AVON PRODUCTS INC

CIK:0000008868|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net sales	$ 550.0	$ 631.4
Other revenue	26.8	28.2
Revenue from affiliates of Natura &Co	13.7	3.7
Total revenue	590.5	663.3
Costs, expenses and other:
Cost of sales	(225.0)	(287.4)
Cost of sales from affiliates of Natura &Co	(13.4)	(4.2)
Selling, general and administrative expenses	(386.8)	(433.9)
Impairment of goodwill	(9.1)	0.0
Operating loss	(43.8)	(62.2)
Interest expense	(7.2)	(13.0)
Interest expense on Loan from affiliates of Natura &Co	(38.0)	(15.3)
Interest income	5.3	0.9
Interest income from affiliates of Natura &Co	1.6	0.7
Other income (expense), net	1.6	4.5
Total other expenses	(36.7)	(22.2)
Loss from continuing operations, before income taxes	(80.5)	(84.4)
Income taxes	(12.0)	(4.8)
Loss from continuing operations, net of tax	(92.5)	(89.2)
Loss from discontinued operations, net of tax	(27.4)	(7.8)
Net loss	(119.9)	(97.0)
Net loss attributable to noncontrolling interests	(0.1)	(0.2)
Net loss attributable to Avon	$ (120.0)	$ (97.2)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net loss	$ (119.9)	$ (97.0)
Loss from discontinued operations, net of tax	(27.4)	(7.8)
Loss from continuing operations, net of tax	(92.5)	(89.2)
Adjustments to reconcile net loss from continuing operations to net cash used by operating activities:
Depreciation	13.3	10.9
Amortization	4.7	4.8
Provision for doubtful accounts	10.2	14.1
Provision for obsolescence	4.2	6.4
Share-based compensation	4.2	2.4
Foreign exchange (gains) losses	(5.6)	(7.3)
Deferred income taxes	5.0	(2.5)
Impairment loss on assets	9.1	0.0
Other	3.1	(0.6)
Changes in assets and liabilities:
Accounts receivable	4.7	(20.6)
Inventories	(21.0)	(33.1)
Prepaid expenses and other	(49.7)	9.4
Accounts payable and accrued liabilities	(43.2)	(65.4)
Income and other taxes	(6.2)	3.2
Noncurrent assets and liabilities	25.9	(0.9)
Net cash used by operating activities of continuing operations	(133.8)	(168.4)
Cash Flows from Investing Activities
Capital expenditures	(15.7)	(13.6)
Proceeds from disposal of assets	0.3	2.7
Net cash used by investing activities of continuing operations	(15.4)	(10.9)
Cash Flows from Financing Activities
Debt, net (maturities of three months or less)	41.6	86.8
Proceeds from debt	30.2	68.6
Repayment of debt	(1.7)	(18.9)
Repayment of debt to affiliates of Natura &Co	(52.5)	(10.7)
Repayment of debt from affiliates of Natura &Co	38.2	11.7
Settlement of derivative contracts	0.0	1.3
Net cash provided by financing activities of continuing operations	55.8	138.8
Net cash used by operating activities of discontinued operations	(24.6)	(5.6)
Net cash used by discontinued operations	(24.6)	(5.6)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(5.1)	3.1
Net (decrease) increase in cash and cash equivalents, and restricted cash	(123.1)	(43.0)
Cash and cash equivalents, and restricted cash at beginning of period	367.9	251.5
Cash and cash equivalents, and restricted cash at end of period	$ 244.8	$ 208.5

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 244.5	$ 367.6
Restricted cash	0.3	0.3
Accounts receivable, net	168.4	183.4
Receivables from affiliates of Natura &Co	88.6	72.9
Loans to affiliates of Natura &Co	93.9	72.2
Inventories	351.9	332.2
Prepaid expenses and other	169.2	127.9
Current assets of discontinued operations	0.0	1.8
Total current assets	1,116.8	1,158.3
Property, plant and equipment, at cost	890.6	881.1
Less accumulated depreciation	(566.8)	(548.1)
Property, plant and equipment, net	323.8	333.0
Right-of-use assets	87.8	92.1
Goodwill	18.5	25.9
Deferred tax asset	49.3	52.1
Loans to affiliates of Natura &Co	50.3	54.8
Other assets	427.9	445.5
Total assets	2,074.4	2,161.7
Current Liabilities
Debt maturing within one year	45.4	5.7
Loans from affiliates of Natura &Co	599.4	537.2
Accounts payable	433.1	461.5
Payables to affiliates of Natura &Co	57.8	58.1
Accrued compensation	66.7	77.2
Other accrued liabilities	217.9	247.4
Sales taxes and taxes other than income	68.7	67.9
Income taxes	9.6	5.2
Current liabilities of discontinued operations	81.0	79.9
Total current liabilities	1,579.6	1,540.1
Long-term debt	214.9	214.8
Loans from affiliates of Natura &Co	1,437.5	1,427.2
Long-term operating lease liability	67.4	71.5
Employee benefit plans	58.6	58.1
Long-term income taxes	28.1	33.0
Other liabilities	53.6	58.2
Total liabilities	3,439.7	3,402.9
Shareholders’ Deficit
Common stock - par value $0.01 per share - 101.34 outstanding at each period end	0.0	0.0
Additional paid-in capital	643.9	639.8
Retained earnings	(952.3)	(832.3)
Accumulated other comprehensive loss	(1,060.5)	(1,052.2)
Total Avon shareholders’ deficit	(1,368.9)	(1,244.7)
Noncontrolling interests	3.6	3.5
Total shareholders’ deficit	(1,365.3)	(1,241.2)
Total liabilities and shareholders’ deficit	$ 2,074.4	$ 2,161.7