Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 442,426,520 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0.7 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 |
Costs, expenses and other: | |||
Cost of sales | 2,364 | 2,203.3 | 2,257 |
Selling, general and administrative expenses | 2,972.1 | 3,231 | 3,136.9 |
Operating profit | 235.2 | 281.3 | 323.8 |
Interest expense | 134.6 | 140.8 | 136.6 |
(Gain) loss on extinguishment of debt | 0.7 | 0 | (1.1) |
Interest income | (15.3) | (14.8) | (15.8) |
Other expense, net | 7.1 | 34.6 | 172.9 |
Total other expenses | 127.1 | 160.6 | 292.6 |
Income from continuing operations, before taxes | 108.1 | 120.7 | 31.2 |
Income taxes | (129.9) | (100.7) | (124.6) |
(Loss) income from continuing operations, net of tax | (21.8) | 20 | (93.4) |
Loss from discontinued operations, net of tax | 0 | 0 | (14) |
Net (loss) income | (21.8) | 20 | (107.4) |
Net loss (income) attributable to noncontrolling interests | 2.3 | 2 | (0.2) |
Net (loss) income attributable to Avon | $ (19.5) | $ 22 | $ (107.6) |
Loss per share: | |||
Basic from continuing operations (in dollars per share) | $ (0.10) | $ 0 | $ (0.25) |
Basic from discontinued operations (in dollars per share) | 0 | 0 | (0.03) |
Basic attributable to Avon (in dollars per share) | (0.10) | 0 | (0.29) |
Diluted from continuing operations (in dollars per share) | (0.10) | 0 | (0.25) |
Diluted from discontinued operations (in dollars per share) | 0 | 0 | (0.03) |
Diluted attributable to Avon (in dollars per share) | $ (0.10) | $ 0 | $ (0.29) |
Weighted-average shares outstanding: | |||
Basic (in shares) | 441.9 | 439.7 | 437 |
Diluted (in shares) | 441.9 | 439.7 | 437 |
Net sales | |||
Revenue | $ 5,247.7 | $ 5,565.1 | $ 5,578.8 |
Other revenue | |||
Revenue | $ 323.6 | $ 150.5 | $ 138.9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (21.8) | $ 20 | $ (107.4) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (48.7) | 19.8 | 17 |
Unrealized (losses) gains on revaluation of long-term intercompany balances, net of taxes of $0.0, $0.0 and $0.0 | (58.1) | 62.2 | 21.6 |
Change in derivative gains on cash flow hedges, net of taxes of $0.0, $0.0 and $2.7 | 0.5 | 0 | 1.3 |
Amortization of net actuarial loss and prior service cost, net of taxes of $0.6, $0.8 and $10.9 | 10.5 | 15.6 | 287.3 |
Adjustments of net actuarial loss and prior service cost, net of taxes of $(1.1), $2.1 and $7.1 | (8.6) | 8.9 | 3.1 |
Other comprehensive income related to New Avon investment, net of taxes of $0.0, $0.0 and $0.0 | 0 | 1.2 | 2.2 |
Total other comprehensive (loss) income, net of taxes | (104.4) | 107.7 | 332.5 |
Comprehensive (loss) income | (126.2) | 127.7 | 225.1 |
Less: comprehensive loss attributable to noncontrolling interests | (2.6) | (1.5) | (2.1) |
Comprehensive (loss) income attributable to Avon | $ (123.6) | $ 129.2 | $ 227.2 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized (losses) gains on revaluation of long-term intercompany balances, taxes | $ 0 | $ 0 | $ 0 |
Change in derivative losses on cash flow hedges, taxes | 0 | 0 | 2.7 |
Amortization of net actuarial losses and prior service cost, taxes | 0.6 | 0.8 | 10.9 |
Adjustments of net actuarial losses and prior service cost, taxes | (1.1) | 2.1 | 7.1 |
Other comprehensive income, equity method investment, taxes | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash, including cash equivalents of $36.2 and $116.7 | $ 532.7 | $ 881.5 |
Accounts receivable (less allowances of $93.0 and $138.6) | 349.7 | 457.2 |
Inventories | 542 | 598.2 |
Prepaid expenses and other | 272 | 296.4 |
Held for sale assets | 65.6 | 0 |
Total current assets | 1,762 | 2,233.3 |
Property, plant and equipment, at cost | ||
Land | 22.6 | 31.3 |
Buildings and improvements | 502.9 | 646 |
Equipment | 682.3 | 804.6 |
Property, plant and equipment, at cost | 1,207.8 | 1,481.9 |
Less accumulated depreciation | (650.2) | (779.2) |
Property, plant and equipment, net | 557.6 | 702.7 |
Goodwill | 87.4 | 95.7 |
Other assets | 603 | 666.2 |
Total assets | 3,010 | 3,697.9 |
Current Liabilities | ||
Debt maturing within one year | 12 | 25.7 |
Accounts payable | 816.5 | 832.2 |
Accrued compensation | 85.5 | 130.3 |
Other accrued liabilities | 451.3 | 405.6 |
Sales and taxes other than income | 103.9 | 153 |
Income taxes | 15.9 | 12.8 |
Held for sale liabilities | 11.4 | 0 |
Total current liabilities | 1,496.5 | 1,559.6 |
Long-term debt | 1,581.6 | 1,872.2 |
Employee benefit plans | 128.3 | 150.6 |
Long-term sales taxes and taxes other than income | 0 | 193.1 |
Long-term income taxes | 136.2 | 84.9 |
Other liabilities | 72.1 | 84.4 |
Total liabilities | 3,414.7 | 3,944.8 |
Commitments and contingencies (Notes 16 and 19) | ||
Series C convertible preferred stock | 492.1 | 467.8 |
Shareholders’ Deficit | ||
Common stock, par value $.25 - authorized 1,500 shares; issued 761.8 and 758.7 shares | 190.3 | 189.7 |
Additional paid-in capital | 2,303.6 | 2,291.2 |
Retained earnings | 2,234.3 | 2,320.3 |
Accumulated other comprehensive loss | (1,030.4) | (926.2) |
Treasury stock, at cost (319.4 and 318.4 shares) | (4,602.3) | (4,600) |
Total Avon shareholders’ deficit | (904.5) | (725) |
Noncontrolling interests | 7.7 | 10.3 |
Total shareholders’ deficit | (896.8) | (714.7) |
Total liabilities, series C convertible preferred stock and shareholders’ deficit | $ 3,010 | $ 3,697.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash equivalents | $ 36.2 | $ 116.7 |
Allowances | $ 93 | $ 138.6 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 761,800,000 | 758,700,000 |
Treasury stock (in shares) | 319,400,000 | 318,400,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net (loss) income | $ (21.8) | $ 20 | $ (107.4) | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 14 | ||||
(Loss) income from continuing operations, net of tax | (21.8) | 20 | (93.4) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation | 81.1 | 84.3 | 83.3 | ||||
Amortization | 26.6 | 29.7 | 30.6 | ||||
Provision for doubtful accounts | 162.4 | 221.9 | 190.5 | ||||
Provision for obsolescence | 113.5 | 36.7 | 36.5 | ||||
Share-based compensation | 13.8 | 24.2 | 24 | ||||
Foreign exchange losses | 21.2 | 18.1 | 6.1 | ||||
Deferred income taxes | (49) | (30.2) | (8.5) | ||||
Charge for Argentinian monetary assets and liabilities | (6.3) | 0 | 0 | ||||
Brazil IPI release | (194.7) | 0 | 0 | ||||
Loss on deconsolidation of Venezuela | 0 | 0 | 120.5 | ||||
Other | 18.5 | 39.6 | (3.3) | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (102.8) | (214.6) | (216.6) | ||||
Inventories | (99.6) | (19.2) | (28.6) | ||||
Prepaid expenses and other | (49.3) | 14.8 | 16.8 | ||||
Accounts payable and accrued liabilities | 73.1 | 12.3 | (17.6) | ||||
Income and other taxes | 63.2 | 4.1 | (4.7) | ||||
Noncurrent assets and liabilities | 42.8 | 29.5 | (7.6) | ||||
Net cash provided by operating activities of continuing operations | 92.7 | 271.2 | 128 | ||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (94.9) | (97.3) | (93) | ||||
Disposal of assets | 4.8 | 5.9 | 13.3 | ||||
Distribution from New Avon LLC | 0 | 22 | 0 | ||||
Reduction of cash due to Venezuela deconsolidation | 0 | 0 | (4.5) | ||||
Other investing activities | (3.3) | (0.2) | 1.5 | ||||
Net cash used by investing activities of continuing operations | (93.4) | (69.6) | (82.7) | ||||
Cash Flows from Financing Activities | |||||||
Debt, net (maturities of three months or less) | (10.7) | 10.3 | (36.4) | ||||
Proceeds from debt | 0 | 0 | 508.7 | ||||
Repayment of debt | (289.1) | (2.9) | (733) | ||||
Repurchase of common stock | (3.2) | (7.2) | (5.6) | ||||
Net proceeds from the sale of series C convertible preferred stock | 0 | 0 | 426.3 | ||||
Other financing activities | (3.9) | (0.2) | (23) | ||||
Net cash (used) provided by financing activities of continuing operations | (306.9) | 0 | 137 | ||||
Cash Flows from Discontinued Operations | |||||||
Net cash (used) provided by operating activities of discontinued operations | 0 | (8.6) | (67.6) | ||||
Net cash used by investing activities of discontinued operations | 0 | 0 | (94.6) | ||||
Net cash (used) provided by discontinued operations | 0 | (8.6) | (162.2) | ||||
Effect of exchange rate changes on cash and cash equivalents | (37.5) | 34.1 | (50.4) | ||||
Net (decrease) increase in cash and cash equivalents | (345.1) | 227.1 | (30.3) | ||||
Cash and equivalents at beginning of year | [2] | 881.5 | [1] | 654.4 | [1] | 684.7 | |
Cash and equivalents at end of year | [1] | 536.4 | 881.5 | [2] | 654.4 | [2] | |
Cash paid for: | |||||||
Interest | 139 | 141.7 | 142.8 | ||||
Income taxes, net of refunds received | $ 87.4 | $ 132.2 | $ 143.3 | ||||
[1] | Includes cash and cash equivalents of $3.7 classified as Held for sale assets in our Consolidated Balance Sheets at the end of the year in 2018 | ||||||
[2] | Includes cash and cash equivalents of discontinued operations of $(2.2) at the beginning of the year in 2016 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2015 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 3.7 | $ (2.2) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest |
Net (loss) income attributable to Avon | $ (107.6) | ||||||
Shareholders' Equity, Beginning Balance 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 income (loss) | (107.4) | (107.6) | 0.2 | ||||
Other comprehensive income (loss) | 332.5 | 333 | (0.5) | ||||
Dividends accrued - Series C convertible preferred stock | (18.3) | (18.3) | |||||
Exercise/ vesting/ expense of share-based compensation | 23.2 | $ 0.9 | 22.3 | ||||
Exercise/ vesting/ expense of share-based compensation (in shares) | 3.5 | ||||||
Repurchase of common stock | (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 expense – stock transactions | (2.4) | (2.4) | |||||
Shareholders' Equity, Ending Balance 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 | |||||
Net (loss) income attributable to Avon | 22 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 20 | 22 | (2) | ||||
Other comprehensive income (loss) | 107.7 | 107 | 0.7 | ||||
Dividends accrued - Series C convertible preferred stock | (23.1) | (23.1) | |||||
Exercise/ vesting/ expense of share-based compensation | 24.3 | $ 1 | 17.3 | (0.8) | $ 6.8 | ||
Exercise/ vesting/ expense of share-based compensation (in shares) | 3.8 | (0.5) | |||||
Repurchase of common stock | (7.2) | $ (0.1) | $ (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, Ending Balance 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 | |||||
Net (loss) income attributable to Avon | (19.5) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (21.8) | (2.3) | |||||
Other comprehensive income (loss) | (104.4) | (104.2) | (0.2) | ||||
Dividends accrued - Series C convertible preferred stock | (24.3) | (24.3) | |||||
Exercise/ vesting/ expense of share-based compensation | 12.8 | $ 0.7 | 12.4 | (1.1) | $ 0.8 | ||
Exercise/ vesting/ expense of share-based compensation (in shares) | 3.1 | (0.1) | |||||
Repurchase of common stock | (3.2) | $ (0.1) | $ (3.1) | ||||
Repurchase of common stock, shares | 1.1 | ||||||
Purchases and sales of noncontrolling interests, net of dividends paid | (0.1) | (0.1) | |||||
Shareholders' Equity, Ending Balance at Dec. 31, 2018 | $ (896.8) | $ 190.3 | $ 2,303.6 | $ 2,234.3 | $ (1,030.4) | $ (4,602.3) | $ 7.7 |
Balance, shares at Dec. 31, 2018 | 761.8 | 319.4 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Purchases and sales of noncontrolling interests, dividends paid | $ 0.1 | $ 0.2 | $ 1.8 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 Assets and Liabilities Held for Sale 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 stand-alone selling prices ("SSP") of promised goods or services delivered under sales incentives, allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment. 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, 2018 , only our Argentinian subsidiary is 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. Argentina Currency During the quarter ended June 30, 2018, based on published official exchange rates which indicate that Argentina's three-year cumulative inflation rate has exceeded 100%, we concluded that Argentina had become a highly inflationary economy. From July 1, 2018, we have applied highly inflationary accounting for our Argentinian subsidiary. As such, the functional currency for Argentina has changed to the U.S. dollar, which is the consolidated group's reporting currency. When an entity operates in a highly inflationary economy, exchange gains and losses associated with monetary assets and liabilities resulting from changes in the exchange rate are recorded in income. Nonmonetary assets and liabilities, which include inventories, property, plant and equipment and contract liabilities, are carried forward at their historical dollar cost, which was calculated using the exchange rate at June 30, 2018. As a result of the devaluation of the Argentinian peso of approximately 25% from June 30, 2018 to December 31, 2018, operating profit was negatively impacted by approximately $8 , largely in cost of sales in our Consolidated Income Statements, primarily due to inventory being accounted for at its historical dollar cost. During the six months ended December 31, 2018, we also recorded a benefit during the period of approximately $6 in other expense, net primarily associated with the net monetary liability position of Argentina, and an approximate $2 positive impact on income taxes, both in our Consolidated Income Statements. As of December 31, 2018, the net Argentine peso-denominated monetary liability position of Argentina was $33 and the net Argentine peso-denominated non-monetary asset position was $50 , primarily consisting of inventory balances of $32 . 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. Revenue Recognition Nature of goods and services We are a global manufacturer and marketer of beauty and related products. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Our business is conducted primarily in one channel - direct selling. Our reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. We primarily sell our products to the ultimate consumer through the direct selling channel principally through Representatives, who are independent contractors and not our employees. Revenue recognition Revenue is recognized when control of a product or service is transferred to a customer, which is generally the Representative. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties, such as Value Added Taxes (“VAT”) collected for taxing authorities. Principal revenue streams and significant judgments Our principal revenue streams can be distinguished into: i) the sale of Beauty and Fashion & Home products to Representatives (recorded in net sales); ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract, which include fees for shipping and handling (recorded in other revenue); and iii) other, which includes the sale of products to New Avon and royalties from the licensing of our name and products (recorded in other revenue). i) Sale of Beauty and Fashion & Home products to Representatives We generate the majority of our revenue through the sale of Beauty and Fashion & Home products. A Representative contacts her customers directly, selling primarily through our brochure (whether paper or online), which highlights new products and special promotions (or incentives) for each sales campaign. In this sense, the Representative, together with the brochure, are the "store" through which our products are sold. A brochure introducing a new sales campaign is typically generated every three to four weeks. A purchase order is processed and the products are picked at a distribution center and delivered to the Representative usually through a combination of local and national delivery companies. Generally, the Representative then delivers the merchandise and collects payment from the customer for her or his own account. A Representative generally receives a refund of the price the Representative paid for a product if the Representative chooses to return it. A Representative Agreement, which outlines the basic terms of the agreement between Avon and the Representative, combined with a purchase order, constitutes a contract for the purposes of Accounting Standards Codification Topic (“ASC”), Revenue from Contracts with Customers ("ASC 606"). Revenue from Contracts with Customers We account for individual products and services separately in the contract if they are distinct (i.e., if a product or service is separately identifiable from the other items in the contract and if a Representative can benefit from the product or service on its own or with other resources that are readily available), which is recognized at a point in time, when control of a product is transferred to a Representative. In addition, we offer incentives to Representatives to support sales growth. Certain of these sales incentives are distinct promises to a Representative, and therefore are a separate performance obligation. As a result, revenue is allocated to the performance obligation for sales incentives and is deferred on the balance sheet until the associated performance obligations are satisfied. Typically included within a contract is variable consideration, such as sales returns and late payment fees. Revenue is only recorded to the extent it is probable that it will not be reversed, and therefore revenue is adjusted for variable consideration. Variable consideration is generally estimated using the expected value method, which considers possible outcomes weighted by their probability. Specifically for sales returns, a refund liability will be recorded for the estimated cash to be refunded for the products expected to be returned, and a returns asset will be recorded for the products which we expect to be returned and re-sold, each of these based on historical experience. The estimate of sales returns as well as the measurement of the returns asset and the refund liability is updated at the end of each month for changes in expectations regarding the amount of salvageable returns, reconditioning costs and any additional decreases in the value of the returned products. Late payment fees are recorded when the uncertainty associated with collecting such fees are resolved (i.e., when collected). The Representative generally receives a credit period of one sales campaign if they meet certain criteria; however, the specific credit terms are outlined in the Representative Agreement. Generally, the Representative remits payment during each sales campaign, which relates to the prior campaign cycle. The Representative is generally precluded from submitting an order for the current sales campaign until the accounts receivable balance past due for prior campaigns is paid; however, there are circumstances where the Representative fails to make the required payment. Our contracts with Representatives often include multiple promises to transfer products and/or services to the Representative, and determining which of these products and/or services are considered distinct performance obligations that should be accounted for separately. In addition, in assessing the recognition of revenue for the following performance obligations, management has exercised significant judgment in the following areas: estimation of variable consideration and the SSP of promised goods or services in order to determine and allocate the transaction price. Performance obligation - Avon products and appointment kits The Representative purchases Avon products and appointment kits through a purchase order. Avon offers appointment kits for purchase to Representatives, which may contain various Avon products. We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration as discussed above and the estimated SSP of other performance obligations as discussed below. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Performance obligation - Sales incentives Types of sales incentives include status programs, loyalty points, prospective discounts, and gift with purchase, among others. A Representative is eligible for certain status programs if specified sales levels are met. Status programs offer additional benefits such as free or discounted products and services. Loyalty points offer the option to redeem for additional Avon or other products or services. Prospective discounts are offered in some countries when certain sales levels are reached in a given time period. The revenue attributable to the prospective discount performance obligation is for the option to purchase additional product at a discounted amount. Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right (performance obligation) based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales in our Consolidated Statements of Operations at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. SSP represents the estimated market value, or the estimated amount that could be charged for that material right when the entity sells it separately in similar circumstances to similar customers. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, including for certain sales incentives, we determine the SSP using information that may include market prices and other observable inputs. ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract ("Representative fees") The purchase order in the contract with the Representative explicitly identifies activities that we will perform. This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees (discussed above). Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and we allocate consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in selling, general and administrative expenses in our Consolidated Statements of Operations. We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations. iii) Other revenue We also recognize revenue from the sale of products to New Avon LLC ("New Avon"), as part of a manufacturing and supply agreement, since the separation of the Company's North America business into New Avon on March 1, 2016, and royalties from the licensing of our name and products, in other revenue in our Consolidated Statements of Operations Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are generally high-quality, short-term money market instruments with an original maturity of three months or less and consist of time deposits with a number of U.S. and non-U.S. commercial banks and money market fund investments. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. We classify inventory into various categories based upon its stage in the product life cycle, future marketing sales plans and the disposition process. We assign a degree of obsolescence risk to products based on this classification to estimate the level of obsolescence provision. Brochure Costs Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations. Brochure costs and associated fees that are presented as inventory were $13.2 at December 31, 2018 and zero at December 31, 2017 , an increase driven by the implementation of ASU 606. Brochure costs and associated fees that are presented as prepaid expenses and other were $5.9 at December 31, 2018 and $26.6 at December 31, 2017 , a decrease driven by the implementation of ASU 606. Brochure costs were expensed to COGS and SG&A in 2018 amounted to $113.5 and $106.2 , respectively. In 2017 and 2016 brochures costs of $244.0 and $244.7 , respectively, were expensed to SG&A under the previous ASU 605. The fees charged to Representatives for brochures sold recorded in Other revenue in 2018 amounted to $117.0 . In 2017 and 2016, the fees charged to Representatives were recorded as a reduction to SG&A expenses and amounted to 106.2 in 2018 $139.4 and $138.6 , respectively. Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, 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, and implementation costs incurred in a hosting arrangement that is a service contract, are capitalized and amortized over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. The other assets balance included unamortized capitalized software costs of $89.3 at December 31, 2018 and $85.2 at December 31, 2017 . The amortization expense associated with capitalized software was $ 26.5 , $ 29.5 and $ 30.5 for the years ended December 31, 2018 , 2017 and 2016 , 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. Assets and Liabilities Held for Sale A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition. Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the first quantitative step, as described below, is required. The quantitative test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of a reporting unit to its carrying value. If the fair value of a reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit’s goodwill. The second step of the impairment analysis requires a valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of the purchase price in a business combination. If the resulting implied fair value of the reporting unit’s goodwill is less than its carrying value, that difference represents an impairment. The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a DCF approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of five to ten years and include an estimated terminal value at the end of the forecasted period. When determining the appropriate forecast period for the DCF approach, we consider the amount of time required before the reporting unit achieves what we consider a normalized, sustainable level of cash flows. The estimation of fair value utilizing a DCF approach includes numerous uncertainties which require significant judgment when making assumptions of expected growth rates and the selection of discount rates, as well as assumptions regarding general economic and business conditions, and the structure that would yield the highest economic value, among other factors. Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: • Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. • Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. • Changes in the fair value of a derivative that is designated as a hedge of a net investment in a foreign operation are recorded in foreign currency translation adjustments within AOCI. • Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized in earnings in other expense, net in our Consolidated Statements of Operations. We present the earnings effect of the hedging instrument in our Consolidated Statements of Operations in the same income statement line item in which the earnings effect of the hedged item is reported. For derivatives designated as cash flow hedges, if we conclude that the hedging relationship is perfectly effective at inception, a detailed effectiveness assessment in each period is not required as long as (i) the critical terms of the hedging instrument completely match the related terms of the hedged item (ii) it is considered probable that the counterparties to the hedging instrument and the hedged item will not default, and (iii) the hedged cash flows remain probable. If the conditions above are not met, we will assess prospective and retrospective effectiveness using the cumulative dollar-offset method, which compares the change in fair value or present value of cash flows of the hedging instrument to the changes in the fair value or present value of the cash flows of the hedged item. If the result of the quantification demonstrates that the hedge is still highly effective (meaning that cumulative changes in |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards New Accounting Standards Implemented ASU 2014-09, Revenue from Contracts with Customers Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements. We adopted ASC 606 with a date of the initial application of January 1, 2018, as a cumulative-effect adjustment to retained earnings. Therefore, the comparative information for prior periods has not been adjusted and continues to be reported under ASC 605, Revenue Recognition . We applied ASC 606 to all outstanding contracts at January 1, 2018. We recorded a cumulative-effect adjustment upon adoption of the new revenue recognition standard as of January 1, 2018 comprised of the following: • a reduction to retained earnings of $52.7 before taxes ( $41.1 after tax), with a corresponding impact to deferred income taxes of $11.6 ; • a reduction to prepaid expenses and other of $54.9 ; • an increase to inventories of $39.3 ; and • an increase to other accrued liabilities of $37.1 due to the net impact of the establishment of a contract liability of $91.8 for deferred revenue where our performance obligations are not yet satisfied, which is partially offset by a reduction in the sales incentive accrual of $54.7 . 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 were not material. The details of the significant changes to our accounting policy for revenue recognition and the quantitative impact of the changes on our Consolidated Financial Statements are set out below. Performance obligations - Avon products and appointment kits We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration, such as sales returns and past due fees, and the estimated SSP of other performance obligations, such as sales incentives. Revenue allocated to the material right (performance obligation) for sales incentives is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Under our historical accounting, we recognized revenue for Avon products in net sales in our Consolidated Statements of Operations upon delivery of the product to the Representative. We recognized revenue for appointment kits sold to Representatives as a reduction of SG&A expenses in our Consolidated Statements of Operations, and the associated cost was recognized in SG&A expenses in our Consolidated Statements of Operations. Revenue was adjusted for expected sales returns. Performance obligations/ material rights - sales incentives Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of sales incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales and the associated cost of sales incentives is recognized in cost of sales in our Consolidated Statements of Operations, at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. Under our historical accounting, the cost of sales incentives was generally presented in other accrued liabilities and prepaid expenses and other in our Consolidated Balance Sheets and recognized in SG&A expenses in our Consolidated Statements of Operations over the period that the sales incentive was earned. Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees. Brochures - Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations. Under our historical accounting, all brochure costs were initially deferred to prepaid expenses and other in our Consolidated Balance Sheets and were charged to SG&A expenses in our Consolidated Statements of Operations over the campaign length. In addition, fees charged to Representatives for brochures were initially deferred and presented as a reduction of prepaid expenses and other in our Consolidated Balance Sheets, and were recorded as a reduction of SG&A expenses in our Consolidated Statements of Operations over the campaign length. Fulfillment activities and late payment fees - We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations. Late payment fees are recorded in other revenue in our Consolidated Statements of Operations when collected. Under our historical accounting, revenue for shipping and handling (including order processing) activities was recorded in other revenue in our Consolidated Statements of Operations. However, the revenue for payment processing activities and late payment fees were recognized as a reduction of SG&A expenses in our Consolidated Statements of Operations. The cost of these activities was recognized in SG&A expenses in our Consolidated Statements of Operations. Impacts on consolidated financial statements The following tables summarize the impacts of adopting ASC 606 on the Company's consolidated financial statements for the twelve months ended December 31, 2018 : Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Revenue Net sales $ 5,247.7 $ (28.5 ) (1) $ 5,219.2 Other revenue 323.6 (200.7 ) (2) 122.9 Total revenue 5,571.3 (229.2 ) 5,342.1 Costs and expenses Cost of sales 2,364.0 (277.4 ) (3) 2,086.6 SG&A expenses 2,972.1 60.4 (4) 3,032.5 Operating profit 235.2 (12.2 ) 223.0 Income before income taxes 108.1 (12.2 ) 95.9 Income taxes (129.9 ) 3.6 (126.3 ) Net loss (21.8 ) (8.6 ) (30.4 ) Net loss attributable to Avon (19.5 ) (8.6 ) (28.1 ) (1) Primarily relates to appointment kits, which were reclassified from SG&A, partially offset by the timing of recognition of sales incentives. (2) Relates to Representative fees (primarily brochure fees, late payment fees and certain other fees), which were reclassified from SG&A. Brochure fees were also impacted by the timing of recognition. (3) Primarily relates to the cost of sales incentives, the cost of brochures paid for by Representatives and the cost of appointment kits, which were reclassified from SG&A. The cost of sales incentives and the cost of brochures were also impacted by the timing of recognition. (4) Relates to the cost of sales incentives, which were reclassified to cost of sales and were also impacted by the timing of recognition. This was partially offset by Representative fees, which were reclassified to other revenue, and appointment kits, which were reclassified to net sales and cost of sales. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Other Comprehensive Income Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Foreign currency translation adjustments (48.7 ) (3.5 ) (52.2 ) Total other comprehensive loss, net of income taxes (104.4 ) (3.5 ) (107.9 ) Comprehensive loss (126.2 ) (12.1 ) (138.3 ) Comprehensive loss attributable to Avon (123.6 ) (12.1 ) (135.7 ) Impact of change in revenue recognition standard Line items impacted within the Consolidated Balance Sheets Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Accounts receivable, net $ 349.7 $ (8.2 ) (1) $ 341.5 Inventories 542.0 (42.8 ) (2) 499.2 Prepaid expenses and other 272.0 47.8 (2) 319.8 Total current assets 1,762.0 (3.2 ) 1,758.8 Other assets 603.0 (10.1 ) (3) 592.9 Total assets 3,010.0 (13.3 ) 2,996.7 Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit Other accrued liabilities 451.3 (38.0 ) (4) 413.3 Income taxes 15.9 (3.6 ) 12.3 Total current liabilities 1,496.5 (41.6 ) 1,454.9 Other liabilities 72.1 (0.7 ) 71.4 Total liabilities 3,414.7 (42.3 ) 3,372.4 Retained earnings 2,234.3 32.5 (5) 2,266.8 Accumulated other comprehensive loss (1,030.4 ) (3.5 ) (1,033.9 ) Total Avon shareholders’ deficit (904.5 ) 29.0 (875.5 ) Total shareholders’ deficit (896.8 ) 29.0 (867.8 ) Total liabilities, series C convertible preferred stock and shareholders’ deficit 3,010.0 (13.3 ) 2,996.7 (1) Relates to sales returns, which were reclassified from a reduction of accounts receivable to a refund liability (within other accrued liabilities) and a returns asset (within prepaid expenses and other). (2) Primarily relates to sales incentives and brochures, both of which were reclassified from prepaid expenses and other to inventories, and were also impacted by the timing of recognition. In addition, prepaid expenses and other was impacted by the timing of recognition of brochures, as well as the reclassification of sales returns (described above). (3) Relates to deferred tax assets associated with the cumulative-effect adjustment. (4) Primarily relates to the contract liability for sales incentives, which is partially offset by the lower accrual for sales incentives. In addition, other accrued liabilities was impacted by the reclassification of sales returns (described above). (5) Relates to the $41.1 cumulative-effect adjustment upon adoption of ASC 606, partially offset by the year-to-date $8.6 net loss adjustment. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Cash Flows Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Cash Flows from Operating Activities Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Other 18.5 (3.5 ) 15.0 Accounts receivable (102.8 ) (.4 ) (103.2 ) Inventories (99.6 ) 3.5 (96.1 ) Prepaid expenses and other (49.3 ) 3.9 (45.4 ) Accounts payable and accrued liabilities 73.1 10.5 83.6 Income and other taxes 63.2 (3.6 ) 59.6 Noncurrent assets and liabilities 42.8 (1.8 ) 41.0 ASU 2016-09, Compensation - Stock Compensation 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. 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 the Consolidated Statements of Operations and (2) present the other components of net periodic benefit costs below operating profit in other expense, net. We adopted this new accounting guidance effective January 1, 2018. The new accounting guidance was applied retrospectively and increased our operating profit for 2017 and 2016 by $8.0 and $1.9 respectively, but had no impact on net loss. The following tables summarize the impacts of adopting ASC 2017-07 on the Company's consolidated financial statements for the twelve months ended December 31, 2017 and 2016: Impact of ASU 2017-07 adoption Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Impact of adoption As originally reported 2017 2016 2017 2016 2017 2016 SG&A expenses $ 3,231.0 $ 3,136.9 $ (8.0 ) $ (1.9 ) (4) $ 3,239.0 $ 3,138.8 Operating profit 281.3 323.8 8.0 1.9 273.3 321.9 Other expense, net 34.6 172.9 8.0 1.9 26.6 171.0 Income before income taxes 120.7 31.2 — — 120.7 31.2 ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities to align the hedge accounting model more closely with risk management practices, and to simplify its application. Among other things, the new guidance eliminates the requirement to separately measure and report hedge ineffectiveness. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The new guidance must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. We early adopted ASU 2017-12 effective July 1, 2018 and initiated a new hedging program during the third quarter 2018 to hedge foreign exchange risk relating to forecasted transactions. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2018-15, Intangibles - Goodwill and Other-Internal - Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendment. We early adopted ASU 2018-15 effective October 1, 2018, which did not have a material impact on our Consolidated Financial Statements. Accounting Standards to be Implemented 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. In July 2018, the FASB added an optional transition method which we will elect upon adoption of the new standard. This allows us to recognize and measure leases existing at January 1, 2019 without restating comparative information. In addition, we will elect to apply the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. The standard will have a material impact on our consolidated balance sheets but will not have a material impact on our Consolidated Income Statements. The most significant impact will be the recognition of right-of-use (ROU) assets and lease liabilities for operating leases, while our accounting for finance leases remains substantially unchanged. Adoption of the standard will result in the recognition of additional ROU assets and lease liabilities for operating leases of approximately $200 and approximately $195 as of January 1, 2019. The difference between these amounts will be recorded as an adjustment to retained earnings. ASU 2018-02, Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income , which permits entities to reclassify the disproportionate income tax effects of the 2017 enactment of U.S. tax reform legislation (the "Act") on items within AOCI (loss) to retained earnings. We intend to adopt this new accounting guidance effective January 1, 2019 and have elected not to reclassify the disproportionate income tax effects of the Act from AOCI (loss) to retained earnings. ASU 2016-13, Financial Instruments - Credit Losses In January 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held. We intend to adopt this new accounting guidance effective January 1, 2020. We are currently assessing the impact on our consolidated financial statements. |
