Avon Products (AVP) 10-K 25 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net sales	10284.7	10588.9	9845.2
Other revenue	98.1	101.2	93.5
Total revenue	10382.8	10690.1	9938.7
Costs, expenses and other:
Cost of sales	3888.3	3949.1	3941.2
Selling, general and administrative expenses	5476.3	5401.7	5124.8
Operating profit	1018.2	1339.3	872.7
Interest expense	104.8	100.4	112.2
Interest income	-20.2	-37.1	-42.2
Other expense, net	7.1	37.7	6.6
Total other expenses	91.7	101	76.6
Income before taxes	926.5	1238.3	796.1
Income taxes	298.3	362.7	262.8
Net income	628.2	875.6	533.3
Net income attributable to noncontrolling interests	-2.4	-0.3	-2.6
Net income attributable to Avon	625.8	875.3	530.7
Earnings per share:
Basic	1.45	2.04	1.22
Diluted	1.45	2.03	1.21
Weighted-average shares outstanding:
Basic	426.9	426.36	433.47
Diluted	428.54	428.25	436.02

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets
Cash, including cash equivalents of $670.5 and $704.8	1311.6	1104.7
Accounts receivable (less allowances of $165.5 and $127.9)	779.7	687.8
Inventories	1067.5	1007.9
Prepaid expenses and other	1030.5	756.5
Total current assets	4189.3	3556.9
Property, plant and equipment, at cost
Land	144.3	85.3
Buildings and improvements	1048.1	1008.1
Equipment	1506.9	1346.5
Property, Plant and Equipment, Gross, Total	2699.3	2439.9
Less accumulated depreciation	-1169.7	(1,096)
Property, Plant and Equipment, Net, Total	1529.6	1343.9
Other assets	1113.8	1173.2
Total assets	6832.7	6,074
Current liabilities
Debt maturing within one year	138.1	1031.4
Accounts payable	754.7	724.3
Accrued compensation	291	234.4
Other accrued liabilities	697.1	581.9
Sales and taxes other than income	259.2	212.2
Income taxes	134.7	128
Total current liabilities	2274.8	2912.2
Long-term debt	2307.8	1456.2
Employee benefit plans	588.9	665.4
Long-term income taxes	173.8	168.9
Other liabilities	174.8	159
Total liabilities	5520.1	5361.7
Shareholders' equity
Common stock, par value $.25 - authorized 1,500 shares; issued 740.9 and 739.4 shares	186.1	185.6
Additional paid-in capital	1,941	1874.1
Retained earnings	4383.9	4118.9
Accumulated other comprehensive loss	-692.6	-965.9
Treasury stock, at cost (313.4 and 313.1 shares)	-4545.8	-4537.8
Total Avon shareholders' equity	1272.6	674.9
Noncontrolling interest	40	37.4
Total shareholders' equity	1312.6	712.3
Total liabilities and shareholders' equity	6832.7	$6,074

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Cash, cash equivalents	670.5	704.8
Accounts receivable, allowances	165.5	127.9
Common stock, par value	0.25	0.25
Common stock, authorized	1,500	1,500
Common stock, issued	740.9	739.4
Treasury stock, shares	313.4	313.1

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities
Net income	628.2		875.6		533.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	133		141.9		128.9
Amortization	47.7		45.3		43.2
Provision for doubtful accounts	221.7		195.5		164.1
Provision for obsolescence	122.9		80.8		280.6
Share-based compensation	54.9		54.8		61.6
Foreign exchange losses (gains)	-1.4		18.7		-2.5
Deferred income taxes	-162.7		-62.4		-112.4
Other	68.3		48		39.5
Changes in assets and liabilities:
Accounts receivable	(261)		-174.6		-236.6
Inventories	-125.5		-174.3		(341)
Prepaid expenses and other	-72.9		-153.3		-49.1
Accounts payable and accrued liabilities	126.2		-148.9		169.9
Income and other taxes	16		47.5		61.6
Noncurrent assets and liabilities	-13.4		-46.5		-151.3
Net cash provided by operating activities	782		748.1		589.8
Cash Flows from Investing Activities
Capital expenditures	-296.9		-380.5		-278.5
Disposal of assets	11.2		13.4		11.2
Purchases of investments	-0.9		-77.7		(47)
Proceeds from sale of investments	61.9		41.4		46.1
Other investing activities	5.8		0		(19)
Net cash used by investing activities	-218.9		-403.4		-287.2
Cash Flows from Financing Activities
Cash dividends	-364.8		-347.7		-325.7
Debt, net (maturities of three months or less)	-508.1		-216.9		249.6
Proceeds from debt	957.7		572.6		58.7
Repayment of debt	-450.4		-73.9		(18)
Proceeds from exercise of stock options	13.1		81.4		85.5
Excess tax benefit realized from share-based compensation	-0.7		15.1		19.6
Repurchase of common stock	-8.6		-172.1		-666.8
Net cash used by financing activities	-361.8	[1]	-141.5	[1]	-597.1	[1]
Effect of exchange rate changes on cash and equivalents	5.6		-61.9		59
Net change in cash and equivalents	206.9		141.3		-235.5
Cash and equivalents at beginning of year	1104.7		963.4		1198.9
Cash and equivalents at end of year	1311.6		1104.7		963.4
Cash paid for:
Interest, net of amounts capitalized	127.5		99.6		113.2
Income taxes, net of refunds received	380.4		388.7		396.7
[1]Non-cash financing activities included the change in fair market value of interest rate swap agreements of $(55.7) in 2009, $83.6 in 2008, and $8.4 in 2007 (see Note 4, Debt and Other Financing).

