) | ||
Maximum [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (45) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Deferred Taxes | 20 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Prepaids and Other Assets | 60 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Inventories | 45 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Other Accrued Liabilities | 45 | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets, pre-tax | $ (60) | ||
Maximum [Member] | Gross margin [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement - estimated percentage impact | (4.50%) | ||
Maximum [Member] | Operating margin [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement - estimated percentage impact | (0.30%) |
Discontinued Operations and D56
Discontinued Operations and Divestitures (Narrative) (Details) - USD ($) | Dec. 17, 2015 | Sep. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Mar. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Net deferred tax assets | $ 181,500,000 | $ 139,900,000 | $ 139,900,000 | |||||
Valuation allowance | 3,217,700,000 | 3,296,000,000 | 3,296,000,000 | |||||
Gain on sale of business | 0 | 0 | $ 44,900,000 | |||||
Other comprehensive income, equity method investment | 1,200,000 | 2,200,000 | 0 | |||||
Investment in New Avon (Note 4) | 0 | 32,800,000 | 32,800,000 | |||||
Liz Earle [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of business | 215,000,000 | |||||||
Disposition of Business, Expenses | 5,000,000 | |||||||
Gain on sale of business | 44,900,000 | |||||||
Gain on sale of business, after tax | 51.6 | |||||||
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 | $ 250,000,000 | |||||||
Interest rate, stated percentage | 2.375% | |||||||
New Avon [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Other comprehensive income, equity method investment | 100,000 | 2,200,000 | ||||||
Investment in New Avon (Note 4) | $ 42,500,000 | |||||||
Discontinued Operations [Member] | North America Segment [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 435,000,000 | |||||||
Discontinued Operation, Equity Method Investment Amount Not Retained after Disposal, Ownership Interest | 80.10% | |||||||
Cash contribution into privately-held company | $ 100,000,000 | |||||||
Proceeds on sale used to reduce debt | 250,000,000 | |||||||
Proceeds for issuance of membership interests | $ 170,000,000 | |||||||
Percentage of ownership after transaction | 19.90% | |||||||
Discontinued Operation, Working Capital Adjustment | $ 6,000,000 | |||||||
Loss on sale of discontinued operations, before tax | $ 340,000,000 | 15,600,000 | $ 340,000,000 | 355,600,000 | ||||
Discontinued Operations, loss on sale of business, after tax | $ 340,000,000 | $ 345,400,000 | ||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, before Income Tax | (15,600,000) | |||||||
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | (5,400,000) | |||||||
Other Expense [Member] | New Avon [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (Loss) from Equity Method Investments | $ 1,700,000 | $ 11,500,000 | $ 11,900,000 |
Discontinued Operations and D57
Discontinued Operations and Divestitures Discontinued Operations Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||
Loss from discontinued operations, net of tax | $ (1.1) | $ (0.7) | $ (2.6) | $ (9.6) | $ 0 | $ (14) | $ (349.1) | |||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ (2.2) | (2.2) | $ 24.1 | |||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 1.3 | 0 | 1.3 | $ 1.3 | ||||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | $ 10.7 | $ 0 | 10.7 | 10.7 | ||||||
North America Segment [Member] | ||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||
Income taxes | (10.2) | |||||||||
Discontinued Operations [Member] | North America Segment [Member] | ||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||
Total revenue | 135.2 | 1,012.5 | ||||||||
Cost of sales | 53.2 | 404 | ||||||||
Selling, general and administrative expenses | 91.5 | 606.2 | ||||||||
Operating (loss) income | (9.5) | 2.3 | ||||||||
Other income (expense) items | 0.6 | (3.2) | ||||||||
Loss from discontinued operations, before tax | (8.9) | (0.9) | ||||||||
Loss on sale of discontinued operations, before tax | $ (340) | (15.6) | (340) | $ (355.6) | ||||||
Income taxes | 10.5 | (8.2) | ||||||||
Loss from discontinued operations, net of tax | $ (14) | $ (349.1) |
Investment in New Avon (Details
Investment in New Avon (Details) - USD ($) | Dec. 17, 2015 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in New Avon (Note 4) | $ 0 | $ 32,800,000 | |||
Distribution from New Avon LLC | 22,000,000 | 0 | $ 0 | ||
Other comprehensive income, equity method investment | 1,200,000 | 2,200,000 | $ 0 | ||
New Avon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in New Avon (Note 4) | $ 42,500,000 | ||||
Income (Loss) from Equity Method Investment including amounts not recorded as investment balance is below zero | (20,200,000) | (11,900,000) | |||
Distribution from New Avon LLC | 22,000,000 | ||||
Other comprehensive income, equity method investment | 100,000 | 2,200,000 | |||
Equity method investment, comprehensive income (loss) from purchase accounting | 1,100,000 | ||||
North America Segment [Member] | Discontinued Operations [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership after transaction | 19.90% | ||||
Other Expense [Member] | New Avon [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 1,700,000 | 11,500,000 | $ 11,900,000 | ||
Equity method investment, income (loss) from purchase accounting | $ (500,000) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 17, 2015 | ||
Related Party Transaction [Line Items] | ||||
Change in estimated value of letters of credit | $ (0.2) | $ (0.5) | ||
Letters of credit outstanding | 37.7 | 45.9 | ||
Equity Method Investee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, related parties | (29.6) | (32.6) | ||
Letters of credit outstanding | 1.4 | 1.6 | $ 2.1 | |
Equity Method Investee [Member] | Manufacturing and Supply Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from sale of product to New Avon(1) | [1] | 32.5 | 29.2 | |
Cost of sales for purchases from New Avon(2) | [2] | 3.8 | 4.6 | |
Gross profit from sale of product to New Avon(1) | [1] | 1.9 | 2.3 | |
Purchases from New Avon | 3.2 | 5.6 | ||
Equity Method Investee [Member] | Transition Services Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, related parties | [3] | (32.2) | (35.3) | |
Equity Method Investee [Member] | Project Management Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, related parties | [4] | $ 2.6 | $ 2.7 | |
[1] | The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $32.5 and $29.2, within other revenue, and gross profit of $1.9 and $2.3 associated with this agreement during the years ended December 31, 2017 and 2016, respectively. | |||
[2] | New Avon also supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $3.2 and $5.6 from New Avon associated with this agreement during the years ended December 31, 2017 and 2016, respectively, and recorded $3.8 and $4.6 associated with these purchases within cost of sales during the years ended December 31, 2017 and 2016, respectively | |||
[3] | The Company also entered into a transition services agreement to provide certain services to New Avon, as well as an intellectual property ("IP") license agreement, an agreement for technical support and innovation and subleases for office space. In addition, New Avon performed certain services for the Company under a similar transition services agreement which expired during the third quarter of 2017. The Company recorded a net $32.2 and $35.3 reduction of selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively, which generally represents a recovery of the related costs. | |||
[4] | The Company also entered into agreements with an affiliate of Cerberus, which provide for the secondment of Cerberus affiliate personnel to the Company's project management team responsible for assisting with the execution of the transformation plan (the "Transformation Plan") announced in January 2016. The Company recorded $2.6 and $2.7 in selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively. See Note 16, Restructuring Initiatives for additional information related to the Transformation Plan. |
Related Party Transactions Rela
Related Party Transactions Related Party Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | |||
Inventories5 | [1] | $ 0.4 | $ 1 |
Receivables due from New Avon(6) | [2] | 9.8 | 11.6 |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, related parties | (29.6) | (32.6) | |
Equity Method Investee [Member] | Manufacturing and Supply Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from sale of product to New Avon(1) | [3] | 32.5 | 29.2 |
Gross profit from sale of product to New Avon(1) | [3] | 1.9 | 2.3 |
Cost of sales for purchases from New Avon(2) | [4] | 3.8 | 4.6 |
Equity Method Investee [Member] | Transition Services Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, related parties | [5] | (32.2) | (35.3) |
Equity Method Investee [Member] | Project Management Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, related parties | [6] | 2.6 | 2.7 |
New Avon [Member] | |||
Related Party Transaction [Line Items] | |||
Payables to to related parties | [7] | 0.2 | 0.7 |
Affiliate of Cerberus [Member] | |||
Related Party Transaction [Line Items] | |||
Payables to to related parties | [8] | $ 0.4 | $ 0.6 |
[1] | Inventories relate to purchases from New Avon, associated with the manufacturing and supply agreement, which have not yet been sold, and were classified within inventories in our Consolidated Balance Sheets. | ||
[2] | The receivables due from New Avon relate to the agreements for transition services, the IP license, research and development and subleases for office space, as well as the manufacturing and supply agreement, and were classified within prepaid expenses and other in our Consolidated Balance Sheets. | ||
[3] | The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $32.5 and $29.2, within other revenue, and gross profit of $1.9 and $2.3 associated with this agreement during the years ended December 31, 2017 and 2016, respectively. | ||
[4] | New Avon also supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $3.2 and $5.6 from New Avon associated with this agreement during the years ended December 31, 2017 and 2016, respectively, and recorded $3.8 and $4.6 associated with these purchases within cost of sales during the years ended December 31, 2017 and 2016, respectively | ||
[5] | The Company also entered into a transition services agreement to provide certain services to New Avon, as well as an intellectual property ("IP") license agreement, an agreement for technical support and innovation and subleases for office space. In addition, New Avon performed certain services for the Company under a similar transition services agreement which expired during the third quarter of 2017. The Company recorded a net $32.2 and $35.3 reduction of selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively, which generally represents a recovery of the related costs. | ||
[6] | The Company also entered into agreements with an affiliate of Cerberus, which provide for the secondment of Cerberus affiliate personnel to the Company's project management team responsible for assisting with the execution of the transformation plan (the "Transformation Plan") announced in January 2016. The Company recorded $2.6 and $2.7 in selling, general and administrative expenses associated with these agreements during the years ended December 31, 2017 and 2016, respectively. See Note 16, Restructuring Initiatives for additional information related to the Transformation Plan. | ||
[7] | The payables due to New Avon relate to the manufacturing and supply agreement, and were classified within other accrued liabilities in our Consolidated Balance Sheets. | ||
[8] | The payables due to an affiliate of Cerberus relate to the agreement for the project management team, and were classified within other accrued liabilities in our Consolidated Balance Sheets. |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 190.6 | $ 179.3 |
Finished goods | 407.6 | 407.1 |
Total | $ 598.2 | $ 586.4 |
Debt and Other Financing (Narra
Debt and Other Financing (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Aug. 31, 2016 | Mar. 31, 2013 | Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 01, 2016 | Mar. 31, 2015 | Jun. 30, 2009 | Mar. 31, 2008 | Jun. 30, 2003 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 11.00% | 11.00% | 23.00% | 11.00% | |||||||||||||
Obligations under capital leases | $ 7.6 | $ 7.6 | $ 4 | $ 7.6 | |||||||||||||
Gain (loss) on extinguishment of debt | 0 | 1.1 | $ (5.5) | ||||||||||||||
Accelerated deferred loss - treasury lock agreements | 2.6 | ||||||||||||||||
Amount outstanding under the revolving credit facility | 0 | ||||||||||||||||
Revolving credit facility draw down amount without violating covenant | 362 | ||||||||||||||||
Letters of credit outstanding | 45.9 | 45.9 | $ 37.7 | 45.9 | |||||||||||||
Credit ratings | Our long-term credit ratings are: Moody’s ratings of Stable Outlook with B1 for corporate family debt, B3 for senior unsecured debt, and Ba1 for our Senior Secured Notes; S&P ratings of Stable Outlook with B for corporate family debt and senior unsecured debt and BB- for our Senior Secured Notes; and Fitch rating of Negative Outlook with B+, each of which are below investment grade. | ||||||||||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | |||||||||||||||||
Principal amount of debt | $ 250 | ||||||||||||||||
Interest rate, stated percentage | 2.375% | ||||||||||||||||
Accrued Interest Paid on Extinguishment of 2.375% Notes | $ 3.1 | ||||||||||||||||
Write off of Deferred Debt Issuance Cost | 0.5 | ||||||||||||||||
Gain (loss) on extinguishment of debt | (5.5) | ||||||||||||||||
Notes Make Whole Premium | $ 5 | ||||||||||||||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | |||||||||||||||||
Principal amount of debt | $ 500 | ||||||||||||||||
Interest rate, stated percentage | 4.60% | ||||||||||||||||
Repayments of Debt | $ 50.1 | ||||||||||||||||
Debt Instrument, Repurchase Amount | $ 40 | ||||||||||||||||
