Avon 2010 Annual Report Download - page 110

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SCHEDULE II
AVON PRODUCTS, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
Years ended December 31, 2010, 2009 and 2008
Additions
(in millions)
Description
Balance at
Beginning
of Period
Charged
to Costs
and
Expenses
Charged
to
Revenue Deductions
Balance
at End of
Period
2010
Allowance for doubtful accounts receivable $132.4 $215.7 $ — $199.3(1) $148.8
Allowance for sales returns 32.7 — 424.1 373.6(2) 83.2
Allowance for inventory obsolescence 114.9 131.1 — 119.3(3) 126.7
Deferred tax asset valuation allowance 370.2 92.5(4) — — 462.7
2009
Allowance for doubtful accounts receivable $101.9 $221.2 $ — $190.7(1) $132.4
Allowance for sales returns 25.5 — 370.5 363.3(2) 32.7
Allowance for inventory obsolescence 97.0 120.0 — 102.1(3) 114.9
Deferred tax asset valuation allowance 269.4 100.8(4) — — 370.2
2008
Allowance for doubtful accounts receivable $108.9 $195.1 $ — $202.1(1) $101.9
Allowance for sales returns 31.9 — 365.5 371.9(2) 25.5
Allowance for inventory obsolescence 211.3 79.4 — 193.7(3) 97.0
Deferred tax asset valuation allowance 278.3 — — 8.9(5) 269.4
(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.