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect (Parenthetical) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net cash provided (used by) financing activities, Non-cash financing activities change in fair market value of interest rate swap agreements	-55.7	83.6	8.4

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interest	Total
Beginning Balances at Dec. 31, 2006	183.5	1549.8	3396.8	-656.3	-3683.4	$37	827.4
Beginning Balances (in shares) at Dec. 31, 2006	732.74				291.35
Comprehensive income:
Net income			530.7			2.6	533.3
Foreign currency translation adjustments				185.7		1.9	187.6
Changes in available-for-sale securities, net of taxes of $0.1 in 2009, $.3 in 2008, and $0 in 2007				0.1			0.1
Amortization of unrecognized actuarial losses, prior service credit, and transition obligation, net of taxes of $12.2 in 2009, $10.2 in 2008, and $14.2 in 2007				27.6			27.6
Net actuarial gains (losses) and prior service cost, net of taxes of $26.4 in 2009, $119.4 in 2008,and $22.3 in 2007				43.3			43.3
Net derivative losses on cash flow hedges, net of taxes of $4.7 in 2009, $5.1 in 2008, and $9.5 in 2007				-17.4			-17.4
Cumulative effect of accounting changes relating to taxes (Note 6)			-18.3				-18.3
Dividends - $.84 per share in 2009, $.80 per share in 2008, and $.74 per share in 2007			-322.7				-322.7
Exercise/vesting and expense of share-based compensation (in shares)	3.52				-0.1
Exercise/vesting and expense of share-based compensation	1.2	143.4			1.2		145.8
Repurchase of common stock (in shares)					17.31
Repurchase of common stock		11.8			(685)		-673.2
Purchases and sales of noncontrolling interests, net of dividends paid of $4.8 in 2009, $7.1 in 2008, and $3.1 in 2007						-3.3	-3.3
Income tax benefits - stock transactions		19.6					19.6
Ending Balances (in shares) at Dec. 31, 2007	736.26				308.56
Ending Balances at Dec. 31, 2007	184.7	1724.6	3586.5	(417)	-4367.2	38.2	749.8
Comprehensive income:
Net income			875.3			0.3	875.6
Foreign currency translation adjustments				-318.3		6	-312.3
Changes in available-for-sale securities, net of taxes of $0.1 in 2009, $.3 in 2008, and $0 in 2007				-0.7			-0.7
Amortization of unrecognized actuarial losses, prior service credit, and transition obligation, net of taxes of $12.2 in 2009, $10.2 in 2008, and $14.2 in 2007				20.1			20.1
Net actuarial gains (losses) and prior service cost, net of taxes of $26.4 in 2009, $119.4 in 2008,and $22.3 in 2007				-240.5			-240.5
Net derivative losses on cash flow hedges, net of taxes of $4.7 in 2009, $5.1 in 2008, and $9.5 in 2007				-9.5			-9.5
Dividends - $.84 per share in 2009, $.80 per share in 2008, and $.74 per share in 2007			-342.9				-342.9
Exercise/vesting and expense of share-based compensation (in shares)	3.16				-0.1
Exercise/vesting and expense of share-based compensation	0.9	134.4			1.5		136.8
Repurchase of common stock (in shares)					4.61
Repurchase of common stock					-172.1		-172.1
Purchases and sales of noncontrolling interests, net of dividends paid of $4.8 in 2009, $7.1 in 2008, and $3.1 in 2007						-7.1	-7.1
Income tax benefits - stock transactions		15.1					15.1
Ending Balances (in shares) at Dec. 31, 2008	739.42				313.07
Ending Balances at Dec. 31, 2008	185.6	1874.1	4118.9	-965.9	-4537.8	37.4	712.3
Comprehensive income:
Net income			625.8			2.4	628.2
Foreign currency translation adjustments				193.1		-0.3	192.8
Changes in available-for-sale securities, net of taxes of $0.1 in 2009, $.3 in 2008, and $0 in 2007				0.3			0.3
Amortization of unrecognized actuarial losses, prior service credit, and transition obligation, net of taxes of $12.2 in 2009, $10.2 in 2008, and $14.2 in 2007				30.4			30.4
Net actuarial gains (losses) and prior service cost, net of taxes of $26.4 in 2009, $119.4 in 2008,and $22.3 in 2007				41.1			41.1
Net derivative losses on cash flow hedges, net of taxes of $4.7 in 2009, $5.1 in 2008, and $9.5 in 2007				8.4			8.4
Dividends - $.84 per share in 2009, $.80 per share in 2008, and $.74 per share in 2007			-360.8				-360.8
Exercise/vesting and expense of share-based compensation (in shares)	1.48				-0.05
Exercise/vesting and expense of share-based compensation	0.5	67.6			0.6		68.7
Repurchase of common stock (in shares)					0.4
Repurchase of common stock					-8.6		-8.6
Purchases and sales of noncontrolling interests, net of dividends paid of $4.8 in 2009, $7.1 in 2008, and $3.1 in 2007						0.5	0.5
Income tax benefits - stock transactions		-0.7					-0.7
Ending Balances (in shares) at Dec. 31, 2009	740.9				313.42
Ending Balances at Dec. 31, 2009	186.1	$1,941	4383.9	-692.6	-4545.8	$40	1312.6

3_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Changes in available-for-sale securities, taxes	0.1	0.3	$0
Amortization of unrecognized actuarial losses, prior service credit, and transition obligation, taxes	12.2	10.2	14.2
Net actuarial gains (losses) and prior service cost, taxes	26.4		22.3
Net derivative losses on cash flow hedges, taxes	4.7	5.1	9.5
Dividends, per share	0.84	0.8	0.74
Purchases and sales of noncontrolling interests, dividends paid	4.8	7.1	3.1