Unamortized Debt Issuance Costs | 1.4 | 1.4 | $ 0.9 | 1.4 | |||||||||||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | |||||||||||||||||
Principal amount of debt | $ 500 | ||||||||||||||||
Interest rate, stated percentage | 5.00% | ||||||||||||||||
Debt Instrument, Repurchase Amount | 11.1 | 11.1 | 11.1 | ||||||||||||||
Unamortized Debt Issuance Costs | 2.3 | 2.3 | 1.9 | 2.3 | |||||||||||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 5.75% | ||||||||||||||||
Repayments of Debt | $ 106.2 | 108.6 | |||||||||||||||
Debt Instrument, Repurchase Amount | 35.2 | ||||||||||||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 4.20% | ||||||||||||||||
Repayments of Debt | 132.2 | 73.8 | |||||||||||||||
Debt Instrument, Repurchase Amount | 44 | ||||||||||||||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | |||||||||||||||||
Interest rate, stated percentage | 6.50% | ||||||||||||||||
Repayments of Debt | $ 68.1 | ||||||||||||||||
Debt Instrument, Repurchase Amount | 44 | ||||||||||||||||
Unamortized Debt Issuance Costs | 0.4 | 0.4 | 0.3 | 0.4 | |||||||||||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | |||||||||||||||||
Principal amount of debt | $ 250 | ||||||||||||||||
Interest rate, stated percentage | 6.95% | ||||||||||||||||
Debt Instrument, Repurchase Amount | 6.2 | 6.2 | 6.2 | ||||||||||||||
Unamortized Debt Issuance Costs | 2.4 | 2.4 | 2.2 | 2.4 | |||||||||||||
Seven Point Eight Seven Five Percent Notes, Due August Two Thousand Twenty Two [Member] [Member] | |||||||||||||||||
Principal amount of debt | $ 500 | ||||||||||||||||
Interest rate, stated percentage | 7.875% | ||||||||||||||||
Unamortized Debt Issuance Costs | 9 | 9 | $ 7.4 | 9 | |||||||||||||
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 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 | ||||||||||||||||
2013 Revolving Credit Facility [Member] | |||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 2.5 | ||||||||||||||||
Line of credit facility | $ 1,000 | ||||||||||||||||
March 2012 Interest-Rate Swap Termination [Member] | |||||||||||||||||
Gain (loss) on extinguishment of debt | 5.8 | ||||||||||||||||
AIO [Member] | |||||||||||||||||
Letters of credit outstanding | $ 38 | ||||||||||||||||
Cash tender offers [Member] | |||||||||||||||||
Gain (loss) on extinguishment of debt | $ 3.9 | ||||||||||||||||
Accelerated deferred loss - treasury lock agreements | 1.2 | ||||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 12.8 | ||||||||||||||||
Debt repurchase, premium paid | 5.8 | ||||||||||||||||
Cash tender offer, deal costs | 1 | ||||||||||||||||
Write-off Deferred Debt Issuance Cost and Discount | $ 0.9 | ||||||||||||||||
October debt repurchase [Member] | |||||||||||||||||
Gain (loss) on extinguishment of debt | (1) | (1) | |||||||||||||||
Accelerated deferred loss - treasury lock agreements | 0.4 | ||||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 6.1 | ||||||||||||||||
Debt repurchase, premium paid | 6.2 | ||||||||||||||||
Accrued Interest Paid on Extinguishment of Debt | 1.1 | ||||||||||||||||
Write-off Deferred Debt Issuance Cost and Discount | 0.5 | ||||||||||||||||
December debt repurchase [Member] | |||||||||||||||||
Gain (loss) on extinguishment of debt | 1.1 | 1.1 | |||||||||||||||
Debt repurchase discount received | 1.3 | 1.3 | $ 1.3 | ||||||||||||||
Accrued Interest Paid on Extinguishment of Debt | 0.3 | ||||||||||||||||
Write-off Deferred Debt Issuance Cost and Discount | $ 0.2 | ||||||||||||||||
Debt prepayment [Member] | |||||||||||||||||
Gain (loss) on extinguishment of debt | (2.9) | $ (2.9) | |||||||||||||||
Notes Make Whole Premium | 12.1 | $ 12.1 | |||||||||||||||
Accelerated deferred loss - treasury lock agreements | 1 | ||||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 10.5 | ||||||||||||||||
Accrued Interest Paid on Extinguishment of Debt | 3.6 | ||||||||||||||||
Write-off Deferred Debt Issuance Cost and Discount | $ 0.3 |
Debt and Other Financing (Debt)
Debt and Other Financing (Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2013 | Jun. 30, 2009 | Mar. 31, 2008 | Jun. 30, 2003 |
Notes payable | $ 22.6 | $ 13.5 | ||||
Current portion of long-term debt | 3.1 | 4.6 | ||||
Total debt maturing within one year | 25.7 | 18.1 | ||||
Senior Notes | 492.6 | 491 | ||||
Total | 1,869.3 | 1,869.5 | ||||
Amortization of swap termination | 6 | 10.9 | ||||
Less current portion | (3.1) | (4.6) | ||||
Total long-term debt | 1,872.2 | 1,875.8 | ||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | ||||||
Interest rate, stated percentage | 2.375% | |||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | ||||||
Interest rate, stated percentage | 5.75% | |||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | ||||||
Interest rate, stated percentage | 4.20% | |||||
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | ||||||
Interest rate, stated percentage | 6.50% | |||||
Notes | 237.2 | 236.8 | ||||
Other debt, payable through 2020 with interest from .4% to 11.3% | ||||||
Other debt, payable through 2025 with interest from .5% to 11.3% | 5.2 | 9 | ||||
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | ||||||
Interest rate, stated percentage | 4.60% | |||||
Notes | 408.8 | 408.2 | ||||
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | ||||||
Interest rate, stated percentage | 5.00% | |||||
Notes | 484.5 | 483.7 | ||||
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | ||||||
Interest rate, stated percentage | 6.95% | |||||
Notes | $ 241 | $ 240.8 | ||||
Minimum [Member] | Other debt, payable through 2020 with interest from .4% to 11.3% | ||||||
Interest rate, stated percentage | 0.50% | |||||
Maximum [Member] | Other debt, payable through 2020 with interest from .4% to 11.3% | ||||||
Interest rate, stated percentage | 11.30% |
Debt and Other Financing Debt a
Debt and Other Financing Debt and Other Financing (Schedule of Public Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Six Point Five Percent Notes, Due March Two Thousand Nineteen [Member] | ||
Debt Instrument [Line Items] | ||
Remaining Principal | $ 237.9 | $ 237.9 |
Unamortized Discounts | (0.4) | (0.7) |
Unamortized Debt Issuance Costs | (0.3) | (0.4) |
Total | 237.2 | 236.8 |
Four Point Six Zero Percent Notes, Due March Two Thousand Twenty [Member] | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 409.9 | 409.9 |
Unamortized Discounts | (0.2) | (0.3) |
Unamortized Debt Issuance Costs | (0.9) | (1.4) |
Total | 408.8 | 408.2 |
Five Point Zero Percent Notes, Due March Two Thousand Twenty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 488.9 | 488.9 |
Unamortized Discounts | (2.5) | (2.9) |
Unamortized Debt Issuance Costs | (1.9) | (2.3) |
Total | 484.5 | 483.7 |
Six Point Nine Five Percent Notes, Due March Two Thousand Forty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 243.8 | 243.8 |
Unamortized Discounts | (0.6) | (0.6) |
Unamortized Debt Issuance Costs | (2.2) | (2.4) |
Total | $ 241 | $ 240.8 |
Debt and Other Financing (Matur
Debt and Other Financing (Maturities of Long-Term Debt) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Debt Instruments [Abstract] | |
Maturities, 2017 | $ 2.9 |
Maturities, 2018 | 238.6 |
Maturities, 2019 | 410.1 |
Maturities, 2020 | 0.1 |
Maturities, 2021 | 500 |
Maturities, 2022 and Beyond | 732.8 |
Total Maturities | $ 1,884.5 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Exchange Gains (Losses) From Translation Of Acturial Losses and Prior Service Credit | $ 16.3 | $ (23.7) | $ (21.9) |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) (Components of Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated other comprehensive income, beginning balance | $ (848) | ||
Other comprehensive income (loss) other than reclassifications | 91.4 | $ (29.6) | |
Total reclassifications into earnings | 15.6 | ||
Accumulated other comprehensive income, ending balance | (725) | (848) | |
Change in derivative losses on cash flow hedges, taxes | 0 | 2.7 | $ 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Total reclassifications into earnings | 362.6 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated other comprehensive income, beginning balance | (910.9) | (950) | |
Other comprehensive income (loss) other than reclassifications | 81.3 | (34.9) | |
Total reclassifications into earnings | 0 | ||
Accumulated other comprehensive income, ending balance | (829.6) | (910.9) | (950) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Total reclassifications into earnings | 74 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated other comprehensive income, beginning balance | 0 | (1.3) | |
Other comprehensive income (loss) other than reclassifications | 0 | ||
Total reclassifications into earnings | 1.3 | ||
Accumulated other comprehensive income, ending balance | 0 | (1.3) | |
Change in derivative losses on cash flow hedges, taxes | 2.7 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Total reclassifications into earnings | 1.3 | ||
Accumulated Net Gain (Loss) from Net Investment Hedges Attributable to Parent [Member] | |||
Accumulated other comprehensive income, beginning balance | (4.3) | (4.3) | |
Other comprehensive income (loss) other than reclassifications | 0 | 0 | |
Total reclassifications into earnings | 0 | ||
Accumulated other comprehensive income, ending balance | (4.3) | (4.3) | (4.3) |
Accumulated Net Gain (Loss) from Net Investment Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Total reclassifications into earnings | 0 | ||
Defined Benefit Plans [Domain] | |||
Accumulated other comprehensive income, beginning balance | (120.2) | (410.6) | |
Other comprehensive income (loss) other than reclassifications | 8.9 | 3.1 | |
Total reclassifications into earnings | 15.6 | ||
Accumulated other comprehensive income, ending balance | (95.7) | (120.2) | (410.6) |
Defined Benefit Plans [Domain] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Total reclassifications into earnings | 287.3 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated other comprehensive income, beginning balance | (1,033.2) | (1,366.2) | |
Accumulated other comprehensive income, ending balance | (926.2) | (1,033.2) | (1,366.2) |
New Avon [Member] | Investment in New Avon [Member] | |||
Accumulated other comprehensive income, beginning balance | 2.2 | 0 | |
Other comprehensive income (loss) other than reclassifications | 1.2 | 2.2 | |
Total reclassifications into earnings | 0 | 0 | |
Accumulated other comprehensive income, ending balance | 3.4 | 2.2 | $ 0 |
Consolidated [Member] | Defined Benefit Plans [Domain] | |||
Total reclassifications into earnings | 15.6 | 17.3 | |
Amortization of net actuarial loss and prior service cost, tax | $ 0.8 | 0.7 | |
Avon Venezuela [Member] | |||
Total reclassifications into earnings | 82.1 | ||
Avon Venezuela [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Total reclassifications into earnings | 81.3 | ||
Avon Venezuela [Member] | Defined Benefit Plans [Domain] | |||
Total reclassifications into earnings | 0.8 | ||
THAILAND | |||
Total reclassifications into earnings | 2.7 | ||
THAILAND | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Total reclassifications into earnings | 2.7 | ||
North America Segment [Member] | |||
Total reclassifications into earnings | 259.2 | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 10.2 | ||
North America Segment [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Total reclassifications into earnings | (10) | ||
North America Segment [Member] | Defined Benefit Plans [Domain] | |||
Total reclassifications into earnings | $ 269.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net benefit related to U.S. Tax Reform | $ 29.9 | $ 29.9 | |||||
Valuation allowance release related to U.S Tax Reform | 33.5 | ||||||
Uncertain tax position related to U.S Tax Reform | 3.6 | ||||||
Write-off of deferred tax asset related to U.S. Tax Reform | 161.4 | ||||||
Reversal of deferred tax liability related to unremitted earnings due to U.S. Tax Reform | 66.7 | ||||||
Establishment of deferred tax assets for other miscellaneous withholding tax items due to U.S. Tax Reform | 5.5 | ||||||
One-time tax on offshore earnings due to U.S. Tax Reform | 2.9 | ||||||
Tax Credit Carryforward, Valuation Allowance | 946.7 | 946.7 | |||||
Tax benefit due to tax planning strategies | $ 29.3 | $ 18.7 | |||||
Deferred tax assets, net operating loss | 2,022.1 | 2,022.1 | $ 2,033 | ||||
Valuation allowance | 3,217.7 | 3,217.7 | 3,296 | ||||
Foreign tax credit carryforwards | 912.6 | 912.6 | |||||
Change in deferred tax liability associated with undistributed earnings | (64.4) | ||||||
Deferred tax liabilities, undistributed foreign earnings | 22.6 | 22.6 | |||||
Undistributed earnings of foreign subsidiaries | 1,500 | 1,500 | |||||
Net increase (decrease) in valuation allowance | $ 669.7 | ||||||
Minimum tax credit carryforwards | 35.9 | 35.9 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 19.6 | 19.6 | |||||
Total gross unrecognized tax benefits | 48.6 | $ 53 | 48.6 | 58.7 | 53 | $ 56.7 | |
Unrecognized tax benefits that would impact effective tax rate | 46 | 46 | |||||
Accrued interest and penalties | 9.9 | 9.9 | 9.3 | ||||
Expense for interest and penalties | $ 2.5 | $ 2.8 | |||||
Operating Loss Carryforwards, Valuation Allowance | 1,961.5 | 1,961.5 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 1,922.2 | $ 1,922.2 | |||||
Newly enacted tax rate | 21.00% | ||||||
State and Local Jurisdiction [Member] | |||||||
Operating loss carryforwards | 1,512.4 | $ 1,512.4 | |||||
Operating Loss Carryforwards, Valuation Allowance | 99.9 | 99.9 | |||||
Deferred tax assets, state tax loss carryforwards | 99.9 | 99.9 | |||||
Foreign [Member] | |||||||
Operating Loss Carryforwards, Valuation Allowance | 1,861.6 | 1,861.6 | |||||
Beginning [Member] | |||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 5 | $ 5 | |||||
Beginning [Member] | State and Local Jurisdiction [Member] | |||||||
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2018 | ||||||
Beginning [Member] | Foreign [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2018 | ||||||
Operating Loss Carryforwards, Expiration Dates | Jan. 1, 2018 | ||||||
Ending [Member] | |||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | 8 | $ 8 | |||||
