Annual report pursuant to Section 13 and 15(d)

Notes Receivable from Customers

v2.3.0.15
Notes Receivable from Customers
 12 Months Ended
Sep. 30, 2011
Notes Receivable from Customers  
Notes Receivable from Customers

4.              Notes Receivable from Customers

 

As of September 30, 2011 and 2010, Batesville had $8.5 and $8.6 of customer notes receivable, primarily representing long-term payment plans that were negotiated to collect unpaid balances.  These notes generally carry repayment terms up to five years and as of September 30, 2011, had a weighted-average interest rate of 5.1%.  The current portion of these notes is included in trade receivables and the noncurrent portion is included in other assets in the consolidated balance sheets.

 

We evaluate the recoverability of each note receivable quarterly and record allowances thereon based upon the customer’s credit score, historical experience, and individual customer collection experience.  As of September 30, 2011, $2.8 of customer notes receivables were over 31 days past due.  Accordingly, we have established an allowance for doubtful accounts of $0.8 related to these notes as of September 30, 2011.   There has not been a significant change in the reserve during the periods presented.  Each quarter we perform a detailed review of all notes upon which a reserve was established to determine whether any amounts should be charged off.  Amounts are charged off when they are deemed to no longer be collectible.

 

Notes receivable consisted of the following:

 

 

 

September 30,

 

 

 

2011

 

2010

 

Customer notes, net of discount of $0.2 in 2011 and 2010

 

$

8.5

 

$

8.6

 

Less current portion

 

(5.2

)

(4.4

)

Notes receivable-noncurrent portion

 

$

3.3

 

$

4.2