Description of the Business and

Description of the Business and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Description of the Business and Summary of Significant Accounting Policies	NOTE 1. Description of the Business and Summary of Significant Accounting Policies Business When used in these notes, the terms Avon, Company, we, our or us mean Avon Products, Inc. We are a global manufacturer and marketer of beauty and related products. Our business is conducted worldwide, primarily in one channel, direct selling. Our reportable segments are based on geographic operations in six regions: Latin America; North America; Central Eastern Europe; Western Europe, Middle East Africa; Asia Pacific; and China. We have centralized operations for Global Brand Marketing, Global Sales and Supply Chain. Our product categories are Beauty, Fashion and Home. Beauty consists of color cosmetics, fragrances, skin care and personal care. Fashion consists of fashion jewelry, watches, apparel, footwear and accessories. Home consists of gift and decorative products, housewares, entertainment and leisure products and childrens and nutritional products. Sales from Health and Wellness products and mark., a global cosmetics brand that focuses on the market for young women, are included among these three categories based on product type. Sales are made to the ultimate consumer principally by independent Avon Representatives. Principles of Consolidation The consolidated financial statements include the accounts of Avon and our majority and wholly-owned subsidiaries. Intercompany balances and transactions are eliminated. Use of Estimates We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America, or GAAP. In preparing these statements, we are required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, we review our estimates, including those related to restructuring reserves, allowances for doubtful accounts receivable, allowances for sales returns, provisions for inventory obsolescence, income taxes and tax valuation reserves, share-based compensation, loss contingencies, and the determination of discount rate and other actuarial assumptions for pension, postretirement and postemployment benefit expenses. Foreign Currency Financial statements of foreign subsidiaries operating in other than highly inflationary economies are translated at year-end exchange rates for assets and liabilities and average exchange rates during the year for income and expense accounts. The resulting translation adjustments are recorded within accumulated other comprehensive loss. Financial statements of subsidiaries operating in highly inflationary economies are translated using a combination of current and historical exchange rates and any translation adjustments are included in current earnings. Gains or losses resulting from foreign currency transactions are recorded in other expense, net. Revenue Recognition Net sales primarily include s

New Accounting Standards

New Accounting Standards
	12 Months Ended Dec. 31, 2009 USD / shares
New Accounting Standards	NOTE 2. New Accounting Standards In June 2009, the Financial Accounting Standards Board (FASB) issued the FASB Accounting Standards Codification (the Codification), which established the Codification as the authoritative source of nongovernmental accounting principles to be applied to the financial statements prepared in accordance with GAAP. Standards Implemented Effective January1, 2009, we adopted the fair value measurement provisions as required by the Fair Value Measurements and Disclosures Topic of the Codification, as it relates to the measurement of nonfinancial assets and liabilities on a non-recurring basis. The adoption of these provisions did not have an impact on our Consolidated Financial Statements. Effective January1, 2009, we adopted enhanced disclosures about how and why we use derivative instruments, how they are accounted for, and how they affect our financial performance as required by the Derivatives and Hedging Topic of the Codification. See Note 7, Financial Instruments and Risk Management. Effective January1, 2009, we adopted the provisions required by the EPS Topic of the Codification. The specific provisions address whether instruments granted in share-based payment awards are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing EPS under the two-class method. Prior periods EPS was adjusted retrospectively which caused the December31, 2008 basic EPS to be adjusted from $2.05 to $2.04 and diluted EPS to be adjusted from $2.04 to $2.03. There was no impact to EPS for the year ended December31, 2007. See Note 1, Description of the Business and Summary of Significant Accounting Policies. Effective January1, 2009, we adopted the provisions relating to the accounting for business combinations as required by the Business Combinations Topic of the Codification. These provisions will impact our financial statements both on the acquisition date and in subsequent periods and will be applied prospectively. The impact of adopting these provisions will depend on the nature and terms of future acquisitions. Effective January1, 2009, we adopted the provisions for the accounting and reporting of noncontrolling interests in a subsidiary in consolidated financial statements as required by the Consolidations Topic of the Codification. These provisions recharacterize minority interests as noncontrolling interests and require noncontrolling interests to be classified as a component of shareholders equity. These provisions require retroactive adoption of the presentation and disclosure requirements for existing minority interests. As a result of the adoption of these provisions, we reclassified minority interest of $37.4 from other liabilities to shareholders equity on the Consolidated Balance Sheet at December31, 2008. Effective June30, 2009, we adopted the subsequent event provisions of the Codification. These provisions provide guidance on managements assessment of subsequent events. The adoption of these provisions did not have an impact on our Consolidated Financial Statements. Effective December31, 2009, we adopted the provisions of the Compensati

Inventories

Inventories
	12 Months Ended Dec. 31, 2009 USD / shares
Inventories	NOTE 3. Inventories Inventories at December31 consisted of the following: 2009 2008 Raw materials $ 335.9 $ 292.7 Finished goods 731.6 715.2 Total $ 1,067.5 $ 1,007.9

Debt and Other Financing

Debt and Other Financing
	12 Months Ended Dec. 31, 2009 USD / shares
Debt and Other Financing	NOTE 4. Debt and Other Financing Debt Debt at December31 consisted of the following: 2009 2008 Debt maturing within one year: Notes payable $ 122.8 $ 125.4 Commercial paper 499.7 Yen credit facility 102.0 7.15% Notes, due November 2009 300.0 Current portion of long-term debt 15.3 4.3 Total $ 138.1 $ 1,031.4 Long-term debt: 5.125% Notes, due January 2011 $ 499.8 $ 499.7 4.80% Notes, due March 2013 249.8 249.7 4.625% Notes, due May 2013 116.3 114.1 5.625% Notes, due March 2014 497.7 5.75% Notes, due March 2018 249.3 249.2 4.20% Notes, due July 2018 249.3 249.2 6.50% Notes, due March 2019 345.9 Other, payable through 2019 with interest from 1.3% to 14.0% 87.4 14.7 Total long-term debt 2,295.5 1,376.6 Adjustments for debt with fair value hedges 27.6 83.9 Less current portion (15.3 ) (4.3 ) Total $ 2,307.8 $ 1,456.2 Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 5.8% at December31, 2009, and 7.6% at December31, 2008. Other long-term debt, payable through 2019, included obligations under capital leases of $15.3 at December31, 2009, and $11.4 at December31, 2008, which primarily relate to leases of automobiles and equipment. In addition, other long-term debt, payable through 2019, at December31, 2009, included financing lease obligations entered into in 2009 for $72.1, which primarily relates to the sale and leaseback of equipment and software in one of our distribution facilities in North America. Adjustments for debt with fair value hedges includes adjustments to reflect net unrealized gains of $27.6 at December31, 2009, and net unrealized gains of $80.0 at December31, 2008, on debt with fair value hedges and unamortized gains on terminated swap agreements and swap agreements no longer designated as fair value hedges of $0 at December31, 2009, and $3.9 at December31, 2008. See Note 7, Financial Instruments and Risk Management. We held interest-rate swap contracts that swap approximately 82% at December31, 2009, and 50% at December31, 2008 of our long-term debt to variable rates. See Note 7, Financial Instruments and Risk Management. In March 2009, we issued $850.0 principal amount of notes payable in a public offering. $500.0 of the notes bear interest at a per annum coupon rate equal to 5.625%, payable semi-annually, and mature on March1, 2014 (the 2014 Notes). $350.0 of the notes bear interest at a per annum coupon rate equal to 6.50%, payable semi-annually, and mature on March1, 2019 (the 2019 Notes). The net proceeds from the offering of $837.6 were used to repay the outstanding indebtedness under our commercial paper program and for general corporate purposes. In connection with the offering of the 2014 Notes, we entered into five-year interest-rate swap agreements wi