Ending [Member] | State and Local Jurisdiction [Member] | |||||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2037 | ||||||
Ending [Member] | Foreign [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2027 | ||||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2034 | ||||||
Research Tax Credit Carryforward [Member] | Beginning [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2027 | ||||||
Research Tax Credit Carryforward [Member] | Ending [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2037 | ||||||
Investment Tax Credit Carryforward [Member] | |||||||
Tax credit carryforward | 12.9 | $ 12.9 | |||||
Investment Tax Credit Carryforward [Member] | Beginning [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Jan. 1, 2018 | ||||||
Investment Tax Credit Carryforward [Member] | Ending [Member] | |||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2032 | ||||||
Foreign [Member] | |||||||
Operating loss carryforwards | 7,448.4 | $ 7,448.4 | |||||
Operating loss carryforwards, not subject to expiration | 7,060.4 | 7,060.4 | |||||
Operating loss carryforwards, subject to expiration | 388 | $ 388 | |||||
EMEA [Member] | |||||||
Net increase (decrease) in valuation allowance | $ 25.5 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
United States | $ (147.6) | $ (403) | $ (230.3) | ||||||||||||
Foreign | 268.3 | 434.2 | 253 | ||||||||||||
Income from continuing operations, before taxes | $ 91.6 | $ 48 | $ (12.2) | $ (6.7) | $ 42.8 | $ 74.6 | $ 71.9 | $ (158.1) | $ 120.7 | $ 31.2 | [1] | $ 22.7 | |||
[1] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal, Current | $ 0 | $ 0 | $ 0 |
Federal, Deferred | (34) | 0 | 668.3 |
Federal, Total | (34) | 0 | 668.3 |
Foreign, Current | 130.6 | 128.5 | 173.9 |
Foreign, Deferred | 3.8 | (4.2) | (24.3) |
Foreign, Total | 134.4 | 124.3 | 149.6 |
State and other, Current | 0.3 | 0.3 | 0.7 |
State and other, Deferred | 0 | 0 | 0.6 |
State and other, Total | 0.3 | 0.3 | 1.3 |
Total | $ 100.7 | $ 124.6 | $ 819.2 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 0.20% | 0.60% | 2.50% |
Tax on foreign income | 6.00% | (24.40%) | 141.40% |
Tax on uncertain tax positions | (3.60%) | 34.10% | 8.20% |
Venezuela devaluation and highly inflationary accounting | 0.00% | 23.90% | 168.10% |
Reorganizations | 0.00% | (93.60%) | (173.50%) |
Effective Income Tax Rate Reconciliation, U.S. Tax Reform | (24.70%) | 0.00% | 0.00% |
Net change in valuation allowances | 62.40% | 375.10% | 3395.60% |
Imputed royalties and associated non-deductible expenses | 9.50% | 50.30% | 41.20% |
Research credits | (1.30%) | (5.40%) | (8.90%) |
Other | (0.10%) | 3.80% | (0.80%) |
Effective tax rate | 83.40% | 399.40% | 3608.80% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets (Liabilities) Resulting From Temporary Differences) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Tax loss and deduction carryforwards | $ 2,022.1 | $ 2,033 |
Tax credit carryforwards | 981 | 874 |
All other | 471 | 744 |
Valuation allowance | (3,217.7) | (3,296) |
Total deferred tax assets | 256.4 | 355 |
Deferred tax liabilities: | ||
Unremitted foreign earnings | (22.6) | |
Total deferred tax liabilities | (74.9) | (215.1) |
Net deferred tax assets | $ 181.5 | $ 139.9 |
Income Taxes (Deferred Tax As73
Income Taxes (Deferred Tax Assets (Liabilities) Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Other assets | $ 203.8 | $ 162.1 |
Total deferred tax assets | 203.8 | 162.1 |
Deferred tax liabilities: | ||
Long-term income taxes | (22.3) | (22.2) |
Total deferred tax liabilities | (22.3) | (22.2) |
Net deferred tax assets | $ 181.5 | $ 139.9 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, beginning balance | $ 58.7 | $ 53 | $ 56.7 |
Additions based on tax positions related to the current year | 1.4 | 1.8 | 3.5 |
Additions for tax positions of prior years | 17.6 | 9.4 | 5.7 |
Reductions for tax positions of prior years | (7.9) | (2.8) | (1.5) |
Reductions due to lapse of statute of limitations | (3.1) | (0.7) | (0.4) |
Reductions due to settlements with tax authorities | (18) | (2) | (11) |
Unrecognized tax benefits, ending balance | $ 48.6 | $ 58.7 | $ 53 |
Income Taxes (Tax Years Remaini
Income Taxes (Tax Years Remaining) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Write-off of valuation allowance related to U.S. Tax Reform | $ 161.4 |
Recording of a valuation allowance related to unremitted earnings due to U.S. Tax Reform | 66.7 |
Valuation allowance for other miscellaneous withholding tax items due to U.S. Tax Reform | 5.5 |
Utilization of foreign tax credits due to U.S. tax reform | $ 2.9 |
Beginning [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,012 |
Beginning [Member] | MEXICO | |
Open Tax Years by Major Tax Jurisdiction | 2,012 |
Beginning [Member] | PHILIPPINES | |
Open Tax Years by Major Tax Jurisdiction | 2,014 |
Beginning [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,012 |
Beginning [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,014 |
Beginning [Member] | UNITED KINGDOM | |
Open Tax Years by Major Tax Jurisdiction | 2,016 |
Beginning [Member] | UNITED STATES | |
Open Tax Years by Major Tax Jurisdiction | 2,016 |
Ending [Member] | Brazil [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | MEXICO | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | PHILIPPINES | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | Poland [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | Russia [Member] | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | UNITED KINGDOM | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Ending [Member] | UNITED STATES | |
Open Tax Years by Major Tax Jurisdiction | 2,017 |
Financial Instruments and Ris76
Financial Instruments and Risk Management (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2013 | Mar. 31, 2012 | |
Total exposure to floating rate interest rates | 1.00% | ||||
Unrealized gains on interest-rate swap agreements | $ 6 | $ 10.9 | |||
Gain (loss) on extinguishment of debt | 0 | 1.1 | $ (5.5) | ||
Loss written-off resulting from non-performance of counterparties | 0.2 | ||||
Accelerated deferred loss - treasury lock agreements | 2.6 | ||||
Foreign Exchange Contract [Member] | |||||
Notional amounts of derivative contracts | 39 | ||||
Gain (Loss) in other expense from undesignated foreign currency exchange contracts | 3 | (13.5) | |||
2007 Lock Agreement [Member] | |||||
Notional amounts of derivative contracts | 500 | ||||
Losses on 2007 Lock Agreement | 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 | 5.2 | 10.4 | |||
Losses Amortized to Interest Expense in Five Years [Member] | 2007 Lock Agreement [Member] | |||||
Losses on 2007 Lock Agreement | 19.2 | ||||
Losses Amortized to Interest Expense in Ten Years [Member] | 2007 Lock Agreement [Member] | |||||
Losses on 2007 Lock Agreement | $ 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 | 0 | $ 90.4 | |||
Amortization of Deferred Hedge Gains | 35.4 | ||||
Gain (loss) on extinguishment of debt | 23.6 | ||||
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 | 6 | $ 46.1 | |||
Amortization of Deferred Hedge Gains | $ 4.9 | 11.9 | |||
Gain (loss) on extinguishment of debt | $ 5.8 |
Financial Instruments and Ris77
Financial Instruments and Risk Management (Impact of Cash Flow Hedges on Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification of net losses to earnings, net of taxes | $ 0 | $ 1.3 | $ 1.9 | |
Treasury Locks [Member] | ||||
Balance at Period Start | [1] | $ 0 | (4) | |
Reclassification of net losses to earnings, net of taxes | 4 | |||
Balance at Period End | [1] | 0 | (4) | |
Net unamortized losses at beginning of year, tax effect | $ 2.7 | |||
Net unamortized losses at end of year, tax effect | $ 2.7 | |||
[1] | Amounts above exclude taxes of $2.7 at the beginning of year in 2016 |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Carrying Amount [Member] | |||
Available-for-sale securities | $ 3.7 | $ 2.8 | |
Debt maturing within one year | [1] | (25.7) | (18.1) |
Long-term debt | [1] | (1,872.2) | (1,875.8) |
Foreign exchange forward contracts | 0 | (2.4) | |
Fair Value [Member] | |||
Available-for-sale securities | 3.7 | 2.8 | |
Debt maturing within one year | (25.7) | (18.1) | |
Long-term debt | (1,718.6) | (1,877.5) | |
Foreign exchange forward contracts | $ 0 | $ (2.4) | |
[1] | The carrying value of debt maturing within one year and long-term debt is presented net of debt issuance costs and includes any related discount or premium and unamortized deferred gains on terminated interest-rate swap agreements, as applicable. |
Share-Based Compensation Plan79
Share-Based Compensation Plans (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2012$ / sharesshares | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 4,800,000 | ||||
Weighted-average grant-date fair value per share | $ / shares | $ 1.54 | $ 1.37 | |||
Unrecognized compensation costs, recognized over a weighted average period | 2 years | ||||
Compensation cost for share-based payments | $ | $ 24,200,000 | $ 24,000,000 | $ 51,200,000 | ||
Stock Options [Member] | |||||
Vesting period, years | 3 years | ||||
Contractual term, years | 10 years | ||||
Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Fair value vested during period | $ | $ 15,200,000 | ||||
Granted, restricted stock and units | 2,813,000 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 4.05 | ||||
Vested, restricted stock and units | 2,387,000 | ||||
Nonvested, ending balance, restricted stock and units | 4,804,000 | 5,356,000 | |||
Forfeited, weighted average grant-date fair value | $ / shares | $ 5.36 | ||||
Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Granted, restricted stock and units | 1,869,000 | ||||
Granted, weighted-average grant-date fair value | $ / shares | $ 4.21 | ||||
Vested, restricted stock and units | 1,478,000 | ||||
Nonvested, ending balance, restricted stock and units | [1] | 4,356,000 | 4,922,000 | ||
Forfeited, weighted average grant-date fair value | $ / shares | $ 6.68 | ||||
Restricted Stock Units and Performance Restricted Stock Units [Member] | |||||
Unrecognized compensation cost | $ | $ 14,000,000 | ||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 9 months 18 days | ||||
Restricted Stock Units - Treasury Stock [Member] | |||||
Unrecognized compensation cost | $ | $ 0 | ||||
Vested, restricted stock and units | 366,397 | ||||
Nonvested, ending balance, restricted stock and units | [1] | 0 | |||
Compensation cost for share-based payments | $ | $ 800,000 | $ 1,700,000 | $ 2,700,000 | ||
2017 [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | During 2017 and 2016, we granted premium-priced stock options, in which the exercise price was equal to a 25% premium and 30% premium, respectively, from the closing market price of our stock price at the date of grant. The premium-priced stock options vest on a three-year graded vesting schedule. The fair value of each premium-priced stock option is estimated on the date of grant using a Monte-Carlo simulation. | ||||
2017 [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | During 2017 and 2016, we granted performance restricted stock units that would vest and settle after three years based on the relative total shareholder return of our common stock against companies included in the S&P 400 index as of the date of grant over a three year performance period ("2017 PRSUs" and "2016 PRSUs", respectively). | ||||
Forfeited, weighted average grant-date fair value | $ / shares | $ 4.52 | ||||
2016 [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | During 2017 and 2016, we granted performance restricted stock units that would vest and settle after three years based on the relative total shareholder return of our common stock against companies included in the S&P 400 index as of the date of grant over a three year performance period ("2017 PRSUs" and "2016 PRSUs", respectively). | ||||
2016 [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | During 2017 and 2016, we granted performance restricted stock units that would vest and settle after three years based on the relative total shareholder return of our common stock against companies included in the S&P 400 index as of the date of grant over a three year performance period ("2017 PRSUs" and "2016 PRSUs", respectively). | ||||
Forfeited, weighted average grant-date fair value | $ / shares | $ 4.42 | ||||
Late 2015 [Member] | Performance Restricted Stock Units [Member] | |||||
Granted, restricted stock and units | 1,123,183 | ||||
Compensation cost for share-based payments | $ | $ 2,000,000 | $ 1,600,000 | |||
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 | ||||
2015 [Member] | Performance Restricted Stock Units [Member] | |||||
Vesting period, years | 3 years | ||||
Performance period | 2 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | During 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. | ||||
Forfeited, weighted average grant-date fair value | $ / shares | $ 7.49 | ||||
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] | |||||
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] | 101,625 | |||
Compensation cost for share-based payments | $ | $ 100,000 | $ 100,000 | $ 200,000 | ||
Director [Member] | Restricted Stock Units [Member] | |||||
Vesting period, years | 1 year | ||||
Two Thousand And Thirteen Plan [Member] | |||||
Multiplier for grant award | 3.13 | ||||
Maximum award, number of shares | 55,000,000 | ||||
Two Thousand And Sixteen Plan [Member] | |||||
Multiplier for grant award | 2.4 | ||||
Maximum award, number of shares | 48,000,000 | ||||
2010 Plan [Member] | SARs [Member] | |||||
Vesting period, years | 3 years | ||||
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 | ||||
[1] | Based on initial target payout. |
Share-Based Compensation Plan80
Share-Based Compensation Plans (Schedule of Compensation Cost and Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 24.2 | $ 24 | $ 51.2 |
Total income tax benefit recognized for share-based arrangements | $ 1.4 | $ 1.9 | $ 4.1 |
Share-Based Compensation Plan81
Share-Based Compensation Plans (Schedule of Weighted-Average Assumptions for Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
2017 [Member] | Performance Shares [Member] | |||
Risk-free rate(1) | [1] | 1.60% | |
