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60
Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and
Disclosures of Disposals of Components of an Entity. In April 2014, the FASB issued an ASU which changes the criteria
for reporting discontinued operations and enhances disclosures in this area. It also addresses sources of confusion and
inconsistent application related to financial reporting of discontinued operations guidance. This update became effective at
the beginning of our 2015 fiscal year. The adoption of this ASU did not have a significant impact on our consolidated
financial statements and disclosures.
2. Accounts Receivable
We had accounts receivable of $1.8 billion and $2.3 billion, net of an allowance for bad debt of $25.0 million and
$25.7 million, as of December 31, 2015 and 2014, respectively. Accounts receivable are written-off when it becomes
apparent based upon age or customer circumstances that such amounts will not be collected.
The following table sets forth activities in our allowance for bad debt (in millions):
2015
2014
2013
Balance as of beginning of period $ 25.7 $ 29.1 $ 23.7
Charges to provision for bad debt 7.5 3.8 11.7
Write-off of uncollectible accounts receivable (8.3) (8.0) (6.9)
Recoveries of bad debt 0.5 0.8 0.6
Translation Adjustments (0.4) — —
Balance as of end of period $ 25.0 $ 25.7 $ 29.1
Included in accounts receivable is a retained beneficial interest related to accounts receivable sold under our receivables
purchase agreements. The retained beneficial interest was not significant as of December 31, 2015 and 2014.
3. Derivatives
The following describes our derivative classifications:
Cash Flow Hedges. Includes certain commodity contracts we enter into to mitigate the risk of price volatility in forecasted
purchases and sales.
Fair Value Hedges. Includes derivatives we enter into in order to hedge price risk associated with our inventory and certain
firm commitments relating to fixed price purchase and sale contracts.
Non-designated Derivatives. Includes derivatives we primarily enter into in order to mitigate the risk of market price
fluctuations in aviation, marine and land fuel in the form of swaps or futures as well as certain fixed price purchase and sale
contracts and proprietary trading. In addition, non-designated derivatives are entered into to hedge the risk of currency rate
fluctuations.
For additional information on our derivatives accounting policy, see Note 1.