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss
	12 Months Ended Dec. 31, 2009 USD / shares
Accumulated Other Comprehensive Loss	NOTE 5. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss at December31 consisted of the following: 2009 2008 Foreign currency translation adjustments $ (198.6 ) $ (406.2 ) Unrealized (losses) gains from available-for-sale securities, net of taxes of $0 and $.1 (.3 ) Pension and postretirement adjustment, net of taxes of $233.6 and $266.8 (475.2 ) (532.2 ) Net derivative losses from cash flow hedges, net of taxes of $10.1 and $14.8 (18.8 ) (27.2 ) Total $ (692.6 ) $ (965.9 ) Foreign exchange gains (losses) of $(14.5) for 2009 and $25.4 for 2008 resulting from the translation of actuarial losses, prior service credit and translation obligation recorded in Accumulated Other Comprehensive Income (AOCI) are included in foreign currency translation adjustments in the rollforward of accumulated other comprehensive loss on the Consolidated Statements of Changes in Shareholders Equity.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	NOTE 6. Income Taxes Deferred tax assets (liabilities) resulting from temporary differences in the recognition of income and expense for tax and financial reporting purposes at December31 consisted of the following: 2009 2008 Deferred tax assets: Accrued expenses and reserves $ 261.8 $ 212.4 Pension and postretirement benefits 169.1 199.3 Asset revaluations 83.3 52.7 Capitalized expenses 66.4 46.0 Share-based compensation 60.0 51.3 Restructuring initiatives 30.0 12.9 Postemployment benefits 18.2 17.0 Foreign tax loss carryforwards 373.4 300.9 Foreign tax credit carryforwards 144.2 93.9 Minimum tax credit carryforwards 32.9 32.5 All other 49.6 35.5 Valuation allowance (394.1 ) (284.1 ) Total deferred tax assets 894.8 770.3 Deferred tax liabilities: Depreciation and amortization (42.2 ) (45.3 ) Unremitted foreign earnings (26.2 ) (19.1 ) Prepaid expenses (13.5 ) (14.1 ) Capitalized interest (7.7 ) (6.1 ) All other (21.0 ) (31.9 ) Total deferred tax liabilities (110.6 ) (116.5 ) Net deferred tax assets $ 784.2 $ 653.8 Deferred tax assets (liabilities) at December31 were classified as follows: 2009 2008 Deferred tax assets: Prepaid expenses and other $ 303.2 $ 194.6 Other assets 527.3 502.5 Total deferred tax assets 830.5 697.1 Deferred tax liabilities: Income taxes (.2 ) (7.0 ) Long-term income taxes (46.1 ) (36.3 ) Total deferred tax liabilities (46.3 ) (43.3 ) Net deferred tax assets $ 784.2 $ 653.8 The valuation allowance primarily represents amounts for foreign tax loss carryforwards. The basis used for recognition of deferred tax assets included the profitability of the operations, related deferred tax liabilities and the likelihood of utilizing tax credit carryforwards during the carryover periods. The net increase in the valuation allowance of $110.0 during 2009 was mainly due to several of our foreign entities continuing to incur losses during 2009, thereby increasing the tax loss carryforwards for which a valuation allowance was provided. Income before taxes for the years ended December31 was as follows: 2009 2008 2007 United States $ (144.1 ) $ (19.2 ) $ (31.6 ) Foreign 1,070.6 1,257.5 827.7 Total $ 926.5 $ 1,238.3 $ 796.1 The provision for income taxes for the years ended December31 was as follows: 2009 2008 2007 Federal: Current $ (17.5 ) $ (45.9 ) $ 23.2 Deferred (38.

Financial Instruments and Risk

Financial Instruments and Risk Management
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Instruments and Risk Management	NOTE 7. Financial Instruments and Risk Management We operate globally, with manufacturing and distribution facilities in various locations around the world. We may reduce our exposure to fluctuations in cash flows associated with changes in interest rates and foreign exchange rates by creating offsetting positions through the use of derivative financial instruments. Since we use foreign currency-rate sensitive and interest-rate sensitive instruments to hedge a certain portion of our existing and forecasted transactions, we expect that any gain or loss in value of the hedge instruments generally would be offset by decreases or increases in the value of the underlying forecasted transactions. We do not enter into derivative financial instruments for trading or speculative purposes, nor are we a party to leveraged derivatives. The master agreements governing our derivative contracts generally contain standard provisions that could trigger early termination of the contracts in certain circumstances, including if we were to merge with another entity and the creditworthiness of the surviving entity were to be materially weaker than that of Avon prior to the merger. Derivatives are recognized on the balance sheet at their fair values. The following table presents the fair value of derivative instruments outstanding at December31, 2009: Asset Liability Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedges: Interest-rate swap agreements Other assets $ 46.7 Other Liabilities $ 2.8 Foreign exchange forward contracts Prepaid expenses and other Accounts Payable Total derivatives designated as hedges $ 46.7 $ 2.8 Derivatives not designated as hedges: Interest-rate swap agreements Other assets $ 8.2 Other Liabilities $ 8.2 Foreign exchange forward contracts Prepaid expenses and other 5.1 Accounts Payable 8.0 Total derivatives not designated as hedges $ 13.3 $ 16.2 Total derivatives $ 60.0 $ 19.0 Accounting Policies Derivatives are recognized on the balance sheet at their fair values. When we become a party to a derivative instrument, we designate, for financial reporting purposes, the instrument as a fair value hedge, a cash flow hedge, a net investment hedge, or a non-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. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the loss or gain on the hedged asset or liability that is attributable to the hedged risk are recorded in earnings. Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in AOCI to the extent effective and reclassified into earnings in the sam