Expected dividends | 0.00% | ||
Expected Avon volatility(2) | [2] | 61.00% | |
Expected average volatility(3) | [3] | 29.00% | |
2017 [Member] | Stock Options [Member] | |||
Risk-free rate(1) | [4] | 2.10% | |
Expected term(2) | [5] | 7 years | |
Expected Avon volatility(3) | [6] | 41.00% | |
Expected dividends | 0.00% | ||
2016 [Member] | Performance Shares [Member] | |||
Risk-free rate(1) | [1] | 1.10% | |
Expected dividends | 0.00% | ||
Expected Avon volatility(2) | [2] | 56.00% | |
Expected average volatility(3) | [3] | 28.00% | |
2016 [Member] | Stock Options [Member] | |||
Risk-free rate(1) | [4] | 1.60% | |
Expected term(2) | [5] | 7 years | |
Expected Avon volatility(3) | [6] | 39.00% | |
Expected dividends | 0.00% | ||
[1] | The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. | ||
[2] | Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs and the three year service period of the 2015 PRSUs. | ||
[3] | Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs. | ||
[4] | The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. | ||
[5] | The expected term of the option was based on the vesting terms of the respective option and a contractual life of 10 years. | ||
[6] | Expected Avon volatility was based on the daily historical volatility of our stock price, over a period similar to the expected life of the option. |
Share-Based Compensation Plan82
Share-Based Compensation Plans (Schedule of Summary of Stock Options) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Outstanding, beginning balance, in shares | shares | 14,824 |
Granted, in shares | shares | 6,785 |
Exercised, in shares | shares | 0 |
Forfeited, in shares | shares | 2,505 |
Expired, in shares | shares | 1,939 |
Outstanding, ending balance, in shares | shares | 17,165 |
Exercisable, ending balance, in shares | shares | 8,518 |
Outstanding, beginning balance, weighted-average exercise price | $ / shares | $ 20.09 |
Granted, weighted-average exercise price | $ / shares | 5.32 |
Exercised, weighted-average exercise price | $ / shares | 0 |
Forfeited, weighted-average exercise price | $ / shares | 5.52 |
Expired, weighted-average exercise price | $ / shares | 34.50 |
Outstanding, ending balance, weighted-average exercise price | $ / shares | 14.95 |
Exercisable, ending balance, weighted-average exercise price | $ / shares | $ 22.27 |
Outstanding, ending balance, weighted-average contractual term, years | 5 years 7 months 6 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 Plan83
Share-Based Compensation Plans Share-Based Compensation Plans (Schedule of Weighted Average Assumptions (PRSUs)) (Details) - Performance Restricted Stock Units [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free rate(1) | [1] | 1.10% | |
Expected Avon volatility(2) | [2] | 56.00% | |
Expected average volatility(3) | [3] | 28.00% | |
Expected dividends | 0.00% | ||
2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free rate(1) | [1] | 1.10% | |
Expected Avon volatility(2) | [2] | 38.00% | |
Expected dividends | 3.00% | ||
[1] | The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. | ||
[2] | Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs and the three year service period of the 2015 PRSUs. | ||
[3] | Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs. |
Share-Based Compensation Plan84
Share-Based Compensation Plans (Schedule of Summary of Restricted Stock and Restricted Stock Units) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Performance Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Nonvested, beginning balance, restricted stock and units | [1] | 4,922 | ||
Granted, restricted stock and units | 1,869 | |||
Vested, restricted stock and units | (1,478) | |||
Forfeited, restricted stock and units | (957) | |||
Nonvested, ending balance, restricted stock and units | [1] | 4,356 | 4,922 | |
Nonvested, beginning balance, weighted-average grant- date fair value | $ 8.99 | |||
Granted, weighted-average grant-date fair value | 4.21 | |||
Vested, weighted-average grant-date fair value | 14.69 | |||
Forfeited, weighted average grant-date fair value | 6.68 | |||
Nonvested, ending balance, weighted-average grant-date fair value | $ 5.50 | $ 8.99 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Nonvested, beginning balance, restricted stock and units | 5,356 | |||
Granted, restricted stock and units | 2,813 | |||
Vested, restricted stock and units | (2,387) | |||
Forfeited, restricted stock and units | (978) | |||
Nonvested, ending balance, restricted stock and units | 4,804 | 5,356 | ||
Nonvested, beginning balance, weighted-average grant- date fair value | $ 8.64 | |||
Granted, weighted-average grant-date fair value | 4.05 | |||
Vested, weighted-average grant-date fair value | 11.41 | |||
Forfeited, weighted average grant-date fair value | 5.36 | |||
Nonvested, ending balance, weighted-average grant-date fair value | $ 5.26 | $ 8.64 | ||
2016 [Member] | Performance Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Risk-free rate(1) | [2] | 1.10% | ||
Expected Avon volatility(2) | [3] | 56.00% | ||
Forfeited, weighted average grant-date fair value | $ 4.42 | |||
Expected average volatility(3) | [4] | 28.00% | ||
Expected dividends | 0.00% | |||
2015 [Member] | Performance Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Risk-free rate(1) | [2] | 1.10% | ||
Expected Avon volatility(2) | [3] | 38.00% | ||
Forfeited, weighted average grant-date fair value | $ 7.49 | |||
Expected dividends | 3.00% | |||
2017 [Member] | Performance Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Risk-free rate(1) | [2] | 1.60% | ||
Expected Avon volatility(2) | [3] | 61.00% | ||
Forfeited, weighted average grant-date fair value | $ 4.52 | |||
Expected average volatility(3) | [4] | 29.00% | ||
Expected dividends | 0.00% | |||
[1] | Based on initial target payout. | |||
[2] | The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the three year performance period, in effect at the time of grant. | |||
[3] | Expected Avon volatility was based on the weekly historical volatility of our stock price, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs and the three year service period of the 2015 PRSUs. | |||
[4] | Expected average volatility was based on the weekly historical volatility of the stock prices of each member of companies included in the S&P 400 index as of the date of the grant, over a period similar to the three year performance period of the 2017 PRSUs and 2016 PRSUs. |
Share-Based Compensation Plan85
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, 2017$ / sharesshares | ||
Nonvested, beginning balance, restricted stock and units | shares | 4,922 | [1] |
Granted, restricted stock and units | shares | 1,869 | |
Vested, restricted stock and units | shares | (1,478) | |
Forfeited, restricted stock and units | shares | (957) | |
Nonvested, ending balance, restricted stock and units | shares | 4,356 | [1] |
Nonvested, beginning balance, weighted-average grant- date fair value | $ / shares | $ 8.99 | |
Granted, weighted-average grant-date fair value | $ / shares | 4.21 | |
Vested, weighted-average grant-date fair value | $ / shares | 14.69 | |
Forfeited, weighted average grant-date fair value | $ / shares | 6.68 | |
Nonvested, ending balance, weighted-average grant-date fair value | $ / shares | $ 5.50 | |
[1] | Based on initial target payout. |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Amortization period for gains and losses, period 1 | 3 years | ||||||
Amortization period for gains and losses, period 2 | 5 years | ||||||
Pension settlement charge | $ (7.3) | ||||||
Postemployment benefits liability | $ 9.7 | $ 15 | |||||
Defined Benefit Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Weighted average discount rate | 2.66% | 2.81% | |||||
Rate of return on assets | 5.12% | ||||||
Postretirement Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | $ 0 | $ 50.1 | |||||
Defined Benefit Plan, Plan Assets, Divestiture | 0 | 0 | |||||
Net amount recognized | [1] | (28.2) | (26) | ||||
Qualified pension plans, benefit obligations | $ 76.6 | 28.2 | 26 | 76.6 | |||
Qualified pension plans, plan assets | 0 | 0 | 0 | 0 | |||
Net periodic benefit cost | [2] | 2.8 | $ 0.8 | 2.2 | |||
Net actuarial loss | 0.1 | ||||||
Expected prior service credit | $ (0.3) | ||||||
Weighted average discount rate | 4.75% | 5.33% | |||||
Minimum [Member] | U.S. Pension and Postretirement Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | $ 10 | ||||||
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 | 15 | ||||||
Maximum [Member] | International Pension and Postretirement Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | 25 | ||||||
Discontinued Operations [Member] | U.S. Qualified Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | $ 499.6 | ||||||
Defined Benefit Plan, Plan Assets, Divestiture | 355.9 | ||||||
Discontinued Operations [Member] | United States Postretirement Benefit Plan of US Entity [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | 60.4 | ||||||
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | 0 | 509.9 | |||||
Defined Benefit Plan, Plan Assets, Divestiture | 0 | 355.9 | |||||
Net amount recognized | [1] | (25.8) | (36.2) | ||||
Qualified pension plans, benefit obligations | 606.8 | 88.9 | 87.6 | 606.8 | |||
Qualified pension plans, plan assets | 408.3 | 63.1 | 51.4 | 408.3 | |||
Net periodic benefit cost | [2] | 9.2 | $ 15.4 | $ 76.4 | |||
Net actuarial loss | 5.2 | ||||||
Expected prior service credit | $ 0 | ||||||
Weighted average discount rate | 3.48% | 3.67% | |||||
Rate of return on assets | 7.00% | 7.25% | |||||
Domestic Plan [Member] | Discontinued Operations, Disposed of by Sale [Member] | Defined Benefit Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Net periodic benefit cost | [2] | $ 4.4 | $ 53.7 | ||||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Pension Plan, Liabilities, Noncurrent | $ 0 | 0 | |||||
Defined Benefit Plan, Plan Assets, Divestiture | 0 | 0 | |||||
Net amount recognized | [1] | (8.8) | (39.2) | ||||
Qualified pension plans, benefit obligations | 667.7 | 714.2 | 652.9 | 667.7 | |||
Qualified pension plans, plan assets | 576.3 | 705.4 | 613.7 | 576.3 | |||
Net periodic benefit cost | [2] | 4.9 | $ 0.5 | $ 1.4 | |||
Net actuarial loss | 7.2 | ||||||
Expected prior service credit | $ (0.1) | ||||||
Weighted average discount rate | 2.56% | 2.69% | |||||
Rate of return on assets | 5.09% | 6.40% | 6.55% | ||||
UK Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of return on assets | 5.15% | ||||||
UK Pension Plan [Member] | Equity Securities, Emerging Market Debt and High Yield Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit, Equity Securities Allocation | 20.00% | ||||||
Expected long term rate of return on equity securities, minimum | 5.00% | ||||||
Expected long term rate of return on equity securities, maximum | 9.00% | ||||||
UK Pension Plan [Member] | Corporate and Government Bonds [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
assumptions used calculating net periodic benefit allocation, debt securities allocation | 80.00% | ||||||
Expected long term rate of return on debt securities, minimum | 2.00% | ||||||
Expected long term rate of return on debt securities, maximum | 4.00% | ||||||
Foreign Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Loss Contingency, Loss in Period | $ 18.2 | $ 18.2 | |||||
UK Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | 494 | $ 448.6 | |||||
Qualified pension plans, plan assets | 573.6 | 502 | |||||
U.S. Qualified Pension Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | 76.7 | 75.5 | |||||
Qualified pension plans, plan assets | $ 63.1 | 51.4 | |||||
Pension settlement charge | $ 4.1 | $ 23.8 | |||||
Rate of return on assets | 5.50% | ||||||
U.S. Qualified Pension Plan [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% | ||||||
U.S. Qualified Pension Plan [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 | 6.00% | ||||||
Expected long term rate of return on equity securities, maximum | 8.00% | ||||||
UK defined contribution plan [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Employer match toward contributions, doubled | 5.00% | ||||||
Maximum contribution percent of eligible compensation | 10.00% | ||||||
Employer contribution | $ 6.7 | 6.5 | $ 7.6 | ||||
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 | $ 2.6 | $ 3.8 | $ 4 | ||||
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] | Pension Plans U.S. Plans Non-U.S. Plans Postretirement Benefits 2017 2016 2017 2016 2017 2016Change in Benefit Obligation: Beginning balance $(87.6) $(606.8) $(652.9) $(667.7) $(26.0) $(76.6)Service cost (4.3) (6.4) (4.6) (5.0) (.1) (.1)Interest cost (3.0) (6.5) (18.0) (21.8) (1.3) (1.7)Actuarial (loss) gain .6 (7.5) (15.5) (95.9) .3 2.6Benefits paid 5.4 26.0 42.5 37.3 .4 1.4Plan amendments — — — — — (1.0)Curtailments — .2 — 1.0 — —Settlements — — — — — —Special termination benefits — — — — — (.1)Divestitures — 509.9 — — — 50.1Venezuela deconsolidation — — — 1.5 — —Foreign currency changes and other — 3.5 (65.7) 97.7 (1.5) (.6)Ending balance $(88.9) $(87.6) $(714.2) $(652.9) $(28.2) $(26.0)Change in Plan Assets: Beginning balance $51.4 $408.3 $613.7 $576.3 $— $—Actual return on plan assets 5.5 .7 49.9 153.6 — —Company contributions 11.6 26.6 19.7 20.0 .4 1.4Benefits paid (5.4) (26.0) (42.5) (37.3) (.4) (1.4)Divestitures — (355.9) — — — —Foreign currency changes and other — (2.3) 64.6 (98.9) — —Ending balance $63.1 $51.4 $705.4 $613.7 $— $—Funded Status: Funded status at end of year $(25.8) $(36.2) $(8.8) $(39.2) $(28.2) $(26.0)Amount Recognized in Balance Sheet: Other assets $— $— $82.0 $54.8 $— $—Accrued compensation (1.0) (1.7) (2.2) (1.4) (2.7) (2.4)Employee benefit plans liability (24.8) (34.5) (88.6) (92.6) (25.5) (23.6)Net amount recognized $(25.8) $(36.2) $(8.8) $(39.2) $(28.2) $(26.0)Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $41.4 $49.5 $176.8 $176.5 $1.2 $1.7Prior service credit (.2) (.2) (.9) (1.0) (1.3) (1.6)Total pretax amount recognized $41.2 $49.3 $175.9 $175.5 $(.1) $.1Supplemental Information: Accumulated benefit obligation $85.9 $85.2 $199.8 $182.3 N/A N/APlans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $88.9 $87.6 $216.7 $200.8 N/A N/AFair value plan assets 63.1 51.4 125.9 106.8 N/A N/APlans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $88.9 $87.6 $202.0 $182.8 N/A N/AAccumulated benefit obligation 85.9 85.2 191.9 172.8 N/A N/AFair value plan assets 63.1 51.4 114.0 92.9 N/A N/A | ||||||
