Radio Shack 2010 Annual Report Download - page 62

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NOTE 3 – SUPPLEMENTAL BALANCE SHEET
DISCLOSURES
Accounts and Notes Receivable, Net: As of December
31, 2010 and 2009, we had the following accounts and
notes receivable outstanding in the accompanying
Consolidated Balance Sheets:
December 31,
(In millions) 2010 2009
Receivables from vendors
and service providers, net $ 291.0 $ 247.5
Trade accounts receivable 57.6 49.1
Other receivables 30.3 27.7
Allowance for doubtful accounts
(1.4) (1.8)
Accounts and notes receivable, net
$ 377.5 $ 322.5
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) 2010 2009
2008
Balance at the beginning
of the year $ 1.8 $ 1.5 $ 2.5
Provision for bad debts
included in selling,
general and
administrative expense
0.1 0.4 0.6
Uncollected receivables
written off, net (0.5)
(0.1)
(1.6)
Balance at the end of the year $ 1.4 $ 1.8 $ 1.5
Other Current Assets, Net:
December 31,
(In millions) 2010 2009
Deferred income taxes $ 61.4 $ 68.8
Other 46.7 45.6
Total other current assets, net $ 108.1 $ 114.4
Property, Plant and Equipment, Net:
December 31,
(In millions) 2010 2009
Land $ 2.4 $ 2.4
Buildings 55.7 55.2
Furniture, fixtures, equipment
and software 673.5 663.2
Leasehold improvements 362.8 360.9
Total PP&E 1,094.4 1,081.7
Less accumulated depreciation
and amortization (820.1) (799.4)
Property, plant and equipment, net $ 274.3 $ 282.3
Other Assets, Net:
December 31,
(In millions) 2010 2009
Notes receivable $ 9.6 $ 10.0
Deferred income taxes 45.9 53.1
Other 25.7 29.3
Total other assets, net $ 81.2 $ 92.4
Accrued Expenses and Other Current Liabilities:
December 31,
(In millions) 2010 2009
Payroll and bonuses $ 60.0 $ 68.7
Insurance 65.0 75.9
Sales and payroll taxes 41.4 41.9
Rent 36.5 36.8
Advertising
26.9 31.4
Gift card deferred revenue 19.5 19.4
Other 68.7 86.6
Total accrued expenses and
other current liabilities $ 318.0 $ 360.7
Other Non-Current Liabilities:
December 31,
(In millions) 2010 2009
Deferred compensation $ 34.6 $ 33.1
Liability for unrecognized tax benefits 36.6 35.1
Other 21.8 30.5
Total other non-current liabilities $ 93.0 $ 98.7
NOTE 4 – ACQUISITIONS
RadioShack de Mexico: In December 2008, we acquired
the remaining interest (slightly more than 50%) of our
Mexican joint venture - RadioShack de Mexico, S.A. de
C.V. - with Grupo Gigante, S.A.B. de C.V. We now own
100% of this subsidiary, which consisted of 200
RadioShack-branded stores and 14 dealers throughout
Mexico at the time of acquisition. The purchase price was
$44.9 million, which consisted of $42.2 million in cash paid
and transaction costs, net of cash acquired, plus $2.7
million in assumed debt. The acquisition was accounted for
using the purchase method of accounting in accordance
with the FASB’s accounting guidance for business