Discontinued Operations and Ass
Discontinued Operations and Assets and Liabilities Held for Sale | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets and Liabilities Held for Sale | Discontinued Operations and Assets and Liabilities Held for Sale Discontinued Operations 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 18, 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 expired on October 31, 2018, and covered, 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: Year ended December 31, 2016 Total revenue $ 135.2 Cost of sales 53.2 SG&A expenses 91.5 Operating (loss) income (9.5 ) Other income (expense) items .6 Loss from discontinued operations, before tax (8.9 ) Loss on sale of discontinued operations, before tax (15.6 ) Income taxes 10.5 Loss from discontinued operations, net of tax $ (14.0 ) There were no amounts recorded in discontinued operations for the year ended December 31, 2018 or 2017 . Assets and Liabilities Held for Sale The major classes of assets and liabilities comprising Held for sale assets and Held for sale liabilities on the Consolidated Balance Sheet as of December 31, 2018 are shown in the following table. There were no assets or liabilities held for sale at December 31, 2017 or 2016. 2018 Avon Manufacturing (Guangzhou) Rye Office Malaysia Maximin Total Current held for sale assets Inventories $ 8.7 $ — $ — $ 8.7 Property, Plant & Equipment (net) 36.7 12.3 3.0 52.0 Cash and cash equivalents 3.7 — — 3.7 Other assets 1.1 — 0.1 1.2 $ 50.2 $ 12.3 $ 3.1 $ 65.6 Current held for sale liabilities Accounts payable 8.6 — — 8.6 Other liabilities 2.6 — 0.2 2.8 $ 11.2 $ — $ .2 $ 11.4 China Manufacturing On January 8, 2019, Avon Asia Holdings Company and Avon Products (China) Co., Ltd. executed an Equity Purchase Agreement for the sale of all the equity interests in Avon Manufacturing (Guangzhou), Ltd. to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd, for a total purchase price of $71 . Avon Manufacturing (Guangzhou), Ltd. met the held for sale criteria under ASC 360, Plant, Property and Equipment ("ASC 360") as of December 31, 2018, and the entity's assets and liabilities were classified as held for sale. On February 15, 2019, we completed the sale to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd., of all of the equity interests in Avon Manufacturing (Guangzhou), Ltd. for a total purchase price of $71.0 million . Net cash proceeds (pre-tax) will be $47.0 after the required repayment by the Company of certain outstanding intercompany loans of $23.3 and after deducting cash on hand in Avon Manufacturing (Guangzhou), Ltd. of $.7 . Rye Office On September 19, 2018, Avon issued a press release entitled “Avon Products Inc. to create leaner New York Operations. In this press release, Avon announced its intention to complete the sale of the Rye office in 2019 as a further step in its ongoing plan to streamline the business to fuel growth by consolidating its U.S. operations into its existing facilities in Suffern, New York. Prior to December 31, 2018, we entered into a Letter of Intent with a third party to sell the Rye office. The due diligence period is currently ongoing. The Rye office met the held for sale criteria under ASC 360 as of December 31, 2018, and was classified as an asset held for sale. In February 2019, we signed an agreement to sell the Rye office. This transaction is expected to close by the end of the second quarter of 2019. Malaysia Maximin On November 12, 2018, the Company approved the sale in principal of Maximin Corporation Sdn Bhd (“Maximin”), which owns the Malaysia office and warehouse, in line with our current strategy. In early December, the Company entered into letter of intent with a third party. Refer to Note 23, Subsequent Events, for additional information on developments relating to the sale of Maximin. Maximin met the held for sale criteria under ASC 360 as of December 31, 2018, and the entity's assets and liabilities were classified as held for sale. In February 2019, we signed an agreement to sell Maximin. This transaction is expected to close by the end of the first quarter of 2019. |
Investment in New Avon
Investment in New Avon | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in New Avon | Investment in New Avon In connection with the separation of the Company's North America business (as discussed in Note 3, Discontinued Operations and Assets and Liabilities Held for Sale), which closed on March 1, 2016, the Company retained a 19.9% ownership interest in New Avon, a privately-held company that is majority-owned and managed by an affiliate of Cerberus Capital Management L.P. ("Cerberus"). 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, 2018 and 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 have not recorded our proportionate share of New Avon's losses since 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
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following tables present the related party transactions with New Avon, affiliates of Cerberus and the Instituto Avon in Brazil. There are no other related party transactions. New Avon is majority owned and managed by Cerberus NA. See Note 3, Discontinued Operations and Assets and Liabilities Held for Sale and Note 4, Investment in New Avon for further details. Year Ended December 31, Year Ended December 31, 2018 2017 Statement of Operations Data Revenue from sale of product to New Avon (1) $ 25.7 $ 32.5 Gross profit from sale of product to New Avon (1) $ 1.6 $ 1.9 Cost of sales for purchases from New Avon (2) $ 2.9 $ 3.8 SG&A expenses: Transition services, intellectual property, research and development and subleases (3) $ (5.9 ) $ (32.2 ) Project management team (4) 1.2 2.6 Net reduction of SG&A expenses $ (4.7 ) $ (29.6 ) Interest income from Instituto Avon (5) $ .1 — December 31, 2018 December 31, 2017 Balance Sheet Data Inventories (6) $ .3 $ .4 Receivables due from New Avon (7) $ 7.0 $ 9.8 Receivables due from Instituto Avon (5) $ 3.2 $ — Payables due to New Avon (8) $ .2 $ .2 Payables due to an affiliate of Cerberus (9) $ .6 $ .4 (1) The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $25.7 and $32.5 , within other revenue, and gross profit of $1.6 and $1.9 associated with this agreement during the years ended December 31, 2018 and 2017 , respectively. (2) New Avon also supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $2.8 and $3.2 from New Avon associated with this agreement during the years ended December 31, 2018 and 2017 , respectively, and recorded $2.9 and $3.8 associated with these purchases within cost of sales during the years ended December 31, 2018 and 2017 , respectively. (3) The Company also entered into a transition services agreement to provide certain services to New Avon, which expired on October 31, 2018, 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 $5.9 and $32.2 reduction of SG&A expenses associated with these agreements during the years ended December 31, 2018 and 2017 , 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 and Open Up Avon strategy (“Open Up Avon”) announced in September 2018. The Company recorded $1.2 and $2.6 in SG&A expenses associated with these agreements during the years ended December 31, 2018 and 2017 , respectively. See Note 17, Restructuring Initiatives for additional information related to the Transformation Plan and Open Up Avon. (5) During the second quarter of 2018, the Company entered into an agreement to loan the Instituto Avon, an independent non-government charitable organization in Brazil, $3.6 for an unsecured 5 -year term at a fixed interest rate of 7% per annum, to be paid back in 5 equal annual installments. The Instituto Avon was created by an Avon subsidiary in Brazil, with the board and executive team comprise of Avon Brazil management. The purpose of the loan is to provide the Instituto Avon with the means to donate funds to Fundação Pio XII (a leading cancer prevention and treatment organization in Brazil and owner of the Hospital do Câncer de Barretos), in order to invest in equipment with the objective of expanding breast cancer prevention and treatment. (6) 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. (7) 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. (8) 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. (9) 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 both December 31, 2018 and 2017 , the Company had a liability of $1.4 for the estimated value of such standby letters of credit. The reduction of this estimated liability of $.2 during the years ended December 31, 2017 was recognized in other expense, net in our Consolidated Statements of Operations. See Note 18, Series C Convertible Preferred Stock, for discussion of preferred shares issued to Cerberus Investor. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue In the following table, revenue is disaggregated by product or service type. All revenue is recognized at a point in time, when control of a product is transferred to a customer: Twelve Months Ended December 31, 2018 Reportable segments Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Total reportable segments Other operating segments and business activities Total Beauty: Skincare $ 619.2 $ 564.3 $ 166.9 $ 124.3 $ 1,474.7 $ 6.4 $ 1,481.1 Fragrance 636.6 483.9 218.1 89.5 1,428.1 2.9 1,431.0 Color 398.7 310.7 81.8 54.1 845.3 4.8 850.1 Total Beauty 1,654.5 1,358.9 466.8 267.9 3,748.1 14.1 3,762.2 Fashion & Home: Fashion 298.0 190.6 94.4 167.8 750.8 3.0 753.8 Home 45.3 283.4 204.2 28.4 561.3 2.0 563.3 Total Fashion & Home 343.3 474.0 298.6 196.2 1,312.1 5.0 1,317.1 Brazil IPI tax release * — 168.4 — — 168.4 — 168.4 Net sales 1,997.8 2,001.3 765.4 464.1 5,228.6 19.1 5,247.7 Representative fees 95.3 135.7 43.9 6.5 281.4 2.0 283.4 Other 0.7 9.9 — 0.2 10.8 29.4 40.2 Other revenue 96.0 145.6 43.9 6.7 292.2 31.4 323.6 Total revenue $ 2,093.8 $ 2,146.9 $ 809.3 $ 470.8 $ 5,520.8 $ 50.5 $ 5,571.3 * Includes the impact of the Brazil IPI tax release, which was recorded in net sales and other (income) expense, net in the amounts of approximately $168 and approximately $27 , respectively, in our Consolidated Income Statements (See Note 19, Contingencies for further information). Contract balances The timing of revenue recognition generally is different from the timing of a promise made to a Representative. As a result, we have contract liabilities, which primarily relate to the advance consideration received from Representatives prior to transfer of the related good or service for material rights, such as loyalty points and status programs, and are primarily classified within other accrued liabilities (with the long-term portion in other liabilities) in our Consolidated Balance Sheets. Generally, we record accounts receivable when we invoice a Representative. In addition, we record an estimate of an allowance for doubtful accounts on receivable balances based on an analysis of historical data and current circumstances, including seasonality and changing trends. The allowance for doubtful accounts is reviewed for adequacy, at a minimum, on a quarterly basis. We generally have no detailed information concerning, or any communication with, any ultimate consumer of our products beyond the Representative. We have no legal recourse against the ultimate consumer for the collection of any accounts receivable balances due from the Representative to us. If the financial condition of the Representatives were to deteriorate, resulting in their inability to make payments, additional allowances may be required. The following table provides information about receivables and contract liabilities from contracts with customers at December 31, 2018 : December 31, 2018 Accounts receivable, net of allowances of $93.0 $ 349.7 Contract liabilities $ 84.4 At January 1, 2018 and December 31, 2018 we had a contract liability of $91.8 and $84.4 , respectively, relating to certain material rights (loyalty points, status program and prospective discounts). During the twelve months ended December 31, 2018 , we recognized $89.5 of revenue related to the contract liability balance at January 1, 2018, as the result of performance obligations satisfied. In addition, we deferred an additional $82.3 related to certain material rights granted during the period, for which the performance obligations are not yet satisfied. Of the amount deferred during the period, substantially all will be recognized within a year, with the significant majority to be captured within a quarter. The remaining movement in the contract liability balance is attributable to foreign exchange differences arising on the translation of the balance as at December 31, 2018 as compared with December 31, 2017. Contract costs Incremental costs to obtain contracts, such as bonuses or commissions, are recognized as an asset if the entity expects to recover them. However, ASC 340-40, Other Assets and Deferred Costs , offers a practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. We elected the practical expedient and expense costs to obtain contracts when incurred because our amortization period is one year or less. Costs to fulfill contracts with Representatives are comprised of shipping and handling (including order processing) and payment processing services, which are expensed as incurred. The fees for these services are included in the transaction price. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories at December 31 consisted of the following: 2018 2017 Raw materials $ 157.8 $ 190.6 Finished goods 384.2 407.6 Total $ 542.0 $ 598.2 These amounts are net of the allowance for inventory obsolescence, and include the impact of an incremental one-off inventory obsolescence expense recognized at December 31, 2018, resulting from the structural reset of inventory announced in January 2019 (refer to Note 17, Restructuring Initiatives, for additional information regarding Open Up Avon and the structural reset of inventory). |
Debt and Other Financing
Debt and Other Financing | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing | Debt and Other Financing Debt Debt at December 31 consisted of the following: 2018 2017 Debt maturing within one year: Notes payable $ 8.8 $ 22.6 Current portion of long-term debt 3.2 3.1 Total $ 12.0 $ 25.7 Long-term debt: 6.50% Notes, due March 2019 $ — $ 237.2 4.60% Notes, due March 2020 386.4 408.8 7.875% Senior Secured Notes, due August 2022 494.2 492.6 5.00% Notes, due March 2023 458.5 484.5 Other debt, payable through 2025 with interest from .4% to 12.1% 4.6 5.2 6.95% Notes, due March 2043 241.1 241.0 Total 1,584.8 1,869.3 Unamortized deferred gain - swap terminations — 6.0 Less current portion (3.2 ) (3.1 ) Total long-term debt $ 1,581.6 $ 1,872.2 Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 19.0% at December 31, 2018 and 23.0% at December 31, 2017 . Other debt included obligations under capital leases of $2.5 at December 31, 2018 and $4.0 at December 31, 2017 , 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. 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 11, 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 11, 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 11, 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 11, 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 11, 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. In June 2018, we prepaid the remaining principal amount of our 6.50% Notes. The prepayment price was equal to the remaining principal amount of $237.8 , plus a make-whole premium of $6.2 and accrued interest of $4.6 . In connection with the prepayment, we incurred a loss on extinguishment of debt of $2.9 before tax in the second quarter of 2018 consisting of the $6.2 make-whole premium, and the write-off of $.3 of debt issuance costs and discounts related to the initial issuances of the notes that were prepaid, partially offset by a write off of a deferred gain of $3.6 associated with the March 2012 interest-rate swap agreement termination (see Note 11, Financial Instruments and Risk Management). In the fourth quarter of 2018, we repurchased $23.0 of our 4.60% Notes and $27.0 of our 5.00% Notes. The aggregate repurchase price was equal to the principal amount of the notes, less a discount received of $2.4 and accrued interest of $.7 . In connection with these repurchases of debt, we incurred a gain on extinguishment of debt of $2.1 before tax in the fourth quarter of 2018 consisting of the $2.4 discount received for the repurchases, partially offset by $0.3 for the write-off of debt issuance costs and discounts related to the initial issuance of the notes that were repurchased. At December 31, 2018 and 2017 , the carrying values of our public notes were comprised of the following: 2018 2017 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 4.60% Notes, due March 2020 387.0 (.1 ) (.5 ) 386.4 409.9 (.2 ) (.9 ) 408.8 5.00% Notes, due March 2023 461.9 (1.9 ) (1.5 ) 458.5 488.9 (2.5 ) (1.9 ) 484.5 6.95% Notes, due March 2043 243.9 (.6 ) (2.2 ) 241.1 243.8 (.6 ) (2.2 ) 241.0 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 $ 5.8 and $7.4 at December 31, 2018 and 2017 , respectively. This represents the total debt for AIO at December 31, 2018 and 2017 . All obligations of AIO under our Senior Secured Notes are unconditionally guaranteed by the Company, AIO and each other material United States or English restricted subsidiary of the Company (collectively, the “Obligors”), in each case, subject to certain exceptions. The obligations of the Obligors are secured by first priority liens on and security interests in substantially all of the assets of the Obligors, 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, 2018 , are as follows: 2019 2020 2021 2022 2023 2024 and Beyond Total Maturities $ 1.1 $ 387.6 $ 0.4 $ 500.2 $ 462.0 $ 243.9 $ 1,595.2 Other Financing Revolving Credit Facility In June 2015, Avon International Operations, Inc. ("AIO"), a wholly-owned domestic subsidiary of the Company, entered into a five -year $400.0 senior secured revolving credit facility (the “2015 facility”). 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. As of December 31, 2018, there were no amounts outstanding under the 2015 facility. In February 2019, Avon International Capital, p.l.c. ("AIC"), a wholly-owned foreign subsidiary of the Company, entered into a three -year €200.0 senior secured revolving credit facility (the “2019 facility”). The 2019 facility replaced the 2015 facility and the 2015 facility was terminated at such time. Borrowings under the 2019 facility bear interest at our option, at a rate per annum, equal to either LIBOR or EURIBOR (for any loan in euros) plus 225 basis points, in each case subject to adjustment based upon a leveraged-based pricing grid. The 2019 facility may be used for general corporate and working capital purposes. There are no amounts outstanding under the 2019 facility. The amount available to be drawn on under the 2019 facility is reduced by any standby letters of credit granted by AIC or any Obligor under the 2019 facility, including the standby letters of credit granted by AIO under the 2015 facility that were rolled over into the 2019 facility, which, as of December 31, 2018, were approximately $29 million . All obligations of AIC under the 2019 facility are unconditionally guaranteed by the Company, AIO and each other material United States or English restricted subsidiary of the Company (collectively, the “Obligors”), in each case, subject to certain exceptions. The obligations of the Obligors are secured by first priority liens on and security interests in substantially all of the assets of the Obligors, in each case, subject to certain exceptions. The 2019 facility will terminate in February 2022; provided, however, that it shall terminate on the 91st day prior to the maturity of the 4.60% Notes, if on such 91st day, the applicable notes are not redeemed, repaid, discharged, defeased or otherwise refinanced in full. The 2019 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). Depending on our business results (including the impact of any adverse foreign exchange movements and significant restructuring charges), it is possible that we may become non-compliant with our interest coverage or total leverage ratio absent the Company undertaking other alternatives to avoid noncompliance, such as obtaining additional amendments to the 2019 facility or repurchasing certain debt. If we were to be non-compliant with our interest coverage or total leverage ratio, we would no longer have access to our 2019 facility and our credit ratings may be downgraded. Letters of Credit At December 31, 2018 and December 31, 2017 , we also had letters of credit outstanding under our revolving credit facility totaling 29.4 and $37.7 , respectively. The balances at December 31, 2018 and 2017 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, 2018 and December 31, 2017 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 Stable 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, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 2018 and 2017 : Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2017 $ (829.6 ) $ — $ (4.3 ) $ (95.7 ) $ 3.4 $ (926.2 ) Other comprehensive (loss) income other than reclassifications (106.6 ) .5 — (8.6 ) — (114.7 ) Reclassifications into earnings: Derivative gains on cash flow hedges, net of tax of $0.0 — — — — — — Amortization of net actuarial loss and prior service cost, net of tax of $.6 (1) — — — 10.5 — 10.5 Total reclassifications into earnings — — 10.5 — 10.5 Balance at December 31, 2018 $ (936.2 ) $ 0.5 $ (4.3 ) $ (93.8 ) $ 3.4 $ (1,030.4 ) 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 ) (1) Gross amount reclassified to other expense, net, and related taxes reclassified to income taxes. A foreign exchange net loss of $6.9 for 2018, a gain of $16.3 for 2017, and a net loss of $ 23.7 for 2016 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations, before taxes for the years ended December 31 was as follows: 2018 2017 2016 United States $ 39.3 $ (147.6 ) $ (403.0 ) Foreign 68.8 268.3 434.2 Total $ 108.1 $ 120.7 $ 31.2 The provision for income taxes for the years ended December 31 was as follows: 2018 2017 2016 Federal: Current $ (6.1 ) $ — $ — Deferred 3.7 (34.0 ) — Total Federal (2.4 ) (34.0 ) — Foreign: Current 182.3 130.6 128.5 Deferred (53.0 ) 3.8 (4.2 ) Total Foreign 129.3 134.4 124.3 State and Local: Current 3.0 .3 .3 Deferred — — — Total State and other 3.0 .3 .3 Total $ 129.9 $ 100.7 $ 124.6 The effective tax rate for the years ended December 31 was as follows: 2018 2017 2016 Statutory federal rate 21.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.2 .2 .6 U.S. Tax Reform — (24.7 ) — Tax on foreign income (16.2 ) 6.0 (24.4 ) Tax on uncertain tax positions - Brazil 67.4 — — Tax on uncertain tax positions - Rest of World 8.5 (3.6 ) 34.1 Reorganizations (91.3 ) — (93.6 ) Net change in valuation allowances 128.3 62.4 375.1 Venezuela deconsolidation, devaluation and highly inflationary accounting — — 23.9 Imputed royalties and associated non-deductible expenses .6 9.5 50.3 Research credits (1.3 ) (1.3 ) (5.4 ) Other 1.0 (.1 ) 3.8 Effective tax rate 120.2 % 83.4 % 399.4 % In 2018, as a result of continued business model changes related to the move of the Company’s headquarters from the US to the UK, the Company recognized one time tax benefits of $98.7 reflected in the “Reorganizations” line above associated primarily with the: rationalization and re-alignment of the Company’s legal entity structure, the ownership transfer of certain operational assets within the consolidated group and the tax benefit associated with the Foreign Derived Intangible Income provisions of the Tax Cuts and Jobs Act in the U.S. In 2018, the Net Change in Valuation Allowances line in the rate reconciliation above includes $138.6 of increases to the Valuation Allowances primarily associated with Deferred Tax Assets generated in 2018. Reductions to Valuation Allowances of $93.0 were reflected in other captions of the rate reconciliation net of the associated Deferred Tax Assets which were expensed or written off during 2018 as follows: $57.2 for excess tax basis in deconsolidated subsidiaries that was re-allocated against investments in consolidated subsidiaries, $15.3 for reduction of future tax benefits anticipated for state deferred tax assets, $11.7 of other Deferred Tax Assets and a reduction of $8.8 of Deferred Tax Assets associated with the repatriation of earnings from consolidated subsidiaries. In 2017, 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 and their associated valuation allowance of $161.4 due to the rate change from 35% to 21%; 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 noted above for 2017, 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. Deferred tax assets (liabilities) at December 31 consisted of the following: 2018 2017 Deferred tax assets: Tax loss and deduction carryforwards $ 2,144.3 $ 2,022.1 Tax credit carryforwards 830.5 981.0 All other future deductions 560.8 471.0 Valuation allowance (3,257.5 ) (3,217.7 ) Total deferred tax assets 278.1 256.4 Deferred tax liabilities $ (85.1 ) $ (74.9 ) Net deferred tax assets $ 193.0 $ 181.5 Deferred tax assets (liabilities) at December 31 were classified as follows: 2018 2017 Deferred tax assets: Other assets $ 212.6 $ 203.8 Total deferred tax assets 212.6 203.8 Deferred tax liabilities: Long-term income taxes $ (19.6 ) $ (22.3 ) Total deferred tax liabilities (19.6 ) (22.3 ) Net deferred tax assets $ 193.0 $ 181.5 During 2018, the Company also recorded a net increase to its valuation allowance of $45.6 in income tax expense primarily for deferred tax assets generated in 2018 that are not currently more likely than not to be realized. In the future, the Company will continue to evaluate whether its financial results will allow for the valuation allowances to be released. Release of the valuation allowance in the future would occur when the deferred tax assets associated with the valuation allowance are determined to be more likely than not of being realized. At December 31, 2018 , exclusive of ASU 2013-11 reductions, we had recognized deferred tax assets of $842.5 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 $812.5 has been provided. The tax credit carryforwards consist of U.S. foreign tax credits of $793.8 which are subject to expiration between 2020 and 2027 ; U.S. minimum tax credits of $18.0 which are not subject to expiration; U.S. research and experimentation credits of $21.0 which are subject to expiration between 2027 and 2038 and other tax credits of $9.7 which are subject to expiration between 2019 and 2033 . At December 31, 2018 , exclusive of ASU 2013-11 reductions, we had recognized deferred tax assets of $2,166.2 relating to foreign and state tax loss carryforwards for which a valuation allowance of $2,073.3 has been provided. The deferred tax assets relating to tax loss carryforwards consist of $2,045.5 of foreign tax loss carryforwards, for which a valuation allowance of $1,974.5 has been provided, and $98.8 of state tax loss carryforwards, for which a valuation allowance of $98.8 has been provided. The foreign tax loss carryforwards at December 31, 2018 were $8,616.2 , of which $6,927.5 are not subject to expiration and $1,688.7 are subject to expiration between 2019 and 2048 . The state tax loss carryforwards at December 31, 2018, after taking into consideration the estimated effects of pre-apportionment states, were $1,396.7 which are subject to expiration between 2019 and 2038 . At December 31, 2018 , 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 2018 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 $5.1 , resulting in a deferred tax liability balance of $17.5 related to the incremental tax cost on approximately $1.1 billion of undistributed foreign earnings at December 31, 2018. At December 31, 2018 , 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. Uncertain Tax Positions At December 31, 2018 , we had $137.6 of total gross unrecognized tax benefits of which approximately $123.2 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, 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 Additions based on tax positions related to the current year 43.6 Additions for tax positions of prior years 65.5 Reductions for tax positions of prior years (3.7 ) Reductions due to lapse of statute of limitations (.9 ) Reductions due to settlements with tax authorities (15.4 ) Balance at December 31, 2018 $ 137.6 We accrue interest and penalties related to unrecognized tax benefits in the provision for income taxes. We reversed previously recorded expenses for interest and penalties, net of taxes by $1.3 during the year ended December 31, 2018, and recorded expenses of $0.0 and $ 2.5 for interest and penalties, net of taxes during the years ended December 31, 2017 and 2016, respectively. At December 31, 2018 and December 31, 2017 we had $7.4 and $9.9 , 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, 2018, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: Jurisdiction Open Years Brazil 2013-2018 Mexico 2013-2018 Philippines 2014-2018 Poland 2013-2018 Russia 2017-2018 United Kingdom 2017-2018 United States (Federal) 2017-2018 We anticipate that it is reasonably possible that the total amount of unrecognized tax benefits will not change materially within the next twelve months. 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. As of December 22, 2017, 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 at that time represented our best estimate given the data we had available and based on our interpretation of the U.S. legislation. During 2018, the U.S. Treasury issued various guidance on the application of certain provisions that may impact our calculations. As of December 31, 2018, the Company completed its accounting for the impact of the Tax Cuts and Jobs Act including any necessary adjustments to the “provisional” amounts previously recorded. The recording of the additional adjustments had no material impact on our financial position or results. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
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 fair value of derivative instruments outstanding were immaterial at December 31, 2018 and 2017 . 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, 2018 and 2017 , we do not have any interest-rate swap agreements. Approximately 1% of our debt portfolio at December 31, 2018 and 2017 , 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 8, Debt and Other Financing). At December 31, 2018 , 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, 2018 and 2017 , the net impact of the gain amortization was $6.0 and $4.9 , respectively, including $3.6 related to the extinguishment of debt during the year ended December 31, 2018 (see Note 8, Debt and Other Financing). At December 31, 2018 , there was no unamortized deferred gain associated with the March 2012 interest-rate swap termination, as the underlying debt obligations have been paid. Foreign Currency Risk We may use foreign exchange forward contracts to manage a portion of our foreign currency exchange rate exposures. At December 31, 2018 , we had outstanding foreign exchange forward contracts with notional amounts totaling approximately $1,275 for various currencies, of which $22 were designated as cash flow hedges. We may use foreign exchange forward contracts to manage foreign currency exposure of certain intercompany loans. The change in fair value of these contracts is immediately recognized in earnings and substantially offsets the foreign currency impact recognized in earnings relating to the associated intercompany loans. During the years ended December 31, 2018 and 2017 , we recorded a gain of $1.5 and a gain of $3.0 , 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, 2018 and 2017 , we recorded a gain of $2.2 and a loss of $5.2 , respectively, related to the associated intercompany loans, caused by changes in foreign currency exchange rates. We initiated a new hedging program to hedge foreign exchange risk relating to forecasted transactions during the third quarter of 2018. This did not have a material impact on our Consolidated Financial Statements. Credit Risk of Financial Instruments At times, we attempt to minimize our credit exposure to counterparties by entering into derivative transactions and similar agreements with major international financial institutions with "A-" or higher credit ratings as issued by Standard & Poor’s Corporation. Our foreign currency derivatives are typically comprised of over-the-counter forward contracts, swaps or options with major international financial institutions. Although our theoretical credit risk is the replacement cost at the then estimated fair value of these instruments, we believe that the risk of incurring credit risk losses is remote and that such losses, if any, would not be material. Non-performance of the counterparties on the balance of all the foreign exchange agreements would have resulted in a write-off of $1.3 at December 31, 2018 . 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, 2018 | |
