Avon 2006 Annual Report Download - page 23

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ITEM 6. SELECTED FINANCIAL DATA
We derived the following selected financial data from our audited consolidated financial statements. The following data should be read in
conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial
Statements and related Notes.
2006 (1) 2005 (2) 2004 2003 2002 (3)
Income Data
Total revenue $8,763.9 $8,149.6 $7,747.8 $6,845.1 $6,200.1
Operating profit 761.4 1,149.0 1,229.0 1,042.8 863.5
Net income 477.6 847.6 846.1 664.8 534.6
Diluted earnings per share (4) $ 1.06 $ 1.81 $ 1.77 $ 1.39 $ 1.11
Cash dividends per share $ .70 $ 0.66 $ 0.56 $ 0.42 $ 0.40
Balance Sheet Data
Total assets $5,238.2 $4,761.4 $4,148.1 $3,562.3 $3,327.5
Debt maturing within one year 615.6 882.5 51.7 244.1 605.2
Long-term debt 1,170.7 766.5 866.3 877.7 767.0
Total debt 1,786.3 1,649.0 918.0 1,121.8 1,372.2
Shareholders' equity (deficit) 790.4 794.2 950.2 371.3 (127.7)
(1) In 2006, we recorded restructuring charges and other costs to implement the restructuring initiatives totaling $228.8 pretax ($158.2 after tax, or $.35 per
diluted share), related to our multi-year restructuring plan announced during 2005. We also recorded charges totaling $81.4, including $72.6 of inventory
obsolescence expense, related to our product line simplification program. Additionally, we recorded charges totaling $49.2 related to the adoptionof
Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004), Share-Based Payment (“SFAS 123R”), including restricted stock units granted
in connection with design changes to share-based compensation plan designed related to the adoption. We also recorded decreases of $232.8 and $254.7 to
total assets and shareholders’ equity, respectively, from the initial adoption of SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106 and 132R (“SFAS 158”).
(2) In 2005, we recorded restructuring charges and other costs to implement the restructuring initiatives totaling $56.5 pretax ($44.2 after tax, or $.09 per
diluted share), related to our multi-year restructuring plan announced during 2005.
(3) In 2002, we recorded restructuring charges of $43.6 pretax ($30.4 after tax, or $.06 per diluted share), primarily related to workforce reductions and facility
rationalizations. We also reversed accruals relating to previous restructuring charges of $7.3 pretax ($5.2 after tax, or $.01 per diluted share).
(4) For purposes of calculating diluted earnings per share for the years ended December 31, 2003 and 2002, after tax interest expense of $5.7 and $10.4,
respectively, applicable to convertible notes, has been added back to net income.
A V O N 2006 17