[2] | Includes $4.4 and $53.7 of the U.S. pension plans in 2016 and 2015, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016 and 2015, which are included in discontinued operations. |
Employee Benefit Plans (Reconci
Employee Benefit Plans (Reconciliation of Benefit Obligations, Plan Assets and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Amount Recognized in Balance Sheet: | ||||
Other assets | $ 666.2 | $ 621.7 | ||
Accrued compensation | (130.3) | (129.2) | ||
Postretirement Benefits [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (26) | (76.6) | ||
Service cost | (0.1) | (0.1) | $ (0.7) | |
Interest cost | (1.3) | (1.7) | (3.7) | |
Actuarial (loss) gain | 0.3 | 2.6 | ||
Benefits paid | (0.4) | (1.4) | ||
Plan amendments | 0 | (1) | ||
Curtailments | 0 | 0 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | (0.1) | ||
Divestitures | 0 | 50.1 | ||
Venezuela deconsolidation | 0 | 0 | ||
Foreign currency changes and other | (1.5) | (0.6) | ||
Ending balance | (28.2) | (26) | (76.6) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 0.4 | 1.4 | ||
Benefits paid | 0.4 | 1.4 | ||
Divestitures | 0 | 0 | ||
Foreign currency changes and other | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | |
Funded Status: | ||||
Funded status at end of year | [1] | (28.2) | (26) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 0 | 0 | ||
Accrued compensation | (2.7) | (2.4) | ||
Employee benefit plans liability | (25.5) | (23.6) | ||
Net amount recognized | [1] | (28.2) | (26) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 1.2 | 1.7 | ||
Prior service credit | (1.3) | (1.6) | ||
Total pretax amount recognized | (0.1) | 0.1 | ||
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (87.6) | (606.8) | ||
Service cost | (4.3) | (6.4) | (13) | |
Interest cost | (3) | (6.5) | (25.1) | |
Actuarial (loss) gain | 0.6 | (7.5) | ||
Benefits paid | (5.4) | (26) | ||
Plan amendments | 0 | 0 | ||
Curtailments | 0 | 0.2 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | 0 | ||
Divestitures | 0 | 509.9 | ||
Venezuela deconsolidation | 0 | 0 | ||
Foreign currency changes and other | 0 | 3.5 | ||
Ending balance | (88.9) | (87.6) | (606.8) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning balance | 51.4 | 408.3 | ||
Actual return on plan assets | 5.5 | 0.7 | ||
Company contributions | 11.6 | 26.6 | ||
Benefits paid | 5.4 | 26 | ||
Divestitures | 0 | (355.9) | ||
Foreign currency changes and other | 0 | (2.3) | ||
Ending balance | 63.1 | 51.4 | 408.3 | |
Funded Status: | ||||
Funded status at end of year | [1] | (25.8) | (36.2) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 0 | 0 | ||
Accrued compensation | (1) | (1.7) | ||
Employee benefit plans liability | (24.8) | (34.5) | ||
Net amount recognized | [1] | (25.8) | (36.2) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 41.4 | 49.5 | ||
Prior service credit | (0.2) | (0.2) | ||
Total pretax amount recognized | 41.2 | 49.3 | ||
Supplemental Information: | ||||
Accumulated benefit obligation | 85.9 | 85.2 | ||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 88.9 | 87.6 | ||
Fair value plan assets | 63.1 | 51.4 | ||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 88.9 | 87.6 | ||
Accumulated benefit obligation | 85.9 | 85.2 | ||
Fair value plan assets | 63.1 | 51.4 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Beginning balance | (652.9) | (667.7) | ||
Service cost | (4.6) | (5) | (5.3) | |
Interest cost | (18) | (21.8) | (23.6) | |
Actuarial (loss) gain | (15.5) | (95.9) | ||
Benefits paid | (42.5) | (37.3) | ||
Plan amendments | 0 | 0 | ||
Curtailments | 0 | 1 | ||
Settlements | 0 | 0 | ||
Special termination benefits | 0 | 0 | ||
Divestitures | 0 | 0 | ||
Venezuela deconsolidation | 0 | 1.5 | ||
Foreign currency changes and other | (65.7) | 97.7 | ||
Ending balance | (714.2) | (652.9) | (667.7) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning balance | 613.7 | 576.3 | ||
Actual return on plan assets | 49.9 | 153.6 | ||
Company contributions | 19.7 | 20 | ||
Benefits paid | 42.5 | 37.3 | ||
Divestitures | 0 | 0 | ||
Foreign currency changes and other | 64.6 | (98.9) | ||
Ending balance | 705.4 | 613.7 | $ 576.3 | |
Funded Status: | ||||
Funded status at end of year | [1] | (8.8) | (39.2) | |
Amount Recognized in Balance Sheet: | ||||
Other assets | 82 | 54.8 | ||
Accrued compensation | (2.2) | (1.4) | ||
Employee benefit plans liability | (88.6) | (92.6) | ||
Net amount recognized | [1] | (8.8) | (39.2) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | ||||
Net actuarial loss | 176.8 | 176.5 | ||
Prior service credit | (0.9) | (1) | ||
Total pretax amount recognized | 175.9 | 175.5 | ||
Supplemental Information: | ||||
Accumulated benefit obligation | 199.8 | 182.3 | ||
Plans with Projected Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 216.7 | 200.8 | ||
Fair value plan assets | 125.9 | 106.8 | ||
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | ||||
Projected benefit obligation | 202 | 182.8 | ||
Accumulated benefit obligation | 191.9 | 172.8 | ||
Fair value plan assets | 114 | 92.9 | ||
Foreign Plan [Member] | Foreign Plan [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Beginning balance | $ 613.7 | |||
Ending balance | $ 613.7 | |||
[1] | Pension Plans U.S. Plans Non-U.S. Plans Postretirement Benefits 2017 2016 2017 2016 2017 2016Change in Benefit Obligation: Beginning balance $(87.6) $(606.8) $(652.9) $(667.7) $(26.0) $(76.6)Service cost (4.3) (6.4) (4.6) (5.0) (.1) (.1)Interest cost (3.0) (6.5) (18.0) (21.8) (1.3) (1.7)Actuarial (loss) gain .6 (7.5) (15.5) (95.9) .3 2.6Benefits paid 5.4 26.0 42.5 37.3 .4 1.4Plan amendments — — — — — (1.0)Curtailments — .2 — 1.0 — —Settlements — — — — — —Special termination benefits — — — — — (.1)Divestitures — 509.9 — — — 50.1Venezuela deconsolidation — — — 1.5 — —Foreign currency changes and other — 3.5 (65.7) 97.7 (1.5) (.6)Ending balance $(88.9) $(87.6) $(714.2) $(652.9) $(28.2) $(26.0)Change in Plan Assets: Beginning balance $51.4 $408.3 $613.7 $576.3 $— $—Actual return on plan assets 5.5 .7 49.9 153.6 — —Company contributions 11.6 26.6 19.7 20.0 .4 1.4Benefits paid (5.4) (26.0) (42.5) (37.3) (.4) (1.4)Divestitures — (355.9) — — — —Foreign currency changes and other — (2.3) 64.6 (98.9) — —Ending balance $63.1 $51.4 $705.4 $613.7 $— $—Funded Status: Funded status at end of year $(25.8) $(36.2) $(8.8) $(39.2) $(28.2) $(26.0)Amount Recognized in Balance Sheet: Other assets $— $— $82.0 $54.8 $— $—Accrued compensation (1.0) (1.7) (2.2) (1.4) (2.7) (2.4)Employee benefit plans liability (24.8) (34.5) (88.6) (92.6) (25.5) (23.6)Net amount recognized $(25.8) $(36.2) $(8.8) $(39.2) $(28.2) $(26.0)Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $41.4 $49.5 $176.8 $176.5 $1.2 $1.7Prior service credit (.2) (.2) (.9) (1.0) (1.3) (1.6)Total pretax amount recognized $41.2 $49.3 $175.9 $175.5 $(.1) $.1Supplemental Information: Accumulated benefit obligation $85.9 $85.2 $199.8 $182.3 N/A N/APlans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $88.9 $87.6 $216.7 $200.8 N/A N/AFair value plan assets 63.1 51.4 125.9 106.8 N/A N/APlans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $88.9 $87.6 $202.0 $182.8 N/A N/AAccumulated benefit obligation 85.9 85.2 191.9 172.8 N/A N/AFair value plan assets 63.1 51.4 114.0 92.9 N/A N/A |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Foreign currency changes | $ (82) | $ (38.6) | $ 275 | |
Postretirement Benefits [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 0.1 | 0.1 | 0.7 | |
Interest cost | 1.3 | 1.7 | 3.7 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service credit | (0.3) | (1.2) | (4) | |
Amortization of net actuarial losses | 0.1 | 0.3 | 1.8 | |
Amortization of transition obligation | 0 | 0 | 0 | |
Settlements/curtailments | 0 | (0.1) | 0 | |
Other | 1.6 | 0 | 0 | |
Net periodic benefit cost | [1] | 2.8 | 0.8 | 2.2 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial (gains) losses | (0.3) | (2.6) | (5.6) | |
Prior service cost (credit) | 1 | (9) | ||
Amortization of prior service credit | 0.3 | 26.7 | 4 | |
Amortization of net actuarial losses | (0.1) | (11.3) | (1.8) | |
Amortization of transition obligation | 0 | 0 | 0 | |
Foreign currency changes | 0 | (0.1) | 0.2 | |
Total recognized in other comprehensive (loss) income | [2] | (0.1) | 13.7 | (12.2) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 2.7 | 14.5 | (10) | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 4.3 | 6.4 | 13 | |
Interest cost | 3 | 6.5 | 25.1 | |
Expected return on plan assets | (3.2) | (8.2) | (32.6) | |
Amortization of prior service credit | (0.1) | (0.2) | (0.7) | |
Amortization of net actuarial losses | 5.2 | 10.8 | 43.7 | |
Amortization of transition obligation | 0 | 0 | 0 | |
Settlements/curtailments | 0 | 0.1 | 27.9 | |
Other | 0 | 0 | 0 | |
Net periodic benefit cost | [1] | 9.2 | 15.4 | 76.4 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial (gains) losses | (2.9) | 13.6 | 1.8 | |
Prior service cost (credit) | 0 | 0 | 0 | |
Amortization of prior service credit | 0.1 | 1.3 | 0.7 | |
Amortization of net actuarial losses | (5.2) | (274.4) | (71.6) | |
Amortization of transition obligation | 0 | 0 | 0 | |
Foreign currency changes | 0 | 0 | 0 | |
Total recognized in other comprehensive (loss) income | [2] | (8) | (259.5) | (69.1) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 1.2 | (244.1) | 7.3 | |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 4.6 | 5 | 5.3 | |
Interest cost | 18 | 21.8 | 23.6 | |
Expected return on plan assets | (28.2) | (33) | (36.4) | |
Amortization of prior service credit | (0.1) | (0.1) | (0.1) | |
Amortization of net actuarial losses | 7.6 | 6.5 | 8.4 | |
Amortization of transition obligation | 0 | 0 | 0.1 | |
Settlements/curtailments | 3.7 | 0.3 | 0.5 | |
Other | (0.7) | 0 | 0 | |
Net periodic benefit cost | [1] | 4.9 | 0.5 | 1.4 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | ||||
Actuarial (gains) losses | (7.4) | (24.6) | (34.2) | |
Prior service cost (credit) | 0 | 0 | 0 | |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 | |
Amortization of net actuarial losses | (11.3) | (7.8) | (9.1) | |
Amortization of transition obligation | 0 | 0 | (0.1) | |
Foreign currency changes | 18.9 | (29.6) | (19.4) | |
Total recognized in other comprehensive (loss) income | [2] | 0.3 | (61.9) | (62.7) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 5.2 | $ (61.4) | $ (61.3) | |
[1] | Includes $4.4 and $53.7 of the U.S. pension plans in 2016 and 2015, respectively, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016 and 2015, 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 our 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 | Dec. 31, 2017USD ($) |
Postretirement Benefits [Member] | |
Net actuarial loss | $ 0.1 |
Estimated prior service credit | (0.3) |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |
Net actuarial loss | 5.2 |
Estimated prior service credit | 0 |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |
Net actuarial loss | 7.2 |
Estimated prior service credit | $ (0.1) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Pension Plans [Member] | ||
Discount rate | 2.66% | 2.81% |
Postretirement Benefits [Member] | ||
Discount rate | 4.75% | 5.33% |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | ||
Discount rate | 3.48% | 3.67% |
Rate of compensation increase | 4.00% | 4.00% |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | ||
Discount rate | 2.56% | 2.69% |
Rate of compensation increase | 2.71% | 2.79% |
Employee Benefit Plans (Weigh91
Employee Benefit Plans (Weighted-Average Assumptions used to Determine Net Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Pension Plans [Member] | |||
Rate of return on assets | 5.12% | ||
Postretirement Benefits [Member] | |||
Discount rate | 5.33% | 4.50% | 4.20% |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Discount rate | 3.67% | 4.19% | 3.83% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Rate of return on assets | 7.00% | 7.25% | |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Discount rate | 2.69% | 3.58% | 3.27% |
Rate of compensation increase | 2.79% | 2.94% | 3.20% |
Rate of return on assets | 5.09% | 6.40% | 6.55% |
U.S. Qualified Pension Plan [Member] | |||
Rate of return on assets | 5.50% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans Target and Weighted-Average Asset Allocations) (Details) - Defined Benefit Pension Plans [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic Plan [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% |
Domestic Plan [Member] | Equity Securities [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 30.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 30.00% | 28.00% |
Domestic Plan [Member] | Debt Securities [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 70.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 70.00% | 69.00% |
Domestic Plan [Member] | Other plan assets [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 0.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 0.00% | 3.00% |
Foreign Plan [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% |
Foreign Plan [Member] | Equity Securities [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 20.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 18.00% | 22.00% |
Foreign Plan [Member] | Debt Securities [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 70.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 77.00% | 68.00% |
Foreign Plan [Member] | Other plan assets [Member] | ||
Defined benefit plan, target plan asset allocations, in percentage | 10.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 6.00% | 10.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Hierarchy for Pension and Postretirement Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Level 3 [Member] | |||
