UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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)
New York
(State or other jurisdiction of incorporation)
| 1-4881 |
13-0544597 |
| (Commission File Number) |
(I.R.S. Employer Identification No.) |
1345 Avenue of the Americas
New York, New York |
10105-0196 |
| (Address of principal executive offices) |
(Zip Code) |
Registrant’s
telephone number, including area code: (212) 282-5000
Not Applicable
(Former name or former address, if changed since last report)
Item 9. Regulation FD
Disclosure
| 1. |
The following information is furnished pursuant to Item 9, “Regulation FD
Disclosure,” and Item 12, “Disclosure of Results of Operations and Financial
Condition.” |
| |
Effective
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. |
| |
The
classification of the following items was adjusted: |
| |
(1) |
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. |
| |
(2) |
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. |
| |
For
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. |
| |
Schedules
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
reference. |
| |
In
addition, as part of the Company’s 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. |
SIGNATURE
Pursuant
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 |
By: |
/s/
Gilbert L. Klemann, II
|
| |
|
Name:
Gilbert L. Klemann, II
Title: Senior Vice President,
General Counsel and Secretary |
EXHIBIT INDEX
| |
99.1 |
|
Avon
Products, Inc. Prior Year Income Statements Conformed to 2003 Classification of Certain
Expenses |
| |
99.2 |
|
Avon
Products, Inc. Prior Year Segment Information Conformed to 2003 Presentation |