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 11, Financial Instruments and Risk Management) and available-for-sale securities, which were immaterial at December 31, 2018 and 2017 . See Note 14, 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 14, 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: 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 3.8 $ 3.8 $ 3.7 $ 3.7 Debt maturing within one year (1) (12.0 ) (12.0 ) (25.7 ) (25.7 ) Long-term debt (1) (1,581.6 ) (1,460.2 ) (1,872.2 ) (1,718.6 ) Foreign exchange forward contracts (5.1 ) (5.1 ) — — (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, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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 at a premium to the closing market price of our stock at the date of grant. Stock options generally vest in thirds over the three -year period following each option grant date and have ten -year contractual terms. Restricted stock units granted to Associates generally vest and settle after three years. Restricted stock units awarded to non-management directors vest in approximately one year and settle upon a director's departure from the Board of Directors. Performance restricted stock units generally vest after three years only upon the satisfaction of certain performance conditions. For the years ended December 31: 2018 2017 2016 Compensation cost for stock options, performance restricted stock units and restricted stock units $ 13.8 $ 24.2 $ 24.0 Total income tax benefit recognized for share-based arrangements 2.0 1.4 1.9 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 2018 , 2017 and 2016 was recorded in SG&A expenses in our Consolidated Statements of Operations. Stock Options During 2018, 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, 2018, 2017 and 2016: 2018 2017 2016 Risk-free rate (1) 2.7% 2.1% 1.6% Expected term (2) 7 years 7 years 7 years Expected Avon volatility (3) 42% 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 $1.04 , $1.54 and $1.37 during 2018, 2017 and 2016, respectively. A summary of stock options as of December 31, 2018 , and changes during 2018 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 17,165 $ 14.95 Granted 5,952 3.49 Exercised — — Forfeited 1,082 5.82 Expired 3,073 34.27 Outstanding at December 31, 2018 18,962 $ 9.05 6.4 $ — Exercisable at December 31, 2018 8,679 $ 14.05 4.1 $ — 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, 2018 , there was $6.1 of unrecognized compensation cost related to stock options outstanding. That cost is expected to be recognized over a weighted-average period of 1.8 years. There were no stock options exercised during 2018 , 2017 or 2016. Restricted Stock Units and Performance Restricted Stock Units During 2018, 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 ("2018 PRSUs", "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 2018 PRSUs, 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 2018 PRSUs, 2017 PRSUs, 2016 PRSUs and the 2015 PRSUs, we used the following weighted-average assumptions: 2018 PRSUs 2017 PRSUs 2016 PRSUs 2015 PRSUs Risk-free rate (1) 2.5% 1.6% 1.1% 1.1% Expected Avon volatility (2) 61.4% 61% 56% 38% Expected average volatility (3) 29.5% 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 2018 PRSUs, 2017 PRSUs and 2016 PRSUs and the three year service period of the 2016 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 2018 PRSUs. 2017 PRSUs and 2016 PRSUs. The weighted-average grant-date fair value per share of the 2018 PRSUs, 2017 PRSUs, 2016 PRSUs and 2015 PRSUs was $2.63 , $4.52 , $4.42 and $7.49 respectively. A summary of restricted stock units at December 31, 2018 , and changes during 2018 , is as follows: Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2018 4,804 $ 5.26 Granted 2,433 2.61 Vested (1,705 ) 7.06 Forfeited (534 ) 4.45 December 31, 2018 4,998 $ 3.37 A summary of performance restricted stock units at December 31, 2018 , and changes during 2018 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2018 (1) 4,356 $ 5.50 Granted 1,301 2.93 Vested (986 ) 7.49 Forfeited (1,494 ) 5.93 December 31, 2018 (1) 3,177 $ 3.76 (1) Based on initial target payout. The total fair value of restricted stock units and performance restricted stock units that vested during 2018 was $7.2 , based upon market prices on the vesting dates. At December 31, 2018 , there was $9.5 of unrecognized compensation cost related to these restricted stock units and performance restricted stock units compensation arrangements outstanding. That cost is expected to be recognized over a weighted-average period of 1.7 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 we recognized compensation cost of $2.0 for these performance restricted stock units. As this award vested and settled in 2016, no additional compensation cost was recognized in 2018 and 2017. Restricted Stock Units and Performance Restricted Stock Units Funded With Treasury Shares In March 2018, we granted 200,000 performance restricted stock units that will be funded with treasury shares, outside of the 2016 Plan, in reliance upon The New York Stock Exchange rules. These performance restricted stock units have a weighted-average grant-date fair value of $2.79 and would vest and settle after three years only upon the satisfaction of certain performance conditions over one year . During 2018, none of these performance restricted stock units vested, and 200,000 performance restricted stock units were outstanding at December 31, 2018. During 2018, we recognized compensation cost of $.1 for these performance restricted stock units. At December 31, 2018, there was $.4 unrecognized compensation cost related to these performance restricted stock units. In February 2018 we granted 600,000 restricted stock units that will be funded from treasury shares, outside of our shareholder-approved plans, in reliance upon The New York Stock Exchange rules. The restricted stock units granted in February 2018 have a weighted-average grant-date fair value of $2.25 and vest and settle in full after three years . During 2018, none of these restricted stock units vested, and there were 600,000 restricted stock units outstanding at December 31, 2018. During 2018 we recognized compensation cost of $.4 for these restricted stock units. At December 31, 2018, there was $.9 unrecognized compensation cost related to these restricted stock units. In March 2015, we granted 121,951 performance restricted stock units that will be funded with treasury shares, outside of the 2013 Plan, in reliance upon The New York Stock Exchange rules. These performance restricted stock units have a weighted-average grant-date fair value of $7.49 and the same terms exist for these awards as the 2015 PRSUs discussed above. During 2018, 121951 of these restricted stock units vested, and no performance restricted stock units were outstanding at December 31, 2018. During 2018, 2017 and 2016, we recognized compensation cost of $.0 , $.1 and $.1 , respectively, for these performance restricted stock units. At December 31, 2018 , there was no unrecognized compensation cost related to these performance restricted stock units. 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 2018, 163,198 of these restricted stock units vested, and there were no restricted stock units were outstanding at December 31, 2018. During 2018, 2017 and 2016, we recognized compensation cost of $.1 , $.8 and $1.7 , respectively, for these restricted stock units. At December 31, 2018 , there was no unrecognized compensation cost related to these restricted stock units as the awards had vested. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 $5.9 in 2018, $ 6.7 in 2017 and $ 6.5 in 2016, 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 $2.2 in 2018 , $2.6 in 2017 and $3.8 in 2016 , which follow the same investment allocation that the participant has selected for his or her own contributions. Prior to the separation of the North America business, the costs associated with the contributions to the PSA were allocated between Discontinued Operations and Global as the plan included both North America and U.S. Corporate Avon associates. See Note 3, Discontinued Operations and Assets and Liabilities Held for Sale. For U.S.-based employees hired on or after January 1, 2015, we made additional contributions to a Retirement Savings Account ("RSA") within the PSA. Such contributions will range from 3% to 6% of a participant's eligible compensation depending on the sum of the participant's age and length of service (as of December 31 of the prior year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own contributions to the PSA. A participant will be vested in the RSA generally after 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 was frozen for future accruals as of April 1, 2013. The U.S. defined benefit pension plan, the Avon Products, Inc. Personal Retirement Account Plan (the "PRA"), is closed to employees hired on or after January 1, 2015. Qualified retirement benefits for U.S.-based employees hired on or after January 1, 2015 will be provided solely through the PSA, as described above. 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 Assets and Liabilities Held for Sale. We continue to retain certain U.S. pension and other postretirement liabilities primarily associated with employees who are actively employed by Avon in the U.S. providing services other than with respect to the North America business. 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. Certain retiree health care obligations 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 2018 2017 2018 2017 2018 2017 Change in Benefit Obligation: Beginning balance $ (88.9 ) $ (87.6 ) $ (714.2 ) $ (652.9 ) $ (28.2 ) $ (26.0 ) Service cost (2.9 ) (4.3 ) (4.7 ) (4.6 ) (.1 ) (.1 ) Interest cost (2.3 ) (3.0 ) (15.4 ) (18.0 ) (1.1 ) (1.3 ) Actuarial (loss) gain 9.9 .6 47.4 (15.5 ) 1.2 .3 Benefits paid 7.8 5.4 35.5 42.5 1.4 .4 Actual expenses and taxes — — 0.5 — — — Plan amendments — — (2.2 ) — — — Curtailments 1.7 — — — — — Settlements — — 2.6 — — — Special termination benefits — — — — (.1 ) — Foreign currency changes and other — — 33.5 (65.7 ) .9 (1.5 ) Ending balance $ (74.7 ) $ (88.9 ) $ (617.0 ) $ (714.2 ) $ (26.0 ) $ (28.2 ) Change in Plan Assets: Beginning balance $ 63.1 $ 51.4 $ 705.4 $ 613.7 $ — $ — Actual return on plan assets (5.4 ) 5.5 (27.7 ) 49.9 — — Company contributions 12.8 11.6 11.6 19.7 1.4 .4 Benefits paid (7.8 ) (5.4 ) (35.5 ) (42.5 ) (1.4 ) (.4 ) Settlements — — (2.6 ) — — — Foreign currency changes and other — — (35.4 ) 64.6 — — Ending balance $ 62.7 $ 63.1 $ 615.8 $ 705.4 $ — $ — Funded Status: Funded status at end of year $ (12.0 ) $ (25.8 ) $ (1.2 ) $ (8.8 ) $ (26.0 ) $ (28.2 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 88.1 $ 82.0 $ — $ — Accrued compensation (1.0 ) (1.0 ) (2.8 ) (2.2 ) (4.5 ) (2.7 ) Employee benefit plans liability (11.0 ) (24.8 ) (86.5 ) (88.6 ) (21.5 ) (25.5 ) Net amount recognized $ (12.0 ) $ (25.8 ) $ (1.2 ) $ (8.8 ) $ (26.0 ) $ (28.2 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 33.1 $ 41.4 $ 173.6 $ 176.8 $ — $ 1.2 Prior service (credit) cost (.1 ) (.2 ) 1.3 (.9 ) .6 (1.3 ) Total pretax amount recognized $ 33.0 $ 41.2 $ 174.9 $ 175.9 $ .6 $ (.1 ) Supplemental Information: Accumulated benefit obligation $ 72.7 $ 85.9 $ 179.9 $ 199.8 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 74.7 $ 88.9 $ 195.3 $ 216.7 N/A N/A Fair value plan assets 62.7 63.1 106.0 125.9 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 74.7 $ 88.9 $ 185.7 $ 202.0 N/A N/A Accumulated benefit obligation 72.7 85.9 174.6 191.9 N/A N/A Fair value plan assets 62.7 63.1 98.0 114.0 N/A N/A The U.S. pension plans include a funded qualified plan (the PRA) and unfunded non-qualified plans. At December 31, 2018 , the PRA had benefit obligations of $65.4 and plan assets of $62.7 . At December 31, 2017 , the PRA had benefit obligations of $76.7 and plan assets of $63.0 . 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, 2018 , the UK qualified pension plan had benefit obligations of $416.5 and plan assets of $501.7 . At December 31, 2017 , the UK qualified pension plan had benefit obligations of $494.0 and plan assets of $573.6 . 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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net Periodic Benefit Cost: Service cost $ 2.9 $ 4.3 $ 6.4 $ 4.7 $ 4.6 $ 5.0 $ .1 $ .1 $ .1 Interest cost 2.3 3.0 6.5 15.4 18.0 21.8 1.1 1.3 1.7 Expected return on plan assets (3.5 ) (3.2 ) (8.2 ) (31.9 ) (28.2 ) (33.0 ) — — — Amortization of prior service credit — (.1 ) (.2 ) (.1 ) (.1 ) (.1 ) (.4 ) (.3 ) (1.2 ) Amortization of net actuarial losses 4.1 5.2 10.8 6.8 7.6 6.5 — .1 .3 Settlements/curtailments 1.4 — .1 (.4 ) 3.7 .3 (.3 ) — (.1 ) Other — — — (.7 ) — .1 1.6 — Net periodic benefit cost (1) $ 7.2 $ 9.2 $ 15.4 $ (5.5 ) $ 4.9 $ .5 $ .7 $ 2.8 $ .8 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial (gains) losses $ (2.8 ) $ (2.9 ) $ 13.6 $ 12.2 $ (7.4 ) $ (24.6 ) $ (1.2 ) $ (.3 ) $ (2.6 ) Prior service cost (credit) — — — 2.2 — — — 1.0 Amortization of prior service credit .1 .1 1.3 .1 .1 .1 .6 .3 26.7 Amortization of net actuarial losses (5.6 ) (5.2 ) (274.4 ) (6.4 ) (11.3 ) (7.8 ) — (.1 ) (11.3 ) Foreign currency changes — — — (9.1 ) 18.9 (29.6 ) — — (.1 ) Total recognized in other comprehensive (loss) income* $ (8.3 ) $ (8.0 ) $ (259.5 ) $ (1.0 ) $ .3 $ (61.9 ) $ (.6 ) $ (.1 ) $ 13.7 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (1.1 ) $ 1.2 $ (244.1 ) $ (6.5 ) $ 5.2 $ (61.4 ) $ .1 $ 2.7 $ 14.5 (1) Includes $4.4 of the U.S. pension plans in 2016, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016, 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. The amounts in AOCI that are expected to be recognized as components of net periodic benefit cost during 2019 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss $ 3.0 $ 5.0 $ — Prior service credit — — (.2 ) 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 2018 2017 2018 2017 2018 2017 Discount rate 4.24 % 3.48 % 2.91 % 2.56 % 5.17 % 4.75 % Rate of compensation increase 4.00 % 4.00 % 2.69 % 2.71 % 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 increased to 3.06% at December 31, 2018 , from 2.66% at December 31, 2017 . Effective as of January 1, 2018, we changed 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 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 results in a more precise measurement of service and interest 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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.48 % 3.67 % 4.19 % 2.56 % 2.69 % 3.58 % 4.75 % 5.33 % 4.50 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.71 % 2.79 % 2.94 % N/A N/A N/A Rate of return on assets 5.50 % 5.50 % 7.00 % 5.20 % 5.09 % 6.40 % 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, 2018 , the assumed rate of return on assets globally was 5.23% , 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 2018 net periodic benefit cost for the UK defined benefit pension plan was 5.20% . 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 2018 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 5.20% for determining 2018 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, 2018 and 2017 , 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 2019 2018 2017 2019 2018 2017 Equity securities 30 % 30 % 30 % 15 % 16 % 18 % Debt securities 70 70 70 80 79 77 Other — — — 5 5 6 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, 2018 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 8.4 $ 8.4 International equity — 6.3 6.3 Emerging markets — 1.8 1.8 — 16.5 16.5 Fixed Income Securities: Corporate bonds — 32.2 32.2 Government securities — 13.3 13.3 — 45.5 45.5 Cash .7 .7 Total $ .7 $ 62.0 $ 62.7 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 25.8 $ — $ 25.8 International equity — 72.5 — 72.5 — 98.3 — 98.3 Fixed Income Securities: Corporate bonds — 212.7 — 212.7 Government securities — 201.7 — 201.7 Other — 70.1 — 70.1 — 484.5 — 484.5 Other Cash 35.1 — — 35.1 Derivatives — (4.1 ) — (4.1 ) Real estate — — 2.0 2.0 Other — — — — 35.1 (4.1 ) 2.0 33.0 Total $ 35.1 $ 578.7 $ 2.0 $ 615.8 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 (3) $ — $ 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 — 34.1 — 34.1 Real estate — — .9 .9 Other — — .6 .6 29.3 9.8 1.5 40.6 Total $ 29.3 $ 674.6 $ 1.5 $ 705.4 A reconciliation of the beginning and ending balances for our Level 3 investments is provided in the table below: Amount Balance at January 1, 2017 $ 1.5 Actual return on plan assets held (.1 ) Foreign currency changes .1 Balance at December 31, 2017 1.5 Purchases and sales net (.7 ) Actual return on plan assets held 1.4 Foreign currency changes (.2 ) Balance at December 31, 2018 $ 2.0 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 $5 to $10 to our U.S. defined benefit pension and postretirement plans and in the range of $10 to $15 to our non-U.S. defined benefit pension and postretirement plans during 2019 . 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 2019 $ 12.6 $ 41.1 $ 53.7 $ 4.5 2020 21.4 40.4 61.8 2.4 2021 5.5 41.2 46.7 2.3 2022 4.6 52.6 57.2 2.2 2023 4.0 54.8 58.8 2.1 2024-2028 15.8 280.7 296.5 8.7 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 $9.2 and $9.7 at December 31, 2018 and 2017, 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 in 2018 , $1.4 in 2017 and $1.0 in 2016 . The benefit obligation under the DCP was $16.4 at December 31, 2018 and $21.0 at December 31, 2017 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 $2.1 in 2018 , $3.0 in 2017 and $3.9 in 2016 . The benefit obligation under these programs was $9.3 at December 31, 2018 and $12.3 at December 31, 2017 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 eight 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: 2018 2017 Corporate-owned life insurance policies $ 35.8 $ 36.0 Cash and cash equivalents 1.2 1.1 Total $ 37.0 $ 37.1 The assets are recorded at fair market value, except for investments in corporate-owned life insurance policies which are recorded at their cash surrender values as of each balance sheet date, which is a proxy of fair value. Changes in the cash surrender value during the period are recorded as a gain or loss within SG&A expenses in our Consolidated Statements of Operations. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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 17, Restructuring Initiatives), a loss contingency related to a non-U.S. pension plan (see Note 14, Employee Benefit Plans), certain significant asset impairment charges (see Note 20, 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 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. Effective in the first quarter of 2018, given that we have exited Australia and New Zealand during 2018, the results of Australia and New Zealand 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 2018 2017 2016 Europe, Middle East & Africa $ 2,093.8 $ 2,126.5 $ 2,138.2 South Latin America (2) 2,146.9 2,222.4 2,145.9 North Latin America 809.3 811.8 829.9 Asia Pacific 470.8 471.9 494.0 Total segment revenue 5,520.8 5,632.6 5,608.0 Other operating segments and business activities 50.5 83.0 109.7 Total revenue $ 5,571.3 $ 5,715.6 $ 5,717.7 Operating Profit 2018 2017 2016 Segment Profit Europe, Middle East & Africa $ 267.5 $ 329.6 $ 322.8 South Latin America (2) 314.6 195.7 201.1 North Latin America 70.4 83.4 116.1 Asia Pacific 42.0 50.8 62.5 Total segment profit (2) 694.5 659.5 702.5 Other operating segments and business activities 3.6 2.5 4.1 Unallocated global expenses (282.4 ) (302.3 ) (332.6 ) CTI restructuring initiatives (180.5 ) (60.2 ) (77.4 ) Loss contingency — (18.2 ) — Legal settlement (1) — — 27.2 Operating profit (2) $ 235.2 $ 281.3 $ 323.8 (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. (2) Includes the impact of the Brazil IPI tax release, which was recorded in net sales and other (income) expense, net in the amounts of approximately $168 and approximately $27 , respectively, in our Consolidated Income Statements (See Note 19, Contingencies for further information). Total Assets 2018 2017 2016 Europe, Middle East & Africa $ 1,048.8 $ 1,190.5 $ 949.3 South Latin America 1,001.0 1,273.6 1,306.3 North Latin America 329.7 335.8 344.4 Asia Pacific 272.0 278.2 291.8 Total from reportable segments 2,651.5 3,078.1 2,891.8 Total from discontinued operations — — 1.3 Other operating segments 5.4 18.9 6.5 Global 353.1 600.9 519.3 Total assets $ 3,010.0 $ 3,697.9 $ 3,418.9 Capital Expenditures 2018 2017 2016 Europe, Middle East & Africa $ 37.0 $ 29.4 $ 18.8 South Latin America 27.5 35.4 39.2 North Latin America 9.1 12.9 11.7 Asia Pacific 2.9 2.3 4.3 Total from reportable segments 76.5 80.0 74.0 Other operating segments — — 0.2 Global 18.4 17.3 18.8 Total capital expenditures $ 94.9 $ 97.3 $ 93.0 Depreciation and Amortization 2018 2017 2016 Europe, Middle East & Africa $ 27.3 $ 29.9 $ 28.2 South Latin America 30.1 34.3 30.9 North Latin America 14.2 13.6 13.1 Asia Pacific 8.3 8.9 10.4 Total from reportable segments 79.9 86.7 82.6 Other operating segments .3 .4 1.3 Global 27.5 26.9 30.0 Total depreciation and amortization $ 107.7 $ 114.0 $ 113.9 Total Revenue by Major Country A major country is defined as one with total revenues greater than 10% of consolidated total revenues. 2018 2017 2016 Brazil $ 1,262.8 $ 1,263.8 $ 1,220.4 All other 4,308.5 4,451.8 4,497.3 Total $ 5,571.3 $ 5,715.6 $ 5,717.7 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. 2018 2017 2016 Brazil $ 283.2 $ 396.9 $ 400.9 U.S. 152.6 174.4 196.1 All other 458.0 554.3 559.9 Total $ 893.7 $ 1,125.6 $ 1,156.9 |
Leases and Commitments
Leases and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases and Commitments | Leases and Commitments Minimum rental commitments under noncancelable operating leases, primarily for equipment and office facilities at December 31, 2018 , are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2019 $ 56.4 $ 345.6 2020 42.0 186.4 2021 35.3 87.5 2022 31.1 37.1 2023 22.4 7.9 Later years 46.9 5.9 Sublease rental income (103.8 ) N/A Total $ 130.3 $ 670.4 Rent expense was $61.7 in 2018 , $66.2 in 2017 and $75.0 in 2016 . Plant construction, expansion and modernization projects with an estimated cost to complete of $31.8 were in progress at December 31, 2018 . |
Restructuring Initiatives
Restructuring Initiatives | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives Transformation Plan and Open Up Avon Transformation Plan In January 2016, we initiated a transformation plan (the "Transformation Plan"), in order to enable us to achieve our long-term goals of mid-single-digit constant-dollar ("Constant $") revenue growth and low double-digit operating margin. The Transformation Plan included three pillars: invest in growth, reduce costs in an effort to continue to improve our cost structure and improve our financial resilience. Under this plan, we had targeted pre-tax annualized cost savings of approximately $350 after three years, which we exceeded through restructuring actions, as well as other cost-savings strategies that did not result in restructuring charges. 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. As a result of these restructuring actions approved to-date, we have recorded total costs to implement these restructuring initiatives of $205.4 before taxes, of which $38.0 was recorded during the twelve months ended December 31, 2018, in our Consolidated Statements of Operations. There are no further restructuring actions to be taken associated with our Transformation Plan, as beginning in the third quarter of 2018, all new restructuring actions approved will operate under our new Open Up Avon plan described below. Open Up Avon In September 2018, we initiated a new strategy in order to return Avon to growth ("Open Up Avon"). As one element of this plan, we are targeting pre-tax annualized cost savings of approximately $400 by 2021, to be generated from efficiencies in manufacturing and sourcing, distribution, general and administrative activities, and back office functions, as well as through revenue management, interest and tax. These savings are expected to be achieved through restructuring actions (that may result in charges related to severance, contract terminations and inventory and other asset write-offs), as well as other cost-savings strategies that would not result in restructuring charges. In January 2019, we announced significant advancements in this strategy, including a structural reset of inventory processes and an aggregate 18% reduction in global workforce. The structural reset of inventory processes includes a 15% reduction in inventory levels and 25% reduction in Stock Keeping Units (SKUs). The structural reset resulted in an incremental one-off inventory obsolescence expense of $88 million recognized at December 31, 2018. As a result of Open Up Avon restructuring actions approved to-date, we have recorded total costs to implement these restructuring initiatives of $143.2 before taxes, which was recorded during the year ended December 31, 2018 , in our Consolidated Statements of Operations. Restructuring Charges - 2018 During the year ended December 31, 2018, we recorded costs to implement of $181.2 , of which $38.0 related to the Transformation Plan and $143.2 related to Open Up Avon, in our Consolidated Statements of Operations. The costs consisted of the following: • net charges of $43.3 for employee-related costs, including severance benefits; • implementation costs of $30.9 primarily related to professional service fees; • accelerated depreciation of $5.2 ; • asset impairment of $4.0 , primarily related to manufacturing equipment; • inventory write-off of $89.8 ; • foreign currency translation adjustment charges of $.7 ; • dual running costs of $4.1 ; and • contract termination and other costs of $3.2 . Of the total costs to implement during the year ended December 31, 2018, $89.7 was recorded in SG&A expenses and $91.5 was recorded in cost of sales. 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 SG&A 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 SG&A expenses and $.4 was recorded in cost of sales. The tables below include restructuring costs such as employee-related costs, inventory write-offs, foreign currency translation write-offs and contract terminations, and do not include other costs to implement restructuring initiatives such as professional services fees and accelerated depreciation. The liability balance for the restructuring actions, primarily associated with our Transformation Plan, at December 31, 2018 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total 2016 charges $ 73.4 $ 0.4 $ 2.7 $ 8.7 $ 85.2 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 2018 charges $ 29.5 $ 1.4 $ 0.7 $ 5.5 $ 37.1 Adjustments (12.6 ) — — (3.4 ) (16.0 ) Cash payments (21.3 ) — — (6.3 ) (27.6 ) Non-cash write-offs — (1.4 ) (0.7 ) — (2.1 ) Foreign exchange (2.4 ) — — (.2 ) (2.6 ) Balance at December 31, 2018 $ 34.4 $ — $ — $ 3.6 $ 38.0 The liability balance for the restructuring actions, primarily associated with Open Up Avon, at December 31, 2018 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total Balance at December 31, 2017 $ — $ — $ — $ — $ — 2018 charges $ 26.4 $ 88.5 $ — $ 0.8 $ 115.7 Adjustments — — — — — Cash payments (6.8 ) — — 0.3 (6.5 ) Non-cash write-offs — (88.5 ) — — (88.5 ) Foreign exchange — — — — — Balance at December 31, 2018 $ 19.6 $ — $ — $ 1.1 $ 20.7 The majority of cash payments, if applicable, associated with the year-end liability are expected to be made during 2019. The following table presents the restructuring charges incurred to date, under the Transformation Plan and Open Up Avon, along with the estimated charges expected to be incurred on approved initiatives under the plans: Employee- Related Costs Inventory/ Asset Write-offs Contract Terminations/Other Foreign Currency Translation Adjustment Write-offs Total Transformation Plan Charges incurred to-date $ 128.0 $ 2.2 $ 40.7 $ 3.4 $ 174.3 Estimated charges to be incurred on approved initiatives — — — — — Total expected charges on approved initiatives $ 128.0 $ 2.2 $ 40.7 $ 3.4 $ 174.3 Open Up Avon Charges incurred to-date $ 26.3 $ 88.5 $ 2.3 $ — $ 117.1 Estimated charges to be incurred on approved initiatives — — .5 — .5 Total expected charges on approved initiatives $ 26.3 $ 88.5 $ 2.8 $ — $ 117.6 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 plans, by reportable segment are as follows: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total Transformation Plan 2015 $ — $ — $ — $ — $ 21.4 $ 21.4 2016 30.9 13.2 4.4 9.1 16.8 74.4 2017 .9 5.6 (.6 ) (.5 ) 49.4 54.8 2018 5.0 4.1 .6 .6 13.4 23.7 Charges incurred to-date 36.8 22.9 4.4 9.2 101.0 174.3 Estimated charges to be incurred on approved initiatives — — — — — — Total expected charges on approved initiatives $ 36.8 $ 22.9 $ 4.4 $ 9.2 $ 101.0 $ 174.3 Open Up Avon 2018 32.2 36.4 27.9 14.4 6.2 117.1 Charges incurred to-date 32.2 36.4 27.9 14.4 6.2 117.1 Estimated charges to be incurred on approved initiatives — — — — .5 .5 Total expected charges on approved initiatives $ 32.2 $ 36.4 $ 27.9 $ 14.4 $ 6.7 $ 117.6 The charges above are not included in segment profit, as this excludes costs to implement restructuring initiatives. The amounts shown in the tables above as charges recorded to-date relate to initiatives that have been approved and recorded in the consolidated 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. Other Restructuring Initiatives During 2018, 2017 and 2016, we recorded net benefits of $.7 , $.4 and $5.5 , respectively, primarily in SG&A 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, 2018. |
Series C Convertible Preferred
Series C Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Series C Convertible Preferred Stock | Series C Convertible Preferred Stock On March 1, 2016, the Company issued and sold to Cerberus Investor 435,000 shares of newly issued series C preferred stock for an aggregate purchase price of $435 pursuant to an Investment Agreement, dated as of December 17, 2015, between the Company and Cerberus Investor. In connection with the issuance of the series C preferred stock, the Company incurred direct and incremental expenses of $8.7 , comprised of financial advisory fees and legal expenses, which reduced the carrying value of the series C preferred stock. Cumulative preferred dividends accrue daily on the series C preferred stock at a rate of 1.25% per quarter. The series C preferred stock had accrued unpaid dividends of $65.8 as of December 31, 2018 . There were no dividends declared in the years ended December 31, 2018 and 2017 . 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, 2018 , 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, 2018 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies Settlements of FCPA Investigations As previously reported, 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 U.S. Department of Justice related to charges of violations of the books and records and internal controls provisions of the Foreign Corrupt Practices Act (“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. The USDC also entered a judgment in January 2015 approving our consent agreement with the U.S. Securities and Exchange Commission (the “SEC”) (the "Consent") to settle the SEC’s complaint charging violations of the books and records and internal control provisions of the FCPA. As part of these resolutions, the Company agreed, among other things, to pay fines, disgorgement and prejudgment interest in an aggregate amount of $135 and to have a compliance monitor. The DPA expired, and the charges against the Company were dismissed with prejudice on February 5, 2018. Under the terms of the Consent, the Company was subject to a continued self-monitoring period until July 2018, which has now concluded. Brazilian Tax Assessments In December 2012, our Brazilian subsidiary received an excise (IPI) tax assessment for the year 2008 with respect to excise tax (IPI) and taxes charged on gross receipts (PIS and COFINS) from the Brazilian tax authorities. In the second quarter of 2014, the PIS and COFINS assessments were officially closed in favor of Avon Brazil. As in prior IPI cases that have been settled in Avon’s favor, 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 $306 , including penalties and accrued interest. On April 18, 2018, Avon received official notification that the second administrative level has issued a partially favorable and partially unfavorable decision. In this decision, the original assessment was reduced by approximately $63 (including associated penalty and interest), subject to Federal Revenue appeal. The remaining $243 of the assessment was upheld at the second administrative level. On April 20, 2018, we appealed this decision in the third administrative level. On October 3, 2017, Avon Brazil received a new tax assessment notice regarding IPI for 2014. The 2017 IPI assessment totals approximately $236 , 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. On April 2, 2018, Avon was notified of an unfavorable decision at the first administrative level. On April 27, 2018, we filed an appeal in the second administrative level. In the event that the 2012 and the 2017 IPI assessments are upheld in the third and final administrative level, it may be necessary for us to provide security to pursue further appeals in the judicial levels, 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). We believe that the 2012 and the 2017 IPI assessments are unfounded, however, based on the likelihood that these will be upheld, we assess the risks as disclosed above as reasonably possible. At December 31, 2018, 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 was no longer required to remit the taxes associated with IPI into a judicial deposit. On June 12, 2018, we received a decision authorizing Avon to withdraw the amount held as a judicial deposit, substituting it by letter of guarantee, which was presented. On June 29, 2018, the tax authorities presented an appeal against that decision. On July 30, 2018, the funds were received in our bank account. As of September 30, 2018, due in part to judicial decisions across the industry and other developments, we concluded, supported by the opinion of legal counsel, that the Executive Decree is unconstitutional. We therefore assessed the IPI tax under ASC 450, Contingencies and determined that the risk of loss during ongoing judicial reviews was reasonably possible but not probable. Accordingly, we released the associated liability as of September 30, 2018 of approximately $195 and have ceased accruing the IPI taxes from October 1, 2018. The liability had been classified within long-term sales taxes and taxes other than income in our Consolidated Balance Sheet, and the release was recorded in net sales and other (income) expense, in the amounts of approximately $168 and approximately $27 , respectively, in our Consolidated Income Statements. An unfavorable ruling to our objection of this IPI tax increase would have an adverse effect on the Company's Consolidated Income Statements and Consolidated Statements of Cash Flows as Avon Brazil would have to remit the reasonably possible amount of $220 to the taxing authorities (including the judicial deposit that was returned to us on July 30, 2018). We are not able to reliably predict the timing of the outcome of our objection to this tax increase. A favorable judicial ruling to our objection of this IPI tax would have an adverse effect on the Company's Consolidated Statements of Cash Flows as Avon Brazil would have to remit all or a portion of the associated income tax liability to the taxing authorities. The Company is accruing a tax reserve, which amounts to approximately $73 at December 31, 2018. This reserve will be settled on final adjudication of the law through a combination of cash and use of deferred tax assets. 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 codefendants 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 and an adverse outcome, individually or in the aggregate, could be material. 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, if any. Also, in light of the inherent litigation 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, 2018 is approximately $11 and, accordingly, we have recognized a liability for this amount. Shareholder Litigation On February 14, 2019, a purported shareholder’s class action complaint (Bevinal v. Avon Products, Inc., et al., No. 19-cv-1420) was filed in the United States District Court for the Southern District of New York against the Company and certain present and former officers of the Company. The complaint is brought on behalf of a purported class consisting of all purchasers of Avon common stock between August 2, 2016 and August 2, 2017, inclusive. The complaint asserts violations of Sections 10(b) and 20(a) of the Exchange Act based on allegedly false or misleading statements and alleged market manipulation with respect to, among other things, changes made to Avon’s credit terms for representatives in Brazil. In light of the early stage of the litigation, we are unable to predict the outcome of this matter and are unable to make a meaningful estimate of the amount or range of loss that could result from an unfavorable outcome. 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, 2018, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill Europe, Middle East & Africa South Latin America Asia Pacific Total 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 Changes during the period ended December 31, 2018: Divestitures $ — $ — $ — $ — Impairment — — — — Foreign exchange (2.4 ) (5.9 ) — (8.3 ) Gross balance at December 31, 2018 $ 24.9 $ 66.8 $ 85.0 $ 176.7 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2018 $ 18.0 $ 66.8 $ 2.6 $ 87.4 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information At December 31, 2018 and 2017 , prepaid expenses and other included the following: Components of Prepaid expenses and other 2018 2017 Prepaid taxes and tax refunds receivable $ 145.0 $ 111.6 Receivables other than trade 69.2 67.2 Prepaid brochure costs, paper and other literature 14.9 64.8 Other 42.9 52.8 Prepaid expenses and other $ 272.0 $ 296.4 At December 31, 2018 and 2017 , other assets included the following: Components of Other assets 2018 2017 Deferred tax assets (Note 10) $ 212.6 $ 203.8 Capitalized software (Note 1) 89.3 85.2 Judicial deposits other than Brazil IPI tax (see below) 74.1 82.2 Net overfunded pension plans (Note 14) 88.1 82.0 Long-term receivables 73.2 75.6 Judicial deposit for Brazil IPI tax on cosmetics (Note 19) — 73.8 Trust assets associated with supplemental benefit plans (Note 14) 37.0 37.1 Tooling (plates and molds associated with our beauty products) 12.6 12.5 Investment in New Avon (Note 4) — — Other 16.1 14.0 Other assets $ 603.0 $ 666.2 |
Results of Operations by Quarte
Results of Operations by Quarter (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Results of Operations by Quarter (Unaudited) | Results of Operations by Quarter (Unaudited) 2018 First Second Third Fourth Year Total revenue $ 1,393.5 $ 1,351.9 $ 1,424.2 $ 1,401.7 $ 5,571.3 Gross profit 813.8 812.2 885.8 695.5 3,207.3 Operating profit (1) 44.9 53.0 186.9 (49.6 ) 235.2 Income (Loss) from continuing operations, before taxes 10.4 (0.3 ) 182.1 (84.1 ) 108.1 (Loss) income from continuing operations, net of tax (2) (21.1 ) (37.0 ) 113.8 (77.5 ) (21.8 ) Net loss attributable to noncontrolling interests .8 .9 .7 (.1 ) 2.3 Net (loss) income attributable to Avon $ (20.3 ) $ (36.1 ) $ 114.5 $ (77.6 ) $ (19.5 ) (Loss) earnings per common share from continuing operations Basic $ (.06 ) $ (.09 ) $ .21 $ (.19 ) $ (.10 ) (3) Diluted (.06 ) (.09 ) .21 (.19 ) (.10 ) (3) 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) 29.8 32.7 87.3 131.5 281.3 (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 (income) 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 $ — (4) Diluted (.10 ) (.12 ) .01 .17 — (4) (1) Operating profit (loss) was impacted by the following: 2018 First Second Third Fourth Year Brazil IPI tax release $ — $ — $ (168.4 ) $ — $ (168.4 ) Costs to implement restructuring initiatives: Cost of sales 0.6 0.5 (0.1 ) 90.5 91.5 SG&A expenses 10.3 23.2 19.9 35.6 89.0 Total costs to implement restructuring initiatives $ 10.9 $ 23.7 $ 19.8 $ 126.1 $ 180.5 2017 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ (.1 ) $ — $ — $ .7 $ .6 SG&A 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 In addition to the items impacting operating profit (loss) above: (2) (Loss) income from continuing operations, net of tax during 2018 was impacted by one-time tax reserves of approximately $18 associated with our uncertain tax positions, and an expense of approximately $3 associated with the ownership transfer of certain operational assets within the consolidated group. (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. (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 17, Restructuring Initiatives, "Results Of Operations - Consolidated" within MD&A on pages 35 through 43, Note 15, Segment Information, "Venezuela Discussion" within MD&A on pages 42 through 43, Note 1, Description of the Business and Summary of Significant Accounting Policies, Note 14, Employee Benefit Plans, Note 19, Contingencies, Note 8, Debt and Other Financing and Note 10, Income Taxes, for more information on these items. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Global headcount reduction In January 2019, we announced significant advancements in our Open Up Avon strategy, including a structural reset of inventory processes and an aggregate 18% reduction in global workforce. The structural reset resulted in an incremental one-off inventory obsolescence expense of $88 recognized at December 31, 2018 (refer to Note 17, Restructuring Initiatives, for additional information regarding the structural reset of inventory). The global workforce will be reduced in 2019 by approximately 10% to align with ongoing operating model changes and to create a leaner organization that is better aligned with Avon’s current and future business focus. This reduction is incremental to an 8% reduction of the global workforce that was completed in 2018. We expect to incur a restructuring charge of approximately $100 in 2019 relating to the global workforce reduction, which wasn't approved by the Board of Directors until January 2019. Revolving credit facility In February 2019, Avon International Capital p.l.c. ("AIC"), a wholly-owned foreign subsidiary of the Company, entered into a three -year €200.0 senior secured revolving credit facility (the “2019 facility”). The 2019 facility may be used for working capital and general corporate purposes. The 2019 facility replaced the 2015 facility. All obligations of AIC under the 2019 facility are unconditionally guaranteed by the Company, AIO and each other material United States or English restricted subsidiary of the Company (collectively, the “Obligors”), in each case, subject to certain exceptions. The obligations of the Obligors are secured by first priority liens on and security interests in substantially all of the assets of the Obligors, in each case, subject to certain exceptions. The 2019 facility will terminate in February 2022; provided, however, that it shall terminate on the 91st day prior to the maturity of the 4.60% Notes, if on such 91st day, the applicable notes are not redeemed, repaid, discharged, defeased or otherwise refinanced in full. The 2019 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). Divestitures China Manufacturing In February 2019, we completed the sale to TheFaceShop Co., Ltd., an affiliate of LG Household & Health Care Ltd., of all of the equity interests in Avon Manufacturing (Guangzhou), Ltd. for a total purchase price of $71.0 million . Net cash proceeds (pre-tax) will be $47.0 after the required repayment by the Company of certain outstanding intercompany loans of $23.3 and after deducting cash on hand in Avon Manufacturing (Guangzhou), Ltd. of $.7 . Rye Office In February 2019, we signed an agreement to sell the Rye office. This transaction is expected to close by the end of the second quarter of 2019. Malaysia Maximin In February 2019, we signed an agreement to sell the legal entity Maximin Corporation Sdn Bhd, which owns the Malaysia office and warehouse. This transaction is expected to close by the end of the first quarter of 2019. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | AVON PRODUCTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2018 , 2017 and 2016 Additions (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Revenue Deductions Balance at End of Period 2018 Allowance for doubtful accounts receivable $ 129.3 $ 162.4 $ — $ (198.7 ) (1) $ 93.0 Refund liability 9.3 (3) — 172.3 (169.3 ) (2) 12.3 Allowance for inventory obsolescence 61.3 113.5 (4) — 55.2 (5) 230.0 Deferred tax asset valuation allowance 3,217.6 39.9 — — 3,257.5 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 (3) Allowance for inventory obsolescence 58.4 36.7 — (33.8 ) (5) 61.3 Deferred tax asset valuation allowance 3,296.0 (78.4 ) (6) — — 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 ) (5) 58.4 Deferred tax asset valuation allowance 2,090.1 1,205.9 (7) — — 3,296.0 (1) Accounts written off, net of recoveries and foreign currency translation adjustment. (2) Returned product reused or destroyed and foreign currency translation adjustment. (3) Due to the adoption of ASC 606, Revenue from Contracts with Customers, as of January 1, 2018, the allowance for sales returns was reclassified from a reduction of accounts receivable to a refund liability (within other accrued liabilities). (4) Includes a one-off inventory obsolescence expense of $88 recognized at December 31, 2018 relating to the structural reset of inventory (refer to Note 17, Restructuring Initiatives, for additional information regarding the structural reset of inventory). (5) Obsolete inventory destroyed and foreign currency translation adjustment. (6) 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. (7) 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 a_2