Fair value of plan assets | $ 1.5 | $ 1.5 | $ 1.8 |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Fair value of plan assets | 63.1 | 51.4 | 408.3 |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 19.1 | 15.7 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 7.4 | 7.9 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 9.7 | 6.3 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 2 | 1.5 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 44 | 35.6 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 31.8 | 25.7 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 12.2 | 9.9 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0.1 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 0 | 0.1 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | 0 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0.1 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 63.1 | 51.3 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 19.1 | 15.7 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 7.4 | 7.9 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 9.7 | 6.3 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Emerging Markets [Member] | |||
Fair value of plan assets | 2 | 1.5 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 44 | 35.6 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 31.8 | 25.7 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 12.2 | 9.9 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | 0 | |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Fair value of plan assets | 705.4 | 613.7 | $ 576.3 |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 125 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 33.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | International Equity [Member] | |||
Fair value of plan assets | 91.1 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 539.8 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 223.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Government Securities [Member] | |||
Fair value of plan assets | 236 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 79.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 40.6 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Cash [Member] | |||
Fair value of plan assets | 29.3 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Other [Member] | |||
Fair value of plan assets | 0.6 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Derivatives [Member] | |||
Fair value of plan assets | 9.8 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | |||
Fair value of plan assets | 29.3 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 29.3 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 29.3 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 1 [Member] | Derivatives [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | |||
Fair value of plan assets | 674.6 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 125 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 33.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 91.1 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 539.8 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 223.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 236 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 79.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 9.8 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 2 [Member] | Derivatives [Member] | |||
Fair value of plan assets | 9.8 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | |||
Fair value of plan assets | 1.5 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 1.5 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0.9 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Other [Member] | |||
Fair value of plan assets | 0.6 | ||
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | Level 3 [Member] | Derivatives [Member] | |||
Fair value of plan assets | $ 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | |||
Fair value of plan assets | 613.7 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 135.3 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 27.7 | ||
Foreign Plan [Member] | Foreign Plan [Member] | International Equity [Member] | |||
Fair value of plan assets | 107.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 419.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 194.8 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Government Securities [Member] | |||
Fair value of plan assets | 192.8 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 32 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 58.8 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Cash [Member] | |||
Fair value of plan assets | 23.2 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0.9 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Other [Member] | |||
Fair value of plan assets | 0.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Derivatives [Member] | |||
Fair value of plan assets | 34.1 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | |||
Fair value of plan assets | 23.2 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 23.2 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Cash [Member] | |||
Fair value of plan assets | 23.2 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 1 [Member] | Derivatives [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | |||
Fair value of plan assets | 589 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 135.3 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 27.7 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | International Equity [Member] | |||
Fair value of plan assets | 107.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 419.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 194.8 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 192.8 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 32 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 34.1 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Other [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 2 [Member] | Derivatives [Member] | |||
Fair value of plan assets | 34.1 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | |||
Fair value of plan assets | 1.5 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Total Equity Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Domestic Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | International Equity [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Total Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Corporate Bonds [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Government Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Other Fixed Income Securities [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Total Other Securities [Member] | |||
Fair value of plan assets | 1.5 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Cash [Member] | |||
Fair value of plan assets | 0 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Real Estate [Member] | |||
Fair value of plan assets | 0.9 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Other [Member] | |||
Fair value of plan assets | 0.6 | ||
Foreign Plan [Member] | Foreign Plan [Member] | Level 3 [Member] | Derivatives [Member] | |||
Fair value of plan assets | $ 0 |
Employee Benefit Plans (Recon94
Employee Benefit Plans (Reconciliation of the Beginning and Ending Balances for Investments) (Details) - Level 3 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 1.5 | $ 1.8 |
Actual return on plan assets held | (0.1) | (0.2) |
Foreign currency changes | 0.1 | (0.1) |
Ending balance | $ 1.5 | $ 1.5 |
Employee Benefit Plans (Total B
Employee Benefit Plans (Total Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 42.8 |
2,019 | 40.1 |
2,020 | 40.1 |
2,021 | 40.5 |
2,022 | 52.5 |
2023-2027 | 253.7 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 2.7 |
2,019 | 2.6 |
2,020 | 2.6 |
2,021 | 2.5 |
2,022 | 2.4 |
2023-2027 | 10 |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 13.1 |
2,019 | 9.6 |
2,020 | 8.6 |
2,021 | 8.3 |
2,022 | 7.9 |
2023-2027 | 26.6 |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 29.7 |
2,019 | 30.5 |
2,020 | 31.5 |
2,021 | 32.2 |
2,022 | 44.6 |
2023-2027 | $ 227.1 |
Employee Benefit Plans (Supplem
Employee Benefit Plans (Supplemental Retirement Programs) (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Supplemental Employee Retirement Plan [Member] | |||
Years since benefit was last offered to employees | 8 years | ||
Net periodic benefit cost SERP Restoration | $ 3 | $ 3.9 | $ 6.3 |
Benefit obligation SERP Restoration | $ 12.3 | 12.1 | |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Maximum deferral of base salary | 50.00% | ||
Maximum deferral of incentive compensation bonuses | 100.00% | ||
Number of permitted investment alternatives | investment | 3 | ||
Expenses associated with deferred compensation plan | $ 1.4 | 1 | $ 0.5 |
Deferred compensation liability | $ 21 | $ 26.1 | |
Supplemental Life Plan [Member] | |||
Years since benefit was last offered to employees | 7 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, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 37.1 | $ 35.2 |
Corporate-Owned Life Insurance Policies [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | 36 | 34.9 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 1.1 | $ 0.3 |
Segment Information (Total Reve
Segment Information (Total Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total revenue | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 1,568.1 | $ 1,408.8 | $ 1,434.3 | $ 1,306.5 | $ 5,715.6 | $ 5,717.7 | $ 6,160.5 |
Operating Segments [Member] | |||||||||||
Total revenue | 5,679 | 5,663.7 | 6,056.6 | ||||||||
Operating Segments [Member] | EMEA Segment [Member] | |||||||||||
Total revenue | 2,126.5 | 2,138.2 | 2,229.2 | ||||||||
Operating Segments [Member] | South Latin America Segment [Member] | |||||||||||
Total revenue | 2,222.4 | 2,145.9 | 2,309.6 | ||||||||
Operating Segments [Member] | North Latin America Segment [Member] | |||||||||||
Total revenue | 811.8 | 829.9 | 901 | ||||||||
Operating Segments [Member] | Asia Pacific Segment [Member] | |||||||||||
Total revenue | 518.3 | 549.7 | 616.8 | ||||||||
Other operating segments and business activities [Member] | |||||||||||
Total revenue | $ 36.6 | $ 54 | $ 103.9 |
Segment Information Segment Inf
Segment Information Segment Information (Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | $ 130 | $ 83 | $ 31.6 | $ 28.7 | $ 107 | $ 112 | $ 95.1 | $ 7.8 | $ 273.3 | $ 321.9 | $ 165 | |
Total costs to implement restructuring initiatives | $ (23.7) | $ (6.2) | (20.3) | $ (10) | $ (7.2) | (14) | $ (9.4) | $ (46.8) | (60.2) | (77.4) | (49.1) | |
Legal settlement(1) | $ 27.2 | 27.2 | [1] | |||||||||
Venezuelan special items | (120.2) | |||||||||||
Pension settlement charge | (7.3) | |||||||||||
Other items | (3.1) | |||||||||||
Asset impairment and other charges | (6.9) | |||||||||||
Gain (loss) Related to Litigation Settlement, After Tax | 27.2 | |||||||||||
Foreign Plan [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Loss Contingency, Loss in Period | $ (18.2) | (18.2) | ||||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 654.2 | 705.4 | 726.7 | |||||||||
Operating Segments [Member] | EMEA Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 330.6 | 329.9 | 311.2 | |||||||||
Operating Segments [Member] | South Latin America Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 194.1 | 200.5 | 238.9 | |||||||||
Operating Segments [Member] | North Latin America Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 81.8 | 114.4 | 107.2 | |||||||||
Operating Segments [Member] | Asia Pacific Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 47.7 | 60.6 | 69.4 | |||||||||
Other operating segments and business activities [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 5.2 | 5.3 | 16.1 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Unallocated global expenses | $ (307.7) | $ (338.6) | $ (391.2) | |||||||||
[1] | In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ($27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016. |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | $ 3,697.9 | $ 3,418.9 | $ 3,770.4 | [1] |
Current Assets of Discontinued Operations [Member] | ||||
Receivable from continuing operations | 100 | |||
Operating Segments [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 3,096.8 | 2,895.4 | 2,720 | |
Operating Segments [Member] | EMEA Segment [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 1,190.5 | 949.3 | 909.9 | |
Operating Segments [Member] | South Latin America Segment [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 1,273.6 | 1,306.3 | 1,126.8 | |
Operating Segments [Member] | North Latin America Segment [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 335.8 | 344.4 | 368.3 | |
Operating Segments [Member] | Asia Pacific Segment [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 296.9 | 295.4 | 315 | |
Other operating segments [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 0.9 | 2.9 | 50.5 | |
Corporate, Non-Segment [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | 600.2 | 519.3 | 628.7 | |
Discontinued Operations [Member] | ||||
Total assets, excluding receivables from continuing operations recorded in current assets of discontinued operations | $ 0 | $ 1.3 | $ 371.2 | [1] |
[1] | Total assets from discontinued operations and total assets at December 31, 2015 in the table above exclude the $100.0 receivable from continuing operations that was presented within current assets of discontinued operations. See Note 3, Discontinued Operations and Divestitures. |
Segment Information (Capital Ex
Segment Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total capital expenditures | $ 97.3 | $ 93 | $ 92.4 |
Other operating segments [Member] | |||
Total capital expenditures | 0 | 0 | 4.8 |
Corporate, Non-Segment [Member] | |||
Total capital expenditures | 17.3 | 18.8 | 15.2 |
Operating Segments [Member] | |||
Total capital expenditures | 80 | 74.2 | 72.4 |
Operating Segments [Member] | EMEA Segment [Member] | |||
Total capital expenditures | 29.4 | 18.8 | 17.2 |
Operating Segments [Member] | South Latin America Segment [Member] | |||
Total capital expenditures | 35.4 | 39.2 | 42 |
Operating Segments [Member] | North Latin America Segment [Member] | |||
Total capital expenditures | 12.9 | 11.7 | 9.7 |
Operating Segments [Member] | Asia Pacific Segment [Member] | |||
