Quarterly report pursuant to Section 13 or 15(d)

Financing Receivables

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Financing Receivables
9 Months Ended
Jun. 30, 2012
Financing Receivables  
Financing Receivables

5.               Financing Receivables

 

As of June 30, 2012, Batesville had $6.8 of customer notes receivable, primarily representing long-term payment plans negotiated to collect unpaid balances.  These notes generally carry repayment terms of up to five years and had a weighted-average interest rate of 5.3% at June 30, 2012.  The current portion of these notes ($4.1) is included in trade receivables, and the long-term portion ($2.7) is included in other assets in the consolidated balance sheet at June 30, 2012.

 

We evaluate the recoverability of each note receivable quarterly and record allowances based upon the customer’s credit score, historical experience, and individual customer collection experience.  As of June 30, 2012, $2.7 of customer notes receivable were over 31 days past due.  We have established an allowance of $0.9 related to these notes, with a gross balance of $2.1 as of June 30, 2012.   There has not been a significant change in the reserve during the periods presented.  Each quarter we perform a detailed review of all notes to determine whether any amounts should be charged off.  Amounts are charged off when they are deemed to no longer be collectible.