Description of the Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Description Of The Business And Summary Of Significant Accounting Policies | |
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 Assets and Liabilities Held for Sale 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 stand-alone selling prices ("SSP") of promised goods or services delivered under sales incentives, allowances for sales returns, allowances for doubtful accounts receivable, provisions for inventory obsolescence, the determination of discount rates and other actuarial assumptions for pension and postretirement benefit expenses, restructuring expense, income taxes and tax valuation allowances, share-based compensation, loss contingencies and the evaluation of goodwill, property, plant and equipment and capitalized software for potential impairment. |
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, 2018 , only our Argentinian subsidiary is 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. |
Revenue Recognition | Revenue Recognition Nature of goods and services We are a global manufacturer and marketer of beauty and related products. Our product categories are Beauty and Fashion & Home. Beauty consists of skincare, fragrance and color (cosmetics). Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. Our business is conducted primarily in one channel - direct selling. Our reportable segments are based on geographic operations in four regions: Europe, Middle East & Africa; South Latin America; North Latin America; and Asia Pacific. We primarily sell our products to the ultimate consumer through the direct selling channel principally through Representatives, who are independent contractors and not our employees. Revenue recognition Revenue is recognized when control of a product or service is transferred to a customer, which is generally the Representative. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties, such as Value Added Taxes (“VAT”) collected for taxing authorities. Principal revenue streams and significant judgments Our principal revenue streams can be distinguished into: i) the sale of Beauty and Fashion & Home products to Representatives (recorded in net sales); ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract, which include fees for shipping and handling (recorded in other revenue); and iii) other, which includes the sale of products to New Avon and royalties from the licensing of our name and products (recorded in other revenue). i) Sale of Beauty and Fashion & Home products to Representatives We generate the majority of our revenue through the sale of Beauty and Fashion & Home products. A Representative contacts her customers directly, selling primarily through our brochure (whether paper or online), which highlights new products and special promotions (or incentives) for each sales campaign. In this sense, the Representative, together with the brochure, are the "store" through which our products are sold. A brochure introducing a new sales campaign is typically generated every three to four weeks. A purchase order is processed and the products are picked at a distribution center and delivered to the Representative usually through a combination of local and national delivery companies. Generally, the Representative then delivers the merchandise and collects payment from the customer for her or his own account. A Representative generally receives a refund of the price the Representative paid for a product if the Representative chooses to return it. A Representative Agreement, which outlines the basic terms of the agreement between Avon and the Representative, combined with a purchase order, constitutes a contract for the purposes of Accounting Standards Codification Topic (“ASC”), Revenue from Contracts with Customers ("ASC 606"). Revenue from Contracts with Customers We account for individual products and services separately in the contract if they are distinct (i.e., if a product or service is separately identifiable from the other items in the contract and if a Representative can benefit from the product or service on its own or with other resources that are readily available), which is recognized at a point in time, when control of a product is transferred to a Representative. In addition, we offer incentives to Representatives to support sales growth. Certain of these sales incentives are distinct promises to a Representative, and therefore are a separate performance obligation. As a result, revenue is allocated to the performance obligation for sales incentives and is deferred on the balance sheet until the associated performance obligations are satisfied. Typically included within a contract is variable consideration, such as sales returns and late payment fees. Revenue is only recorded to the extent it is probable that it will not be reversed, and therefore revenue is adjusted for variable consideration. Variable consideration is generally estimated using the expected value method, which considers possible outcomes weighted by their probability. Specifically for sales returns, a refund liability will be recorded for the estimated cash to be refunded for the products expected to be returned, and a returns asset will be recorded for the products which we expect to be returned and re-sold, each of these based on historical experience. The estimate of sales returns as well as the measurement of the returns asset and the refund liability is updated at the end of each month for changes in expectations regarding the amount of salvageable returns, reconditioning costs and any additional decreases in the value of the returned products. Late payment fees are recorded when the uncertainty associated with collecting such fees are resolved (i.e., when collected). The Representative generally receives a credit period of one sales campaign if they meet certain criteria; however, the specific credit terms are outlined in the Representative Agreement. Generally, the Representative remits payment during each sales campaign, which relates to the prior campaign cycle. The Representative is generally precluded from submitting an order for the current sales campaign until the accounts receivable balance past due for prior campaigns is paid; however, there are circumstances where the Representative fails to make the required payment. Our contracts with Representatives often include multiple promises to transfer products and/or services to the Representative, and determining which of these products and/or services are considered distinct performance obligations that should be accounted for separately. In addition, in assessing the recognition of revenue for the following performance obligations, management has exercised significant judgment in the following areas: estimation of variable consideration and the SSP of promised goods or services in order to determine and allocate the transaction price. Performance obligation - Avon products and appointment kits The Representative purchases Avon products and appointment kits through a purchase order. Avon offers appointment kits for purchase to Representatives, which may contain various Avon products. We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration as discussed above and the estimated SSP of other performance obligations as discussed below. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Performance obligation - Sales incentives Types of sales incentives include status programs, loyalty points, prospective discounts, and gift with purchase, among others. A Representative is eligible for certain status programs if specified sales levels are met. Status programs offer additional benefits such as free or discounted products and services. Loyalty points offer the option to redeem for additional Avon or other products or services. Prospective discounts are offered in some countries when certain sales levels are reached in a given time period. The revenue attributable to the prospective discount performance obligation is for the option to purchase additional product at a discounted amount. Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right (performance obligation) based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales in our Consolidated Statements of Operations at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. SSP represents the estimated market value, or the estimated amount that could be charged for that material right when the entity sells it separately in similar circumstances to similar customers. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, including for certain sales incentives, we determine the SSP using information that may include market prices and other observable inputs. ii) Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract ("Representative fees") The purchase order in the contract with the Representative explicitly identifies activities that we will perform. This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees (discussed above). Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and we allocate consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in selling, general and administrative expenses in our Consolidated Statements of Operations. We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations. |
Other Revenue | iii) Other revenue We also recognize revenue from the sale of products to New Avon LLC ("New Avon"), as part of a manufacturing and supply agreement, since the separation of the Company's North America business into New Avon on March 1, 2016, and royalties from the licensing of our name and products, in other revenue in our Consolidated Statements of Operations |
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. |
Brochure Costs | Brochure Costs Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations. |
Property, Plant and Equipment and Capitalized Software | Property, Plant and Equipment and Capitalized Software Property, plant and equipment are stated at cost and are depreciated using a straight-line method over the estimated useful lives of the assets. The estimated useful lives generally are as follows: buildings, 45 years; land improvements, 20 years; machinery and equipment, 15 years; and office equipment, 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, and implementation costs incurred in a hosting arrangement that is a service contract, are capitalized and amortized over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. The other assets balance included unamortized capitalized software costs of $89.3 at December 31, 2018 and $85.2 at December 31, 2017 . The amortization expense associated with capitalized software was $ 26.5 , $ 29.5 and $ 30.5 for the years ended December 31, 2018 , 2017 and 2016 , 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. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale A long-lived asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable within a year. A long-lived asset (or disposal group) classified as held for sale is initially measured at the lower of its carrying amount or fair value less cost to sell. An impairment loss is recognized for any initial or subsequent write-down of the long-lived asset (or disposal group) to fair value less costs to sell. A gain or loss not previously recognized by the date of the sale of the long-lived asset (or disposal group) is recognized at the date of derecognition. Long-lived assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Long-lived assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. |
Goodwill | Goodwill Goodwill is not amortized and is assessed for impairment annually during the fourth quarter or on the occurrence of an event that indicates impairment may have occurred, at the reporting unit level. A reporting unit is the operating segment, or a component, which is one level below that operating segment. Components are aggregated as a single reporting unit if they have similar economic characteristics. When testing goodwill for impairment, we perform either a qualitative or quantitative assessment for each of our reporting units. Factors considered in the qualitative analysis include macroeconomic conditions, industry and market considerations, cost factors and overall financial performance specific to the reporting unit. If the qualitative analysis results in a more likely than not probability of impairment, the first quantitative step, as described below, is required. The quantitative test to evaluate goodwill for impairment is a two-step process. In the first step, we compare the fair value of a reporting unit to its carrying value. If the fair value of a reporting unit is less than its carrying value, we perform a second step to determine the implied fair value of the reporting unit’s goodwill. The second step of the impairment analysis requires a valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of the purchase price in a business combination. If the resulting implied fair value of the reporting unit’s goodwill is less than its carrying value, that difference represents an impairment. The impairment analysis performed for goodwill requires several estimates in computing the estimated fair value of a reporting unit. We typically use a DCF approach to estimate the fair value of a reporting unit, which we believe is the most reliable indicator of fair value of this business, and is most consistent with the approach that we would generally expect a marketplace participant would use. In estimating the fair value of our reporting units utilizing a DCF approach, we typically forecast revenue and the resulting cash flows for periods of five to ten years and include an estimated terminal value at the end of the forecasted period. When determining the appropriate forecast period for the DCF approach, we consider the amount of time required before the reporting unit achieves what we consider a normalized, sustainable level of cash flows. The estimation of fair value utilizing a DCF approach includes numerous uncertainties which require significant judgment when making assumptions of expected growth rates and the selection of discount rates, as well as assumptions regarding general economic and business conditions, and the structure that would yield the highest economic value, among other factors. |
Financial Instruments | Financial Instruments We use derivative financial instruments, including forward foreign currency contracts, to manage foreign currency exposures. If applicable, derivatives are recognized in our Consolidated Balance Sheets at their fair values. When we become a party to a derivative instrument and intend to apply hedge accounting, we designate the instrument, for financial reporting purposes, as a fair value hedge, a cash flow hedge, or a net investment hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship and further, on the type of hedging relationship. We apply the following: • Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. • Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. • Changes in the fair value of a derivative that is designated as a hedge of a net investment in a foreign operation are recorded in foreign currency translation adjustments within AOCI. • Changes in the fair value of a derivative that is not designated as a hedging instrument are recognized in earnings in other expense, net in our Consolidated Statements of Operations. We present the earnings effect of the hedging instrument in our Consolidated Statements of Operations in the same income statement line item in which the earnings effect of the hedged item is reported. For derivatives designated as cash flow hedges, if we conclude that the hedging relationship is perfectly effective at inception, a detailed effectiveness assessment in each period is not required as long as (i) the critical terms of the hedging instrument completely match the related terms of the hedged item (ii) it is considered probable that the counterparties to the hedging instrument and the hedged item will not default, and (iii) the hedged cash flows remain probable. If the conditions above are not met, we will assess prospective and retrospective effectiveness using the cumulative dollar-offset method, which compares the change in fair value or present value of cash flows of the hedging instrument to the changes in the fair value or present value of the cash flows of the hedged item. If the result of the quantification demonstrates that the hedge is still highly effective (meaning that cumulative changes in the fair value of the derivative are between 80% and 125% of the cumulative changes in the fair value of the hedged item), we will revert to qualitative assessments of hedge effectiveness in subsequent periods if an expectation of high effectiveness on a qualitative basis for subsequent periods can be reasonably supported. If effectiveness is not within the 80% to 125% range, hedge accounting will be discontinued, and changes in the fair value of the hedging instrument will be recorded in earnings from the date the hedge is no longer considered highly effective. |
Deferred Income Taxes | Deferred Income Taxes 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 10, Income Taxes for more information. In accordance with guidance issued by the Financial Accounting Standards Board ("FASB"), we are choosing to treat the U.S. income tax consequences of Global Intangible Low-Taxed Income ("GILTI") as a period cost. As a result, as of December 31, 2018 , no deferred income taxes have been provided. |
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. |
SG&A Expenses | SG&A Expenses SG&A expenses include costs associated with selling; marketing; distribution, including shipping and handling costs; advertising; net brochure costs; research and development; information technology; and other administrative costs, including finance, legal and human resource functions. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are expensed as incurred |
Advertising | Advertising Advertising costs, excluding brochure preparation costs, are expensed as incurred |
Research and Development | Research and Development Research and development costs are expensed as incurred and amounted to $48.0 in 2018 , $52.9 in 2017 and $52.1 in 2016 . 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. We account for forfeitures on share-based payments as they occur. |
Restructuring Expense | Restructuring Expense We record the estimated expense for our restructuring initiatives, such as our Transformation Plan and Open Up Avon, when such costs are deemed probable and estimable, when approved by the appropriate corporate authority and by accumulating detailed estimates of costs for such plans. These expenses include the estimated costs of employee severance and related benefits, inventory write-offs, impairment or accelerated depreciation of property, plant and equipment and capitalized software, and any other qualifying exit costs. Such costs represent our best estimate, but require assumptions about the programs that may change over time, including attrition rates. Estimates are evaluated periodically to determine whether an adjustment is required. |
Pension and Postretirement Expense | Pension and Postretirement Expense 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. Service cost is presented in SG&A in our Consolidated Statements of Operations. The components of net periodic benefit costs other than service cost are presented in other expense, net in our Consolidated Statements of Operations |
Contingencies | Contingencies We determine whether to disclose and/or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable. We record loss contingencies when it is probable that a liability has been incurred and the amount of loss is reasonably estimable. |
Earnings (Loss) 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. |
New Accounting Standards | New Accounting Standards Implemented ASU 2014-09, Revenue from Contracts with Customers Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements. We adopted ASC 606 with a date of the initial application of January 1, 2018, as a cumulative-effect adjustment to retained earnings. Therefore, the comparative information for prior periods has not been adjusted and continues to be reported under ASC 605, Revenue Recognition . We applied ASC 606 to all outstanding contracts at January 1, 2018. We recorded a cumulative-effect adjustment upon adoption of the new revenue recognition standard as of January 1, 2018 comprised of the following: • a reduction to retained earnings of $52.7 before taxes ( $41.1 after tax), with a corresponding impact to deferred income taxes of $11.6 ; • a reduction to prepaid expenses and other of $54.9 ; • an increase to inventories of $39.3 ; and • an increase to other accrued liabilities of $37.1 due to the net impact of the establishment of a contract liability of $91.8 for deferred revenue where our performance obligations are not yet satisfied, which is partially offset by a reduction in the sales incentive accrual of $54.7 . 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 were not material. The details of the significant changes to our accounting policy for revenue recognition and the quantitative impact of the changes on our Consolidated Financial Statements are set out below. Performance obligations - Avon products and appointment kits We recognize revenue for Avon products and appointment kits in net sales in our Consolidated Statements of Operations when the Representative obtains control of the products, which occurs upon delivery of the product to the Representative. Transaction price is the amount we expect to receive in exchange for those products adjusted for variable consideration, such as sales returns and past due fees, and the estimated SSP of other performance obligations, such as sales incentives. Revenue allocated to the material right (performance obligation) for sales incentives is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of these products and appointment kits is recognized in cost of sales in our Consolidated Statements of Operations. Under our historical accounting, we recognized revenue for Avon products in net sales in our Consolidated Statements of Operations upon delivery of the product to the Representative. We recognized revenue for appointment kits sold to Representatives as a reduction of SG&A expenses in our Consolidated Statements of Operations, and the associated cost was recognized in SG&A expenses in our Consolidated Statements of Operations. Revenue was adjusted for expected sales returns. Performance obligations/ material rights - sales incentives Certain benefits within status programs, loyalty points, prospective discounts and certain other sales incentives constitute a material right and, therefore, a distinct performance obligation in the contract with the Representative. Transaction price is allocated to the material right based on estimated SSP and is deferred on the balance sheet until the associated performance obligations are satisfied. The cost of sales incentives is presented in inventories in our Consolidated Balance Sheets. We recognize revenue allocated to the material right in net sales and the associated cost of sales incentives is recognized in cost of sales in our Consolidated Statements of Operations, at the point in time that the Representative receives the benefits of the material right or obtains control of the products, which occurs upon delivery to the Representative or upon expiration of the material right. For sales incentives that are delivered with the associated products order (such as gift with purchase), no deferral is required. Under our historical accounting, the cost of sales incentives was generally presented in other accrued liabilities and prepaid expenses and other in our Consolidated Balance Sheets and recognized in SG&A expenses in our Consolidated Statements of Operations over the period that the sales incentive was earned. Representative fees, primarily for the sale of brochures to Representatives and fulfillment activities related to the contract This includes fees that we charge Representatives, primarily for the sale of brochures to Representatives and fulfillment activities, and also includes late payment fees. Brochures - Brochures represent promotional materials that are given directly by the Representatives to their customers as a marketing activity. Under ASC 606, brochures that are sold by Avon to Representatives through purchase orders represent separate performance obligations in the contract as these are promises made between Avon and the Representative. Although the brochures are used similar to marketing materials, the Representative generally orders and pays for the brochures, and Avon allocates consideration for purposes of revenue recognition. The revenue associated with brochures that are sold to Representatives is recognized in other revenue and the related cost is recognized in cost of sales in our Consolidated Statements of Operations. We recognize revenue when the Representative obtains control of the brochures, which occurs upon delivery to the Representative. When brochures are given away for free to Representatives as promotional items, the cost is recognized in SG&A expenses in our Consolidated Statements of Operations. Under our historical accounting, all brochure costs were initially deferred to prepaid expenses and other in our Consolidated Balance Sheets and were charged to SG&A expenses in our Consolidated Statements of Operations over the campaign length. In addition, fees charged to Representatives for brochures were initially deferred and presented as a reduction of prepaid expenses and other in our Consolidated Balance Sheets, and were recorded as a reduction of SG&A expenses in our Consolidated Statements of Operations over the campaign length. Fulfillment activities and late payment fees - We often charge the Representative for shipping and handling (including order processing) and payment processing activities on the invoice, and such activities are considered to be fulfillment costs. The consideration received represents part of the transaction price in the contract that is allocated to the performance obligations in the contract. We recognize revenue for fulfillment activities in other revenue in our Consolidated Statements of Operations when such services are provided to the Representative. The cost of these activities is recognized in SG&A expenses in our Consolidated Statements of Operations. Late payment fees are recorded in other revenue in our Consolidated Statements of Operations when collected. Under our historical accounting, revenue for shipping and handling (including order processing) activities was recorded in other revenue in our Consolidated Statements of Operations. However, the revenue for payment processing activities and late payment fees were recognized as a reduction of SG&A expenses in our Consolidated Statements of Operations. The cost of these activities was recognized in SG&A expenses in our Consolidated Statements of Operations. Impacts on consolidated financial statements The following tables summarize the impacts of adopting ASC 606 on the Company's consolidated financial statements for the twelve months ended December 31, 2018 : Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Revenue Net sales $ 5,247.7 $ (28.5 ) (1) $ 5,219.2 Other revenue 323.6 (200.7 ) (2) 122.9 Total revenue 5,571.3 (229.2 ) 5,342.1 Costs and expenses Cost of sales 2,364.0 (277.4 ) (3) 2,086.6 SG&A expenses 2,972.1 60.4 (4) 3,032.5 Operating profit 235.2 (12.2 ) 223.0 Income before income taxes 108.1 (12.2 ) 95.9 Income taxes (129.9 ) 3.6 (126.3 ) Net loss (21.8 ) (8.6 ) (30.4 ) Net loss attributable to Avon (19.5 ) (8.6 ) (28.1 ) (1) Primarily relates to appointment kits, which were reclassified from SG&A, partially offset by the timing of recognition of sales incentives. (2) Relates to Representative fees (primarily brochure fees, late payment fees and certain other fees), which were reclassified from SG&A. Brochure fees were also impacted by the timing of recognition. (3) Primarily relates to the cost of sales incentives, the cost of brochures paid for by Representatives and the cost of appointment kits, which were reclassified from SG&A. The cost of sales incentives and the cost of brochures were also impacted by the timing of recognition. (4) Relates to the cost of sales incentives, which were reclassified to cost of sales and were also impacted by the timing of recognition. This was partially offset by Representative fees, which were reclassified to other revenue, and appointment kits, which were reclassified to net sales and cost of sales. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Other Comprehensive Income Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Foreign currency translation adjustments (48.7 ) (3.5 ) (52.2 ) Total other comprehensive loss, net of income taxes (104.4 ) (3.5 ) (107.9 ) Comprehensive loss (126.2 ) (12.1 ) (138.3 ) Comprehensive loss attributable to Avon (123.6 ) (12.1 ) (135.7 ) Impact of change in revenue recognition standard Line items impacted within the Consolidated Balance Sheets Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Accounts receivable, net $ 349.7 $ (8.2 ) (1) $ 341.5 Inventories 542.0 (42.8 ) (2) 499.2 Prepaid expenses and other 272.0 47.8 (2) 319.8 Total current assets 1,762.0 (3.2 ) 1,758.8 Other assets 603.0 (10.1 ) (3) 592.9 Total assets 3,010.0 (13.3 ) 2,996.7 Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit Other accrued liabilities 451.3 (38.0 ) (4) 413.3 Income taxes 15.9 (3.6 ) 12.3 Total current liabilities 1,496.5 (41.6 ) 1,454.9 Other liabilities 72.1 (0.7 ) 71.4 Total liabilities 3,414.7 (42.3 ) 3,372.4 Retained earnings 2,234.3 32.5 (5) 2,266.8 Accumulated other comprehensive loss (1,030.4 ) (3.5 ) (1,033.9 ) Total Avon shareholders’ deficit (904.5 ) 29.0 (875.5 ) Total shareholders’ deficit (896.8 ) 29.0 (867.8 ) Total liabilities, series C convertible preferred stock and shareholders’ deficit 3,010.0 (13.3 ) 2,996.7 (1) Relates to sales returns, which were reclassified from a reduction of accounts receivable to a refund liability (within other accrued liabilities) and a returns asset (within prepaid expenses and other). (2) Primarily relates to sales incentives and brochures, both of which were reclassified from prepaid expenses and other to inventories, and were also impacted by the timing of recognition. In addition, prepaid expenses and other was impacted by the timing of recognition of brochures, as well as the reclassification of sales returns (described above). (3) Relates to deferred tax assets associated with the cumulative-effect adjustment. (4) Primarily relates to the contract liability for sales incentives, which is partially offset by the lower accrual for sales incentives. In addition, other accrued liabilities was impacted by the reclassification of sales returns (described above). (5) Relates to the $41.1 cumulative-effect adjustment upon adoption of ASC 606, partially offset by the year-to-date $8.6 net loss adjustment. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Cash Flows Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Cash Flows from Operating Activities Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Other 18.5 (3.5 ) 15.0 Accounts receivable (102.8 ) (.4 ) (103.2 ) Inventories (99.6 ) 3.5 (96.1 ) Prepaid expenses and other (49.3 ) 3.9 (45.4 ) Accounts payable and accrued liabilities 73.1 10.5 83.6 Income and other taxes 63.2 (3.6 ) 59.6 Noncurrent assets and liabilities 42.8 (1.8 ) 41.0 ASU 2016-09, Compensation - Stock Compensation 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. 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 the Consolidated Statements of Operations and (2) present the other components of net periodic benefit costs below operating profit in other expense, net. We adopted this new accounting guidance effective January 1, 2018. The new accounting guidance was applied retrospectively and increased our operating profit for 2017 and 2016 by $8.0 and $1.9 respectively, but had no impact on net loss. The following tables summarize the impacts of adopting ASC 2017-07 on the Company's consolidated financial statements for the twelve months ended December 31, 2017 and 2016: Impact of ASU 2017-07 adoption Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Impact of adoption As originally reported 2017 2016 2017 2016 2017 2016 SG&A expenses $ 3,231.0 $ 3,136.9 $ (8.0 ) $ (1.9 ) (4) $ 3,239.0 $ 3,138.8 Operating profit 281.3 323.8 8.0 1.9 273.3 321.9 Other expense, net 34.6 172.9 8.0 1.9 26.6 171.0 Income before income taxes 120.7 31.2 — — 120.7 31.2 ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities to align the hedge accounting model more closely with risk management practices, and to simplify its application. Among other things, the new guidance eliminates the requirement to separately measure and report hedge ineffectiveness. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The new guidance must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. We early adopted ASU 2017-12 effective July 1, 2018 and initiated a new hedging program during the third quarter 2018 to hedge foreign exchange risk relating to forecasted transactions. The adoption did not have a material impact on our Consolidated Financial Statements. ASU 2018-15, Intangibles - Goodwill and Other-Internal - Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendment. We early adopted ASU 2018-15 effective October 1, 2018, which did not have a material impact on our Consolidated Financial Statements. Accounting Standards to be Implemented 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. In July 2018, the FASB added an optional transition method which we will elect upon adoption of the new standard. This allows us to recognize and measure leases existing at January 1, 2019 without restating comparative information. In addition, we will elect to apply the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. The standard will have a material impact on our consolidated balance sheets but will not have a material impact on our Consolidated Income Statements. The most significant impact will be the recognition of right-of-use (ROU) assets and lease liabilities for operating leases, while our accounting for finance leases remains substantially unchanged. Adoption of the standard will result in the recognition of additional ROU assets and lease liabilities for operating leases of approximately $200 and approximately $195 as of January 1, 2019. The difference between these amounts will be recorded as an adjustment to retained earnings. ASU 2018-02, Income Statement - Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income , which permits entities to reclassify the disproportionate income tax effects of the 2017 enactment of U.S. tax reform legislation (the "Act") on items within AOCI (loss) to retained earnings. We intend to adopt this new accounting guidance effective January 1, 2019 and have elected not to reclassify the disproportionate income tax effects of the Act from AOCI (loss) to retained earnings. ASU 2016-13, Financial Instruments - Credit Losses In January 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires measurement and recognition of expected credit losses for financial assets held. We intend to adopt this new accounting guidance effective January 1, 2020. We are currently assessing the impact on our consolidated financial statements. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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) 2018 2017 2016 Numerator from continuing operations: Income (loss) from continuing operations less amounts attributable to noncontrolling interests $ (19.5 ) $ 22.0 $ (93.6 ) Less: Earnings (loss) allocated to participating securities (.2 ) .3 (1.2 ) Less: Earnings allocated to convertible preferred stock 24.3 23.1 18.4 Loss from continuing operations allocated to common shareholders (43.6 ) (1.4 ) (110.8 ) Numerator from discontinued operations: Loss from discontinued operations less amounts attributable to noncontrolling interests $ — $ — $ (14.0 ) Less: Loss allocated to participating securities — — (.2 ) Loss from discontinued operations allocated to common shareholders — — (13.8 ) Numerator attributable to Avon: Net income (loss) attributable to Avon less amounts attributable to noncontrolling interests $ (19.5 ) $ 22.0 $ (107.6 ) Less: Earnings (loss) allocated to participating securities (.2 ) .3 (1.4 ) Less: Earnings allocated to convertible preferred stock 24.3 23.1 18.4 Loss attributable to Avon allocated to common shareholders (43.6 ) (1.4 ) (124.6 ) Denominator: Basic EPS weighted-average shares outstanding 441.9 439.7 437.0 Diluted effect of assumed conversion of stock options — — — Diluted effect of assumed conversion of preferred stock — — — Diluted EPS adjusted weighted-average shares outstanding 441.9 439.7 437.0 Loss per Common Share from continuing operations: Basic $ (.10 ) $ (.00 ) $ (.25 ) Diluted (.10 ) (.00 ) (.25 ) Loss per Common Share from discontinued operations: Basic $ .00 $ .00 $ (.03 ) Diluted .00 .00 (.03 ) Loss per Common Share attributable to Avon: Basic $ (.10 ) $ (.00 ) $ (.29 ) Diluted (.10 ) (.00 ) (.29 ) Amounts in the table above may not necessarily sum due to rounding. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Summary of Impact of Adoption of New Accounting Standards | The following tables summarize the impacts of adopting ASC 2017-07 on the Company's consolidated financial statements for the twelve months ended December 31, 2017 and 2016: Impact of ASU 2017-07 adoption Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Impact of adoption As originally reported 2017 2016 2017 2016 2017 2016 SG&A expenses $ 3,231.0 $ 3,136.9 $ (8.0 ) $ (1.9 ) (4) $ 3,239.0 $ 3,138.8 Operating profit 281.3 323.8 8.0 1.9 273.3 321.9 Other expense, net 34.6 172.9 8.0 1.9 26.6 171.0 Income before income taxes 120.7 31.2 — — 120.7 31.2 The following tables summarize the impacts of adopting ASC 606 on the Company's consolidated financial statements for the twelve months ended December 31, 2018 : Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Operations Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Revenue Net sales $ 5,247.7 $ (28.5 ) (1) $ 5,219.2 Other revenue 323.6 (200.7 ) (2) 122.9 Total revenue 5,571.3 (229.2 ) 5,342.1 Costs and expenses Cost of sales 2,364.0 (277.4 ) (3) 2,086.6 SG&A expenses 2,972.1 60.4 (4) 3,032.5 Operating profit 235.2 (12.2 ) 223.0 Income before income taxes 108.1 (12.2 ) 95.9 Income taxes (129.9 ) 3.6 (126.3 ) Net loss (21.8 ) (8.6 ) (30.4 ) Net loss attributable to Avon (19.5 ) (8.6 ) (28.1 ) (1) Primarily relates to appointment kits, which were reclassified from SG&A, partially offset by the timing of recognition of sales incentives. (2) Relates to Representative fees (primarily brochure fees, late payment fees and certain other fees), which were reclassified from SG&A. Brochure fees were also impacted by the timing of recognition. (3) Primarily relates to the cost of sales incentives, the cost of brochures paid for by Representatives and the cost of appointment kits, which were reclassified from SG&A. The cost of sales incentives and the cost of brochures were also impacted by the timing of recognition. (4) Relates to the cost of sales incentives, which were reclassified to cost of sales and were also impacted by the timing of recognition. This was partially offset by Representative fees, which were reclassified to other revenue, and appointment kits, which were reclassified to net sales and cost of sales. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Other Comprehensive Income Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Foreign currency translation adjustments (48.7 ) (3.5 ) (52.2 ) Total other comprehensive loss, net of income taxes (104.4 ) (3.5 ) (107.9 ) Comprehensive loss (126.2 ) (12.1 ) (138.3 ) Comprehensive loss attributable to Avon (123.6 ) (12.1 ) (135.7 ) Impact of change in revenue recognition standard Line items impacted within the Consolidated Balance Sheets Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Accounts receivable, net $ 349.7 $ (8.2 ) (1) $ 341.5 Inventories 542.0 (42.8 ) (2) 499.2 Prepaid expenses and other 272.0 47.8 (2) 319.8 Total current assets 1,762.0 (3.2 ) 1,758.8 Other assets 603.0 (10.1 ) (3) 592.9 Total assets 3,010.0 (13.3 ) 2,996.7 Liabilities, Series C Convertible Preferred Stock and Shareholders’ Deficit Other accrued liabilities 451.3 (38.0 ) (4) 413.3 Income taxes 15.9 (3.6 ) 12.3 Total current liabilities 1,496.5 (41.6 ) 1,454.9 Other liabilities 72.1 (0.7 ) 71.4 Total liabilities 3,414.7 (42.3 ) 3,372.4 Retained earnings 2,234.3 32.5 (5) 2,266.8 Accumulated other comprehensive loss (1,030.4 ) (3.5 ) (1,033.9 ) Total Avon shareholders’ deficit (904.5 ) 29.0 (875.5 ) Total shareholders’ deficit (896.8 ) 29.0 (867.8 ) Total liabilities, series C convertible preferred stock and shareholders’ deficit 3,010.0 (13.3 ) 2,996.7 (1) Relates to sales returns, which were reclassified from a reduction of accounts receivable to a refund liability (within other accrued liabilities) and a returns asset (within prepaid expenses and other). (2) Primarily relates to sales incentives and brochures, both of which were reclassified from prepaid expenses and other to inventories, and were also impacted by the timing of recognition. In addition, prepaid expenses and other was impacted by the timing of recognition of brochures, as well as the reclassification of sales returns (described above). (3) Relates to deferred tax assets associated with the cumulative-effect adjustment. (4) Primarily relates to the contract liability for sales incentives, which is partially offset by the lower accrual for sales incentives. In addition, other accrued liabilities was impacted by the reclassification of sales returns (described above). (5) Relates to the $41.1 cumulative-effect adjustment upon adoption of ASC 606, partially offset by the year-to-date $8.6 net loss adjustment. Impact of change in revenue recognition standard Line items impacted within the Consolidated Statements of Cash Flows Per consolidated financial statements Adjustments Balances excluding the impact of adopting ASC 606 Cash Flows from Operating Activities Net loss $ (21.8 ) $ (8.6 ) $ (30.4 ) Other 18.5 (3.5 ) 15.0 Accounts receivable (102.8 ) (.4 ) (103.2 ) Inventories (99.6 ) 3.5 (96.1 ) Prepaid expenses and other (49.3 ) 3.9 (45.4 ) Accounts payable and accrued liabilities 73.1 10.5 83.6 Income and other taxes 63.2 (3.6 ) 59.6 Noncurrent assets and liabilities 42.8 (1.8 ) 41.0 |
Discontinued Operations and A_2
Discontinued Operations and Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The major classes of financial statement components comprising the loss on discontinued operations, net of tax for North America are shown below: Year ended December 31, 2016 Total revenue $ 135.2 Cost of sales 53.2 SG&A expenses 91.5 Operating (loss) income (9.5 ) Other income (expense) items .6 Loss from discontinued operations, before tax (8.9 ) Loss on sale of discontinued operations, before tax (15.6 ) Income taxes 10.5 Loss from discontinued operations, net of tax $ (14.0 ) The major classes of assets and liabilities comprising Held for sale assets and Held for sale liabilities on the Consolidated Balance Sheet as of December 31, 2018 are shown in the following table. There were no assets or liabilities held for sale at December 31, 2017 or 2016. 2018 Avon Manufacturing (Guangzhou) Rye Office Malaysia Maximin Total Current held for sale assets Inventories $ 8.7 $ — $ — $ 8.7 Property, Plant & Equipment (net) 36.7 12.3 3.0 52.0 Cash and cash equivalents 3.7 — — 3.7 Other assets 1.1 — 0.1 1.2 $ 50.2 $ 12.3 $ 3.1 $ 65.6 Current held for sale liabilities Accounts payable 8.6 — — 8.6 Other liabilities 2.6 — 0.2 2.8 $ 11.2 $ — $ .2 $ 11.4 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present the related party transactions with New Avon, affiliates of Cerberus and the Instituto Avon in Brazil. There are no other related party transactions. New Avon is majority owned and managed by Cerberus NA. See Note 3, Discontinued Operations and Assets and Liabilities Held for Sale and Note 4, Investment in New Avon for further details. Year Ended December 31, Year Ended December 31, 2018 2017 Statement of Operations Data Revenue from sale of product to New Avon (1) $ 25.7 $ 32.5 Gross profit from sale of product to New Avon (1) $ 1.6 $ 1.9 Cost of sales for purchases from New Avon (2) $ 2.9 $ 3.8 SG&A expenses: Transition services, intellectual property, research and development and subleases (3) $ (5.9 ) $ (32.2 ) Project management team (4) 1.2 2.6 Net reduction of SG&A expenses $ (4.7 ) $ (29.6 ) Interest income from Instituto Avon (5) $ .1 — December 31, 2018 December 31, 2017 Balance Sheet Data Inventories (6) $ .3 $ .4 Receivables due from New Avon (7) $ 7.0 $ 9.8 Receivables due from Instituto Avon (5) $ 3.2 $ — Payables due to New Avon (8) $ .2 $ .2 Payables due to an affiliate of Cerberus (9) $ .6 $ .4 (1) The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $25.7 and $32.5 , within other revenue, and gross profit of $1.6 and $1.9 associated with this agreement during the years ended December 31, 2018 and 2017 , respectively. (2) New Avon also supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $2.8 and $3.2 from New Avon associated with this agreement during the years ended December 31, 2018 and 2017 , respectively, and recorded $2.9 and $3.8 associated with these purchases within cost of sales during the years ended December 31, 2018 and 2017 , respectively. (3) The Company also entered into a transition services agreement to provide certain services to New Avon, which expired on October 31, 2018, 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 $5.9 and $32.2 reduction of SG&A expenses associated with these agreements during the years ended December 31, 2018 and 2017 , 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 and Open Up Avon strategy (“Open Up Avon”) announced in September 2018. The Company recorded $1.2 and $2.6 in SG&A expenses associated with these agreements during the years ended December 31, 2018 and 2017 , respectively. See Note 17, Restructuring Initiatives for additional information related to the Transformation Plan and Open Up Avon. (5) During the second quarter of 2018, the Company entered into an agreement to loan the Instituto Avon, an independent non-government charitable organization in Brazil, $3.6 for an unsecured 5 -year term at a fixed interest rate of 7% per annum, to be paid back in 5 equal annual installments. The Instituto Avon was created by an Avon subsidiary in Brazil, with the board and executive team comprise of Avon Brazil management. The purpose of the loan is to provide the Instituto Avon with the means to donate funds to Fundação Pio XII (a leading cancer prevention and treatment organization in Brazil and owner of the Hospital do Câncer de Barretos), in order to invest in equipment with the objective of expanding breast cancer prevention and treatment. (6) 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. (7) 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. (8) 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. (9) 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. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue by Product and Service | In the following table, revenue is disaggregated by product or service type. All revenue is recognized at a point in time, when control of a product is transferred to a customer: Twelve Months Ended December 31, 2018 Reportable segments Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Total reportable segments Other operating segments and business activities Total Beauty: Skincare $ 619.2 $ 564.3 $ 166.9 $ 124.3 $ 1,474.7 $ 6.4 $ 1,481.1 Fragrance 636.6 483.9 218.1 89.5 1,428.1 2.9 1,431.0 Color 398.7 310.7 81.8 54.1 845.3 4.8 850.1 Total Beauty 1,654.5 1,358.9 466.8 267.9 3,748.1 14.1 3,762.2 Fashion & Home: Fashion 298.0 190.6 94.4 167.8 750.8 3.0 753.8 Home 45.3 283.4 204.2 28.4 561.3 2.0 563.3 Total Fashion & Home 343.3 474.0 298.6 196.2 1,312.1 5.0 1,317.1 Brazil IPI tax release * — 168.4 — — 168.4 — 168.4 Net sales 1,997.8 2,001.3 765.4 464.1 5,228.6 19.1 5,247.7 Representative fees 95.3 135.7 43.9 6.5 281.4 2.0 283.4 Other 0.7 9.9 — 0.2 10.8 29.4 40.2 Other revenue 96.0 145.6 43.9 6.7 292.2 31.4 323.6 Total revenue $ 2,093.8 $ 2,146.9 $ 809.3 $ 470.8 $ 5,520.8 $ 50.5 $ 5,571.3 * Includes the impact of the Brazil IPI tax release, which was recorded in net sales and other (income) expense, net in the amounts of approximately $168 and approximately $27 , respectively, in our Consolidated Income Statements (See Note 19, Contingencies for further information). |
Summary of Receivables and Contract Liabilities | The following table provides information about receivables and contract liabilities from contracts with customers at December 31, 2018 : December 31, 2018 Accounts receivable, net of allowances of $93.0 $ 349.7 Contract liabilities $ 84.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories at December 31 consisted of the following: 2018 2017 Raw materials $ 157.8 $ 190.6 Finished goods 384.2 407.6 Total $ 542.0 $ 598.2 |
Debt and Other Financing (Table
Debt and Other Financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at December 31 consisted of the following: 2018 2017 Debt maturing within one year: Notes payable $ 8.8 $ 22.6 Current portion of long-term debt 3.2 3.1 Total $ 12.0 $ 25.7 Long-term debt: 6.50% Notes, due March 2019 $ — $ 237.2 4.60% Notes, due March 2020 386.4 408.8 7.875% Senior Secured Notes, due August 2022 494.2 492.6 5.00% Notes, due March 2023 458.5 484.5 Other debt, payable through 2025 with interest from .4% to 12.1% 4.6 5.2 6.95% Notes, due March 2043 241.1 241.0 Total 1,584.8 1,869.3 Unamortized deferred gain - swap terminations — 6.0 Less current portion (3.2 ) (3.1 ) Total long-term debt $ 1,581.6 $ 1,872.2 |
Schedule of Carrying Values of Public Notes | At December 31, 2018 and 2017 , the carrying values of our public notes were comprised of the following: 2018 2017 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 4.60% Notes, due March 2020 387.0 (.1 ) (.5 ) 386.4 409.9 (.2 ) (.9 ) 408.8 5.00% Notes, due March 2023 461.9 (1.9 ) (1.5 ) 458.5 488.9 (2.5 ) (1.9 ) 484.5 6.95% Notes, due March 2043 243.9 (.6 ) (2.2 ) 241.1 243.8 (.6 ) (2.2 ) 241.0 |
Schedule of Maturities of Long-term Debt | Annual maturities of long-term debt, which includes our notes and capital leases outstanding at December 31, 2018 , are as follows: 2019 2020 2021 2022 2023 2024 and Beyond Total Maturities $ 1.1 $ 387.6 $ 0.4 $ 500.2 $ 462.0 $ 243.9 $ 1,595.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below present the changes in AOCI by component and the reclassifications out of AOCI during 2018 and 2017 : Foreign Currency Translation Adjustments Cash Flow Hedges Net Investment Hedges Pension and Postretirement Benefits Investment in New Avon Total Balance at December 31, 2017 $ (829.6 ) $ — $ (4.3 ) $ (95.7 ) $ 3.4 $ (926.2 ) Other comprehensive (loss) income other than reclassifications (106.6 ) .5 — (8.6 ) — (114.7 ) Reclassifications into earnings: Derivative gains on cash flow hedges, net of tax of $0.0 — — — — — — Amortization of net actuarial loss and prior service cost, net of tax of $.6 (1) — — — 10.5 — 10.5 Total reclassifications into earnings — — 10.5 — 10.5 Balance at December 31, 2018 $ (936.2 ) $ 0.5 $ (4.3 ) $ (93.8 ) $ 3.4 $ (1,030.4 ) 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 ) (1) Gross amount reclassified to other expense, net, and related taxes reclassified to income taxes. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income from Continuing Operations before Taxes | ncome from continuing operations, before taxes for the years ended December 31 was as follows: 2018 2017 2016 United States $ 39.3 $ (147.6 ) $ (403.0 ) Foreign 68.8 268.3 434.2 Total $ 108.1 $ 120.7 $ 31.2 |
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31 was as follows: 2018 2017 2016 Federal: Current $ (6.1 ) $ — $ — Deferred 3.7 (34.0 ) — Total Federal (2.4 ) (34.0 ) — Foreign: Current 182.3 130.6 128.5 Deferred (53.0 ) 3.8 (4.2 ) Total Foreign 129.3 134.4 124.3 State and Local: Current 3.0 .3 .3 Deferred — — — Total State and other 3.0 .3 .3 Total $ 129.9 $ 100.7 $ 124.6 |
Schedule of Effective Tax Rate | The effective tax rate for the years ended December 31 was as follows: 2018 2017 2016 Statutory federal rate 21.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.2 .2 .6 U.S. Tax Reform — (24.7 ) — Tax on foreign income (16.2 ) 6.0 (24.4 ) Tax on uncertain tax positions - Brazil 67.4 — — Tax on uncertain tax positions - Rest of World 8.5 (3.6 ) 34.1 Reorganizations (91.3 ) — (93.6 ) Net change in valuation allowances 128.3 62.4 375.1 Venezuela deconsolidation, devaluation and highly inflationary accounting — — 23.9 Imputed royalties and associated non-deductible expenses .6 9.5 50.3 Research credits (1.3 ) (1.3 ) (5.4 ) Other 1.0 (.1 ) 3.8 Effective tax rate 120.2 % 83.4 % 399.4 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) at December 31 consisted of the following: 2018 2017 Deferred tax assets: Tax loss and deduction carryforwards $ 2,144.3 $ 2,022.1 Tax credit carryforwards 830.5 981.0 All other future deductions 560.8 471.0 Valuation allowance (3,257.5 ) (3,217.7 ) Total deferred tax assets 278.1 256.4 Deferred tax liabilities $ (85.1 ) $ (74.9 ) Net deferred tax assets $ 193.0 $ 181.5 |
Schedule of Deferred Tax Assets (Liabilities) Classification | Deferred tax assets (liabilities) at December 31 were classified as follows: 2018 2017 Deferred tax assets: Other assets $ 212.6 $ 203.8 Total deferred tax assets 212.6 203.8 Deferred tax liabilities: Long-term income taxes $ (19.6 ) $ (22.3 ) Total deferred tax liabilities (19.6 ) (22.3 ) Net deferred tax assets $ 193.0 $ 181.5 |
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, 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 Additions based on tax positions related to the current year 43.6 Additions for tax positions of prior years 65.5 Reductions for tax positions of prior years (3.7 ) Reductions due to lapse of statute of limitations (.9 ) Reductions due to settlements with tax authorities (15.4 ) Balance at December 31, 2018 $ 137.6 |
Tax Years Remaining | As of December 31, 2018, the tax years that remained subject to examination by major tax jurisdiction for our most significant subsidiaries were as follows: Jurisdiction Open Years Brazil 2013-2018 Mexico 2013-2018 Philippines 2014-2018 Poland 2013-2018 Russia 2017-2018 United Kingdom 2017-2018 United States (Federal) 2017-2018 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value Available-for-sale securities $ 3.8 $ 3.8 $ 3.7 $ 3.7 Debt maturing within one year (1) (12.0 ) (12.0 ) (25.7 ) (25.7 ) Long-term debt (1) (1,581.6 ) (1,460.2 ) (1,872.2 ) (1,718.6 ) Foreign exchange forward contracts (5.1 ) (5.1 ) — — (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, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Allocation of Share-based Compensation Costs | For the years ended December 31: 2018 2017 2016 Compensation cost for stock options, performance restricted stock units and restricted stock units $ 13.8 $ 24.2 $ 24.0 Total income tax benefit recognized for share-based arrangements 2.0 1.4 1.9 |
Schedule of Valuation Assumptions | When estimating the fair value of each option, we used the following weighted-average assumptions for options granted during the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 Risk-free rate (1) 2.7% 2.1% 1.6% Expected term (2) 7 years 7 years 7 years Expected Avon volatility (3) 42% 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, 2018 , and changes during 2018 , is as follows: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 17,165 $ 14.95 Granted 5,952 3.49 Exercised — — Forfeited 1,082 5.82 Expired 3,073 34.27 Outstanding at December 31, 2018 18,962 $ 9.05 6.4 $ — Exercisable at December 31, 2018 8,679 $ 14.05 4.1 $ — |
Schedule of Share-based Payment Award, Performance Restricted Stock Units, Valuation Assumptions | When estimating the fair value of the 2018 PRSUs, 2017 PRSUs, 2016 PRSUs and the 2015 PRSUs, we used the following weighted-average assumptions: 2018 PRSUs 2017 PRSUs 2016 PRSUs 2015 PRSUs Risk-free rate (1) 2.5% 1.6% 1.1% 1.1% Expected Avon volatility (2) 61.4% 61% 56% 38% Expected average volatility (3) 29.5% 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 2018 PRSUs, 2017 PRSUs and 2016 PRSUs and the three year service period of the 2016 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 2018 PRSUs. 2017 PRSUs and 2016 PRSUs. |
Schedule of Restricted Stock and Units Activity During Period | A summary of restricted stock units at December 31, 2018 , and changes during 2018 , is as follows: Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2018 4,804 $ 5.26 Granted 2,433 2.61 Vested (1,705 ) 7.06 Forfeited (534 ) 4.45 December 31, 2018 4,998 $ 3.37 |
Schedule of Share-Based Compensation Performance Restricted Stock Units Activity | A summary of performance restricted stock units at December 31, 2018 , and changes during 2018 , is as follows: Performance Restricted Stock Units (in 000’s) Weighted-Average Grant-Date Fair Value January 1, 2018 (1) 4,356 $ 5.50 Granted 1,301 2.93 Vested (986 ) 7.49 Forfeited (1,494 ) 5.93 December 31, 2018 (1) 3,177 $ 3.76 (1) Based on initial target payout. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Summary of Defined Benefit Pension and Postretirement Plans | The following table summarizes changes in the benefit obligation, plan assets and the funded status of our significant defined benefit pension and postretirement plans. We use a December 31 measurement date for all of our employee benefit plans. Pension Plans U.S. Plans Non-U.S. Plans Postretirement Benefits 2018 2017 2018 2017 2018 2017 Change in Benefit Obligation: Beginning balance $ (88.9 ) $ (87.6 ) $ (714.2 ) $ (652.9 ) $ (28.2 ) $ (26.0 ) Service cost (2.9 ) (4.3 ) (4.7 ) (4.6 ) (.1 ) (.1 ) Interest cost (2.3 ) (3.0 ) (15.4 ) (18.0 ) (1.1 ) (1.3 ) Actuarial (loss) gain 9.9 .6 47.4 (15.5 ) 1.2 .3 Benefits paid 7.8 5.4 35.5 42.5 1.4 .4 Actual expenses and taxes — — 0.5 — — — Plan amendments — — (2.2 ) — — — Curtailments 1.7 — — — — — Settlements — — 2.6 — — — Special termination benefits — — — — (.1 ) — Foreign currency changes and other — — 33.5 (65.7 ) .9 (1.5 ) Ending balance $ (74.7 ) $ (88.9 ) $ (617.0 ) $ (714.2 ) $ (26.0 ) $ (28.2 ) Change in Plan Assets: Beginning balance $ 63.1 $ 51.4 $ 705.4 $ 613.7 $ — $ — Actual return on plan assets (5.4 ) 5.5 (27.7 ) 49.9 — — Company contributions 12.8 11.6 11.6 19.7 1.4 .4 Benefits paid (7.8 ) (5.4 ) (35.5 ) (42.5 ) (1.4 ) (.4 ) Settlements — — (2.6 ) — — — Foreign currency changes and other — — (35.4 ) 64.6 — — Ending balance $ 62.7 $ 63.1 $ 615.8 $ 705.4 $ — $ — Funded Status: Funded status at end of year $ (12.0 ) $ (25.8 ) $ (1.2 ) $ (8.8 ) $ (26.0 ) $ (28.2 ) Amount Recognized in Balance Sheet: Other assets $ — $ — $ 88.1 $ 82.0 $ — $ — Accrued compensation (1.0 ) (1.0 ) (2.8 ) (2.2 ) (4.5 ) (2.7 ) Employee benefit plans liability (11.0 ) (24.8 ) (86.5 ) (88.6 ) (21.5 ) (25.5 ) Net amount recognized $ (12.0 ) $ (25.8 ) $ (1.2 ) $ (8.8 ) $ (26.0 ) $ (28.2 ) Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: Net actuarial loss $ 33.1 $ 41.4 $ 173.6 $ 176.8 $ — $ 1.2 Prior service (credit) cost (.1 ) (.2 ) 1.3 (.9 ) .6 (1.3 ) Total pretax amount recognized $ 33.0 $ 41.2 $ 174.9 $ 175.9 $ .6 $ (.1 ) Supplemental Information: Accumulated benefit obligation $ 72.7 $ 85.9 $ 179.9 $ 199.8 N/A N/A Plans with Projected Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 74.7 $ 88.9 $ 195.3 $ 216.7 N/A N/A Fair value plan assets 62.7 63.1 106.0 125.9 N/A N/A Plans with Accumulated Benefit Obligation in Excess of Plan Assets: Projected benefit obligation $ 74.7 $ 88.9 $ 185.7 $ 202.0 N/A N/A Accumulated benefit obligation 72.7 85.9 174.6 191.9 N/A N/A Fair value plan assets 62.7 63.1 98.0 114.0 N/A N/A |
Schedule of Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net Periodic Benefit Cost: Service cost $ 2.9 $ 4.3 $ 6.4 $ 4.7 $ 4.6 $ 5.0 $ .1 $ .1 $ .1 Interest cost 2.3 3.0 6.5 15.4 18.0 21.8 1.1 1.3 1.7 Expected return on plan assets (3.5 ) (3.2 ) (8.2 ) (31.9 ) (28.2 ) (33.0 ) — — — Amortization of prior service credit — (.1 ) (.2 ) (.1 ) (.1 ) (.1 ) (.4 ) (.3 ) (1.2 ) Amortization of net actuarial losses 4.1 5.2 10.8 6.8 7.6 6.5 — .1 .3 Settlements/curtailments 1.4 — .1 (.4 ) 3.7 .3 (.3 ) — (.1 ) Other — — — (.7 ) — .1 1.6 — Net periodic benefit cost (1) $ 7.2 $ 9.2 $ 15.4 $ (5.5 ) $ 4.9 $ .5 $ .7 $ 2.8 $ .8 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Actuarial (gains) losses $ (2.8 ) $ (2.9 ) $ 13.6 $ 12.2 $ (7.4 ) $ (24.6 ) $ (1.2 ) $ (.3 ) $ (2.6 ) Prior service cost (credit) — — — 2.2 — — — 1.0 Amortization of prior service credit .1 .1 1.3 .1 .1 .1 .6 .3 26.7 Amortization of net actuarial losses (5.6 ) (5.2 ) (274.4 ) (6.4 ) (11.3 ) (7.8 ) — (.1 ) (11.3 ) Foreign currency changes — — — (9.1 ) 18.9 (29.6 ) — — (.1 ) Total recognized in other comprehensive (loss) income* $ (8.3 ) $ (8.0 ) $ (259.5 ) $ (1.0 ) $ .3 $ (61.9 ) $ (.6 ) $ (.1 ) $ 13.7 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (1.1 ) $ 1.2 $ (244.1 ) $ (6.5 ) $ 5.2 $ (61.4 ) $ .1 $ 2.7 $ 14.5 (1) Includes $4.4 of the U.S. pension plans in 2016, and immaterial amounts of the postretirement benefit plans (related to the U.S.) in 2016, 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 2019 are as follows: Pension Benefits U.S. Plans Non-U.S. Plans Postretirement Benefits Net actuarial loss $ 3.0 $ 5.0 $ — Prior service credit — — (.2 ) |
Weighted-Average Assumptions Used to Determine Benefit Obligations | Weighted-average assumptions used to determine benefit obligations recorded in our Consolidated Balance Sheets as of December 31 were as follows: Pension Benefits Postretirement U.S. Plans Non-U.S. Plans Benefits 2018 2017 2018 2017 2018 2017 Discount rate 4.24 % 3.48 % 2.91 % 2.56 % 5.17 % 4.75 % Rate of compensation increase 4.00 % 4.00 % 2.69 % 2.71 % 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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.48 % 3.67 % 4.19 % 2.56 % 2.69 % 3.58 % 4.75 % 5.33 % 4.50 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 2.71 % 2.79 % 2.94 % N/A N/A N/A Rate of return on assets 5.50 % 5.50 % 7.00 % 5.20 % 5.09 % 6.40 % N/A N/A N/A |
Pension and Postretirement Plans Target and Weighted-Average Asset Allocations | Our U.S. and non-U.S. funded defined benefit pension plans target and weighted-average asset allocations at December 31, 2018 and 2017 , 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 2019 2018 2017 2019 2018 2017 Equity securities 30 % 30 % 30 % 15 % 16 % 18 % Debt securities 70 70 70 80 79 77 Other — — — 5 5 6 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, 2018 : U.S. Pension Plan Asset Category Level 1 Level 2 Total Equity Securities: Domestic equity $ — $ 8.4 $ 8.4 International equity — 6.3 6.3 Emerging markets — 1.8 1.8 — 16.5 16.5 Fixed Income Securities: Corporate bonds — 32.2 32.2 Government securities — 13.3 13.3 — 45.5 45.5 Cash .7 .7 Total $ .7 $ 62.0 $ 62.7 Non-U.S. Pension Plans Asset Category Level 1 Level 2 Level 3 Total Equity Securities: Domestic equity $ — $ 25.8 $ — $ 25.8 International equity — 72.5 — 72.5 — 98.3 — 98.3 Fixed Income Securities: Corporate bonds — 212.7 — 212.7 Government securities — 201.7 — 201.7 Other — 70.1 — 70.1 — 484.5 — 484.5 Other Cash 35.1 — — 35.1 Derivatives — (4.1 ) — (4.1 ) Real estate — — 2.0 2.0 Other — — — — 35.1 (4.1 ) 2.0 33.0 Total $ 35.1 $ 578.7 $ 2.0 $ 615.8 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 (3) $ — $ 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 — 34.1 — 34.1 Real estate — — .9 .9 Other — — .6 .6 29.3 9.8 1.5 40.6 Total $ 29.3 $ 674.6 $ 1.5 $ 705.4 |
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, 2017 $ 1.5 Actual return on plan assets held (.1 ) Foreign currency changes .1 Balance at December 31, 2017 1.5 Purchases and sales net (.7 ) Actual return on plan assets held 1.4 Foreign currency changes (.2 ) Balance at December 31, 2018 $ 2.0 |
Schedule of 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 2019 $ 12.6 $ 41.1 $ 53.7 $ 4.5 2020 21.4 40.4 61.8 2.4 2021 5.5 41.2 46.7 2.3 2022 4.6 52.6 57.2 2.2 2023 4.0 54.8 58.8 2.1 2024-2028 15.8 280.7 296.5 8.7 |
Schedule of Assets Held in Trust | The assets held in the trust are included in other assets and at December 31 consisted of the following: 2018 2017 Corporate-owned life insurance policies $ 35.8 $ 36.0 Cash and cash equivalents 1.2 1.1 Total $ 37.0 $ 37.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Total Revenue | Total Revenue 2018 2017 2016 Europe, Middle East & Africa $ 2,093.8 $ 2,126.5 $ 2,138.2 South Latin America (2) 2,146.9 2,222.4 2,145.9 North Latin America 809.3 811.8 829.9 Asia Pacific 470.8 471.9 494.0 Total segment revenue 5,520.8 5,632.6 5,608.0 Other operating segments and business activities 50.5 83.0 109.7 Total revenue $ 5,571.3 $ 5,715.6 $ 5,717.7 |
Schedule of Operating Profit | Operating Profit 2018 2017 2016 Segment Profit Europe, Middle East & Africa $ 267.5 $ 329.6 $ 322.8 South Latin America (2) 314.6 195.7 201.1 North Latin America 70.4 83.4 116.1 Asia Pacific 42.0 50.8 62.5 Total segment profit (2) 694.5 659.5 702.5 Other operating segments and business activities 3.6 2.5 4.1 Unallocated global expenses (282.4 ) (302.3 ) (332.6 ) CTI restructuring initiatives (180.5 ) (60.2 ) (77.4 ) Loss contingency — (18.2 ) — Legal settlement (1) — — 27.2 Operating profit (2) $ 235.2 $ 281.3 $ 323.8 (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. (2) Includes the impact of the Brazil IPI tax release, which was recorded in net sales and other (income) expense, net in the amounts of approximately $168 and approximately $27 , respectively, in our Consolidated Income Statements (See Note 19, Contingencies for further information). |
Schedule of Total Assets | Total Assets 2018 2017 2016 Europe, Middle East & Africa $ 1,048.8 $ 1,190.5 $ 949.3 South Latin America 1,001.0 1,273.6 1,306.3 North Latin America 329.7 335.8 344.4 Asia Pacific 272.0 278.2 291.8 Total from reportable segments 2,651.5 3,078.1 2,891.8 Total from discontinued operations — — 1.3 Other operating segments 5.4 18.9 6.5 Global 353.1 600.9 519.3 Total assets $ 3,010.0 $ 3,697.9 $ 3,418.9 |
Schedule of Capital Expenditures | Capital Expenditures 2018 2017 2016 Europe, Middle East & Africa $ 37.0 $ 29.4 $ 18.8 South Latin America 27.5 35.4 39.2 North Latin America 9.1 12.9 11.7 Asia Pacific 2.9 2.3 4.3 Total from reportable segments 76.5 80.0 74.0 Other operating segments — — 0.2 Global 18.4 17.3 18.8 Total capital expenditures $ 94.9 $ 97.3 $ 93.0 |
Schedule of Depreciation and Amortization | Depreciation and Amortization 2018 2017 2016 Europe, Middle East & Africa $ 27.3 $ 29.9 $ 28.2 South Latin America 30.1 34.3 30.9 North Latin America 14.2 13.6 13.1 Asia Pacific 8.3 8.9 10.4 Total from reportable segments 79.9 86.7 82.6 Other operating segments .3 .4 1.3 Global 27.5 26.9 30.0 Total depreciation and amortization $ 107.7 $ 114.0 $ 113.9 |
Schedule of Total Revenue by Major Country | A major country is defined as one with total revenues greater than 10% of consolidated total revenues. 2018 2017 2016 Brazil $ 1,262.8 $ 1,263.8 $ 1,220.4 All other 4,308.5 4,451.8 4,497.3 Total $ 5,571.3 $ 5,715.6 $ 5,717.7 |
Schedule of 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. 2018 2017 2016 Brazil $ 283.2 $ 396.9 $ 400.9 U.S. 152.6 174.4 196.1 All other 458.0 554.3 559.9 Total $ 893.7 $ 1,125.6 $ 1,156.9 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule Of Minimum Rental Commitments And Purchase Obligations | Minimum rental commitments under noncancelable operating leases, primarily for equipment and office facilities at December 31, 2018 , are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase 2019 $ 56.4 $ 345.6 2020 42.0 186.4 2021 35.3 87.5 2022 31.1 37.1 2023 22.4 7.9 Later years 46.9 5.9 Sublease rental income (103.8 ) N/A Total $ 130.3 $ 670.4 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Reserve | The liability balance for the restructuring actions, primarily associated with our Transformation Plan, at December 31, 2018 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total 2016 charges $ 73.4 $ 0.4 $ 2.7 $ 8.7 $ 85.2 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 2018 charges $ 29.5 $ 1.4 $ 0.7 $ 5.5 $ 37.1 Adjustments (12.6 ) — — (3.4 ) (16.0 ) Cash payments (21.3 ) — — (6.3 ) (27.6 ) Non-cash write-offs — (1.4 ) (0.7 ) — (2.1 ) Foreign exchange (2.4 ) — — (.2 ) (2.6 ) Balance at December 31, 2018 $ 34.4 $ — $ — $ 3.6 $ 38.0 The liability balance for the restructuring actions, primarily associated with Open Up Avon, at December 31, 2018 is as follows: Employee-Related Costs Inventory Write-offs Foreign Currency Translation Adjustment Write-offs Contract Terminations/Other Total Balance at December 31, 2017 $ — $ — $ — $ — $ — 2018 charges $ 26.4 $ 88.5 $ — $ 0.8 $ 115.7 Adjustments — — — — — Cash payments (6.8 ) — — 0.3 (6.5 ) Non-cash write-offs — (88.5 ) — — (88.5 ) Foreign exchange — — — — — Balance at December 31, 2018 $ 19.6 $ — $ — $ 1.1 $ 20.7 |
Schedule of Restructuring and Related Costs | The following table presents the restructuring charges incurred to date, under the Transformation Plan and Open Up Avon, along with the estimated charges expected to be incurred on approved initiatives under the plans: Employee- Related Costs Inventory/ Asset Write-offs Contract Terminations/Other Foreign Currency Translation Adjustment Write-offs Total Transformation Plan Charges incurred to-date $ 128.0 $ 2.2 $ 40.7 $ 3.4 $ 174.3 Estimated charges to be incurred on approved initiatives — — — — — Total expected charges on approved initiatives $ 128.0 $ 2.2 $ 40.7 $ 3.4 $ 174.3 Open Up Avon Charges incurred to-date $ 26.3 $ 88.5 $ 2.3 $ — $ 117.1 Estimated charges to be incurred on approved initiatives — — .5 — .5 Total expected charges on approved initiatives $ 26.3 $ 88.5 $ 2.8 $ — $ 117.6 |
Schedule of Restructuring Charges Reportable | 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 plans, by reportable segment are as follows: Europe, Middle East & Africa South Latin America North Latin America Asia Pacific Global & Other Operating Segments Total Transformation Plan 2015 $ — $ — $ — $ — $ 21.4 $ 21.4 2016 30.9 13.2 4.4 9.1 16.8 74.4 2017 .9 5.6 (.6 ) (.5 ) 49.4 54.8 2018 5.0 4.1 .6 .6 13.4 23.7 Charges incurred to-date 36.8 22.9 4.4 9.2 101.0 174.3 Estimated charges to be incurred on approved initiatives — — — — — — Total expected charges on approved initiatives $ 36.8 $ 22.9 $ 4.4 $ 9.2 $ 101.0 $ 174.3 Open Up Avon 2018 32.2 36.4 27.9 14.4 6.2 117.1 Charges incurred to-date 32.2 36.4 27.9 14.4 6.2 117.1 Estimated charges to be incurred on approved initiatives — — — — .5 .5 Total expected charges on approved initiatives $ 32.2 $ 36.4 $ 27.9 $ 14.4 $ 6.7 $ 117.6 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Adjustments to Goodwill | Goodwill Europe, Middle East & Africa South Latin America Asia Pacific Total 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 Changes during the period ended December 31, 2018: Divestitures $ — $ — $ — $ — Impairment — — — — Foreign exchange (2.4 ) (5.9 ) — (8.3 ) Gross balance at December 31, 2018 $ 24.9 $ 66.8 $ 85.0 $ 176.7 Accumulated impairments (6.9 ) — (82.4 ) (89.3 ) Net balance at December 31, 2018 $ 18.0 $ 66.8 $ 2.6 $ 87.4 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Prepaid Expenses and Other | At December 31, 2018 and 2017 , prepaid expenses and other included the following: Components of Prepaid expenses and other 2018 2017 Prepaid taxes and tax refunds receivable $ 145.0 $ 111.6 Receivables other than trade 69.2 67.2 Prepaid brochure costs, paper and other literature 14.9 64.8 Other 42.9 52.8 Prepaid expenses and other $ 272.0 $ 296.4 |
Components of Other Assets | At December 31, 2018 and 2017 , other assets included the following: Components of Other assets 2018 2017 Deferred tax assets (Note 10) $ 212.6 $ 203.8 Capitalized software (Note 1) 89.3 85.2 Judicial deposits other than Brazil IPI tax (see below) 74.1 82.2 Net overfunded pension plans (Note 14) 88.1 82.0 Long-term receivables 73.2 75.6 Judicial deposit for Brazil IPI tax on cosmetics (Note 19) — 73.8 Trust assets associated with supplemental benefit plans (Note 14) 37.0 37.1 Tooling (plates and molds associated with our beauty products) 12.6 12.5 Investment in New Avon (Note 4) — — Other 16.1 14.0 Other assets $ 603.0 $ 666.2 |
Results of Operations by Quar_2
Results of Operations by Quarter (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Financial Results of Operations by Quarter | 2018 First Second Third Fourth Year Total revenue $ 1,393.5 $ 1,351.9 $ 1,424.2 $ 1,401.7 $ 5,571.3 Gross profit 813.8 812.2 885.8 695.5 3,207.3 Operating profit (1) 44.9 53.0 186.9 (49.6 ) 235.2 Income (Loss) from continuing operations, before taxes 10.4 (0.3 ) 182.1 (84.1 ) 108.1 (Loss) income from continuing operations, net of tax (2) (21.1 ) (37.0 ) 113.8 (77.5 ) (21.8 ) Net loss attributable to noncontrolling interests .8 .9 .7 (.1 ) 2.3 Net (loss) income attributable to Avon $ (20.3 ) $ (36.1 ) $ 114.5 $ (77.6 ) $ (19.5 ) (Loss) earnings per common share from continuing operations Basic $ (.06 ) $ (.09 ) $ .21 $ (.19 ) $ (.10 ) (3) Diluted (.06 ) (.09 ) .21 (.19 ) (.10 ) (3) 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) 29.8 32.7 87.3 131.5 281.3 (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 (income) 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 $ — (4) Diluted (.10 ) (.12 ) .01 .17 — (4) |
Components Impacting Results of Operations | (1) Operating profit (loss) was impacted by the following: 2018 First Second Third Fourth Year Brazil IPI tax release $ — $ — $ (168.4 ) $ — $ (168.4 ) Costs to implement restructuring initiatives: Cost of sales 0.6 0.5 (0.1 ) 90.5 91.5 SG&A expenses 10.3 23.2 19.9 35.6 89.0 Total costs to implement restructuring initiatives $ 10.9 $ 23.7 $ 19.8 $ 126.1 $ 180.5 2017 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ (.1 ) $ — $ — $ .7 $ .6 SG&A 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 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies (Narrative) (Details) | Dec. 17, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)channelregionshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares |
Property, Plant and Equipment [Line Items] | |||||||||||||||