Total capital expenditures | $ 2.3 | $ 4.5 | $ 3.5 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation and Amortization | $ 114 | $ 113.9 | $ 126.1 |
Other operating segments [Member] | |||
Depreciation and Amortization | 0 | 0.6 | 4.6 |
Corporate, Non-Segment [Member] | |||
Depreciation and Amortization | 26.9 | 30 | 30.7 |
Operating Segments [Member] | |||
Depreciation and Amortization | 87.1 | 83.3 | 90.8 |
Operating Segments [Member] | EMEA Segment [Member] | |||
Depreciation and Amortization | 29.9 | 28.2 | 29 |
Operating Segments [Member] | South Latin America Segment [Member] | |||
Depreciation and Amortization | 34.3 | 30.9 | 34.2 |
Operating Segments [Member] | North Latin America Segment [Member] | |||
Depreciation and Amortization | 13.6 | 13.1 | 14.2 |
Operating Segments [Member] | Asia Pacific Segment [Member] | |||
Depreciation and Amortization | $ 9.3 | $ 11.1 | $ 13.4 |
Segment Information (Total R103
Segment Information (Total Revenue by Major Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 1,568.1 | $ 1,408.8 | $ 1,434.3 | $ 1,306.5 | $ 5,715.6 | $ 5,717.7 | $ 6,160.5 |
Brazil [Member] | |||||||||||
Revenues | 1,263.8 | 1,220.4 | 1,252.6 | ||||||||
All other [Member] | |||||||||||
Revenues | $ 4,451.8 | $ 4,497.3 | $ 4,907.9 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets by Major Country) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Long-Lived Assets | $ 1,125.6 | $ 1,156.9 | $ 1,125.9 |
Brazil [Member] | |||
Long-Lived Assets | 396.9 | 400.9 | 302.7 |
UNITED STATES | |||
Long-Lived Assets | 174.4 | 196.1 | 225.9 |
All other [Member] | |||
Long-Lived Assets | $ 554.3 | $ 559.9 | $ 597.3 |
Segment Information Segment 105
Segment Information Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Dec. 31, 2017region | Dec. 31, 2016USD ($) | ||
Segment Reporting [Abstract] | ||||
Legal settlement(1) | $ 27.2 | $ 27.2 | [1] | |
Gain (loss) Related to Litigation Settlement, After Tax | $ 27.2 | |||
Number of Reportable Segments | region | 4 | |||
[1] | In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ($27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016. |
Leases and Commitments (Minimum
Leases and Commitments (Minimum Rental Commitments and Purchase Obligations) (Details) $ in Millions | Dec. 31, 2017USD ($) |
2018, Leases | $ 60.2 |
2019, Leases | 49.5 |
2020, Leases | 39 |
2021, Leases | 29.2 |
2022, Leases | 27.1 |
Later years, Leases | 66.6 |
Sublease rental income, Leases | (75.5) |
Total, Leases | 196.1 |
2018, Purchase Obligations | 190.1 |
2019, Purchase Obligations | 142 |
2020, Purchase Obligations | 79.3 |
2021, Purchase Obligations | 39.2 |
2022, Purchase Obligations | 19.9 |
Later years, Purchase Obligations | 8.6 |
Total, Purchase Obligations | $ 479.1 |
Leases and Commitments (Narrati
Leases and Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rent expense | $ 66.2 | $ 75 | $ 74.4 |
Estimated cost of plant construction, expansion and modernization projects | $ 33 |
Restructuring Initiatives (Narr
Restructuring Initiatives (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring charges (benefits) and other costs (benefits) recorded in period | $ 23.7 | $ 6.2 | $ 20.3 | $ 10 | $ 7.2 | $ 14 | $ 9.4 | $ 46.8 | $ 60.2 | $ 77.4 | $ 49.1 |
Cost of Sales [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.7 | 0 | 0 | (0.1) | 0.3 | 0 | 0.3 | 0 | 0.6 | 0.6 | |
Selling, General and Administrative Expenses [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 23 | $ 6.2 | $ 20.3 | $ 10.1 | $ 6.9 | $ 14 | $ 9.1 | $ 46.8 | 59.6 | 76.8 | |
Transformation Plan [Member] | |||||||||||
Effect on Future Earnings, Amount | $ 350 | ||||||||||
Restructuring And Related Activities, Number Of Years To Realized Cost Savings | 3 years | ||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 166.9 | $ 166.9 | |||||||||
Estimated charges to be incurred on approved initiatives | 15.3 | 15.3 | |||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 60.8 | 83.7 | 22.4 | ||||||||
Accelerated depreciation | 1.9 | 1.9 | |||||||||
Transformation Plan [Member] | Employee Related Costs [Member] | |||||||||||
Estimated charges to be incurred on approved initiatives | 7.3 | 7.3 | |||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 26.9 | 62.6 | 21.4 | ||||||||
Transformation Plan [Member] | Contract Terminations/ Other [Member] | |||||||||||
Estimated charges to be incurred on approved initiatives | 6.8 | 6.8 | |||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 27.3 | 8.7 | |||||||||
Transformation Plan [Member] | Currency Translation Adjustment Write Offs [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 2.7 | ||||||||||
Transformation Plan [Member] | Professional Service Fees [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 4.1 | 7.4 | 1 | ||||||||
Transformation Plan [Member] | Inventory/ Asset Write-Offs [Member] | |||||||||||
Estimated charges to be incurred on approved initiatives | 0 | 0 | |||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.6 | 0.4 | |||||||||
Transformation Plan [Member] | Minimum [Member] | |||||||||||
Effect on Future Earnings, Amount | 180 | ||||||||||
Estimated charges to be incurred on approved initiatives | 15 | 15 | |||||||||
Transformation Plan [Member] | Maximum [Member] | |||||||||||
Effect on Future Earnings, Amount | 185 | ||||||||||
Estimated charges to be incurred on approved initiatives | 20 | 20 | |||||||||
Transformation Plan [Member] | Cost of Sales [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.6 | 0.4 | |||||||||
Transformation Plan [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 60.2 | 83.3 | |||||||||
Other Restructuring Initiatives 2015 [Member] | |||||||||||
Restructuring and Related Cost, Cost Incurred to Date | 28.7 | 28.7 | |||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.2) | 29.7 | |||||||||
Other Restructuring Initiatives 2015 [Member] | Employee Related Costs [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.2) | 0 | 22.1 | ||||||||
Other Restructuring Initiatives 2015 [Member] | Professional Service Fees [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 7.6 | ||||||||||
Other Restructuring Initiatives 2015 [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | (0.2) | (0.8) | 29.7 | ||||||||
Other Restructuring Initiatives [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | 0.4 | 5.5 | $ 3 | ||||||||
Net gain on sale of distribution center | $ 3.7 | ||||||||||
Global and Other Operating Segments [Member] | Transformation Plan [Member] | |||||||||||
Estimated charges to be incurred on approved initiatives | $ 6.3 | 6.3 | |||||||||
Supply Chain [Member] | Transformation Plan [Member] | |||||||||||
Effect on Future Earnings, Amount | 200 | ||||||||||
Other Costs [Member] | Transformation Plan [Member] | |||||||||||
Effect on Future Earnings, Amount | 150 | ||||||||||
Australia and New Zealand [Member] | Transformation Plan [Member] | Employee Related Costs [Member] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) recorded in period | $ 7.9 |
Restructuring Initiatives Restr
Restructuring Initiatives Restructuring Initiatives (Liability Balance for Transformation Plan) (Details) - Transformation Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Opening Balance | $ 51.4 | $ 21.4 | |
Charges | 32.5 | 85.2 | $ 21.4 |
Adjustments | 22.3 | (10.8) | |
Cash payments | (42.9) | (40.5) | |
Non-cash write-offs | (14.6) | (3.1) | |
Foreign exchange | 0.5 | (0.8) | |
Ending Balance | 49.2 | 51.4 | 21.4 |
Employee Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Opening Balance | 48.6 | 21.4 | |
Charges | 31.9 | 73.4 | 21.4 |
Adjustments | (5) | (10.8) | |
Cash payments | (34.8) | (34.6) | |
Non-cash write-offs | 0 | 0 | |
Foreign exchange | 0.5 | (0.8) | |
Ending Balance | 41.2 | 48.6 | 21.4 |
Inventory/ Asset Write-Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Opening Balance | 0 | 0 | |
Charges | 0.6 | 0.4 | 0 |
Adjustments | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash write-offs | (0.6) | (0.4) | |
Foreign exchange | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Currency Translation Adjustment Write Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Opening Balance | 0 | 0 | |
Charges | 0 | 2.7 | 0 |
Adjustments | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash write-offs | 0 | (2.7) | |
Foreign exchange | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Contract Terminations/ Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Opening Balance | 2.8 | 0 | |
Charges | 0 | 8.7 | 0 |
Adjustments | 27.3 | 0 | |
Cash payments | (8.1) | (5.9) | |
Non-cash write-offs | (14) | 0 | |
Foreign exchange | 0 | 0 | |
Ending Balance | $ 8 | $ 2.8 | $ 0 |
Restructuring Initiatives Re110
Restructuring Initiatives Restructuring Charges Incurred to date for Transformation Plan (Details) - Transformation Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date on approved initiatives | $ 150.6 |
Estimated charges to be incurred on approved initiatives | 15.3 |
Total expected charges on approved initiatives | 165.9 |
Employee Related Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date on approved initiatives | 110.9 |
Estimated charges to be incurred on approved initiatives | 7.3 |
Total expected charges on approved initiatives | 118.2 |
Inventory/ Asset Write-Offs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date on approved initiatives | 1 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 1 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date on approved initiatives | 2.7 |
Estimated charges to be incurred on approved initiatives | 1.2 |
Total expected charges on approved initiatives | 3.9 |
Contract Terminations/ Other [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to date on approved initiatives | 36 |
Estimated charges to be incurred on approved initiatives | 6.8 |
Total expected charges on approved initiatives | $ 42.8 |
Restructuring Initiatives Re111
Restructuring Initiatives Restructuring Charges by Reportable Segment for Transformation Plan (Details) - Transformation Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | $ 54.8 | $ 74.4 | $ 21.4 |
Charges incurred to date on approved initiatives | 150.6 | ||
Estimated charges to be incurred on approved initiatives | 15.3 | ||
Total expected charges on approved initiatives | 165.9 | ||
South Latin America Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | 5.6 | 13.2 | 0 |
Charges incurred to date on approved initiatives | 18.8 | ||
Estimated charges to be incurred on approved initiatives | 0 | ||
Total expected charges on approved initiatives | 18.8 | ||
North Latin America Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | (0.6) | 4.4 | 0 |
Charges incurred to date on approved initiatives | 3.8 | ||
Estimated charges to be incurred on approved initiatives | 0 | ||
Total expected charges on approved initiatives | 3.8 | ||
Asia Pacific [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | 8 | 11.7 | 0 |
Charges incurred to date on approved initiatives | 19.7 | ||
Estimated charges to be incurred on approved initiatives | 8.5 | ||
Total expected charges on approved initiatives | 28.2 | ||
Global and Other Operating Segments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | 40.9 | 14.2 | 21.4 |
Charges incurred to date on approved initiatives | 76.5 | ||
Estimated charges to be incurred on approved initiatives | 6.3 | ||
Total expected charges on approved initiatives | 82.8 | ||
Europe Middle East & Africa [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges, net of adjustments | 0.9 | $ 30.9 | $ 0 |
Charges incurred to date on approved initiatives | 31.8 | ||
Estimated charges to be incurred on approved initiatives | 0.5 | ||
Total expected charges on approved initiatives | $ 32.3 |
Restructuring Initiatives (Liab
Restructuring Initiatives (Liability Balance for 2015 Initiative) (Details) - Other Restructuring Initiatives 2015 [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Opening Balance | $ 1.1 | $ 4 | |
Charges | 0 | 0 | $ 24.9 |
Adjustments | (0.2) | (0.7) | (2.8) |
Cash payments | (0.5) | (2.2) | (17.8) |
Foreign exchange | 0 | 0 | (0.3) |
Ending Balance | $ 0.4 | $ 1.1 | $ 4 |
Restructuring Initiatives Re113
Restructuring Initiatives Restructuring Charges by Reportable Segment for 2015 Initiative (Details) - Other Restructuring Initiatives 2015 [Member] $ in Millions | Dec. 31, 2017USD ($) |
Charges incurred to date on approved initiatives | $ 21.1 |
EMEA Segment [Member] | |
Charges incurred to date on approved initiatives | 4.2 |
South Latin America Segment [Member] | |
Charges incurred to date on approved initiatives | 2.6 |
North Latin America Segment [Member] | |
Charges incurred to date on approved initiatives | 0.2 |
Asia Pacific Segment [Member] | |
Charges incurred to date on approved initiatives | 5.7 |
Global and Other Operating Segments [Member] | |
Charges incurred to date on approved initiatives | $ 8.4 |
Series C Convertible Preferr114
Series C Convertible Preferred Stock (Details) $ / shares in Units, $ in Millions | Mar. 01, 2016USD ($)director$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 1.25% | ||
Dividends, Preferred Stock | $ 0 | $ 0 | |
Temporary Equity, Liquidation Preference Per Share | $ / shares | $ 1,000 | ||
Optional conversion price for holders (in dollars per share) | $ / shares | $ 5 | ||
Conversion Of Stock, Percentage Of Number Of Shares Of Common Stock Outstanding | 19.99% | ||
Temporary Equity, Conversion, Common Stock Equivalent | shares | 87,051,524 | 87,100,000 | |
Conversion Of Stock, Stock Price Trigger | $ / shares | $ 10 | ||
Preferred Stock, Change Of Control Event, Repurchase Price, Percentage Of Liquidation Preference | 100.00% | ||
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 1.25% | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 5.00% | ||
Preferred Stock, Voting Rights, Election Of Directors, Number Of Directors | director | 3 | ||
Private Placement [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Discount on Shares | $ 8.7 | ||
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Temporary Equity, Shares Issued | shares | 435,000 | ||
Temporary Equity, Stock Issued During Period, Value, New Issues | $ 435 | ||
Dividends Accrued | $ 41.5 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Judicial deposit for Brazil IPI tax on cosmetics | $ 73.8 | $ 69 | ||
