Dow Chemical 2011 Annual Report Download - page 214

120
Sale of Trade Accounts Receivable in Asia Pacific
The Company sells participating interests in trade accounts receivable of select Asia Pacific entities. The Company maintains
servicing responsibilities and the related costs are insignificant. The third-party holders of the participating interests do not have
recourse to the Company’s assets in the event of nonpayment by the debtors.
During the years ended December 31, 2011 and 2010, the Company recognized an insignificant loss on the sale of the
participating interests in the receivables, which is included in “Interest expense and amortization of debt discount” in the
consolidated statements of income. The Company receives cash upon the sale of the participating interests in the receivables.
Following is an analysis of certain cash flows between the Company and the third-party holders of the participating
interests:
Cash Proceeds
In millions
Sale of participating interests
Collections reinvested in revolving receivables
2011
$ 143
$ 120
2010
$ 218
$ 195
Following is additional information related to the sale of participating interests in the receivables under this facility:
Trade Accounts Receivable at December 31
In millions
Derecognized from the consolidated balance sheets
Outstanding in the consolidated balance sheets
Total accounts receivable in select Asia Pacific entities
2011
$ 13
303
$ 316
2010
$ 25
281
$ 306
There were no credit losses on receivables relating to the participating interests sold during the years ended December 31,
2011 and 2010. There were no delinquencies on the outstanding receivables related to the participating interests sold at
December 31, 2011 or December 31, 2010.
NOTE P – NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES
Notes Payable at December 31
In millions
Notes payable to banks
Notes payable to related companies
Notes payable trade
Total notes payable
Year-end average interest rates
2011
$ 421
92
28
$ 541
3.06%
2010
$ 1,310
157
—
$ 1,467
2.64%