Number of business channels | channel | 1 | ||||||||||||||
Number of regions where company has geographic operations | region | 4 | ||||||||||||||
Foreign currency exchange rate, increase (decrease) | (25.00%) | ||||||||||||||
Operating profit | $ (49,600,000) | $ 186,900,000 | $ 53,000,000 | $ 44,900,000 | $ 131,500,000 | $ 87,300,000 | $ 32,700,000 | $ 29,800,000 | $ 235,200,000 | $ 281,300,000 | $ 323,800,000 | ||||
Other expense, net | (7,100,000) | (34,600,000) | (172,900,000) | ||||||||||||
Income taxes | 129,900,000 | 100,700,000 | 124,600,000 | ||||||||||||
Loss on deconsolidation of Venezuela | 0 | 0 | (120,500,000) | ||||||||||||
Prepaid expenses and other | 272,000,000 | 296,400,000 | $ 272,000,000 | 272,000,000 | 296,400,000 | ||||||||||
Brochure costs | 244,000,000 | 244,700,000 | |||||||||||||
Brochure income | 117,000,000 | 139,400,000 | 138,600,000 | ||||||||||||
Capitalized software | 89,300,000 | 85,200,000 | 89,300,000 | 89,300,000 | 85,200,000 | ||||||||||
Amortization of capitalized software | 26,500,000 | 29,500,000 | 30,500,000 | ||||||||||||
Selling, general and administrative expenses | 2,972,100,000 | 3,231,000,000 | 3,136,900,000 | ||||||||||||
Advertising costs | 127,600,000 | 118,400,000 | 108,900,000 | ||||||||||||
Research and development costs | $ 48,000,000 | $ 52,900,000 | $ 52,100,000 | ||||||||||||
Amortization period for gains and losses, period 1 | 3 years | ||||||||||||||
Amortization period for gains and losses, period 2 | 5 years | ||||||||||||||
Stock options excluded from computation of earnings per share (in shares) | shares | 17,800,000 | 16,900,000 | 14,200,000 | ||||||||||||
Temporary equity, conversion, common stock equivalent (in shares) | shares | 87,051,524 | 87,100,000 | |||||||||||||
Affiliated Entity | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Sale of convertible preferred stock | $ 435,000,000 | ||||||||||||||
Deferred Brochure Costs | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Prepaid expenses and other | 5,900,000 | 26,600,000 | 5,900,000 | $ 5,900,000 | $ 26,600,000 | ||||||||||
Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | $ 39,200,000 | ||||||||||||||
Deconsolidation, foreign currency translation adjustments | (81,300,000) | ||||||||||||||
Other Expense | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Loss on deconsolidation of Venezuela | (120,500,000) | ||||||||||||||
Cost of sales | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Brochure costs | 113,500,000 | ||||||||||||||
SG&A expenses | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Brochure costs | 106,200,000 | ||||||||||||||
Liability | Argentina | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 33,000,000 | 33,000,000 | 33,000,000 | ||||||||||||
Assets | Argentina | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Inventories | Argentina | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 32,000,000 | 32,000,000 | $ 32,000,000 | ||||||||||||
Inventories | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 23,700,000 | ||||||||||||||
Property, Plant and Equipment | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 15,000,000 | ||||||||||||||
Other Assets | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 11,400,000 | ||||||||||||||
Accounts Receivable | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 4,600,000 | ||||||||||||||
Cash | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | 4,500,000 | ||||||||||||||
Accounts payable | Avon Venezuela | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Deconsolidation, carrying value of net assets | $ 20,000,000 | ||||||||||||||
Discontinued Operations | North America Segment | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Sale of convertible preferred stock | $ 435,000,000 | ||||||||||||||
Cash contribution into privately-held company | $ 100,000,000 | $ 100,000,000 | |||||||||||||
Percentage of ownership after transaction | 19.90% | 20.00% | 19.90% | ||||||||||||
Shipping and Handling | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Selling, general and administrative expenses | $ 503,500,000 | 530,800,000 | $ 489,300,000 | ||||||||||||
Minimum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Prepaid brochures, campaign period | 21 days | ||||||||||||||
Number of years used in calculating the estimated fair value of reporting units | 5 years | ||||||||||||||
Maximum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Prepaid brochures, campaign period | 28 days | ||||||||||||||
Number of years used in calculating the estimated fair value of reporting units | 10 years | ||||||||||||||
Buildings | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Estimated useful lives | 45 years | ||||||||||||||
Land Improvements | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Estimated useful lives | 20 years | ||||||||||||||
Machinery and Equipment | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Estimated useful lives | 15 years | ||||||||||||||
Office Equipment | Minimum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Estimated useful lives | 5 years | ||||||||||||||
Office Equipment | Maximum | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Estimated useful lives | 10 years | ||||||||||||||
Highly Inflationary Accounting | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Operating profit | (8,000,000) | ||||||||||||||
Other expense, net | 6,000,000 | ||||||||||||||
Income taxes | (2,000,000) | ||||||||||||||
Deferred Brochure Costs | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Inventory | $ 13,200,000 | $ 0 | $ 13,200,000 | $ 13,200,000 | $ 0 |
Description of the Business a_5
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator from continuing operations: | |||||||||||
Income (loss) from continuing operations less amounts attributable to noncontrolling interests | $ (19.5) | $ 22 | $ (93.6) | ||||||||
Less: Earnings (loss) allocated to participating securities | (0.2) | 0.3 | (1.2) | ||||||||
Less: Earnings allocated to convertible preferred stock | 24.3 | 23.1 | 18.4 | ||||||||
Loss from continuing operations allocated to common shareholders | (43.6) | (1.4) | (110.8) | ||||||||
Numerator from discontinued operations: | |||||||||||
Loss from discontinued operations less amounts attributable to noncontrolling interests | 0 | 0 | (14) | ||||||||
Less: Loss allocated to participating securities | 0 | 0 | (0.2) | ||||||||
Line items impacted within the Consolidated Statements of Operations | |||||||||||
Net income (loss) attributable to Avon less amounts attributable to noncontrolling interests | $ (77.6) | $ 114.5 | $ (36.1) | $ (20.3) | $ 91.5 | $ 12.5 | $ (45.5) | $ (36.5) | (19.5) | 22 | (107.6) |
Less: Earnings (loss) allocated to participating securities | (0.2) | 0.3 | (1.4) | ||||||||
Less: Earnings allocated to convertible preferred stock | 24.3 | 23.1 | 18.4 | ||||||||
Loss attributable to Avon allocated to common shareholders | $ (43.6) | $ (1.4) | $ (124.6) | ||||||||
Denominator: | |||||||||||
Basic EPS weighted-average shares outstanding (in shares) | 441.9 | 439.7 | 437 | ||||||||
Diluted effect of assumed conversion of stock options (in shares) | 0 | 0 | 0 | ||||||||
Diluted effect of assumed conversion of preferred stock (in shares) | 0 | 0 | 0 | ||||||||
Diluted EPS adjusted weighted-average shares outstanding (in shares) | 441.9 | 439.7 | 437 | ||||||||
Loss per Common Share from continuing operations: | |||||||||||
Basic from continuing operations (in dollars per share) | $ (0.19) | $ 0.21 | $ (0.09) | $ (0.06) | $ 0.17 | $ 0.01 | $ (0.12) | $ (0.10) | $ (0.10) | $ 0 | $ (0.25) |
Diluted from continuing operations (in dollars per share) | $ (0.19) | $ 0.21 | $ (0.09) | $ (0.06) | $ 0.17 | $ 0.01 | $ (0.12) | $ (0.10) | (0.10) | 0 | (0.25) |
Loss per Common Share from discontinued operations: | |||||||||||
Basic from discontinued operations (in dollars per share) | 0 | 0 | (0.03) | ||||||||
Diluted from discontinued operations (in dollars per share) | 0 | 0 | (0.03) | ||||||||
Loss per Common Share attributable to Avon: | |||||||||||
Basic attributable to Avon (in dollars per share) | (0.10) | 0 | (0.29) | ||||||||
Diluted attributable to Avon (in dollars per share) | $ (0.10) | $ 0 | $ (0.29) |
New Accounting Standards (Narra
New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating profit | $ (49.6) | $ 186.9 | $ 53 | $ 44.9 | $ 131.5 | $ 87.3 | $ 32.7 | $ 29.8 | $ 235.2 | $ 281.3 | $ 323.8 | ||
Prepaid expenses and other | (272) | (296.4) | (272) | (296.4) | |||||||||
Inventories | 542 | 598.2 | 542 | 598.2 | |||||||||
Other accrued liabilities | 451.3 | $ 405.6 | 451.3 | 405.6 | |||||||||
Contract liabilities | $ 91.8 | 84.4 | 84.4 | ||||||||||
Accounting Standards Update 2017-07 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating profit | $ 8 | $ 1.9 | |||||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating profit | (12.2) | ||||||||||||
Reduction to equity, before tax | 52.7 | ||||||||||||
Reduction to equity, net of tax | 41.1 | 41.1 | |||||||||||
Reduction to equity, tax | 11.6 | ||||||||||||
Prepaid expenses and other | 54.9 | (47.8) | (47.8) | ||||||||||
Inventories | 39.3 | (42.8) | (42.8) | ||||||||||
Other accrued liabilities | 37.1 | $ (38) | $ (38) | ||||||||||
Contract liabilities | 91.8 | ||||||||||||
Accrued sales commission | $ (54.7) | ||||||||||||
Forecast | Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Right-of-use asset | $ 200 | ||||||||||||
Lease liability | $ 195 |
New Accounting Standards (Summa
New Accounting Standards (Summary of Impact of ASC 606) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Revenue | |||||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 | ||
Costs, expenses and other: | |||||||||||||
Cost of sales | 2,364 | 2,203.3 | 2,257 | ||||||||||
Selling, general and administrative expenses | 2,972.1 | 3,231 | 3,136.9 | ||||||||||
Operating profit | (49.6) | 186.9 | 53 | 44.9 | 131.5 | 87.3 | 32.7 | 29.8 | 235.2 | 281.3 | 323.8 | ||
Income before income taxes | (84.1) | 182.1 | (0.3) | 10.4 | 91.6 | 48 | (12.2) | (6.7) | 108.1 | 120.7 | 31.2 | ||
Income taxes | (129.9) | (100.7) | (124.6) | ||||||||||
(Loss) income from continuing operations, net of tax | (77.5) | 113.8 | (37) | (21.1) | 90.4 | 11.9 | (45.8) | (36.5) | (21.8) | 20 | (93.4) | ||
Net (loss) income attributable to Avon | (77.6) | $ 114.5 | $ (36.1) | $ (20.3) | 91.5 | $ 12.5 | $ (45.5) | $ (36.5) | (19.5) | 22 | (107.6) | ||
Line items impacted within the Consolidated Statements of Other Comprehensive Income | |||||||||||||
Net loss | (21.8) | 20 | (107.4) | ||||||||||
Total other comprehensive (loss) income, net of taxes | (104.4) | 107.7 | 332.5 | ||||||||||
Comprehensive (loss) income | (126.2) | 127.7 | 225.1 | ||||||||||
Comprehensive (loss) income attributable to Avon | (123.6) | 129.2 | 227.2 | ||||||||||
Line items impacted within the Consolidated Balance Sheets | |||||||||||||
Accounts receivable, net | 349.7 | 457.2 | 349.7 | 457.2 | |||||||||
Inventories | 542 | 598.2 | 542 | 598.2 | |||||||||
Prepaid expenses and other | 272 | 296.4 | 272 | 296.4 | |||||||||
Total current assets | 1,762 | 2,233.3 | 1,762 | 2,233.3 | |||||||||
Other assets | 603 | 666.2 | 603 | 666.2 | |||||||||
Total assets | 3,010 | 3,697.9 | 3,010 | 3,697.9 | 3,418.9 | ||||||||
Liabilities and Shareholders’ Deficit | |||||||||||||
Other accrued liabilities | 451.3 | 405.6 | 451.3 | 405.6 | |||||||||
Income taxes | 15.9 | 12.8 | 15.9 | 12.8 | |||||||||
Total current liabilities | 1,496.5 | 1,559.6 | 1,496.5 | 1,559.6 | |||||||||
Other liabilities | 72.1 | 84.4 | 72.1 | 84.4 | |||||||||
Total liabilities | 3,414.7 | 3,944.8 | 3,414.7 | 3,944.8 | |||||||||
Retained earnings | 2,234.3 | 2,320.3 | 2,234.3 | 2,320.3 | |||||||||
Accumulated other comprehensive loss | (1,030.4) | (926.2) | (1,030.4) | (926.2) | |||||||||
Total Avon shareholders’ deficit | (904.5) | (725) | (904.5) | (725) | |||||||||
Total shareholders’ deficit | (896.8) | (714.7) | (896.8) | (714.7) | (836.2) | $ (1,056.4) | |||||||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | 3,010 | 3,697.9 | 3,010 | 3,697.9 | |||||||||
Cash Flows from Operating Activities | |||||||||||||
Other | 18.5 | 39.6 | (3.3) | ||||||||||
Accounts receivable | (102.8) | (214.6) | (216.6) | ||||||||||
Inventories | (99.6) | (19.2) | (28.6) | ||||||||||
Prepaid expenses and other | (49.3) | 14.8 | 16.8 | ||||||||||
Accounts payable and accrued liabilities | 73.1 | 12.3 | (17.6) | ||||||||||
Income and other taxes | 63.2 | 4.1 | (4.7) | ||||||||||
Noncurrent assets and liabilities | 42.8 | 29.5 | (7.6) | ||||||||||
Net sales | |||||||||||||
Revenue | |||||||||||||
Revenue | 5,247.7 | 5,565.1 | 5,578.8 | ||||||||||
Other revenue | |||||||||||||
Revenue | |||||||||||||
Revenue | 323.6 | 150.5 | $ 138.9 | ||||||||||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||||
Revenue | |||||||||||||
Revenue | (229.2) | ||||||||||||
Costs, expenses and other: | |||||||||||||
Cost of sales | (277.4) | ||||||||||||
Selling, general and administrative expenses | 60.4 | ||||||||||||
Operating profit | (12.2) | ||||||||||||
Income before income taxes | (12.2) | ||||||||||||
Income taxes | 3.6 | ||||||||||||
(Loss) income from continuing operations, net of tax | (8.6) | ||||||||||||
Net (loss) income attributable to Avon | (8.6) | ||||||||||||
Line items impacted within the Consolidated Statements of Other Comprehensive Income | |||||||||||||
Net loss | (8.6) | ||||||||||||
Foreign currency translation adjustments | (3.5) | ||||||||||||
Total other comprehensive (loss) income, net of taxes | (3.5) | ||||||||||||
Comprehensive (loss) income | (12.1) | ||||||||||||
Comprehensive (loss) income attributable to Avon | (12.1) | ||||||||||||
Line items impacted within the Consolidated Balance Sheets | |||||||||||||
Accounts receivable, net | (8.2) | (8.2) | |||||||||||
Inventories | (42.8) | (42.8) | $ 39.3 | ||||||||||
Prepaid expenses and other | 47.8 | 47.8 | (54.9) | ||||||||||
Total current assets | (3.2) | (3.2) | |||||||||||
Other assets | (10.1) | (10.1) | |||||||||||
Total assets | (13.3) | (13.3) | |||||||||||
Liabilities and Shareholders’ Deficit | |||||||||||||
Other accrued liabilities | (38) | (38) | $ 37.1 | ||||||||||
Income taxes | (3.6) | (3.6) | |||||||||||
Total current liabilities | (41.6) | (41.6) | |||||||||||
Other liabilities | (0.7) | (0.7) | |||||||||||
Total liabilities | (42.3) | (42.3) | |||||||||||
Retained earnings | 32.5 | 32.5 | |||||||||||
Accumulated other comprehensive loss | (3.5) | (3.5) | |||||||||||
Total Avon shareholders’ deficit | 29 | 29 | |||||||||||
Total shareholders’ deficit | 29 | 29 | |||||||||||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | (13.3) | (13.3) | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Other | (3.5) | ||||||||||||
Accounts receivable | (0.4) | ||||||||||||
Inventories | 3.5 | ||||||||||||
Prepaid expenses and other | 3.9 | ||||||||||||
Accounts payable and accrued liabilities | 10.5 | ||||||||||||
Income and other taxes | (3.6) | ||||||||||||
Noncurrent assets and liabilities | (1.8) | ||||||||||||
Adjustments | Accounting Standards Update 2014-09 | Net sales | |||||||||||||
Revenue | |||||||||||||
Revenue | (28.5) | ||||||||||||
Adjustments | Accounting Standards Update 2014-09 | Other revenue | |||||||||||||
Revenue | |||||||||||||
Revenue | (200.7) | ||||||||||||
Balances excluding the impact of adopting ASC 606 | |||||||||||||
Revenue | |||||||||||||
Revenue | 5,342.1 | ||||||||||||
Costs, expenses and other: | |||||||||||||
Cost of sales | 2,086.6 | ||||||||||||
Selling, general and administrative expenses | 3,032.5 | ||||||||||||
Operating profit | 223 | ||||||||||||
Income before income taxes | 95.9 | ||||||||||||
Income taxes | (126.3) | ||||||||||||
(Loss) income from continuing operations, net of tax | (30.4) | ||||||||||||
Net (loss) income attributable to Avon | (28.1) | ||||||||||||
Line items impacted within the Consolidated Statements of Other Comprehensive Income | |||||||||||||
Net loss | (30.4) | ||||||||||||
Foreign currency translation adjustments | (52.2) | ||||||||||||
Total other comprehensive (loss) income, net of taxes | (107.9) | ||||||||||||
Comprehensive (loss) income | (138.3) | ||||||||||||
Comprehensive (loss) income attributable to Avon | (135.7) | ||||||||||||
Line items impacted within the Consolidated Balance Sheets | |||||||||||||
Accounts receivable, net | 341.5 | 341.5 | |||||||||||
Inventories | 499.2 | 499.2 | |||||||||||
Prepaid expenses and other | 319.8 | 319.8 | |||||||||||
Total current assets | 1,758.8 | 1,758.8 | |||||||||||
Other assets | 592.9 | 592.9 | |||||||||||
Total assets | 2,996.7 | 2,996.7 | |||||||||||
Liabilities and Shareholders’ Deficit | |||||||||||||
Other accrued liabilities | 413.3 | 413.3 | |||||||||||
Income taxes | $ 12.3 | $ 12.3 | |||||||||||
Total current liabilities | 1,454.9 | 1,454.9 | |||||||||||
Other liabilities | 71.4 | 71.4 | |||||||||||
Total liabilities | 3,372.4 | 3,372.4 | |||||||||||
Retained earnings | 2,266.8 | 2,266.8 | |||||||||||
Accumulated other comprehensive loss | (1,033.9) | (1,033.9) | |||||||||||
Total Avon shareholders’ deficit | (875.5) | (875.5) | |||||||||||
Total shareholders’ deficit | (867.8) | (867.8) | |||||||||||
Total liabilities, series C convertible preferred stock and shareholders’ deficit | $ 2,996.7 | 2,996.7 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Other | 15 | ||||||||||||
Accounts receivable | (103.2) | ||||||||||||
Inventories | (96.1) | ||||||||||||
Prepaid expenses and other | (45.4) | ||||||||||||
Accounts payable and accrued liabilities | 83.6 | ||||||||||||
Income and other taxes | 59.6 | ||||||||||||
Noncurrent assets and liabilities | 41 | ||||||||||||
Balances excluding the impact of adopting ASC 606 | Net sales | |||||||||||||
Revenue | |||||||||||||
Revenue | 5,219.2 | ||||||||||||
Balances excluding the impact of adopting ASC 606 | Other revenue | |||||||||||||
Revenue | |||||||||||||
Revenue | $ 122.9 |
New Accounting Standards (Sum_2
New Accounting Standards (Summary of Adoption of ASU 2017-07) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Selling, general and administrative expenses | $ 2,972.1 | $ 3,231 | $ 3,136.9 | ||||||||
Operating profit | $ (49.6) | $ 186.9 | $ 53 | $ 44.9 | $ 131.5 | $ 87.3 | $ 32.7 | $ 29.8 | 235.2 | 281.3 | 323.8 |
Other expense, net | (7.1) | (34.6) | (172.9) | ||||||||
Income before income taxes | $ (84.1) | $ 182.1 | $ (0.3) | $ 10.4 | $ 91.6 | $ 48 | $ (12.2) | $ (6.7) | $ 108.1 | 120.7 | 31.2 |
As originally reported | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Selling, general and administrative expenses | 3,239 | 3,138.8 | |||||||||
Operating profit | 273.3 | 321.9 | |||||||||
Other expense, net | (26.6) | (171) | |||||||||
Income before income taxes | 120.7 | 31.2 | |||||||||
Accounting Standards Update 2017-07 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operating profit | 8 | 1.9 | |||||||||
Accounting Standards Update 2017-07 | Impact of adoption | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Selling, general and administrative expenses | (8) | (1.9) | |||||||||
Operating profit | 8 | 1.9 | |||||||||
Other expense, net | (8) | (1.9) | |||||||||
Income before income taxes | $ 0 | $ 0 |
Discontinued Operations and A_3
Discontinued Operations and Assets and Liabilities Held for Sale (Narrative) (Details) - USD ($) | Feb. 15, 2019 | Dec. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Investment in New Avon | $ 0 | $ 0 | |||||||
New Avon | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Investment in New Avon | $ 42,500,000 | $ 0 | |||||||
Discontinued Operations | North America Segment | |||||||||
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 | ||||||||
Cash contribution into privately-held company | 100,000,000 | $ 100,000,000 | |||||||
Proceeds on sale used to reduce debt | 250,000,000 | ||||||||
Proceeds for issuance of membership interests | $ 170,000,000 | ||||||||
Ownership interest | 80.10% | ||||||||
Percentage of ownership after transaction | 19.90% | 20.00% | 19.90% | ||||||
Working capital adjustment | $ 6,000,000 | ||||||||
Loss on sale of discontinued operations, before tax | $ 340,000,000 | $ 15,600,000 | $ 355,600,000 | ||||||
Loss on sale of discontinued operations, after tax | $ 340,000,000 | $ 345,400,000 | |||||||
Adjustment to gain (loss) on disposal, before income tax | (15,600,000) | ||||||||
Adjustment to gain (loss) on disposal, net of tax | $ (5,400,000) | ||||||||
Subsequent Event | TheFaceShop Co., LTd. | Avon Manufacturing (Guangzhou), Ltd. | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Consideration transferred | $ 71,000,000 | ||||||||
Cash payment for outstanding loans | 23,300,000 | ||||||||
Payments to acquire business | 47,000,000 | ||||||||
Cash on hand | $ 700,000 |
Discontinued Operations and A_4
Discontinued Operations and Assets and Liabilities Held for Sale (Financial Components of Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ (14) | ||
Discontinued Operations | North America Segment | |||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Total revenue | 135.2 | ||||
Cost of sales | 53.2 | ||||
Selling, general and administrative expenses | 91.5 | ||||
Operating (loss) income | (9.5) | ||||
Other income (expense) items | 0.6 | ||||
Loss from discontinued operations, before tax | (8.9) | ||||
Loss on sale of discontinued operations, before tax | $ (340) | (15.6) | $ (355.6) | ||
Income taxes | 10.5 | ||||
Loss from discontinued operations, net of tax | $ (14) |
Discontinued Operations and A_5
Discontinued Operations and Assets and Liabilities Held for Sale (Assets and Liabilities Held For Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Current held for sale assets | |||
Cash and cash equivalents | $ 3.7 | $ (2.2) | |
Current held for sale liabilities | |||
Current held for sale liabilities | 11.4 | $ 0 | |
Held-for-sale | |||
Current held for sale assets | |||
Inventories | 8.7 | ||
Property, Plant & Equipment (net) | 52 | ||
Cash and cash equivalents | 3.7 | ||
Other assets | 1.2 | ||
Current held for sale assets | 65.6 | ||
Current held for sale liabilities | |||
Accounts payable | 8.6 | ||
Other liabilities | 2.8 | ||
Current held for sale liabilities | 11.4 | ||
Avon Manufacturing (Guangzhou) | Held-for-sale | |||
Current held for sale assets | |||
Inventories | 8.7 | ||
Property, Plant & Equipment (net) | 36.7 | ||
Cash and cash equivalents | 3.7 | ||
Other assets | 1.1 | ||
Current held for sale assets | 50.2 | ||
Current held for sale liabilities | |||
Accounts payable | 8.6 | ||
Other liabilities | 2.6 | ||
Current held for sale liabilities | 11.2 | ||
Rye Office | Held-for-sale | |||
Current held for sale assets | |||
Inventories | 0 | ||
Property, Plant & Equipment (net) | 12.3 | ||
Cash and cash equivalents | 0 | ||
Other assets | 0 | ||
Current held for sale assets | 12.3 | ||
Current held for sale liabilities | |||
Accounts payable | 0 | ||
Other liabilities | 0 | ||
Current held for sale liabilities | 0 | ||
Malaysia Maximin | Held-for-sale | |||
Current held for sale assets | |||
Inventories | 0 | ||
Property, Plant & Equipment (net) | 3 | ||
Cash and cash equivalents | 0 | ||
Other assets | 0.1 | ||
Current held for sale assets | 3.1 | ||
Current held for sale liabilities | |||
Accounts payable | 0 | ||
Other liabilities | 0.2 | ||
Current held for sale liabilities | $ 0.2 |
Investment in New Avon (Details
Investment in New Avon (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 17, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in New Avon | $ 0 | $ 0 | |||
Distribution from New Avon LLC | 0 | 22,000,000 | $ 0 | ||
Other comprehensive income, equity method investment | $ 0 | 1,200,000 | 2,200,000 | ||
New Avon | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in New Avon | $ 0 | $ 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, income (loss) from purchase accounting | 1,100,000 | ||||
Other Expense | New Avon | |||||
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 Rela
Related Party Transactions Related Party Table (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($)installment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Inventories | $ 0.3 | $ 0.4 | |
Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
SG&A expenses, related parties | (4.7) | (29.6) | |
Equity Method Investee | Manufacturing and Supply Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from sale of product to New Avon | 25.7 | 32.5 | |
Gross profit from sale of product to New Avon | 1.6 | 1.9 | |
Cost of sales for purchases from New Avon | 2.9 | 3.8 | |
Purchases from related parties | 2.8 | 3.2 | |
Equity Method Investee | Transition Services Agreement | |||
Related Party Transaction [Line Items] | |||
SG&A expenses, related parties | (5.9) | (32.2) | |
Equity Method Investee | Project Management Agreement | |||
Related Party Transaction [Line Items] | |||
SG&A expenses, related parties | 1.2 | 2.6 | |
New Avon | |||
Related Party Transaction [Line Items] | |||
Receivables due from related parties | 7 | 9.8 | |
Payables due to related parties | 0.2 | 0.2 | |
Affiliate of Cerberus | |||
Related Party Transaction [Line Items] | |||
Payables due to related parties | 0.6 | 0.4 | |
Instituto Avon | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Interest income | 0.1 | 0 | |
Receivables due from related parties | $ 3.2 | $ 0 | |
Instituto Avon | Affiliated Entity | Loan To Related Party | |||
Related Party Transaction [Line Items] | |||
Loan amount | $ 3.6 | ||
Loan term | 5 years | ||
Loan interest rate | 7.00% | ||
Loan annual installments | installment | 5 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 17, 2015 | |
Related Party Transaction [Line Items] | |||
Letters of credit outstanding | $ 37.7 | $ 29.4 | |
Change in estimated value of letters of credit | (0.2) | ||
Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Letters of credit outstanding | $ 1.4 | $ 1.4 | $ 2.1 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 84.4 | $ 91.8 |
Revenue recognized related to contract liability | 89.5 | |
Deferred revenue related to contract liability | $ 82.3 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 |
Other expense, net | (7.1) | (34.6) | (172.9) | ||||||||
Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,481.1 | ||||||||||
Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,431 | ||||||||||
Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 850.1 | ||||||||||
Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,762.2 | ||||||||||
Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 753.8 | ||||||||||
Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 563.3 | ||||||||||
Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,317.1 | ||||||||||
Brazil IPI tax release | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168.4 | ||||||||||
Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5,247.7 | 5,565.1 | 5,578.8 | ||||||||
Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 283.4 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 40.2 | ||||||||||
Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 323.6 | 150.5 | 138.9 | ||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5,520.8 | 5,632.6 | 5,608 | ||||||||
Operating Segments | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,474.7 | ||||||||||
Operating Segments | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,428.1 | ||||||||||
Operating Segments | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 845.3 | ||||||||||
Operating Segments | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,748.1 | ||||||||||
Operating Segments | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 750.8 | ||||||||||
Operating Segments | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 561.3 | ||||||||||
Operating Segments | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,312.1 | ||||||||||
Operating Segments | Brazil IPI tax release | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168.4 | ||||||||||
Operating Segments | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5,228.6 | ||||||||||
Operating Segments | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 281.4 | ||||||||||
Operating Segments | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 10.8 | ||||||||||
Operating Segments | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 292.2 | ||||||||||
Other operating segments and business activities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 50.5 | 83 | 109.7 | ||||||||
Other operating segments and business activities | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 6.4 | ||||||||||
Other operating segments and business activities | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2.9 | ||||||||||
Other operating segments and business activities | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4.8 | ||||||||||
Other operating segments and business activities | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 14.1 | ||||||||||
Other operating segments and business activities | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3 | ||||||||||
Other operating segments and business activities | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2 | ||||||||||
Other operating segments and business activities | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5 | ||||||||||
Other operating segments and business activities | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 19.1 | ||||||||||
Other operating segments and business activities | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2 | ||||||||||
Other operating segments and business activities | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 29.4 | ||||||||||
Other operating segments and business activities | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 31.4 | ||||||||||
Europe, Middle East & Africa | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,093.8 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 619.2 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 636.6 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 398.7 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,654.5 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 298 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 45.3 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 343.3 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,997.8 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 95.3 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0.7 | ||||||||||
Europe, Middle East & Africa | Operating Segments | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 96 | ||||||||||
South Latin America | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,146.9 | 2,222.4 | 2,145.9 | ||||||||
South Latin America | Operating Segments | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 564.3 | ||||||||||
South Latin America | Operating Segments | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 483.9 | ||||||||||
South Latin America | Operating Segments | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 310.7 | ||||||||||
South Latin America | Operating Segments | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,358.9 | ||||||||||
South Latin America | Operating Segments | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 190.6 | ||||||||||
South Latin America | Operating Segments | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 283.4 | ||||||||||
South Latin America | Operating Segments | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 474 | ||||||||||
South Latin America | Operating Segments | Brazil IPI tax release | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168.4 | ||||||||||
South Latin America | Operating Segments | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,001.3 | ||||||||||
South Latin America | Operating Segments | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 135.7 | ||||||||||
South Latin America | Operating Segments | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9.9 | ||||||||||
South Latin America | Operating Segments | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 145.6 | ||||||||||
North Latin America | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 809.3 | $ 811.8 | $ 829.9 | ||||||||
North Latin America | Operating Segments | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 166.9 | ||||||||||
North Latin America | Operating Segments | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 218.1 | ||||||||||
North Latin America | Operating Segments | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 81.8 | ||||||||||
North Latin America | Operating Segments | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 466.8 | ||||||||||
North Latin America | Operating Segments | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 94.4 | ||||||||||
North Latin America | Operating Segments | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 204.2 | ||||||||||
North Latin America | Operating Segments | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 298.6 | ||||||||||
North Latin America | Operating Segments | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 765.4 | ||||||||||
North Latin America | Operating Segments | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 43.9 | ||||||||||
North Latin America | Operating Segments | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | ||||||||||
North Latin America | Operating Segments | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 43.9 | ||||||||||
Asia Pacific | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 470.8 | ||||||||||
Asia Pacific | Operating Segments | Skincare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 124.3 | ||||||||||
Asia Pacific | Operating Segments | Fragrance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 89.5 | ||||||||||
Asia Pacific | Operating Segments | Color | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 54.1 | ||||||||||
Asia Pacific | Operating Segments | Total Beauty | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 267.9 | ||||||||||
Asia Pacific | Operating Segments | Fashion | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 167.8 | ||||||||||
Asia Pacific | Operating Segments | Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 28.4 | ||||||||||
Asia Pacific | Operating Segments | Total Fashion & Home | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 196.2 | ||||||||||
Asia Pacific | Operating Segments | Net sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 464.1 | ||||||||||
Asia Pacific | Operating Segments | Representative fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 6.5 | ||||||||||
Asia Pacific | Operating Segments | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0.2 | ||||||||||
Asia Pacific | Operating Segments | Other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 6.7 | ||||||||||
IPI Tax on Cosmetics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168 | ||||||||||
Other expense, net | $ 27 |
Revenue (Summary of Receivables
Revenue (Summary of Receivables and Contract Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 349.7 | $ 457.2 | |
Allowances | 93 | $ 138.6 | |
Contract liabilities | $ 84.4 | $ 91.8 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 157.8 | $ 190.6 |
Finished goods | 384.2 | 407.6 |
Total | $ 542 | $ 598.2 |
Debt and Other Financing (Debt)
Debt and Other Financing (Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2016 | Mar. 31, 2013 | Mar. 31, 2009 | Mar. 31, 2008 |
Debt Instrument [Line Items] | ||||||
Notes payable | $ 8.8 | $ 22.6 | ||||
Current portion of long-term debt | 3.2 | 3.1 | ||||
Debt, Current | 12 | 25.7 | ||||
Senior Notes | 494.2 | 492.6 | ||||
Total | 1,584.8 | 1,869.3 | ||||
Amortization of swap termination | 0 | 6 | ||||
Less current portion | (3.2) | (3.1) | ||||
Total long-term debt | 1,581.6 | 1,872.2 | ||||
6.50% Notes, due March 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 6.50% | 6.50% | ||||
Notes | 0 | 237.2 | ||||
4.60% Notes, due March 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 4.60% | |||||
Notes | 386.4 | 408.8 | ||||
7.875% Notes, due August 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 7.875% | |||||
5.00% Notes, due March 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.00% | |||||
Notes | 458.5 | 484.5 | ||||
Other debt, payable through 2025 with interest from .4% to 12.1% | ||||||
Debt Instrument [Line Items] | ||||||
Other debt, payable through 2025 with interest from .4% to 12.1% | 4.6 | 5.2 | ||||
6.95% Notes, due March 2043 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 6.95% | |||||
Notes | $ 241.1 | $ 241 | ||||
Minimum | Other debt, payable through 2025 with interest from .4% to 12.1% | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 0.40% | |||||
Maximum | Other debt, payable through 2025 with interest from .4% to 12.1% | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 12.10% |
Debt and Other Financing (Narra
Debt and Other Financing (Narrative) (Details) - USD ($) | Nov. 30, 2016 | Jun. 30, 2018 | Dec. 31, 2016 | Oct. 31, 2016 | Aug. 31, 2016 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2013 | Mar. 31, 2009 | Mar. 31, 2008 | Jun. 30, 2003 |
Debt Instrument [Line Items] | ||||||||||||||||
Short-term debt, interest rate | 19.00% | 19.00% | 23.00% | |||||||||||||
Obligations under capital leases | $ 2,500,000 | $ 2,500,000 | $ 4,000,000 | |||||||||||||
Gain (loss) on extinguishment of debt | (700,000) | 0 | $ 1,100,000 | |||||||||||||
Cash tender offers | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (loss) on extinguishment of debt | $ 3,900,000 | |||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 12,800,000 | |||||||||||||||
Debt repurchase, premium paid | 5,800,000 | |||||||||||||||
Accelerated deferred loss - treasury lock agreements | 1,200,000 | |||||||||||||||
Cash tender offer, deal costs | 1,000,000 | |||||||||||||||
Write-off deferred debt issuance cost and discount | $ 900,000 | |||||||||||||||
October debt repurchase | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (loss) on extinguishment of debt | $ (1,000,000) | |||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 6,100,000 | |||||||||||||||
Debt repurchase, premium paid | $ 6,200,000 | 6,200,000 | ||||||||||||||
Accelerated deferred loss - treasury lock agreements | 400,000 | |||||||||||||||
Write-off deferred debt issuance cost and discount | 500,000 | |||||||||||||||
Accrued interest paid on extinguishment of debt | 1,100,000 | |||||||||||||||
Debt prepayment | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (loss) on extinguishment of debt | (2,900,000) | |||||||||||||||
Loss on extinguishment, amortization of deferred hedge gain | 10,500,000 | |||||||||||||||
Accelerated deferred loss - treasury lock agreements | 1,000,000 | |||||||||||||||
Write-off deferred debt issuance cost and discount | 300,000 | |||||||||||||||
Accrued interest paid on extinguishment of debt | $ 3,600,000 | |||||||||||||||