Assessment for 2012 [Member] | ||||
Assessment of contingencies, including penalties and accruing interest | 347 | |||
Assessment for 2017 [Member] | ||||
Assessment of contingencies, including penalties and accruing interest | 266 | |||
IPI Tax on Cosmetics [Member] | ||||
Estimated Litigation Liability | 193 | |||
Judicial deposit for Brazil IPI tax on cosmetics | 74 | |||
Net IPI liability | 119 | |||
Brazil labor-related [Member] | ||||
Estimated Litigation Liability | $ 17 | |||
DOJ [Member] | FCPA [Member] | ||||
Litigation Settlement, Amount Awarded to Other Party | $ (68) | |||
SEC [Member] | FCPA [Member] | ||||
Litigation Settlement, Amount Awarded to Other Party | $ (67) |
Goodwill and Intangible Asse116
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment of goodwill | $ 0 | $ 0 | $ 6.9 |
Goodwill | 95.7 | $ 93.6 | |
EGYPT | |||
Impairment of goodwill | 6.9 | ||
Goodwill, impairment loss, net of tax | $ 6.9 | ||
Goodwill | $ 0 |
Goodwill and Intangible Asse117
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Gross balance at period start | $ 182.9 |
Accumulated impairments at period start | (89.3) |
Net balance at period start | 93.6 |
Foreign exchange | 2.1 |
Gross balance at period end | 185 |
Accumulated impairments at period end | (89.3) |
Net balance at period end | 95.7 |
EMEA Segment [Member] | |
Gross balance at period start | 25.6 |
Accumulated impairments at period start | (6.9) |
Net balance at period start | 18.7 |
Foreign exchange | 1.7 |
Gross balance at period end | 27.3 |
Accumulated impairments at period end | (6.9) |
Net balance at period end | 20.4 |
South Latin America Segment [Member] | |
Gross balance at period start | 72.3 |
Accumulated impairments at period start | 0 |
Net balance at period start | 72.3 |
Foreign exchange | 0.4 |
Gross balance at period end | 72.7 |
Accumulated impairments at period end | 0 |
Net balance at period end | 72.7 |
Asia Pacific Segment [Member] | |
Gross balance at period start | 85 |
Accumulated impairments at period start | (82.4) |
Net balance at period start | 2.6 |
Foreign exchange | 0 |
Gross balance at period end | 85 |
Accumulated impairments at period end | (82.4) |
Net balance at period end | $ 2.6 |
Supplemental Balance Sheet I118
Supplemental Balance Sheet Information (Components of Prepaid Expenses and Other) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 111.6 | $ 99.3 |
Receivables other than trade | 67.2 | 68.3 |
Prepaid brochure costs, paper and other literature | 64.8 | 73.2 |
Other | 52.8 | 50.5 |
Prepaid expenses and other | $ 296.4 | $ 291.3 |
Supplemental Balance Sheet I119
Supplemental Balance Sheet Information (Components of Other Assets) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets, Noncurrent [Abstract] | ||
Deferred tax assets (Note 9) | $ 203,800,000 | $ 162,100,000 |
Capitalized software (Note 1) | 85,200,000 | 83,900,000 |
Other judicial deposits | 82,200,000 | 78,000,000 |
Net overfunded pension plans (Note 13) | 82,000,000 | 54,800,000 |
Long-term receivables | 75,600,000 | 78,900,000 |
Judicial deposit for Brazil IPI tax on cosmetics (Note 18) | 73,800,000 | 69,000,000 |
Trust assets associated with supplemental benefit plans (Note 13) | 37,100,000 | 35,200,000 |
Tooling (plates and molds associated with our beauty products) | 12,500,000 | 14,700,000 |
Investment in New Avon (Note 4) | 0 | 32,800,000 |
Other | 14,000,000 | 12,300,000 |
Other assets | $ 666,200,000 | $ 621,700,000 |
Results of Operations by Qua120
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||||
Total revenue | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 1,568.1 | $ 1,408.8 | $ 1,434.3 | $ 1,306.5 | $ 5,715.6 | $ 5,717.7 | $ 6,160.5 | ||||||||||
Gross profit | 957.6 | 867.8 | 870.9 | 816 | 945.8 | 857.9 | 869.3 | 787.7 | 3,512.3 | 3,460.7 | |||||||||||
Operating (loss) profit | 130 | 83 | 31.6 | 28.7 | 107 | 112 | 95.1 | 7.8 | 273.3 | 321.9 | 165 | ||||||||||
(Loss) income from continuing operations, before taxes | 91.6 | 48 | (12.2) | (6.7) | 42.8 | [1] | 74.6 | [1] | 71.9 | (158.1) | [1] | 120.7 | 31.2 | [1] | 22.7 | ||||||
(Loss) income from continuing operations, net of tax | 90.4 | [2] | 11.9 | (45.8) | (36.5) | (9.7) | [1],[2] | 36.3 | [1] | 35.8 | [2] | (155.8) | [1],[2] | 20 | [2] | (93.4) | [1],[2] | (796.5) | |||
Loss from discontinued operations, net of tax | (1.1) | (0.7) | (2.6) | (9.6) | 0 | (14) | (349.1) | ||||||||||||||
Net income attributable to noncontrolling interests | 1.1 | 0.6 | 0.3 | 0 | 0.1 | 0.4 | (0.2) | (0.5) | 2 | (0.2) | (3.3) | ||||||||||
Net (loss) income attributable to Avon | $ 91.5 | [2] | $ 12.5 | $ (45.5) | $ (36.5) | $ (10.7) | [1],[2] | $ 36 | [1] | $ 33 | [2] | $ (165.9) | [1],[2] | $ 22 | [2] | $ (107.6) | [1],[2] | $ (1,148.9) | |||
(Loss) Earnings per Common Share from continuing operations: | |||||||||||||||||||||
Basic | $ 0.17 | [2],[3] | $ 0.01 | [3] | $ (0.12) | [3] | $ (0.10) | [3] | $ (0.03) | [1],[2],[3] | $ 0.07 | [1],[3] | $ 0.07 | [2],[3] | $ (0.38) | [1],[2],[3] | $ 0 | [2],[3] | $ (0.25) | [1],[2],[3] | $ (1.81) |
Diluted | $ 0.17 | [2],[3] | $ 0.01 | [3] | $ (0.12) | [3] | $ (0.10) | [3] | $ (0.03) | [1],[2],[3] | $ 0.07 | [1],[3] | $ 0.07 | [2],[3] | $ (0.38) | [1],[2],[3] | $ 0 | [2],[3] | $ (0.25) | [1],[2],[3] | $ (1.81) |
[1] | (Loss) income from continuing operations, before taxes during 2016 was impacted by:•the deconsolidation of our Venezuelan operations. As a result of the change to the cost method of accounting, in the first quarter of 2016 we recorded a loss of $120.5 in other expense, net. The loss was comprised of $39.2 in net assets of the Venezuelan business and $81.3 in accumulated foreign currency translation adjustments within AOCI associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy;•a gain on extinguishment of debt of $3.9 before and after tax in the third quarter caused by the deferred gain associated with interest-rate swap agreement terminations, partially offset by the early tender premium paid, the deferred loss associated with treasury lock agreements, deal costs and the write-off of debt issuance costs and discounts associated with the cash tender offers in August 2016;•a loss on extinguishment of debt of $1.0 before and after tax in the fourth quarter caused by the premium paid for the repurchases, the write-off of debt issuance costs and discounts and the deferred loss associated with treasury lock agreements, partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the debt repurchases in October 2016;•a loss on extinguishment of debt of $2.9 before and after tax in the fourth quarter caused by the make-whole premium, the deferred loss associated with treasury lock agreements and the write-off of debt issuance costs and discounts and partially offset by the deferred gain associated with interest-rate swap agreement terminations associated with the prepayment of the remaining principal amount of the 4.20% Notes (as defined in Note 7, Debt and Other Financing) and 5.75% Notes (as defined in Note 7, Debt and Other Financing); and•a gain on extinguishment of debt of $1.1 before and after tax in the fourth quarter consisting of the discount received for the repurchases, partially offset by the write-off of debt issuance costs and discounts associated with the debt repurchases in December 2016. | ||||||||||||||||||||
[2] | (Loss) income from continuing operations, net of tax during 2016 was impacted by a charge for valuation allowances for deferred tax assets outside of the U.S of $8.6, which was recorded in the fourth quarter, the release of a valuation allowance associated with Russia of $7.1 which was recorded in the second quarter, and an income tax benefit of $29.3 recognized as the result of the implementation of foreign tax planning strategies which was recorded in the first quarter. | ||||||||||||||||||||
[3] | The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. |
Results of Operations by Qua121
Results of Operations by Quarter (Unaudited) (Components Impacting Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Total costs to implement restructuring initiatives | $ 23.7 | $ 6.2 | $ 20.3 | $ 10 | $ 7.2 | $ 14 | $ 9.4 | $ 46.8 | $ 60.2 | $ 77.4 | $ 49.1 | |
Legal settlement | (27.2) | (27.2) | [1] | |||||||||
Pension settlement charge | 7.3 | |||||||||||
Other items | 3.1 | |||||||||||
Asset impairment and other charges | 6.9 | |||||||||||
Impairment of goodwill | 0 | 0 | 6.9 | |||||||||
Foreign Plan [Member] | ||||||||||||
Loss Contingency, Loss in Period | 18.2 | 18.2 | ||||||||||
Cost of Sales [Member] | ||||||||||||
Total costs to implement restructuring initiatives | 0.7 | 0 | 0 | (0.1) | 0.3 | 0 | 0.3 | 0 | 0.6 | 0.6 | ||
Selling, General and Administrative Expenses [Member] | ||||||||||||
Total costs to implement restructuring initiatives | $ 23 | $ 6.2 | $ 20.3 | $ 10.1 | $ 6.9 | $ 14 | $ 9.1 | $ 46.8 | $ 59.6 | $ 76.8 | ||
EGYPT | ||||||||||||
Impairment of goodwill | $ 6.9 | |||||||||||
[1] | In the third quarter of 2016, we settled claims relating to professional services that had been provided to the Company prior to 2013 in connection with a previously disclosed legal matter. The proceeds, net of legal fees, of $27.2 before tax ($27.2 after tax) were recognized as a reduction of SG&A in the third quarter of 2016 and were subsequently received by the Company in the fourth quarter of 2016. |
Results of Operations by Qua122
Results of Operations by Quarter (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2013 | Mar. 31, 2008 | Jun. 30, 2003 | |
Loss on deconsolidation of Venezuela | $ 0 | $ 120.5 | $ 0 | |||||||||||||||
Exchange rate net charges (benefit), total | $ (3.4) | |||||||||||||||||
Exchange rate net charges (benefit) on other expense, net | (4.2) | |||||||||||||||||
Exchange rate net charges on income taxes | 0.8 | |||||||||||||||||
Gain on sale of business | 0 | 0 | 44.9 | |||||||||||||||
Gain (loss) on extinguishment of debt | 0 | $ 1.1 | (5.5) | |||||||||||||||
Net benefit related to U.S. Tax Reform | $ 29.9 | $ 29.9 | ||||||||||||||||
Net increase (decrease) in valuation allowance | $ 669.7 | |||||||||||||||||
Tax benefit favorable court decision | 10.4 | |||||||||||||||||
Tax benefit due to tax planning strategies | $ 29.3 | $ 18.7 | ||||||||||||||||
Four Point Two Percent Notes, Due July Two Thousand Eighteen [Member] | ||||||||||||||||||
Interest rate, stated percentage | 4.20% | |||||||||||||||||
Five Point Seven Five Percent Notes, Due March Two Thousand Eighteen [Member] | ||||||||||||||||||
Interest rate, stated percentage | 5.75% | |||||||||||||||||
Two Point Three Seven Five Percent Notes, Due March Two Thousand Sixteen [Member] | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (5.5) | |||||||||||||||||
Interest rate, stated percentage | 2.375% | |||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 0.5 | |||||||||||||||||
2013 Revolving Credit Facility [Member] | ||||||||||||||||||
Write off of Deferred Debt Issuance Cost | $ 2.5 | |||||||||||||||||
Line of credit facility | $ 1,000 | |||||||||||||||||
Avon Venezuela [Member] | ||||||||||||||||||
Deconsolidation, Carrying Value Of Net Assets | 39.2 | |||||||||||||||||
Deconsolidation, Foreign Currency Translation Adjustments | (81.3) | |||||||||||||||||
Avon Venezuela [Member] | Other Expense [Member] | ||||||||||||||||||
Loss on deconsolidation of Venezuela | $ 120.5 | |||||||||||||||||
EMEA [Member] | ||||||||||||||||||
Net increase (decrease) in valuation allowance | 25.5 | |||||||||||||||||
Non-U.S. [Member] | ||||||||||||||||||
Net increase (decrease) in valuation allowance | $ 8.6 | |||||||||||||||||
Russia [Member] | ||||||||||||||||||
Net increase (decrease) in valuation allowance | $ (7.1) | |||||||||||||||||
Cash tender offers [Member] | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ 3.9 | |||||||||||||||||
October debt repurchase [Member] | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (1) | (1) | ||||||||||||||||
Debt prepayment [Member] | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ (2.9) | (2.9) | ||||||||||||||||
December debt repurchase [Member] | ||||||||||||||||||
Gain (loss) on extinguishment of debt | $ 1.1 | $ 1.1 | ||||||||||||||||
MEXICO | ||||||||||||||||||
Net increase (decrease) in valuation allowance | $ (16) |
VALUATION AND QUALIFYING ACC123
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Allowance for Doubtful Accounts Receivable [Member] | |||||||
Balance at Beginning of Period | $ 122.9 | $ 77.6 | $ 93.7 | ||||
Charged to Costs and Expenses | 221.9 | 190.5 | 144.1 | ||||
Charged to Revenue | 0 | 0 | 0 | ||||
Deductions | [1] | (215.5) | (145.2) | (160.2) | |||
Balance at End of Period | 129.3 | 122.9 | 77.6 | ||||
Allowance for Sales Returns [Member] | |||||||
Balance at Beginning of Period | 8.2 | 9.1 | 13.2 | ||||
Charged to Costs and Expenses | 0 | 0 | 0 | ||||
Charged to Revenue | 197.9 | 186.9 | 190.8 | ||||
Deductions | [2] | (196.8) | (187.8) | (194.9) | |||
Balance at End of Period | 9.3 | 8.2 | 9.1 | ||||
Inventory Valuation Reserve [Member] | |||||||
Balance at Beginning of Period | 58.4 | 71.3 | 98.9 | ||||
Charged to Costs and Expenses | 36.7 | 36.5 | 45.4 | ||||
Charged to Revenue | 0 | 0 | 0 | ||||
Deductions | [3] | (33.8) | (49.4) | (73) | |||
Balance at End of Period | 61.3 | 58.4 | 71.3 | ||||
Deferred Tax Asset Valuation Allowance [Member] | |||||||
Balance at Beginning of Period | 3,296 | 2,090.1 | 1,480.6 | ||||
Charged to Costs and Expenses | (78.4) | [4] | 1,205.9 | [5] | 609.5 | [5] | |
Charged to Revenue | 0 | 0 | 0 | ||||
Deductions | 0 | 0 | 0 | ||||
Balance at End of Period | $ 3,217.6 | $ 3,296 | $ 2,090.1 | ||||
[1] | Accounts written off, net of recoveries and foreign currency translation adjustment. | ||||||
[2] | Returned product reused or destroyed and foreign currency translation adjustment. | ||||||
[3] | Obsolete inventory destroyed and foreign currency translation adjustment. | ||||||
[4] | Decrease in valuation allowance primarily related to a partial release of the U.S. valuation allowance as a result of the enactment of the Tax Cuts and Jobs Act in the U.S. and the impact of a | ||||||
[5] | Increase in valuation allowance primarily for deferred tax assets that are not more likely than not to be realized in the future. |