Radio Shack 2009 Annual Report Download - page 66

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59
In June 2009, the FASB issued new accounting guidance to improve financial reporting by companies
involved with variable interest entities and to provide more relevant and reliable information to users of
financial statements. This guidance is effective for fiscal years beginning after November 15, 2009. We
adopted this guidance effective January 1, 2010, and the adoption had no effect on our consolidated
financial statements.
In August 2009, the FASB issued new accounting guidance to provide clarification on measuring liabilities
at fair value when a quoted price in an active market is not available. This guidance became effective for
us on October 1, 2009. We adopted this guidance effective October 1, 2009, and it had no effect on our
consolidated financial statements.
NOTE 3 – SUPPLEMENTAL BALANCE SHEET DISCLOSURES
Accounts and Notes Receivable, Net: As of December 31, 2009 and 2008, we had the following accounts
and notes receivable outstanding in the accompanying Consolidated Balance Sheets:
December 31,
(In millions) 2009 2008
Receivables from vendors and service
providers, net
$ 247.5
$ 144.2
Trade accounts receivable 49.1 68.6
Other receivables 27.7 30.6
Allowance for doubtful accounts (1.8) (1.5)
Accounts and notes receivable, net $ 322.5 $ 241.9
Receivables from vendors and service providers relate to earned wireless activation commissions, rebates,
residual income, promotions, marketing development funds and other payments from our third-party service
providers and product vendors, after taking into account estimates for service providers’ customer
deactivations and non-activations, which are factors in determining the amount of wireless activation
commissions and residual income earned.
The change in the allowance for doubtful accounts is as follows:
December 31,
(In millions) 2009 2008 2007
Balance at the beginning of the year $ 1.5 $ 2.5 $ 2.5
Provision for bad debts included in selling,
general and administrative expense 0.4 0.6 0.4
Uncollected receivables written off, net (0.1) (1.6) (0.4)
Balance at the end of the year $ 1.8 $ 1.5 $ 2.5
Other Current Assets, Net:
December 31,
(In millions) 2009 2008
Deferred income taxes $ 68.8 $ 63.9
Other 45.6 34.7
Total other current assets, net $ 114.4 $ 98.6