Make whole premium | 12,100,000 | $ 12,100,000 | 12,100,000 | 12,100,000 | ||||||||||||
December debt repurchase | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (loss) on extinguishment of debt | 1,100,000 | |||||||||||||||
Write-off deferred debt issuance cost and discount | 200,000 | |||||||||||||||
Accrued interest paid on extinguishment of debt | 300,000 | |||||||||||||||
Debt repurchase discount received | 1,300,000 | 1,300,000 | 1,300,000 | |||||||||||||
Fourth Quarter 2018 Repurchase | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Gain (loss) on extinguishment of debt | 2,100,000 | |||||||||||||||
Debt repurchase discount received | 2,400,000 | $ 2,400,000 | ||||||||||||||
Payments for debt extinguishment accrued interest | 700,000 | |||||||||||||||
Write off of debt issuance cost | 300,000 | |||||||||||||||
2013 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Increase in interest rate for every one-notch downgrade of long-term credit ratings below investment grade | 0.25% | |||||||||||||||
Maximum aggregate increase in interest rate related to downgrade of long-term credit ratings below investment grade | 2.00% | |||||||||||||||
2.375% Notes, due March 2016 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 250,000,000 | |||||||||||||||
Interest rate, stated percentage | 2.375% | |||||||||||||||
4.60% Notes, due March 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 500,000,000 | |||||||||||||||
Interest rate, stated percentage | 4.60% | |||||||||||||||
Repayments of debt | $ 50,100,000 | |||||||||||||||
Repurchase amount | 40,000,000 | 23,000,000 | $ 23,000,000 | |||||||||||||
Unamortized debt issuance costs | 500,000 | 500,000 | 900,000 | |||||||||||||
5.00% Notes, due March 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 500,000,000 | |||||||||||||||
Interest rate, stated percentage | 5.00% | |||||||||||||||
Repurchase amount | 11,100,000 | 27,000,000 | 11,100,000 | 27,000,000 | 11,100,000 | |||||||||||
Unamortized debt issuance costs | 1,500,000 | 1,500,000 | 1,900,000 | |||||||||||||
6.95% Notes, due March 2043 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 250,000,000 | |||||||||||||||
Interest rate, stated percentage | 6.95% | |||||||||||||||
Repurchase amount | $ 6,200,000 | $ 6,200,000 | $ 6,200,000 | |||||||||||||
Unamortized debt issuance costs | 2,200,000 | 2,200,000 | 2,200,000 | |||||||||||||
6.50% Notes, due March 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 350,000,000 | |||||||||||||||
Interest rate, stated percentage | 6.50% | 6.50% | ||||||||||||||
Repayments of debt | 68,100,000 | |||||||||||||||
Gain (loss) on extinguishment of debt | $ (2,900,000) | |||||||||||||||
Repurchase amount | 44,000,000 | |||||||||||||||
Repayments of long-term debt | $ 237,800,000 | |||||||||||||||
Payment for debt extinguishment or debt prepayment cost | 6,200,000 | 6,200,000 | ||||||||||||||
Payments for debt extinguishment accrued interest | $ 4,600,000 | |||||||||||||||
Write off of debt issuance cost | 300,000 | |||||||||||||||
Unamortized debt issuance costs | 0 | $ 0 | 300,000 | |||||||||||||
5.75% Notes, due March 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, stated percentage | 5.75% | |||||||||||||||
Repayments of debt | 106,200,000 | 108,600,000 | ||||||||||||||
Repurchase amount | 35,200,000 | |||||||||||||||
4.20% Notes, due July 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, stated percentage | 4.20% | |||||||||||||||
Repayments of debt | $ 132,200,000 | 73,800,000 | ||||||||||||||
Repurchase amount | $ 44,000,000 | |||||||||||||||
Notes Payable | All Notes Outstanding, Except 4.20% Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Minimum required offer to repurchase, percentage of aggregate principal amount | 101.00% | |||||||||||||||
7.875% Notes, due August 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal amount of debt | $ 500,000,000 | |||||||||||||||
Interest rate, stated percentage | 7.875% | |||||||||||||||
Unamortized debt issuance costs | $ 5,800,000 | $ 5,800,000 | $ 7,400,000 | |||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Minimum required offer to repurchase, percentage of aggregate principal amount | 101.00% | |||||||||||||||
Interest Rate Swap | 6.50% Notes, due March 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Deferred gain on termination of contract | $ 3,600,000 |
Debt and Other Financing (Sched
Debt and Other Financing (Schedule of Public Notes) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
6.50% Notes, due March 2019 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | $ 0 | $ 237.9 |
Unamortized Discounts | 0 | (0.4) |
Unamortized Debt Issuance Costs | 0 | (0.3) |
Total | 0 | 237.2 |
4.60% Notes, due March 2020 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 387 | 409.9 |
Unamortized Discounts | (0.1) | (0.2) |
Unamortized Debt Issuance Costs | (0.5) | (0.9) |
Total | 386.4 | 408.8 |
5.00% Notes, due March 2023 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 461.9 | 488.9 |
Unamortized Discounts | (1.9) | (2.5) |
Unamortized Debt Issuance Costs | (1.5) | (1.9) |
Total | 458.5 | 484.5 |
6.95% Notes, due March 2043 | ||
Debt Instrument [Line Items] | ||
Remaining Principal | 243.9 | 243.8 |
Unamortized Discounts | (0.6) | (0.6) |
Unamortized Debt Issuance Costs | (2.2) | (2.2) |
Total | $ 241.1 | $ 241 |
Debt and Other Financing (Matur
Debt and Other Financing (Maturities of Long-Term Debt) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
Maturities, 2019 | $ 1.1 |
Maturities, 2020 | 387.6 |
Maturities, 2021 | 0.4 |
Maturities, 2022 | 500.2 |
Maturities, 2023 | 462 |
Maturities, 2024 and Beyond | 243.9 |
Total Maturities | $ 1,595.2 |
Debt and Other Financing (Other
Debt and Other Financing (Other Financing) (Details) | 1 Months Ended | 3 Months Ended | ||||||
Feb. 21, 2019EUR (€) | Jun. 30, 2015USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2013 | Mar. 31, 2009 | Mar. 31, 2008 | |
Debt Instrument [Line Items] | ||||||||
Amount outstanding under the revolving credit facility | $ 0 | |||||||
Letters of credit outstanding | 29,400,000 | $ 37,700,000 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 5 years | |||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||
AIO | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 29,000,000 | |||||||
6.50% Notes, due March 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Write off of debt issuance cost | $ 300,000 | |||||||
Interest rate, stated percentage | 6.50% | 6.50% | ||||||
4.60% Notes, due March 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.60% | |||||||
Subsequent Event | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 3 years | |||||||
Maximum borrowing capacity | € | € 200,000,000 | |||||||
Subsequent Event | LIBOR | Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread | 2.25% | |||||||
Subsequent Event | EURIBOR | Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread | 2.25% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | $ (725) | |
Other comprehensive income (loss) other than reclassifications | (114.7) | $ 91.4 |
Amortization of net actuarial loss and prior service cost, net of tax | 10.5 | 15.6 |
Total reclassifications into earnings | (10.5) | (15.6) |
Accumulated other comprehensive income, ending balance | (904.5) | (725) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (829.6) | (910.9) |
Other comprehensive income (loss) other than reclassifications | (106.6) | 81.3 |
Total reclassifications into earnings | 0 | 0 |
Accumulated other comprehensive income, ending balance | (936.2) | (829.6) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 0 | |
Other comprehensive income (loss) other than reclassifications | 0.5 | |
Reclassifications of derivative gains into earnings | 0 | |
Accumulated other comprehensive income, ending balance | 0.5 | 0 |
Net Investment Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (4.3) | (4.3) |
Other comprehensive income (loss) other than reclassifications | 0 | 0 |
Total reclassifications into earnings | 0 | 0 |
Accumulated other comprehensive income, ending balance | (4.3) | (4.3) |
Pension and Postretirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (95.7) | (120.2) |
Other comprehensive income (loss) other than reclassifications | (8.6) | 8.9 |
Amortization of net actuarial loss and prior service cost, net of tax | 10.5 | 15.6 |
Total reclassifications into earnings | (10.5) | (15.6) |
Accumulated other comprehensive income, ending balance | (93.8) | (95.7) |
Amortization of net actuarial loss and prior service cost, tax | 0.6 | 0.8 |
Investment in New Avon | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | 3.4 | 2.2 |
Other comprehensive income (loss) other than reclassifications | 0 | 1.2 |
Total reclassifications into earnings | 0 | 0 |
Accumulated other comprehensive income, ending balance | 3.4 | 3.4 |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income, beginning balance | (926.2) | (1,033.2) |
Accumulated other comprehensive income, ending balance | $ (1,030.4) | $ (926.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign exchange gains (losses) | $ (6.9) | $ 16.3 | $ (23.7) |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 39.3 | $ (147.6) | $ (403) | ||||||||
Foreign | 68.8 | 268.3 | 434.2 | ||||||||
Income from continuing operations, before taxes | $ (84.1) | $ 182.1 | $ (0.3) | $ 10.4 | $ 91.6 | $ 48 | $ (12.2) | $ (6.7) | $ 108.1 | $ 120.7 | $ 31.2 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ (6.1) | $ 0 | $ 0 |
Federal, Deferred | 3.7 | (34) | 0 |
Federal, Total | (2.4) | (34) | 0 |
Foreign, Current | 182.3 | 130.6 | 128.5 |
Foreign, Deferred | (53) | 3.8 | (4.2) |
Foreign, Total | 129.3 | 134.4 | 124.3 |
State and other, Current | 3 | 0.3 | 0.3 |
State and other, Deferred | 0 | 0 | 0 |
State and other, Total | 3 | 0.3 | 0.3 |
Total | $ 129.9 | $ 100.7 | $ 124.6 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 2.20% | 0.20% | 0.60% |
U.S. Tax Reform | 0.00% | (24.70%) | 0.00% |
Tax on foreign income | (16.20%) | 6.00% | (24.40%) |
Tax on uncertain tax positions - Brazil | 67.40% | 0.00% | 0.00% |
Tax on uncertain tax positions - Rest of World | 8.50% | (3.60%) | 34.10% |
Reorganizations | (91.30%) | 0.00% | (93.60%) |
Net change in valuation allowances | 128.30% | 62.40% | 375.10% |
Venezuela deconsolidation, devaluation and highly inflationary accounting | 0.00% | 0.00% | 23.90% |
Imputed royalties and associated non-deductible expenses | 0.60% | 9.50% | 50.30% |
Research credits | (1.30%) | (1.30%) | (5.40%) |
Other | 1.00% | (0.10%) | 3.80% |
Effective tax rate | 120.20% | 83.40% | 399.40% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | |||||
One-time tax reserves | $ 98.7 | ||||
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 | ||||
Net increase (decrease) in valuation allowance | 45.6 | ||||
Deferred tax assets, tax credit carryforwards, excluding adoption of ASU 2013-11 | 842.5 | ||||
Tax credit carryforwards | 981 | 830.5 | 981 | ||
Tax credit carryforward, valuation allowance | 812.5 | ||||
Foreign tax credit carryforwards | 793.8 | ||||
Minimum tax credit carryforwards | 18 | ||||
Tax credit carryforwards, research | 21 | ||||
Deferred tax assets, net operating loss | 2,166.2 | ||||
Operating loss carryforwards, valuation allowance | 2,073.3 | ||||
Operating loss carryforwards, foreign | 2,045.5 | ||||
Change in deferred tax liability associated with undistributed earnings | (5.1) | ||||
Deferred tax liabilities, undistributed foreign earnings | 17.5 | ||||
Undistributed earnings of foreign subsidiaries | 1,100 | ||||
Total gross unrecognized tax benefits | 48.6 | 137.6 | 48.6 | $ 58.7 | $ 53 |
Unrecognized tax benefits that would impact effective tax rate | 123.2 | ||||
Expense for interest and penalties | 1.3 | 0 | $ 2.5 | ||
Accrued interest and penalties | 9.9 | 7.4 | $ 9.9 | ||
Foreign | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards, valuation allowance | 1,974.5 | ||||
State and Local Jurisdiction | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards, valuation allowance | 98.8 | ||||
Deferred tax assets, state tax loss carryforwards | 98.8 | ||||
Operating loss carryforwards | 1,396.7 | ||||
Europe, Middle East & Africa | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | $ 25.5 | ||||
Foreign | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards | 8,616.2 | ||||
Operating loss carryforwards, not subject to expiration | 6,927.5 | ||||
Operating loss carryforwards, subject to expiration | 1,688.7 | ||||
Investment Tax Credit Carryforward | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforward | 9.7 | ||||
Deferred Tax Asset Generated In Current Year | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | 138.6 | ||||
Deferred Tax Assets Expensed Or Written Off In Current Year | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | (93) | ||||
Excess Tax Basis Reallocated | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | (57.2) | ||||
State Deferred Tax Assets | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | (15.3) | ||||
Other Deferred Tax Assets | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | (11.7) | ||||
Deferred Tax Assets Associated With Repatriation Of Earnings | |||||
Tax Credit Carryforward [Line Items] | |||||
Net increase (decrease) in valuation allowance | $ (8.8) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets (Liabilities) Resulting From Temporary Differences) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Tax loss and deduction carryforwards | $ 2,144.3 | $ 2,022.1 |
Tax credit carryforwards | 830.5 | 981 |
All other future deductions | 560.8 | 471 |
Valuation allowance | (3,257.5) | (3,217.7) |
Total deferred tax assets | 278.1 | 256.4 |
Deferred tax liabilities: | ||
Total deferred tax liabilities | (85.1) | (74.9) |
Net deferred tax assets | $ 193 | $ 181.5 |
Income Taxes (Deferred Tax As_2
Income Taxes (Deferred Tax Assets (Liabilities) Classification) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Other assets | $ 212.6 | $ 203.8 |
Total deferred tax assets | 212.6 | 203.8 |
Deferred tax liabilities: | ||
Long-term income taxes | (19.6) | (22.3) |
Total deferred tax liabilities | (19.6) | (22.3) |
Net deferred tax assets | $ 193 | $ 181.5 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 48.6 | $ 58.7 | $ 53 |
Additions based on tax positions related to the current year | 43.6 | 1.4 | 1.8 |
Additions for tax positions of prior years | 65.5 | 17.6 | 9.4 |
Reductions for tax positions of prior years | (3.7) | (7.9) | (2.8) |
Reductions due to lapse of statute of limitations | (0.9) | (3.1) | (0.7) |
Reductions due to settlements with tax authorities | (15.4) | (18) | (2) |
Unrecognized tax benefits, ending balance | $ 137.6 | $ 48.6 | $ 58.7 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2013USD ($)derivative_instrument | Mar. 31, 2012USD ($)derivative_instrument | |
Derivative [Line Items] | |||||
Total exposure to floating rate interest rates | 1.00% | 1.00% | |||
Number of interest rate derivatives terminated | derivative_instrument | 8 | 2 | |||
Unrealized gains on interest-rate swap agreements | $ 0 | $ 6,000,000 | |||
Gain (loss) on extinguishment of debt | (700,000) | 0 | $ 1,100,000 | ||
Loss written-off resulting from non-performance of counterparties | 1,300,000 | ||||
January 2013 Interest-Rate Swap Termination | |||||
Derivative [Line Items] | |||||
Notional amount related to discontinuation of interest rate fair value hedge | $ 1,000,000,000 | ||||
Unrealized gains on interest-rate swap agreements | 0 | $ 90,400,000 | |||
Amortization of deferred hedge gains | 35,400,000 | ||||
Gain (loss) on extinguishment of debt | $ 23,600,000 | ||||
March 2012 Interest-Rate Swap Termination | |||||
Derivative [Line Items] | |||||
Notional amount related to discontinuation of interest rate fair value hedge | $ 350,000,000 | ||||
Unrealized gains on interest-rate swap agreements | $ 46,100,000 | ||||
Amortization of deferred hedge gains | 6,000,000 | 4,900,000 | |||
Gain (loss) on extinguishment of debt | 3,600,000 | ||||
Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Notional amounts of derivative contracts | 1,275,000,000 | ||||
Gain (loss) in other expense from undesignated foreign currency exchange contracts | 1,500,000 | 3,000,000 | |||
Intercompany Loans | |||||
Derivative [Line Items] | |||||
Gain (loss) related to intercompany transactions for foreign currency change | 2,200,000 | $ (5,200,000) | |||
Cash Flow Hedging | Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Notional amounts of derivative contracts | $ 22,000,000 |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 3.8 | $ 3.7 |
Debt maturing within one year | (12) | (25.7) |
Long-term debt | (1,581.6) | (1,872.2) |
Foreign exchange forward contracts | (5.1) | 0 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3.8 | 3.7 |
Debt maturing within one year | (12) | (25.7) |
Long-term debt | (1,460.2) | (1,718.6) |
Foreign exchange forward contracts | $ (5.1) | $ 0 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2018$ / sharesshares | Feb. 28, 2018$ / sharesshares | Mar. 31, 2015$ / sharesshares | Apr. 30, 2012$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted-average grant-date fair value per share (in dollars per share) | $ / shares | $ 1.04 | $ 1.54 | $ 1.37 | |||||
Unrecognized compensation cost | $ | $ 6,100,000 | |||||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 9 months 18 days | |||||||
Compensation cost for share-based payments | $ | $ 13,800,000 | $ 24,200,000 | $ 24,000,000 | |||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Contractual term, years | 10 years | |||||||
Options, grant date premium on exercise price | 25.00% | 30.00% | ||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.45 | |||||||
Fair value vested during period | $ | $ 7,200,000 | |||||||
Granted (in shares) | 2,433,000 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 2.61 | |||||||
Vested (in shares) | 1,705,000 | |||||||
Nonvested, ending balance (in shares) | 4,998,000 | 4,804,000 | ||||||
Restricted Stock Units (RSUs) | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 1 year | |||||||
Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 5.93 | |||||||
Granted (in shares) | 1,301,000 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 2.93 | |||||||
Vested (in shares) | 986,000 | |||||||
Nonvested, ending balance (in shares) | 3,177,000 | 4,356,000 | ||||||
Restricted Stock Units and Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation costs, recognized over a weighted average period | 1 year 8 months 12 days | |||||||
Unrecognized compensation cost | $ | $ 9,500,000 | |||||||
Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ | 0 | |||||||
Compensation cost for share-based payments | $ | $ 100,000 | $ 800,000 | $ 1,700,000 | |||||
Vested (in shares) | 163,198 | |||||||
Nonvested, ending balance (in shares) | 0 | |||||||
2018 | Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 2.63 | |||||||
2018 | Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Unrecognized compensation cost | $ | $ 900,000 | |||||||
Granted (in shares) | 600,000 | |||||||
Compensation cost for share-based payments | $ | $ 400,000 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 2.25 | |||||||
Vested (in shares) | 0 | |||||||
Nonvested, ending balance (in shares) | 600,000 | |||||||
2018 | Performance Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Performance period | 1 year | |||||||
Unrecognized compensation cost | $ | $ 400,000 | |||||||
Granted (in shares) | 200,000 | |||||||
Compensation cost for share-based payments | $ | $ 100,000 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 2.79 | |||||||
Vested (in shares) | 121,951 | |||||||
Nonvested, ending balance (in shares) | 200,000 | |||||||
2017 | Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.52 | |||||||
2016 | Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Performance period | 3 years | |||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 4.42 | |||||||
2015 | Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | $ 7.49 | |||||||
2015 | Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 3 years | |||||||
Granted (in shares) | 489,596 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 9 | |||||||
2015 | Performance Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 121,951 | |||||||
Compensation cost for share-based payments | $ | $ 0 | $ 100,000 | $ 100,000 | |||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 7.49 | |||||||
Late 2015 | Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 1,123,183 | |||||||
Compensation cost for share-based payments | $ | $ 2,000,000 | |||||||
2012 | Restricted Stock Units - Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period, years | 5 years | |||||||
Granted (in shares) | 200,000 | |||||||
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 21.69 | |||||||
2013 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum award (in shares) | 55,000,000 | |||||||
Multiplier for grant award | 3.13 | |||||||
2016 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum award (in shares) | 48,000,000 | |||||||
Multiplier for grant award | 2.4 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans (Schedule of Compensation Cost and Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Compensation cost for stock options, performance restricted stock units and restricted stock units | $ 13.8 | $ 24.2 | $ 24 |
Total income tax benefit recognized for share-based arrangements | $ 2 | $ 1.4 | $ 1.9 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans (Schedule of Weighted-Average Assumptions for Stock Options) (Details) - Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
2,018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 2.70% | ||
Expected term | 7 years | ||
Expected Avon volatility | 42.00% | ||
Expected dividends | 0.00% | ||
2,017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 2.10% | ||
Expected term | 7 years | ||
Expected Avon volatility | 41.00% | ||
Expected dividends | 0.00% | ||
2,016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 1.60% | ||
Expected term | 7 years | ||
Expected Avon volatility | 39.00% | ||
Expected dividends | 0.00% |
Share-Based Compensation Plan_5
Share-Based Compensation Plans (Schedule of Summary of Stock Options) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 17,165 | |
Granted (in shares) | 5,952 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 1,082 | |
Expired, in shares | 3,073 | |
Outstanding, ending balance (in shares) | 18,962 | 17,165 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price1 [Roll Forward] | ||
Outstanding, beginning balance, weighted-average exercise price (in dollars per share) | $ 14.95 | |
Granted, weighted-average exercise price (in dollars per share) | 3.49 | |
Exercised, weighted-average exercise price (in dollars per share) | 0 | |
Forfeited, weighted-average exercise price (in dollars per share) | 5.82 | |
Expired, weighted-average exercise price (in dollars per share) | 34.27 | |
Outstanding, ending balance, weighted-average exercise price (in dollars per share) | $ 9.05 | $ 14.95 |
Exercisable (in shares) | 8,679 | |
Exercisable, weighted-average exercise price (in dollars per share) | $ 14.05 | |
Outstanding, weighted-average contractual term, years | 6 years 4 months 24 days | |
Outstanding, exercisable, weighted-average contractual term, years | 4 years 1 month 6 days | |
Outstanding, aggregate intrinsic value | $ 0 | |
Exercisable, aggregate intrinsic value | $ 0 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans (Schedule of Weighted Average Assumptions (PRSUs)) (Details) - Performance Restricted Stock Units | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, years | 3 years |
2,018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 2.50% |
Expected Avon volatility | 61.39% |
Expected average volatility | 29.50% |
Expected dividends | 0.00% |
2,017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 1.60% |
Expected Avon volatility | 61.00% |
Expected average volatility | 29.00% |
Expected dividends | 0.00% |
Vesting period, years | 3 years |
2,016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 1.10% |
Expected Avon volatility | 56.00% |
Expected average volatility | 28.00% |
Expected dividends | 0.00% |
Vesting period, years | 3 years |
2,015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free rate | 1.10% |
Expected Avon volatility | 38.00% |
Expected dividends | 3.00% |
Share-Based Compensation Plan_7
Share-Based Compensation Plans (Schedule of Summary of Restricted Stock and Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning balance (in shares) | shares | 4,804 |
Granted (in shares) | shares | 2,433 |
Vested (in shares) | shares | (1,705) |
Forfeited (in shares) | shares | (534) |
Nonvested, ending balance (in shares) | shares | 4,998 |
Nonvested, beginning balance, weighted-average grant- date fair value (in dollars per share) | $ / shares | $ 5.26 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 2.61 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 7.06 |
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | 4.45 |
Nonvested, ending balance, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 3.37 |
Share-Based Compensation Plan_8
Share-Based Compensation Plans (Schedule of Summary of Performance Restricted Stock Units) (Details) - Performance Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning balance (in shares) | shares | 4,356 |
Granted (in shares) | shares | 1,301 |
Vested (in shares) | shares | (986) |
Forfeited (in shares) | shares | (1,494) |
Nonvested, ending balance (in shares) | shares | 3,177 |
Nonvested, beginning balance, weighted-average grant- date fair value (in dollars per share) | $ / shares | $ 5.50 |
Granted, weighted-average grant-date fair value (in dollars per share) | $ / shares | 2.93 |
Vested, weighted-average grant-date fair value (in dollars per share) | $ / shares | 7.49 |
Forfeited, weighted average grant-date fair value (in dollars per share) | $ / shares | 5.93 |
Nonvested, ending balance, weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 3.76 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | ||||||
Loss contingency | $ 0 | $ 0 | $ 18.2 | $ 0 | $ 0 | $ 18.2 | $ 0 |
Postemployment benefits liability | $ 9.7 | $ 9.2 | $ 9.7 | ||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Weighted average discount rate | 2.66% | 3.06% | 2.66% | ||||
Rate of return on assets | 5.23% | ||||||
Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | $ 28.2 | $ 26 | $ 28.2 | 26 | |||
Qualified pension plans, plan assets | $ 0 | $ 0 | $ 0 | 0 | |||
Weighted average discount rate | 4.75% | 5.17% | 4.75% | ||||
Minimum | U.S. Pension and Postretirement Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | $ 5 | ||||||
Minimum | International Pension and Postretirement Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | 10 | ||||||
Maximum | U.S. Pension and Postretirement Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | 10 | ||||||
Maximum | International Pension and Postretirement Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected contributions related to continuing operations | $ 15 | ||||||
Discontinued Operations | U.S. Qualified Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit pension plan liabilities | 499.6 | ||||||
Divestiture | 355.9 | ||||||
Discontinued Operations | United States Postretirement Benefit Plan of US Entity | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined benefit pension plan liabilities | 60.4 | ||||||
UK Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of return on assets | 5.20% | ||||||
UK Pension Plan | Equity Securities, Emerging Market Debt and High Yield Securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
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 | Corporate and Government Bonds | |||||||
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% | ||||||
U.S. | Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | $ 88.9 | $ 74.7 | $ 88.9 | 87.6 | |||
Qualified pension plans, plan assets | $ 63.1 | $ 62.7 | $ 63.1 | $ 51.4 | |||
Weighted average discount rate | 3.48% | 4.24% | 3.48% | ||||
Rate of return on assets | 5.50% | 5.50% | 7.00% | ||||
Non-U.S. Plans | Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | $ 714.2 | $ 617 | $ 714.2 | $ 652.9 | |||
Qualified pension plans, plan assets | $ 705.4 | $ 615.8 | $ 705.4 | $ 613.7 | |||
Weighted average discount rate | 2.56% | 2.91% | 2.56% | ||||
Rate of return on assets | 5.20% | 5.09% | 6.40% | ||||
Non-U.S. Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Loss contingency | $ 18.2 | ||||||
UK Defined Contribution Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer match toward contributions, doubled | 5.00% | ||||||
Maximum contribution percent of eligible compensation | 10.00% | ||||||
Employer contribution | $ 5.9 | $ 6.7 | $ 6.5 | ||||
Personal Savings Account Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer contribution | $ 2.2 | 2.6 | $ 3.8 | ||||
Maximum employee contribution to plan | 25.00% | ||||||
Maximum contribution for eligible participants | 3.00% | ||||||
Employer match toward contributions, fifty cents for dollar, minimum | 4.00% | ||||||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | ||||||
Retirement Savings Account Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer match toward contributions, fifty cents for dollar, minimum | 3.00% | ||||||
Employer match toward contributions, fifty cents for dollar, maximum | 6.00% | ||||||
Vesting period | 3 years | ||||||
U.S. Qualified Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | $ 76.7 | $ 65.4 | 76.7 | ||||
Qualified pension plans, plan assets | 63 | $ 62.7 | 63 | ||||
U.S. Qualified Pension Plan | Corporate and Government Bonds | |||||||
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 | Equity Securities and High Yield Securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
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 Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Qualified pension plans, benefit obligations | 494 | $ 416.5 | 494 | ||||
Qualified pension plans, plan assets | $ 573.6 | $ 501.7 | $ 573.6 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount Recognized in Balance Sheet: | |||
Other assets | $ 603 | $ 666.2 | |
Accrued compensation | (85.5) | (130.3) | |
Other Postretirement Benefits Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (28.2) | (26) | |
Service cost | (0.1) | (0.1) | $ (0.1) |
Interest cost | (1.1) | (1.3) | (1.7) |
Actuarial (loss) gain | 1.2 | 0.3 | |
Benefits paid | 1.4 | 0.4 | |
Actual expenses and taxes | 0 | 0 | |
Plan amendments | 0 | 0 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Special termination benefits | (0.1) | 0 | |
Foreign currency changes and other | 0.9 | (1.5) | |
Ending balance | (26) | (28.2) | (26) |
Change in Plan Assets: | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1.4 | 0.4 | |
Benefits paid | (1.4) | (0.4) | |
Settlements | 0 | 0 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Funded Status: | |||
Funded status at end of year | (26) | (28.2) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0 | 0 | |
Accrued compensation | (4.5) | (2.7) | |
Employee benefit plans liability | (21.5) | (25.5) | |
Net amount recognized | (26) | (28.2) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 0 | 1.2 | |
Prior service (credit) cost | 0.6 | (1.3) | |
Total pretax amount recognized | 0.6 | (0.1) | |
U.S. | Pension Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (88.9) | (87.6) | |
Service cost | (2.9) | (4.3) | (6.4) |
Interest cost | (2.3) | (3) | (6.5) |
Actuarial (loss) gain | 9.9 | 0.6 | |
Benefits paid | 7.8 | 5.4 | |
Actual expenses and taxes | 0 | 0 | |
Plan amendments | 0 | 0 | |
Curtailments | 1.7 | 0 | |
Settlements | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | (74.7) | (88.9) | (87.6) |
Change in Plan Assets: | |||
Beginning balance | 63.1 | 51.4 | |
Actual return on plan assets | (5.4) | 5.5 | |
Company contributions | 12.8 | 11.6 | |
Benefits paid | (7.8) | (5.4) | |
Settlements | 0 | 0 | |
Foreign currency changes and other | 0 | 0 | |
Ending balance | 62.7 | 63.1 | 51.4 |
Funded Status: | |||
Funded status at end of year | (12) | (25.8) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 0 | 0 | |
Accrued compensation | (1) | (1) | |
Employee benefit plans liability | (11) | (24.8) | |
Net amount recognized | (12) | (25.8) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 33.1 | 41.4 | |
Prior service (credit) cost | (0.1) | (0.2) | |
Total pretax amount recognized | 33 | 41.2 | |
Supplemental Information: | |||
Accumulated benefit obligation | 72.7 | 85.9 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 74.7 | 88.9 | |
Fair value plan assets | 62.7 | 63.1 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 74.7 | 88.9 | |
Accumulated benefit obligation | 72.7 | 85.9 | |
Fair value plan assets | 62.7 | 63.1 | |
Non-U.S. Plans | Pension Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | (714.2) | (652.9) | |
Service cost | (4.7) | (4.6) | (5) |
Interest cost | (15.4) | (18) | (21.8) |
Actuarial (loss) gain | 47.4 | (15.5) | |
Benefits paid | 35.5 | 42.5 | |
Actual expenses and taxes | 0.5 | 0 | |
Plan amendments | (2.2) | 0 | |
Curtailments | 0 | 0 | |
Settlements | (2.6) | 0 | |
Special termination benefits | 0 | 0 | |
Foreign currency changes and other | 33.5 | (65.7) | |
Ending balance | (617) | (714.2) | (652.9) |
Change in Plan Assets: | |||
Beginning balance | 705.4 | 613.7 | |
Actual return on plan assets | (27.7) | 49.9 | |
Company contributions | 11.6 | 19.7 | |
Benefits paid | (35.5) | (42.5) | |
Settlements | (2.6) | 0 | |
Foreign currency changes and other | (35.4) | 64.6 | |
Ending balance | 615.8 | 705.4 | $ 613.7 |
Funded Status: | |||
Funded status at end of year | (1.2) | (8.8) | |
Amount Recognized in Balance Sheet: | |||
Other assets | 88.1 | 82 | |
Accrued compensation | (2.8) | (2.2) | |
Employee benefit plans liability | (86.5) | (88.6) | |
Net amount recognized | (1.2) | (8.8) | |
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss: | |||
Net actuarial loss | 173.6 | 176.8 | |
Prior service (credit) cost | 1.3 | (0.9) | |
Total pretax amount recognized | 174.9 | 175.9 | |
Supplemental Information: | |||
Accumulated benefit obligation | 179.9 | 199.8 | |
Plans with Projected Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 195.3 | 216.7 | |
Fair value plan assets | 106 | 125.9 | |
Plans with Accumulated Benefit Obligation in Excess of Plan Assets: | |||
Projected benefit obligation | 185.7 | 202 | |
Accumulated benefit obligation | 174.6 | 191.9 | |
Fair value plan assets | $ 98 | $ 114 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan | U.S. | |||
Net Periodic Benefit Cost: | |||
Service cost | $ 2.9 | $ 4.3 | $ 6.4 |
Interest cost | 2.3 | 3 | 6.5 |
Expected return on plan assets | (3.5) | (3.2) | (8.2) |
Amortization of prior service credit | 0 | (0.1) | (0.2) |
Amortization of net actuarial losses | 4.1 | 5.2 | 10.8 |
Settlements/curtailments | 1.4 | 0 | 0.1 |
Other | 0 | 0 | 0 |
Net periodic benefit cost | 7.2 | 9.2 | 15.4 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial (gains) losses | (2.8) | (2.9) | 13.6 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of prior service credit | 0.1 | 0.1 | 1.3 |
Amortization of net actuarial losses | (5.6) | (5.2) | (274.4) |
Foreign currency changes | 0 | 0 | 0 |
Total recognized in other comprehensive (loss) income | (8.3) | (8) | (259.5) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (1.1) | 1.2 | (244.1) |
Pension Plan | Non-U.S. Plans | |||
Net Periodic Benefit Cost: | |||
Service cost | 4.7 | 4.6 | 5 |
Interest cost | 15.4 | 18 | 21.8 |
Expected return on plan assets | (31.9) | (28.2) | (33) |
Amortization of prior service credit | (0.1) | (0.1) | (0.1) |
Amortization of net actuarial losses | 6.8 | 7.6 | 6.5 |
Settlements/curtailments | (0.4) | 3.7 | 0.3 |
Other | (0.7) | 0 | |
Net periodic benefit cost | (5.5) | 4.9 | 0.5 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial (gains) losses | 12.2 | (7.4) | (24.6) |
Prior service cost (credit) | 2.2 | 0 | 0 |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 |
Amortization of net actuarial losses | (6.4) | (11.3) | (7.8) |
Foreign currency changes | (9.1) | 18.9 | (29.6) |
Total recognized in other comprehensive (loss) income | (1) | 0.3 | (61.9) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (6.5) | 5.2 | (61.4) |
Other Postretirement Benefits Plan | |||
Net Periodic Benefit Cost: | |||
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.1 | 1.3 | 1.7 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | (0.4) | (0.3) | (1.2) |
Amortization of net actuarial losses | 0 | 0.1 | 0.3 |
Settlements/curtailments | (0.3) | 0 | (0.1) |
Other | 0.1 | 1.6 | 0 |
Net periodic benefit cost | 0.7 | 2.8 | 0.8 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: | |||
Actuarial (gains) losses | (1.2) | (0.3) | (2.6) |
Prior service cost (credit) | 0 | 1 | |
Amortization of prior service credit | 0.6 | 0.3 | 26.7 |
Amortization of net actuarial losses | 0 | (0.1) | (11.3) |
Foreign currency changes | 0 | 0 | (0.1) |
Total recognized in other comprehensive (loss) income | (0.6) | (0.1) | 13.7 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 0.1 | $ 2.7 | 14.5 |
Discontinued Operations, Disposed of by Sale | Pension Plan | U.S. | |||
Net Periodic Benefit Cost: | |||
Net periodic benefit cost | $ 4.4 |
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, 2018USD ($) |
Pension Plan | U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 3 |
Prior service credit | 0 |
Pension Plan | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 5 |
Prior service credit | 0 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 0 |
Prior service credit | $ (0.2) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.06% | 2.66% |
Pension Plan | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.24% | 3.48% |
Rate of compensation increase | 4.00% | 4.00% |
Pension Plan | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.91% | 2.56% |
Rate of compensation increase | 2.69% | 2.71% |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.17% | 4.75% |
Employee Benefit Plans (Weigh_2
Employee Benefit Plans (Weighted-Average Assumptions used to Determine Net Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of return on assets | 5.23% | ||
Pension Plan | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.48% | 3.67% | 4.19% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Rate of return on assets | 5.50% | 5.50% | 7.00% |
Pension Plan | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.56% | 2.69% | 3.58% |
Rate of compensation increase | 2.71% | 2.79% | 2.94% |