Fair Value

Fair Value
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value	NOTE 8. Fair Value Assets and Liabilities Measured at Fair Value We adopted the fair value measurement provisions required by the Fair Value Measurements and Disclosures Topic of the Codification as of January1, 2008, with the exception of the application to nonfinancial assets and liabilities measured at fair value on a non-recurring basis, which was adopted as of January1, 2009, with no impact to our Consolidated Financial Statements. The adoption of the fair value measurement provisions did not have a material impact on our fair value measurements. The fair value measurement provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. In addition, the fair value measurement provisions 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. The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December31, 2009: Level1 Level2 Total Assets: Available-for-sale securities $ 1.9 $ $ 1.9 Interest-rate swap agreements 54.9 54.9 Foreign exchange forward contracts 5.1 5.1 Total $ 1.9 $ 60.0 $ 61.9 Liabilities: Interest-rate swap agreements $ $ 11.0 $ 11.0 Foreign exchange forward contracts 8.0 8.0 Total $ $ 19.0 $ 19.0 The table above excludes our pension and postretirement plan assets. Refer to Note 11, Employee Benefit Plans, for the fair value hierarchy for our plan assets. The available-for-sale securities include securities held in a trust in order to fund future benefit payments for non-qualified retirement plans (see Note 11, Employee Benefit Plans). The foreign exchange forward contracts and interest-rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. The underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. Fair Value of Financial Instruments The net asset (liability) amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at December31 consisted of the following: 2009 2008 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 1,311.6 $ 1,311.6 $ 1,104.7 $ 1,104.7 Available-for-sale securities 1.9 1.9 2.3 2.3 Grantor trust cash and cash equivalents 7.6 7.6

Share-Based Compensation Plans

Share-Based Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Share-Based Compensation Plans	NOTE 9. Share-Based Compensation Plans The Avon Products, Inc. 2005 Stock Incentive Plan (the 2005 Plan), which is shareholder approved, provides for several types of share-based incentive compensation awards including stock options, stock appreciation rights, restricted stock, restricted stock units and performance unit awards. Under the 2005 Plan, the maximum number of shares that may be awarded is 31,000,000 shares, of which no more than 8,000,000 shares may be used for restricted stock awards and restricted stock unit awards. Shares issued under share-based awards will be primarily funded with issuance of new shares. We have issued stock options, restricted stock, restricted stock units and stock appreciation rights under the 2005 Plan. Stock option awards are granted with an exercise price equal to the closing market price of our stock at the date of grant; those option awards generally vest in thirds over the three-year period following each option grant date and have ten-year contractual terms. Restricted stock or restricted stock units generally vest after three years. For the years ended December31: 2009 2008 2007 Compensation cost for stock options, restricted stock, restricted stock units, and stock appreciation rights $ 54.9 $ 54.8 $ 61.6 Total income tax benefit recognized for share-based arrangements 18.5 18.8 20.7 All of the compensation cost for stock options, restricted stock, restricted stock units, and stock appreciation rights for 2009, 2008, and 2007 was recorded in selling, general and administrative expenses. For the years ended December31, 2009 and 2008, we have determined that we have a pool of windfall tax benefits. Stock Options The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton option pricing model with the following weighted-average assumptions for options granted during the years ended December31: 2009 2008 2007 Risk-free rate(1) 1.6 % 2.3 % 4.5 % Expected term(2) 4years 4years 4years Expected volatility(3) 35 % 28 % 27 % Expected dividends(4) 4.0 % 2.0 % 2.1 % (1) The risk-free rate was based upon the rate on a zero coupon U.S. Treasury bill, for periods within the contractual life of the option, in effect at the time of grant. (2) The expected term of the option was based on historical employee exercise behavior, the vesting terms of the respective option and a contractual life of ten years. (3) Expected volatility was based on the weekly historical volatility of our stock price, over a period similar to the expected life of the option. (4) Assumed the current cash dividends of $.21 during 2009, $.20 during 2008 and $.185 during 2007per share each quarter on our common stock for options granted during those years. The weighted-average grant-date fair values per share of options granted were $3.18 during 2009, $8.04 during 2008 and $8.41 during 2007. A summary of stock options as of December31, 2009, and changes during 2009, is as follows:

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity	NOTE 10. Shareholders Equity Stock Repurchase Program In February 2005, our Board approved a five-year, $1,000.0 share repurchase program to begin upon completion of our previous share repurchase program. This $1,000.0 program was completed during December 2007. In October 2007, our Board of Directors approved a five-year $2,000.0 share repurchase program ($2.0 billion program) which began in December 2007. We have repurchased approximately 4.8million shares for $180.2 under the $2.0 billion program through December31, 2009.

