Burger King 2010 Annual Report Download - page 90

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Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
Note 5. Franchise Revenues
Franchise revenues consist of the following (in millions):
Years Ended June 30,
2010 2009 2008
Franchise royalties $ 529.5 $ 518.2 $ 512.6
Initial franchise fees 10.9 13.8 13.2
Renewal franchise fees and other related fees 8.8 11.4 11.4
Total $ 549.2 $ 543.4 $ 537.2
Note 6. Trade and Notes Receivable, net
Trade and notes receivable, net, consists of the following (in millions):
As of June 30,
2010 2009
Trade accounts receivable $ 158.7 $ 146.3
Notes receivable, current portion 4.8 5.5
163.5 151.8
Allowance for doubtful accounts (20.6) (21.8)
Total, net $ 142.9 $ 130.0
The change in allowances for doubtful accounts is as follows:
Years Ended June 30,
2010 2009 2008
Beginning balance $ 21.8 $ 23.0 $ 28.6
Provision (recoveries) for doubtful accounts, net 0.8 0.7 (2.7)
Write−offs (2.0) (1.9) (2.9)
Ending balance $ 20.6 $ 21.8 $ 23.0
Note 7. Prepaids and Other Current Assets, net
Included in prepaids and other current assets, net were inventories totaling $15.4 million and $15.8 million, prepaid expenses of
$33.1 million and $31.0 million, foreign currency forward contracts of $25.9 million and $0.3 million, and refundable income taxes of
$14.0 million and $39.3 million as of June 30, 2010 and 2009, respectively.
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