Avon 2011 Annual Report Download - page 24

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PART I
lease office space in two locations in New York City for our executive and administrative offices, and own property in Rye, NY for Global IT and
Global Finance. In June 2011, we terminated a lease for office space in New York City and moved to a new office with more favorable terms.
In 2010 Avon acquired Silpada Designs, Inc., a direct seller of sterling silver jewelry with operations in the United States including an office
and warehouse in Lenexa, Kansas.
Other principal properties outside the U.S. measuring 50,000 square feet or more include the following:
• two distribution centers for primary use in North America operations (other than in the U.S.);
• four manufacturing facilities, fourteen distribution centers and two administrative offices in Latin America;
• three manufacturing facilities in Europe, primarily servicing Western Europe, Middle East & Africa and Central & Eastern Europe;
• eight distribution centers and four administrative offices in Western Europe, Middle East & Africa;
• five distribution centers and three administrative offices in Central & Eastern Europe; and
• five manufacturing facilities, eight distribution centers, and one administrative office in Asia Pacific.
We consider all of these properties to be in good repair, to adequately meet our needs and to operate at reasonable levels of productive
capacity.
In January 2007, we announced plans to realign certain North America distribution operations. We have closed our distribution facilities in
Newark, DE and Glenview, IL. Both properties are listed for sale and the Glenview site is under contract.
Of all the properties listed above, 35 are owned and the remaining 37 are leased. Many of our properties are used for a combination of
manufacturing, distribution and administration. These properties are included in the above listing based on primary usage.
In January 2008, we announced plans to realign certain Latin America distribution and manufacturing operations. We built a new
distribution center in Sao Paulo, Brazil that opened in 2011. We also opened a new distribution center in Colombia in 2011.
In July 2009, we announced plans to realign manufacturing operations in North America and Europe. This initiative includes the closing of
manufacturing facilities in Springdale, OH in 2012, and the sale and leaseback of the manufacturing facility in Germany in 2011.
ITEM 3. LEGAL PROCEEDINGS
Reference is made to Note 16, Contingencies, on page F-39 through F-41 of our 2011 Annual Report.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.