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans	NOTE 11. Employee Benefit Plans Savings Plan We offer a qualified defined contribution plan for U.S.-based employees, the Avon Personal Savings Account Plan (the PSA), which allows eligible participants to contribute up to 25% of eligible compensation through payroll deductions. We match employee contributions dollar for dollar up to the first 3% of eligible compensation and fifty cents for each dollar contributed from 4% to 6% of eligible compensation. We made matching contributions in cash to the PSA of $12.1 in 2009, $13.0 in 2008 and $12.8 in 2007, which were then used by the PSA to purchase our shares in the open market. Defined Benefit Pension and Postretirement Plans Avon and certain subsidiaries have contributory and noncontributory retirement plans for substantially all employees of those subsidiaries. Benefits under these plans are generally based on an employees years of service and average compensation near retirement. Plans are funded based on legal requirements and cash flow. We provide health care and life insurance benefits for the majority of employees who retire under our retirement plans in the U.S. and certain foreign countries. In the U.S., the cost of such health care benefits is shared by us and our retirees for employees hired on or before January1, 2005. Employees hired after January1, 2005, will pay the full cost of the health care benefits upon retirement. In August 2009, we announced changes to our postretirement medical and life insurance benefits offered to U.S. retirees. The changes to the retiree medical benefits reduced the plans obligations by $36.3. This amount is being amortized as a negative prior service cost over the average future service of active participants which is approximately 12 years. The changes to the retiree life insurance benefits reduced the plans obligations by $27.7. This amount is being amortized as a negative prior service cost over 3.3 years, which is the remaining term of the plan. We are required, among other things, to recognize the funded status of 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, were recognized as components of accumulated other comprehensive income in shareholders equity. 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 pension and postretirement plans. We use a December31 measurement date for all of our employee benefit plans. Pension Plans Postretirement Benefits U.S. Plans Non-U.S. Plans 2009 2008 2009 2008 2009 2008 Change in Benefit Obligation: Beginning balance $ (726.2 ) $ (776.7 ) $ (642.1 ) $ (787.0 ) $ (178.3 ) $ (176.9 ) Service cost (11.7 ) (17.4 ) (14.1 ) (16.7 )

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Information	NOTE 12. Segment Information Our operating segments, which are our reportable segments, are based on geographic operations and include commercial business units in Latin America; North America; Central Eastern Europe; Western Europe, Middle East Africa; Asia Pacific; and China. Global expenses include, among other things, costs related to our executive and administrative offices, information technology, research and development, and marketing. We allocate certain planned global expenses to our business segments primarily based on planned revenue. The unallocated costs remain as global expenses. We do not allocate to our segments income taxes, foreign exchange gains or losses, or costs of implementing restructuring initiatives related to our global functions. Costs of implementing restructuring initiatives related to a specific segment are recorded within that segment. In Europe, our manufacturing facilities primarily support Western Europe, Middle East Africa and Central Eastern Europe. In our disclosures of total assets, capital expenditures and depreciation and amortization, we have allocated amounts associated with the European manufacturing facilities between Western Europe, Middle East Africa and Central Eastern Europe based upon planned beauty unit volume. A similar allocation is done in Asia where our manufacturing facilities primarily support Asia Pacific and China. 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 operating profits or losses. Segment revenues reflect direct sales of products to Representatives based on the Representatives geographic location. Intersegment sales and transfers are not significant. Each segment records direct expenses related to its employees and its operations. Summarized financial information concerning our reportable segments as of December31 is shown in the following tables. Total Revenue Operating Profit 2009 2008 2007 Total Revenue Operating Profit(Loss) Total Revenue Operating Profit(Loss) Total Revenue Operating Profit(Loss) Latin America $ 4,103.2 $ 647.9 $ 3,884.1 $ 690.3 $ 3,298.9 $ 483.1 North America 2,262.7 110.4 2,492.7 213.9 2,622.1 213.1 Central Eastern Europe 1,500.1 244.9 1,719.5 346.2 1,577.8 296.1 Western Europe, Middle East Africa 1,277.8 84.2 1,351.7 121.0 1,308.6 33.9 Asia Pacific 885.6 74.2 891.2 102.4 850.8 64.3 China 353.4 20.1 350.9 17.7 280.5 2.0 Total from operations 10,382.8 1,181.7 10,690.1 1,491.5 9,938.7 1,092.5 Global and other (163.5 ) (152.2 ) (219.8 ) Total $ 10,382.8

Leases and Commitments

Leases and Commitments
	12 Months Ended Dec. 31, 2009 USD / shares
Leases and Commitments	NOTE 13. Leases and Commitments Minimum rental commitments under noncancellable operating leases, primarily for equipment and office facilities at December31, 2009, are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services. Year Leases Purchase Obligations 2010 $ 96.6 $ 163.5 2011 68.3 70.0 2012 51.6 59.0 2013 26.3 38.3 2014 19.1 34.8 Later years 43.7 17.5 Sublease rental income (27.3 ) Total $ 278.3 $ 383.1 Rent expense was $116.1 in 2009, $120.4 in 2008, and $118.5 in 2007. Plant construction, expansion and modernization projects with an estimated cost to complete of approximately $489.8 were in progress at December31, 2009.

Restructuring Initiatives

Restructuring Initiatives
	12 Months Ended Dec. 31, 2009 USD / shares
Restructuring Initiatives	NOTE 14. Restructuring Initiatives 2005 Restructuring Program In November 2005, we announced a multi-year turnaround plan to restore sustainable growth. As part of our turnaround plan, we launched a restructuring program in late 2005 (the 2005 Restructuring Program). Restructuring initiatives under this program include: enhancement of organizational effectiveness, including efforts to flatten the organization and bring senior management closer to consumers through a substantial organization downsizing; implementation of a global manufacturing strategy through facilities realignment; implementation of additional supply chain efficiencies in distribution; and streamlining of transactional and other services through outsourcing and moves to low-cost countries. We have approved and announced all of the initiatives that are part of our 2005 Restructuring Program. We expect to record total restructuring charges and other costs to implement restructuring initiatives of approximately $530 before taxes. Through December31, 2009, we have recorded total costs to implement, net of adjustments, of $524.3 ($20.1 in 2009, $60.6 in 2008, $158.3 in 2007, $228.8 in 2006 and $56.5 in 2005) for actions associated with our restructuring initiatives. Restructuring Charges 2007 During 2007 and January 2008, exit and disposal activities that are a part of our 2005 Restructuring Program were approved. Specific actions for this phase of our multi-year restructuring plan included: the reorganization of certain functions, primarily sales-related organizations; the restructure of certain international direct selling operations; the realignment of certain of our distribution and manufacturing operations, including the realignment of certain of our Latin America distribution operations; automation of certain distribution processes; and outsourcing of certain finance, customer service, and information technology processes. The outsourcing of some information technology processes and the realignment of some Latin America distribution operations are expected to be completed by the end of 2011. All other actions described above were completed by the end of 2009. During 2007, we recorded total costs to implement in 2007 of $158.3 associated with our 2005 Restructuring Program, and the costs consisted of the following: charges of $118.0 for employee-related costs, including severance, pension and other termination benefits; favorable adjustments of $8.0, primarily relating to certain employees pursuing reassignments to other positions and higher than expected turnover (employees leaving prior to termination); and other costs to implement of $48.3 for professional service fees associated with our initiatives to outsource certain human resource, finance, customer service, and information technology processes and accelerated depreciation associated with our initiatives to realign certain distribution operations and close certain manufacturing operations. Of the total costs to implement, $157.3 was recorded in selling, g

