SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(date of earliest event reported): April 25, 2003
AVON PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation)
|(Commission File Number)
||(I.R.S. Employer Identification No.)
|1345 Avenue of the Americas
New York, New York
|(Address of principal executive offices)
telephone number, including area code: (212) 282-5000
(Former name or former address, if changed since last report)
Item 9. Regulation FD
The following information is furnished pursuant to Item 9, Regulation FD
Disclosure, and Item 12, Disclosure of Results of Operations and Financial
January 1, 2003, Avon Products, Inc. (the Company) adjusted the income
statement classification of certain expense items, described below. These
reclassifications were reflected in the Consolidated Statements of Income for the first
quarter of 2003, which were included in the press release issued by the Company on April
25, 2003 announcing its earnings for that period. These reclassifications had no impact on
Net income or Earnings per share for prior periods.
classification of the following items was adjusted:
Inventory obsolescence expense as well as other inventory-related expenses (for example,
cost of returned merchandise destroyed), previously included in Marketing, distribution,
and administrative expenses, have been reclassified to Cost of goods sold. These
reclassifications lowered full year gross margin in the range of 150 basis points, with an
offsetting decrease in the expense ratio. Therefore, there was no impact on Operating
profit or operating margin, as well as pretax earnings, Net income, or Earnings per share.
Certain items previously included in Total other expenses have been reclassified to
Marketing, distribution, and administrative expenses; for example, certain legal expenses
and losses on asset disposals. The impact of these reclassifications was minimal: a
decline in full year operating margin of approximately 10 basis points. There was no
impact on pretax earnings, Net income, or Earnings per share.
comparison purposes, prior year amounts have also been reclassified to conform to the
current year presentation. Therefore, year to year variances are insignificantly affected
as a result of these changes.
that provide prior period income statements for each quarter of 2002 and 2001 and segment
information for the same time periods, which include the reclassifications of these items,
are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by
addition, as part of the Companys ongoing clustering initiative associated with its
Business Transformation program, the Dominican Republic was included in the North America
business unit as of January 1, 2003 whereas in prior periods it had been included in Latin
America. Prior periods have been reclassified to reflect this change and there was no
impact on the total Company financial statements. The segment information schedule
attached hereto as Exhibit 99.2 reflects this reclassification.
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Dated: April 29, 2003
Gilbert L. Klemann, II
Gilbert L. Klemann, II
Title: Senior Vice President,
General Counsel and Secretary
Products, Inc. Prior Year Income Statements Conformed to 2003 Classification of Certain
Products, Inc. Prior Year Segment Information Conformed to 2003 Presentation