strategic-management

216 ROCHELLE R. BRUNSON AND MARLENE M. REED
EXHIBIT 4 Avon’s Income Statements (all numbers in thousands)
PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue $ 10,690,100 $ 9,938,700 $ 8,763,900
Cost of Revenue 3,949,100 3,941,200 3,434,600
Gross Profit 6,741,000 5,997,500 5,329,300
Operating Expenses
Research Development — — —
Selling General and Administrative 5,401,700 5,124,800 4,567,900
Non Recurring — — —
Others — — —
Total Operating Expenses — — —
Operating Income or Loss 1,339,300 872,700 761,400
Income from Continuing Operations
Total Other Income/Expenses Net (600) 35,600 41,700
Earnings Before Interest and Taxes 1,338,700 908,300 803,100
Interest Expense 100,400 112,200 99,600
Income Before Tax 1,238,300 796,100 703,500
Income Tax Expense 362,700 262,800 223,400
Minority Interest (300) (2,600) (2,500)
Net Income From Continuing Ops 875,300 530,700 477,600
Non-recurring Events
Discontinued Operations — — —
Extraordinary Items — — —
Effect of Accounting Changes — — —
Other Items — — —
Net Income 875,300 530,700 477,600
EXHIBIT 5 Avon’s Balance Sheets (all numbers in thousands)
PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Assets
Current Assets
Cash and Cash Equivalents $ 1,104,700 $ 963,400 $ 1,198,900
Short Term Investments 40,100 — —
Net Receivables 1,166,000 840,400 700,400
Inventory 1,007,900 1,041,800 900,300
Other Current Assets 238,200 669,800 534,800
Total Current Assets 3,556,900 3,515,400 3,334,400
Long-Term Investments 212,600 127,300 —
Property, Plant and Equipment 1,343,900 1,278,200 1,100,200
Goodwill 224,500 222,200 —
Intangible Assets 28,600 43,600 —
Accumulated Amortization — — —
Other Assets 106,700 160,700 803,600
Deferred Long Term Asset Charges 600,800 368,800 —
Total Assets 6,074,000 5,716,200 5,238,200
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