Contingencies

Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Contingencies	NOTE 15. Contingencies In 2002, 2003 and 2004, our Brazilian subsidiary received a series of excise tax assessments from the Brazilian tax authorities for alleged tax deficiencies during the years 1997-2001 asserting that the establishment in 1995 of separate manufacturing and distribution companies in that country 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, based on purported market sales data. The structure adopted in 1995 is comparable to that used by other companies in Brazil. We believe that our Brazilian corporate structure is appropriate, both operationally and legally, and that the assessments are unfounded. This matter is being vigorously contested and in the opinion of our outside counsel, the likelihood that the assessments ultimately will be upheld is remote. Management believes that the likelihood that the assessments will have a material impact on our consolidated financial position, results of operations or cash flows is correspondingly remote. As of December31, 2009, the total assessments related to these remote contingencies, including penalties and accruing interest, amounted to approximately $620 at the exchange rate on December31, 2009. In the event that assessments are upheld in the earlier stages of review, it may be necessary for us to provide security to pursue further appeals, which, depending on the circumstances, may result in a charge to income. We are currently awaiting decisions at the first administrative level for the 2002 assessment and at the second administrative level for the 2003 and 2004 assessments. It is not possible to make a reasonable estimate of the amount or range of expense that could result from an unfavorable outcome in respect of these or any additional assessments that may be issued for subsequent periods. As previously reported, we have engaged outside counsel to conduct an internal investigation and compliance reviews focused on compliance with the Foreign Corrupt Practices Act and related U.S. and foreign laws in China and additional countries. The internal investigation and compliance reviews, which are being conducted under the oversight of our Audit Committee, began in June 2008. We voluntarily contacted the United States Securities and Exchange Commission and the United States Department of Justice to advise both agencies of our internal investigation and compliance reviews and we are, as we have done from the beginning of the internal investigation, continuing to cooperate with both agencies and have signed tolling agreements with them. The internal investigation and compliance reviews, which started in China, are focused on reviewing certain expenses and books and records processes, including, but not limited to, travel, entertainment, gifts, and payments to third-party agents and others, in connection with our business dealings, directly or indirectly, with foreign governments and their employees. The internal investigation and compliance reviews of these matters are ongoing. At this point we are unable to predict the duration, scope or results of the internal investigation and

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Intangible Assets	NOTE 16. Goodwill and Intangible Assets On April2, 2007, we acquired our licensee in Egypt for approximately $17 in cash. The acquired business is being operated by a new wholly-owned subsidiary and is included in our Western Europe, Middle East Africa operating segment. The purchase price allocation resulted in goodwill of $9.3 and customer relationships of $1.0 with a seven-year useful life. In August 2006, we purchased all of the remaining 6.155% outstanding shares in our two joint-venture subsidiaries in China from the minority interest shareholders for approximately $39.1. We previously owned 93.845% of these subsidiaries and consolidated their results, while recording minority interest for the portion not owned. Upon completion of the transaction, we eliminated the minority interest in the net assets of these subsidiaries. The purchase of these shares did not have a material impact on our consolidated net income. Avon China is a stand-alone operating segment. The purchase price allocation resulted in goodwill of $33.3 and customer relationships of $1.9 with a ten-year weighted-average useful life. Goodwill Latin America Western Europe, MiddleEast Africa Central Eastern Europe Asia Pacific China Total Balance at December31, 2008 $ 94.9 $ 33.3 $ 8.8 $ 12.4 $ 75.1 $ 224.5 Adjustments (.4 ) (.4 ) Foreign exchange .6 .1 (.1 ) .1 .7 Balance at December31, 2009 $ 94.9 $ 33.9 $ 8.9 $ 11.9 $ 75.2 $ 224.8 Intangible assets 2009 2008 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized Intangible Assets Customer relationships $ 38.5 $ (31.0 ) $ 38.4 $ (25.6 ) Licensing agreements 42.3 (37.5 ) 42.4 (28.3 ) Noncompete agreements 7.4 (5.9 ) 7.4 (5.7 ) Total $ 88.2 $ (74.4 ) $ 88.2 $ (59.6 ) Aggregate Amortization Expense: 2009 $ 14.8 2008 16.4 2007 16.4 Estimated Amortization Expense: 2010 $ 2.3 2011 2.3 2012 2.3 2013 2.3 2014 1.6

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Balance Sheet Information	NOTE 17. Supplemental Balance Sheet Information At December31, 2009 and 2008, prepaid expenses and other included the following Prepaid expenses and other 2009 2008 Deferred tax assets (Note 6) $ 303.2 $ 194.6 Receivables other than trade 143.3 127.1 Prepaid taxes and tax refunds receivable 296.9 156.5 Prepaid brochure costs, paper and other literature 122.8 126.0 Short-term investments 26.8 40.1 Property, plant and equipment held for sale 8.2 Deferred charge 36.9 Other 92.4 112.2 Prepaid expenses and other $ 1,030.5 $ 756.5 In accordance with accounting guidance issued by the International Practices Task Force, when a subsidiary in Venezuela purchases U.S. dollar denominated cash at the parallel market exchange rate, the Venezuelan subsidiary should remeasure the cash at the parallel market exchange rate. The subsidiary should translate the cash, as well as the remainder of its net assets, at the official rate, because this is expected to be the rate that is available for dividend remittances. Since the remeasurement and translation occur at different exchange rates, a difference arises between the actual U.S. dollar denominated cash balance and the as translated balance. The deferred charge in the table above represents this difference for the U.S.Dollar denominated cash held by our Venezuelan subsidiary. At December31, 2009 and 2008, other assets included the following: Other assets 2009 2008 Deferred tax assets (Note 6) $ 527.3 $ 502.5 Goodwill (Note 16) 224.8 224.5 Intangible assets (Note 16) 13.8 28.6 Investments 49.8 108.9 Deferred software (Note 1) 112.0 98.3 Interest-rate swap agreements (Note 8) 54.9 103.7 Other 131.2 106.7 Other assets $ 1,113.8 $ 1,173.2 In 2009, we redeemed approximately $46 of corporate-owned life insurance policies that had been recorded in other assets.

