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that provide users of financial statements with more information about an enterprise’s involvement in a
variable interest entity. In January 2010, the Company applied this guidance and the adoption of the ASU did
not have a significant impact on the consolidated financial statements.
In July 2010, the FASB issued ASU No. 2010-20, “Disclosures About the Credit Quality of Financing
Receivables and the Allowance for Credit Losses.” This ASU amends existing disclosures to require a
company to provide a greater level of disaggregated information about the credit quality of its financing
receivables and its allowance for credit losses. In December 2010, the Company applied this guidance to its
financing receivables. Refer to Note B, Accounts and Notes Receivable.
Not Yet Implemented: In October 2009, the FASB issued ASU 2009-13, “Revenue Recognition (Topic 605) —
Multiple-Deliverable Revenue Arrangements”. This ASU eliminates the requirement that all undelivered
elements must have objective and reliable evidence of fair value before a company can recognize the portion
of the consideration that is attributable to items that already have been delivered. This may allow some
companies to recognize revenue on transactions that involve multiple deliverables earlier than under the
current requirements. Additionally, under the new guidance, the relative selling price method is required to be
used in allocating consideration between deliverables and the residual value method will no longer be
permitted. This ASU is effective prospectively for revenue arrangements entered into or materially modified
beginning in fiscal 2011 although early adoption is permitted. A company may elect, but will not be required,
to adopt the amendments in this ASU retrospectively for all prior periods. The Company has evaluated the
ASU and does not believe it will have a material impact on the consolidated financial statements.
In December 2010, the FASB issued ASU 2010-28, “Intangibles — Goodwill and Other (Topic 350).” This
ASU modifies the first step of the goodwill impairment test to include reporting units with zero or negative
carrying amounts. For these reporting units, the second step of the goodwill impairment test shall be
performed to measure the amount of impairment loss, if any, when it is more likely than not that a goodwill
impairment exists. This ASU is effective for fiscal years and interim periods beginning after December 15,
2010. The Company has evaluated the ASU and does not believe it will have a material impact on the
consolidated financial statements.
In December 2010, the FASB issued ASU 2010-29, “Business Combinations (Topic 805).” This ASU specifies
that if a company presents comparative financial statements, the company should disclose revenue and
earnings of the combined entity as though the business combination that occurred during the year had occurred
as of the beginning of the comparable prior annual reporting period only. The ASU also expands the
supplemental pro forma disclosures under Topic 805 to include a description of the nature and amount of
material, nonrecurring pro forma adjustments directly attributable to the business combination included in the
pro forma revenue and earnings. This ASU is effective prospectively for business combinations for which the
acquisition date is on or after the beginning of the first annual reporting period beginning on or after
December 15, 2010. Effective January 1, 2011, the Company will adopt this ASU and include all required
disclosures in the notes to its consolidated financial statements.
B. ACCOUNTS AND FINANCING RECEIVABLE
(Millions of Dollars) 2010 2009
Trade accounts receivable ..................................... $1,333.2 $486.4
Trade notes receivable ........................................ 61.9 45.7
Other accounts receivables ..................................... 78.3 31.8
Gross accounts and notes receivable .............................. 1,473.4 563.9
Allowance for doubtful accounts ................................ (56.3) (31.9)
Accounts and notes receivable, net ............................... $1,417.1 $532.0
Long-term trade notes receivable, net ............................. $114.9 $93.2
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