Rate of return on assets | 5.20% | 5.09% | 6.40% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.75% | 5.33% | 4.50% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Postretirement Plans Target and Weighted-Average Asset Allocations) (Details) - Pension Plan | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 100.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 100.00% | 100.00% |
U.S. | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 30.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 30.00% | 30.00% |
U.S. | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 70.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 70.00% | 70.00% |
U.S. | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 0.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 100.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 100.00% | 100.00% |
Non-U.S. Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 15.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 16.00% | 18.00% |
Non-U.S. Plans | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 80.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 79.00% | 77.00% |
Non-U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target plan asset allocations, in percentage | 5.00% | |
Defined benefit plan, actual plan asset allocation, in percentage | 5.00% | 6.00% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Hierarchy for Pension and Postretirement Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2 | $ 1.5 | $ 1.5 |
U.S. | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62.7 | 63.1 | 51.4 |
U.S. | Pension Plan | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16.5 | 19.1 | |
U.S. | Pension Plan | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.4 | 7.4 | |
U.S. | Pension Plan | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.3 | 9.7 | |
U.S. | Pension Plan | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | 2 | |
U.S. | Pension Plan | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45.5 | 44 | |
U.S. | Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32.2 | 31.8 | |
U.S. | Pension Plan | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.3 | 12.2 | |
U.S. | Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0 | |
U.S. | Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0 | |
U.S. | Pension Plan | Level 1 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. | Pension Plan | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.7 | 0 | |
U.S. | Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62 | 63.1 | |
U.S. | Pension Plan | Level 2 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16.5 | 19.1 | |
U.S. | Pension Plan | Level 2 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.4 | 7.4 | |
U.S. | Pension Plan | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.3 | 9.7 | |
U.S. | Pension Plan | Level 2 | Emerging markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.8 | 2 | |
U.S. | Pension Plan | Level 2 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45.5 | 44 | |
U.S. | Pension Plan | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 32.2 | 31.8 | |
U.S. | Pension Plan | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13.3 | 12.2 | |
U.S. | Pension Plan | Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 615.8 | 705.4 | $ 613.7 |
Non-U.S. Plans | Pension Plan | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98.3 | 125 | |
Non-U.S. Plans | Pension Plan | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25.8 | 33.9 | |
Non-U.S. Plans | Pension Plan | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 72.5 | 91.1 | |
Non-U.S. Plans | Pension Plan | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 484.5 | 539.8 | |
Non-U.S. Plans | Pension Plan | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212.7 | 223.9 | |
Non-U.S. Plans | Pension Plan | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 201.7 | 236 | |
Non-U.S. Plans | Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 70.1 | 79.9 | |
Non-U.S. Plans | Pension Plan | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 40.6 | |
Non-U.S. Plans | Pension Plan | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.1 | 29.3 | |
Non-U.S. Plans | Pension Plan | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (4.1) | 34.1 | |
Non-U.S. Plans | Pension Plan | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 0.9 | |
Non-U.S. Plans | Pension Plan | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0.6 | |
Non-U.S. Plans | Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.1 | 29.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.1 | 29.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.1 | 29.3 | |
Non-U.S. Plans | Pension Plan | Level 1 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 578.7 | 674.6 | |
Non-U.S. Plans | Pension Plan | Level 2 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98.3 | 125 | |
Non-U.S. Plans | Pension Plan | Level 2 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25.8 | 33.9 | |
Non-U.S. Plans | Pension Plan | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 72.5 | 91.1 | |
Non-U.S. Plans | Pension Plan | Level 2 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 484.5 | 539.8 | |
Non-U.S. Plans | Pension Plan | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212.7 | 223.9 | |
Non-U.S. Plans | Pension Plan | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 201.7 | 236 | |
Non-U.S. Plans | Pension Plan | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 70.1 | 79.9 | |
Non-U.S. Plans | Pension Plan | Level 2 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (4.1) | 9.8 | |
Non-U.S. Plans | Pension Plan | Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (4.1) | 34.1 | |
Non-U.S. Plans | Pension Plan | Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1.5 | |
Non-U.S. Plans | Pension Plan | Level 3 | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Domestic equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Other Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1.5 | |
Non-U.S. Plans | Pension Plan | Level 3 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Pension Plan | Level 3 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 0.9 | |
Non-U.S. Plans | Pension Plan | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0.6 |
Employee Benefit Plans (Recon_2
Employee Benefit Plans (Reconciliation of the Beginning and Ending Balances for Investments) (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Plan Assets: | ||
Beginning balance | $ 1.5 | $ 1.5 |
Purchases and sales net | (0.7) | |
Actual return on plan assets held | 1.4 | (0.1) |
Foreign currency changes | (0.2) | 0.1 |
Ending balance | $ 2 | $ 1.5 |
Employee Benefit Plans (Total B
Employee Benefit Plans (Total Benefit Payments) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 53.7 |
2,020 | 61.8 |
2,021 | 46.7 |
2,022 | 57.2 |
2,023 | 58.8 |
2024-2028 | 296.5 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 4.5 |
2,020 | 2.4 |
2,021 | 2.3 |
2,022 | 2.2 |
2,023 | 2.1 |
2024-2028 | 8.7 |
U.S. | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 12.6 |
2,020 | 21.4 |
2,021 | 5.5 |
2,022 | 4.6 |
2,023 | 4 |
2024-2028 | 15.8 |
Non-U.S. Plans | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 41.1 |
2,020 | 40.4 |
2,021 | 41.2 |
2,022 | 52.6 |
2,023 | 54.8 |
2024-2028 | $ 280.7 |
Employee Benefit Plans (Supplem
Employee Benefit Plans (Supplemental Retirement Programs) (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum deferral of base salary | 50.00% | ||
Maximum deferral of incentive compensation bonuses | 100.00% | ||
Number of permitted investment alternatives | investment | 3 | ||
Expenses associated with deferred compensation plan | $ 0.1 | $ 1.4 | $ 1 |
Deferred compensation liability | $ 16.4 | 21 | |
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Years since benefit was last offered to employees | 8 years | ||
Net periodic benefit cost SERP Restoration | $ 2.1 | 3 | $ 3.9 |
Benefit obligation SERP Restoration | $ 9.3 | $ 12.3 | |
Supplemental Life Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Years since benefit was last offered to employees | 8 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, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 37 | $ 37.1 |
Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | 35.8 | 36 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets held-in-trust | $ 1.2 | $ 1.1 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018region | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information (Total Reve
Segment Information (Total Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 5,520.8 | 5,632.6 | 5,608 | ||||||||
Operating Segments | Europe, Middle East & Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,093.8 | 2,126.5 | 2,138.2 | ||||||||
Operating Segments | South Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,146.9 | 2,222.4 | 2,145.9 | ||||||||
Operating Segments | North Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 809.3 | 811.8 | 829.9 | ||||||||
Operating Segments | Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 470.8 | 471.9 | 494 | ||||||||
Other operating segments and business activities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 50.5 | $ 83 | $ 109.7 |
Segment Information (Operating
Segment Information (Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | $ (49.6) | $ 186.9 | $ 53 | $ 44.9 | $ 131.5 | $ 87.3 | $ 32.7 | $ 29.8 | $ 235.2 | $ 281.3 | $ 323.8 | |
CTI restructuring initiatives | (126.1) | (19.8) | (23.7) | (10.9) | (23.7) | (6.2) | (20.3) | (10) | (180.5) | (60.2) | (77.4) | |
Loss contingency | 0 | 0 | (18.2) | 0 | 0 | (18.2) | 0 | |||||
Legal settlement | $ 27.2 | 0 | 0 | 27.2 | ||||||||
Gain (loss) related to litigation settlement, after tax | $ 27.2 | |||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | 5,571.3 | 5,715.6 | 5,717.7 | |
Other expense, net | (7.1) | (34.6) | (172.9) | |||||||||
Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 694.5 | 659.5 | 702.5 | |||||||||
Revenue | 5,520.8 | 5,632.6 | 5,608 | |||||||||
Operating Segments | Europe, Middle East & Africa | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 267.5 | 329.6 | 322.8 | |||||||||
Revenue | 2,093.8 | 2,126.5 | 2,138.2 | |||||||||
Operating Segments | South Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 314.6 | 195.7 | 201.1 | |||||||||
Revenue | 2,146.9 | 2,222.4 | 2,145.9 | |||||||||
Operating Segments | North Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 70.4 | 83.4 | 116.1 | |||||||||
Revenue | 809.3 | 811.8 | 829.9 | |||||||||
Operating Segments | Asia Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 42 | 50.8 | 62.5 | |||||||||
Revenue | 470.8 | 471.9 | 494 | |||||||||
Other operating segments and business activities | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 3.6 | 2.5 | 4.1 | |||||||||
Revenue | 50.5 | 83 | 109.7 | |||||||||
Global | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Unallocated global expenses | (282.4) | $ (302.3) | $ (332.6) | |||||||||
IPI Tax on Cosmetics | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 168 | |||||||||||
Other expense, net | $ 27 |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 3,010 | $ 3,697.9 | $ 3,418.9 |
Total from discontinued operations | 0 | 0 | 1.3 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,651.5 | 3,078.1 | 2,891.8 |
Operating Segments | Europe, Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,048.8 | 1,190.5 | 949.3 |
Operating Segments | South Latin America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,001 | 1,273.6 | 1,306.3 |
Operating Segments | North Latin America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 329.7 | 335.8 | 344.4 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total assets | 272 | 278.2 | 291.8 |
Other operating segments and business activities | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5.4 | 18.9 | 6.5 |
Global | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 353.1 | $ 600.9 | $ 519.3 |
Segment Information (Capital Ex
Segment Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 94.9 | $ 97.3 | $ 93 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 76.5 | 80 | 74 |
Operating Segments | Europe, Middle East & Africa | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 37 | 29.4 | 18.8 |
Operating Segments | South Latin America | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 27.5 | 35.4 | 39.2 |
Operating Segments | North Latin America | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 9.1 | 12.9 | 11.7 |
Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 2.9 | 2.3 | 4.3 |
Other operating segments and business activities | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | 0 | 0 | 0.2 |
Global | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures | $ 18.4 | $ 17.3 | $ 18.8 |
Segment Information (Depreciati
Segment Information (Depreciation and Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 107.7 | $ 114 | $ 113.9 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 79.9 | 86.7 | 82.6 |
Other operating segments and business activities | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 0.3 | 0.4 | 1.3 |
Global | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 27.5 | 26.9 | 30 |
Europe, Middle East & Africa | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 27.3 | 29.9 | 28.2 |
South Latin America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 30.1 | 34.3 | 30.9 |
North Latin America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 14.2 | 13.6 | 13.1 |
Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | $ 8.3 | $ 8.9 | $ 10.4 |
Segment Information (Total Re_2
Segment Information (Total Revenue by Major Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 |
Brazil | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,262.8 | 1,263.8 | 1,220.4 | ||||||||
All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 4,308.5 | $ 4,451.8 | $ 4,497.3 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets by Major Country) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 893.7 | $ 1,125.6 | $ 1,156.9 |
Brazil | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 283.2 | 396.9 | 400.9 |
U.S. | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 152.6 | 174.4 | 196.1 |
All other | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 458 | $ 554.3 | $ 559.9 |
Leases and Commitments (Minimum
Leases and Commitments (Minimum Rental Commitments and Purchase Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019, Leases | $ 56.4 |
2020, Leases | 42 |
2021, Leases | 35.3 |
2022, Leases | 31.1 |
2023, Leases | 22.4 |
Later years, Leases | 46.9 |
Sublease rental income, Leases | (103.8) |
Total, Leases | 130.3 |
2019, Purchase Obligations | 345.6 |
2020, Purchase Obligations | 186.4 |
2021, Purchase Obligations | 87.5 |
2022, Purchase Obligations | 37.1 |
2023, Purchase Obligations | 7.9 |
Later years, Purchase Obligations | 5.9 |
Total, Purchase Obligations | $ 670.4 |
Leases and Commitments (Narrati
Leases and Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 61.7 | $ 66.2 | $ 75 |
Estimated cost of plant construction, expansion and modernization projects | $ 31.8 |
Restructuring Initiatives (Narr
Restructuring Initiatives (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2018 | Jan. 31, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2019 | |
Restructuring charges (benefits) and other costs (benefits) | $ 126.1 | $ 19.8 | $ 23.7 | $ 10.9 | $ 23.7 | $ 6.2 | $ 20.3 | $ 10 | $ 180.5 | $ 60.2 | $ 77.4 | |||
Accelerated depreciation | 5.2 | |||||||||||||
Employee-Related Costs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 43.3 | |||||||||||||
Professional Service Fees | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 30.9 | |||||||||||||
Asset Impairment | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 4 | |||||||||||||
Inventory Write-offs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 89.8 | |||||||||||||
Foreign Currency Translation Adjustment Write-offs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 0.7 | |||||||||||||
Dual Running Costs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 4.1 | |||||||||||||
Contract Terminations/Other | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 3.2 | |||||||||||||
SG&A expenses | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 35.6 | 19.9 | 23.2 | 10.3 | 23 | 6.2 | 20.3 | 10.1 | 89 | 59.6 | ||||
Cost of sales | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 90.5 | $ (0.1) | $ 0.5 | $ 0.6 | $ 0.7 | $ 0 | $ 0 | $ (0.1) | 91.5 | 0.6 | ||||
Transformation Plan | ||||||||||||||
Expected savings before taxes | $ 350 | |||||||||||||
Number of years to realized cost savings | 3 years | |||||||||||||
Recorded total costs to implement restructuring initiatives | 205.4 | 205.4 | ||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 38 | 60.8 | 83.7 | |||||||||||
Accelerated depreciation | 1.9 | 1.9 | ||||||||||||
Transformation Plan | Employee-Related Costs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 26.9 | 62.6 | ||||||||||||
Transformation Plan | Professional Service Fees | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 4.1 | 7.4 | ||||||||||||
Transformation Plan | Inventory Write-offs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 0.6 | 0.4 | ||||||||||||
Transformation Plan | Contract Terminations/Other | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 27.3 | 8.7 | ||||||||||||
Transformation Plan | Foreign Currency Translation Adjustment Write-offs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 2.7 | |||||||||||||
Transformation Plan | SG&A expenses | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 60.2 | 83.3 | ||||||||||||
Transformation Plan | Cost of sales | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 0.6 | 0.4 | ||||||||||||
Open Up Avon | ||||||||||||||
Expected savings before taxes | $ 400 | |||||||||||||
Recorded total costs to implement restructuring initiatives | $ 143.2 | 143.2 | ||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 143.2 | |||||||||||||
Open Up Avon | Inventory Write-offs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 88 | |||||||||||||
Transformation Plan And Open Up Avon | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 181.2 | |||||||||||||
Transformation Plan And Open Up Avon | SG&A expenses | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 89.7 | |||||||||||||
Transformation Plan And Open Up Avon | Cost of sales | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 91.5 | |||||||||||||
Other Restructuring Initiatives | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 0.7 | 0.4 | 5.5 | |||||||||||
Net gain on sale of distribution center | $ 3.7 | |||||||||||||
Australia and New Zealand | Transformation Plan | Employee-Related Costs | ||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 7.9 | |||||||||||||
Subsequent Event | Open Up Avon | ||||||||||||||
Expected number of positions eliminated | 18.00% | |||||||||||||
Restructuring and Related Cost, Expected Reduction In Inventory, Percent | 15.00% | |||||||||||||
Restructuring and Related Cost, Expected Reduction In Stock Keeping Units, Percent | 25.00% |
Restructuring Initiatives (Chan
Restructuring Initiatives (Changes in Liability Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transformation Plan | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | $ 49.2 | $ 51.4 | |
Charges | 37.1 | 32.5 | $ 85.2 |
Adjustments | (16) | 22.3 | |
Cash payments | (27.6) | (42.9) | |
Non-cash write-offs | (2.1) | (14.6) | |
Foreign exchange | (2.6) | 0.5 | |
Ending Balance | 38 | 49.2 | 51.4 |
Transformation Plan | Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 41.2 | 48.6 | |
Charges | 29.5 | 31.9 | 73.4 |
Adjustments | (12.6) | (5) | |
Cash payments | (21.3) | (34.8) | |
Non-cash write-offs | 0 | 0 | |
Foreign exchange | (2.4) | 0.5 | |
Ending Balance | 34.4 | 41.2 | 48.6 |
Transformation Plan | Inventory Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | 0 | |
Charges | 1.4 | 0.6 | 0.4 |
Adjustments | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash write-offs | (1.4) | (0.6) | |
Foreign exchange | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Transformation Plan | Foreign Currency Translation Adjustment Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | 0 | |
Charges | 0.7 | 0 | 2.7 |
Adjustments | 0 | 0 | |
Cash payments | 0 | 0 | |
Non-cash write-offs | (0.7) | 0 | |
Foreign exchange | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Transformation Plan | Contract Terminations/Other | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 8 | 2.8 | |
Charges | 5.5 | 0 | 8.7 |
Adjustments | (3.4) | 27.3 | |
Cash payments | (6.3) | (8.1) | |
Non-cash write-offs | 0 | (14) | |
Foreign exchange | (0.2) | 0 | |
Ending Balance | 3.6 | 8 | $ 2.8 |
Open Up Avon | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | ||
Charges | 115.7 | ||
Adjustments | 0 | ||
Cash payments | (6.5) | ||
Non-cash write-offs | (88.5) | ||
Foreign exchange | 0 | ||
Ending Balance | 20.7 | 0 | |
Open Up Avon | Employee-Related Costs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | ||
Charges | 26.4 | ||
Adjustments | 0 | ||
Cash payments | (6.8) | ||
Non-cash write-offs | 0 | ||
Foreign exchange | 0 | ||
Ending Balance | 19.6 | 0 | |
Open Up Avon | Inventory Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | ||
Charges | 88.5 | ||
Adjustments | 0 | ||
Cash payments | 0 | ||
Non-cash write-offs | (88.5) | ||
Foreign exchange | 0 | ||
Ending Balance | 0 | 0 | |
Open Up Avon | Foreign Currency Translation Adjustment Write-offs | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | ||
Charges | 0 | ||
Adjustments | 0 | ||
Cash payments | 0 | ||
Non-cash write-offs | 0 | ||
Foreign exchange | 0 | ||
Ending Balance | 0 | 0 | |
Open Up Avon | Contract Terminations/Other | |||
Restructuring Reserve [Roll Forward] | |||
Opening Balance | 0 | ||
Charges | 0.8 | ||
Adjustments | 0 | ||
Cash payments | 0.3 | ||
Non-cash write-offs | 0 | ||
Foreign exchange | 0 | ||
Ending Balance | $ 1.1 | $ 0 |
Restructuring Initiatives (Rest
Restructuring Initiatives (Restructuring Initiatives by Charge Type) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | $ 174.3 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 174.3 |
Open Up Avon | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 117.1 |
Estimated charges to be incurred on approved initiatives | 0.5 |
Total expected charges on approved initiatives | 117.6 |
Employee-Related Costs | Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 128 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 128 |
Employee-Related Costs | Open Up Avon | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 26.3 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 26.3 |
Inventory Write-offs | Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 2.2 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 2.2 |
Inventory Write-offs | Open Up Avon | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 88.5 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 88.5 |
Contract Terminations/Other | Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 40.7 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 40.7 |
Contract Terminations/Other | Open Up Avon | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 2.3 |
Estimated charges to be incurred on approved initiatives | 0.5 |
Total expected charges on approved initiatives | 2.8 |
Foreign Currency Translation Adjustment Write-offs | Transformation Plan | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 3.4 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | 3.4 |
Foreign Currency Translation Adjustment Write-offs | Open Up Avon | |
Restructuring Cost and Reserve [Line Items] | |
Charges incurred to-date | 0 |
Estimated charges to be incurred on approved initiatives | 0 |
Total expected charges on approved initiatives | $ 0 |
Restructuring Initiatives (Char
Restructuring Initiatives (Charges Reportable by Business Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transformation Plan | ||||
Charges incurred | $ 23.7 | $ 54.8 | $ 74.4 | $ 21.4 |
Charges incurred to-date | 174.3 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 174.3 | |||
Open Up Avon | ||||
Charges incurred | 117.1 | |||
Charges incurred to-date | 117.1 | |||
Estimated charges to be incurred on approved initiatives | 0.5 | |||
Total expected charges on approved initiatives | 117.6 | |||
Europe, Middle East & Africa | Transformation Plan | ||||
Charges incurred | 5 | 0.9 | 30.9 | 0 |
Charges incurred to-date | 36.8 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 36.8 | |||
Europe, Middle East & Africa | Open Up Avon | ||||
Charges incurred | 32.2 | |||
Charges incurred to-date | 32.2 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 32.2 | |||
South Latin America | Transformation Plan | ||||
Charges incurred | 4.1 | 5.6 | 13.2 | 0 |
Charges incurred to-date | 22.9 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 22.9 | |||
South Latin America | Open Up Avon | ||||
Charges incurred | 36.4 | |||
Charges incurred to-date | 36.4 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 36.4 | |||
North Latin America | Transformation Plan | ||||
Charges incurred | 0.6 | (0.6) | 4.4 | 0 |
Charges incurred to-date | 4.4 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 4.4 | |||
North Latin America | Open Up Avon | ||||
Charges incurred | 27.9 | |||
Charges incurred to-date | 27.9 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 27.9 | |||
Asia Pacific | Transformation Plan | ||||
Charges incurred | 0.6 | (0.5) | 9.1 | 0 |
Charges incurred to-date | 9.2 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 9.2 | |||
Asia Pacific | Open Up Avon | ||||
Charges incurred | 14.4 | |||
Charges incurred to-date | 14.4 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 14.4 | |||
Global & Other Operating Segments | Transformation Plan | ||||
Charges incurred | 13.4 | $ 49.4 | $ 16.8 | $ 21.4 |
Charges incurred to-date | 101 | |||
Estimated charges to be incurred on approved initiatives | 0 | |||
Total expected charges on approved initiatives | 101 | |||
Global & Other Operating Segments | Open Up Avon | ||||
Charges incurred | 6.2 | |||
Charges incurred to-date | 6.2 | |||
Estimated charges to be incurred on approved initiatives | 0.5 | |||
Total expected charges on approved initiatives | $ 6.7 |
Series C Convertible Preferre_2
Series C Convertible Preferred Stock (Details) | Mar. 01, 2016USD ($)director$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 1.25% | ||
Dividends, preferred stock | $ 0 | $ 0 | |
Liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||
Optional conversion price for holders (in dollars per share) | $ / shares | $ 5 | ||
Percentage of number of shares of common stock outstanding | 19.99% | ||
Temporary equity, conversion, common stock equivalent (in shares) | shares | 87,051,524 | 87,100,000 | |
Stock price trigger (in dollars per share) | $ / shares | $ 10 | ||
Number of directors | director | 3 | ||
Percentage of liquidation preference | 100.00% | ||
Minimum | |||
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 1.25% | ||
Maximum | |||
Class of Stock [Line Items] | |||
Dividend accrual, percentage | 5.00% | ||
Private Placement | |||
Class of Stock [Line Items] | |||
Discount on shares | $ 8,700,000 | ||
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | shares | 435,000 | ||
Stock issued during period | $ 435,000,000 | ||
Dividends accrued | $ 65,800,000 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 18, 2018 | Oct. 03, 2017 | Jul. 31, 2013 | |
Loss Contingencies [Line Items] | |||||||||||||||
Revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 | ||||
Other expense, net | (7.1) | $ (34.6) | $ (172.9) | ||||||||||||
FCPA | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Litigation settlement, amount awarded to other party | $ 135 | ||||||||||||||
Assessment for 2012 | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Assessment of contingencies, including penalties and accruing interest | $ 243 | $ 306 | |||||||||||||
Assessment of contingencies, including penalties and accruing interest, adjustment | $ (63) | ||||||||||||||
Assessment for 2017 | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Assessment of contingencies, including penalties and accruing interest | $ 236 | ||||||||||||||
IPI Tax on Cosmetics | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Estimated litigation liability | 195 | ||||||||||||||
Revenue | 168 | ||||||||||||||
Other expense, net | 27 | ||||||||||||||
Loss contingency, estimate of possible loss | $ 220 | ||||||||||||||
Loss contingency accrual, tax reserve | 73 | 73 | |||||||||||||
Brazil labor-related | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Estimated litigation liability | $ 11 | $ 11 |
Goodwill (Schedule of Goodwill)
Goodwill (Schedule of Goodwill) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Gross balance at period start | $ 185 |
Accumulated impairments at period start | (89.3) |
Net balance at period start | 95.7 |
Divestitures | 0 |
Impairment of goodwill | 0 |
Foreign exchange | (8.3) |
Gross balance at period end | 176.7 |
Accumulated impairments at period end | (89.3) |
Net balance at period end | 87.4 |
Europe, Middle East & Africa | |
Goodwill [Roll Forward] | |
Gross balance at period start | 27.3 |
Accumulated impairments at period start | (6.9) |
Net balance at period start | 20.4 |
Divestitures | 0 |
Impairment of goodwill | 0 |
Foreign exchange | (2.4) |
Gross balance at period end | 24.9 |
Accumulated impairments at period end | (6.9) |
Net balance at period end | 18 |
South Latin America | |
Goodwill [Roll Forward] | |
Gross balance at period start | 72.7 |
Accumulated impairments at period start | 0 |
Net balance at period start | 72.7 |
Divestitures | 0 |
Impairment of goodwill | 0 |
Foreign exchange | (5.9) |
Gross balance at period end | 66.8 |
Accumulated impairments at period end | 0 |
Net balance at period end | 66.8 |
Asia Pacific | |
Goodwill [Roll Forward] | |
Gross balance at period start | 85 |
Accumulated impairments at period start | (82.4) |
Net balance at period start | 2.6 |
Divestitures | 0 |
Impairment of goodwill | 0 |
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 In_3
Supplemental Balance Sheet Information (Components of Prepaid Expenses and Other) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid taxes and tax refunds receivable | $ 145 | $ 111.6 |
Receivables other than trade | 69.2 | 67.2 |
Prepaid brochure costs, paper and other literature | 14.9 | 64.8 |
Other | 42.9 | 52.8 |
Prepaid expenses and other | $ 272 | $ 296.4 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Components of Other Assets) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred tax assets (Note 10) | $ 212,600,000 | $ 203,800,000 |
Capitalized software (Note 1) | 89,300,000 | 85,200,000 |
Judicial deposits other than Brazil IPI tax (see below) | 74,100,000 | 82,200,000 |
Net overfunded pension plans (Note 14) | 88,100,000 | 82,000,000 |
Long-term receivables | 73,200,000 | 75,600,000 |
Judicial deposit for Brazil IPI tax on cosmetics (Note 19) | 0 | 73,800,000 |
Trust assets associated with supplemental benefit plans (Note 14) | 37,000,000 | 37,100,000 |
Tooling (plates and molds associated with our beauty products) | 12,600,000 | 12,500,000 |
Investment in New Avon (Note 4) | 0 | 0 |
Other | 16,100,000 | 14,000,000 |
Other assets | $ 603,000,000 | $ 666,200,000 |
Results of Operations by Quar_3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue | $ 1,401.7 | $ 1,424.2 | $ 1,351.9 | $ 1,393.5 | $ 1,568.8 | $ 1,417.8 | $ 1,395.9 | $ 1,333.1 | $ 5,571.3 | $ 5,715.6 | $ 5,717.7 |
Gross profit | 695.5 | 885.8 | 812.2 | 813.8 | 957.6 | 867.8 | 870.9 | 816 | 3,207.3 | 3,512.3 | |
Operating profit | (49.6) | 186.9 | 53 | 44.9 | 131.5 | 87.3 | 32.7 | 29.8 | 235.2 | 281.3 | 323.8 |
Income (Loss) from continuing operations, before taxes | (84.1) | 182.1 | (0.3) | 10.4 | 91.6 | 48 | (12.2) | (6.7) | 108.1 | 120.7 | 31.2 |
(Loss) income from continuing operations, net of tax | (77.5) | 113.8 | (37) | (21.1) | 90.4 | 11.9 | (45.8) | (36.5) | (21.8) | 20 | (93.4) |
Net loss attributable to noncontrolling interests | (0.1) | 0.7 | 0.9 | 0.8 | 1.1 | 0.6 | 0.3 | 0 | 2.3 | 2 | (0.2) |
Net (loss) income attributable to Avon | $ (77.6) | $ 114.5 | $ (36.1) | $ (20.3) | $ 91.5 | $ 12.5 | $ (45.5) | $ (36.5) | $ (19.5) | $ 22 | $ (107.6) |
(Loss) earnings per common share from continuing operations | |||||||||||
Basic (in dollars per share) | $ (0.19) | $ 0.21 | $ (0.09) | $ (0.06) | $ 0.17 | $ 0.01 | $ (0.12) | $ (0.10) | $ (0.10) | $ 0 | $ (0.25) |
Diluted (in dollars per share) | $ (0.19) | $ 0.21 | $ (0.09) | $ (0.06) | $ 0.17 | $ 0.01 | $ (0.12) | $ (0.10) | $ (0.10) | $ 0 | $ (0.25) |
Results of Operations by Quar_4
Results of Operations by Quarter (Unaudited) (Components Impacting Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Brazil IPI release | $ (194.7) | $ 0 | $ 0 | ||||||||
Total costs to implement restructuring initiatives | $ 126.1 | $ 19.8 | $ 23.7 | $ 10.9 | $ 23.7 | $ 6.2 | $ 20.3 | $ 10 | 180.5 | 60.2 | 77.4 |
Loss contingency | 0 | 0 | 18.2 | 0 | 0 | 18.2 | $ 0 | ||||
Sales | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Brazil IPI release | 0 | (168.4) | 0 | 0 | (168.4) | ||||||
Cost of sales | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total costs to implement restructuring initiatives | 90.5 | (0.1) | 0.5 | 0.6 | 0.7 | 0 | 0 | (0.1) | 91.5 | 0.6 | |
SG&A expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Total costs to implement restructuring initiatives | $ 35.6 | $ 19.9 | $ 23.2 | $ 10.3 | $ 23 | $ 6.2 | $ 20.3 | $ 10.1 | $ 89 | $ 59.6 |
Results of Operations by Quar_5
Results of Operations by Quarter (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
One-time tax reserves | $ 18 | ||
Internal restructuring of intellectual property | 3 | ||
Net benefit related to U.S. Tax Reform | $ 29.9 | $ 29.9 | |
Net increase (decrease) in valuation allowance | $ 45.6 | ||
Tax benefit favorable court decision | 10.4 | ||
Europe, Middle East & Africa | |||
Debt Instrument [Line Items] | |||
Net increase (decrease) in valuation allowance | 25.5 | ||
MEXICO | |||
Debt Instrument [Line Items] | |||
Net increase (decrease) in valuation allowance | $ (16) |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 15, 2019USD ($) | Feb. 21, 2019EUR (€) | Jun. 30, 2015USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2019 | Mar. 31, 2013 |
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 126,100,000 | $ 19,800,000 | $ 23,700,000 | $ 10,900,000 | $ 23,700,000 | $ 6,200,000 | $ 20,300,000 | $ 10,000,000 | $ 180,500,000 | $ 60,200,000 | $ 77,400,000 | ||||||
Open Up Avon | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 143,200,000 | ||||||||||||||||
Number of positions eliminated | 8.00% | ||||||||||||||||
Total expected charges on approved initiatives | 117,600,000 | $ 117,600,000 | |||||||||||||||
Open Up Avon | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Expected number of positions eliminated | 18.00% | ||||||||||||||||
Inventory Write-offs | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 89,800,000 | ||||||||||||||||
Inventory Write-offs | Open Up Avon | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Restructuring charges (benefits) and other costs (benefits) | 88,000,000 | ||||||||||||||||
Total expected charges on approved initiatives | $ 88,500,000 | $ 88,500,000 | |||||||||||||||
Revolving Credit Facility | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Debt instrument term | 5 years | ||||||||||||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||||||||||
Revolving Credit Facility | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||
Maximum borrowing capacity | € | € 200,000,000 | ||||||||||||||||
4.60% Notes, due March 2020 | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 4.60% | ||||||||||||||||
Forecast | Open Up Avon | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Expected number of positions eliminated | 10.00% | ||||||||||||||||
Forecast | Workforce Reduction | Open Up Avon | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Total expected charges on approved initiatives | $ 100,000,000 | ||||||||||||||||
TheFaceShop Co., LTd. | Avon Manufacturing (Guangzhou), Ltd. | Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Consideration transferred | $ 71,000,000 | ||||||||||||||||
Payments to acquire business | 47,000,000 | ||||||||||||||||
Cash payment for outstanding loans | 23,300,000 | ||||||||||||||||
Cash on hand | $ 700,000 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 126.1 | $ 19.8 | $ 23.7 | $ 10.9 | $ 23.7 | $ 6.2 | $ 20.3 | $ 10 | $ 180.5 | $ 60.2 | $ 77.4 |
Allowance for doubtful accounts receivable | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Balance at Beginning of Period | 129.3 | 122.9 | 129.3 | 122.9 | 77.6 | ||||||
Charged to Costs and Expenses | 162.4 | 221.9 | 190.5 | ||||||||
Charged to Revenue | 0 | 0 | 0 | ||||||||
Deductions | (198.7) | (215.5) | (145.2) | ||||||||
Balance at End of Period | 93 | 129.3 | 93 | 129.3 | 122.9 | ||||||
Refund liability | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Balance at Beginning of Period | 9.3 | 9.3 | |||||||||
Charged to Costs and Expenses | 0 | ||||||||||
Charged to Revenue | 172.3 | ||||||||||
Deductions | (169.3) | ||||||||||
Balance at End of Period | 12.3 | 9.3 | 12.3 | 9.3 | |||||||
Allowance for sales returns | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Balance at Beginning of Period | 9.3 | 8.2 | 9.3 | 8.2 | 9.1 | ||||||
Charged to Costs and Expenses | 0 | 0 | |||||||||
Charged to Revenue | 197.9 | 186.9 | |||||||||
Deductions | (196.8) | (187.8) | |||||||||
Balance at End of Period | 9.3 | 9.3 | 8.2 | ||||||||
Allowance for inventory obsolescence | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Balance at Beginning of Period | 61.3 | 58.4 | 61.3 | 58.4 | 71.3 | ||||||
Charged to Costs and Expenses | 113.5 | 36.7 | 36.5 | ||||||||
Charged to Revenue | 0 | 0 | 0 | ||||||||
Deductions | 55.2 | (33.8) | (49.4) | ||||||||
Balance at End of Period | 230 | 61.3 | 230 | 61.3 | 58.4 | ||||||
Deferred tax asset valuation allowance | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Balance at Beginning of Period | $ 3,217.6 | $ 3,296 | 3,217.6 | 3,296 | 2,090.1 | ||||||
Charged to Costs and Expenses | 39.9 | (78.4) | 1,205.9 | ||||||||
Charged to Revenue | 0 | 0 | 0 | ||||||||
Deductions | 0 | 0 | 0 | ||||||||
Balance at End of Period | $ 3,257.5 | $ 3,217.6 | 3,257.5 | $ 3,217.6 | $ 3,296 | ||||||
Inventory Write-offs | |||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||||||
Restructuring charges (benefits) and other costs (benefits) | $ 89.8 |
Uncategorized Items - avp-20181
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 41,100,000 |
Retained Earnings, Appropriated [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (41,100,000) |