Results of Operations by Quarte

Results of Operations by Quarter (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Results of Operations by Quarter (Unaudited)	NOTE 18. Results of Operations by Quarter (Unaudited) 2009 First Second Third Fourth Year Total revenue $ 2,179.8 $ 2,470.3 $ 2,551.3 $ 3,181.4 $ 10,382.8 Gross profit 1,368.6 1,536.0 1,596.5 1,993.4 6,494.5 Operating profit 168.4 182.9 258.5 408.4 1,018.2 Income before taxes 146.7 159.9 231.7 388.2 926.5 Net income 117.5 84.6 157.6 268.5 628.2 Net income attributable to Avon 117.3 82.9 156.2 269.4 625.8 Earnings per share Basic $ .27 $ .19 $ .36 $ .63 $ 1.45 (1) Diluted $ .27 $ .19 $ .36 $ .62 $ 1.45 (1) 2008 First Second Third Fourth Year Total revenue $ 2,501.7 $ 2,736.1 $ 2,644.7 $ 2,807.6 $ 10,690.1 Gross profit 1,578.0 1,742.7 1,669.7 1,750.6 6,741.0 Operating profit 296.2 373.9 297.1 372.1 1,339.3 Income before taxes 278.6 344.4 279.2 336.1 1,238.3 Net income 186.2 237.0 224.7 227.7 875.6 Net income attributable to Avon 184.7 235.6 222.6 232.4 875.3 Earnings per share Basic $ .43 $ .55 $ .52 $ .54 $ 2.04 (1) Diluted $ .43 $ .55 $ .52 $ .54 $ 2.03 (1) (1) The sum of per share amounts for the quarters does not necessarily equal that for the year because the computations were made independently. Results of operations by quarter were impacted by the following: 2009 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ $ .3 $ 3.3 $ 3.1 $ 6.7 Selling, general and administrative expenses 14.5 89.1 30.2 30.9 164.7 Total costs to implement restructuring initiatives $ 14.5 $ 89.4 $ 33.5 $ 34.0 $ 171.4 2008 First Second Third Fourth Year Costs to implement restructuring initiatives: Cost of sales $ $ .3 $ 2.6 $ .2 $ 3.1 Selling, general and administrative expenses 25.5 13.0 11.8 7.2 57.5 Total costs to implement restructuring initiatives $ 25.5 $ 13.3 $ 14.4 $ 7.4 $ 60.6 Benefits related to our PLS program $ $ (13.0 ) $ $ $ (13.0 )

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events	NOTE 19. Subsequent Events Management evaluated subsequent events through February25, 2010, which is the date the financial statements were issued. Effective January 1, 2010, Avon will treat Venezuela as a highly inflationary economy for accounting purposes. Effective January11, 2010, the Venezuelan government devalued its currency and moved to a two-tier exchange structure. The official exchange rate moved from 2.15 to 2.60 for essential goods and to 4.30 for non-essential goods and services. Although no official rules have yet been issued, most of Avons imports are expected to fall into the non-essential classification. On February9, 2010, we announced an increase in our quarterly cash dividend to $.22 per share from $.21 per share, beginning with the first-quarter dividend payable March1, 2010, to shareholders of record on February23, 2010. With this increase, the indicated annual dividend rate is $.88 per share.

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II AVON PRODUCTS, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years ended December31, 2009, 2008 and 2007 Additions (in millions) Description Balanceat Beginning of Period Charged to Costs and Expenses Charged to Revenue Deductions Balance atEndof Period 2009 Allowance for doubtful accounts receivable $ 102.0 $ 221.7 $ 191.1 (1) $ 132.6 Allowance for sales returns 25.8 374.1 367.0 (2) 32.9 Allowance for inventory obsolescence 98.2 122.9 105.1 (3) 116.0 Deferred tax asset valuation allowance 284.1 110.0 (4) 394.1 2008 Allowance for doubtful accounts receivable $ 109.0 $ 195.5 $ 202.5 (1) $ 102.0 Allowance for sales returns 32.1 369.3 375.6 (2) 25.8 Allowance for inventory obsolescence 216.9 80.8 199.5 (3) 98.2 Deferred tax asset valuation allowance 278.3 5.8 (4) 284.1 2007 Allowance for doubtful accounts receivable $ 91.1 $ 164.1 $ $ 146.2 (1) $ 109.0 Allowance for sales returns 28.0 338.1 334.0 (2) 32.1 Allowance for inventory obsolescence 125.0 280.6 188.7 (3) 216.9 Deferred tax asset valuation allowance 234.1 62.9 (4) 18.7 (5) 278.3 (1) Accounts written off, net of recoveries and foreign currency translation adjustment. (2) Returned product destroyed and foreign currency translation adjustment. (3) Obsolete inventory destroyed and foreign currency translation adjustment. (4) Increase in valuation allowance for tax loss carryforward benefits is because it is more likely than not that some or all of the deferred tax assets will not be realized in the future. (5) Release of valuation allowance on deferred tax assets that are more likely than not to be realized in the future.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Trading Symbol	AVP
Entity Registrant Name	AVON PRODUCTS INC
Entity Central Index Key	0000008868
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		427,495,268
Entity Public Float			$11,000,000,000