COST Financial_Report

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Unformatted text preview: '>&#xA0 </td> <td va lign=3Dbottom> <p style=3D'BORDER-TOP: #000000 3px double'>&#xA0 </td> <td>&#xA0 </tr> </ta ble> <p style=3D'MARGIN-TOP: 12px &#xA0 <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Vendor receiva bles include pa yments from vendors in the form of volume reba tes or other purcha se discounts tha t a re evidenced by signed a greements a nd a re reflected in the ca rrying va lue of the inventory when ea rned or a s the Compa ny progresses towa rds ea rning the reba te or discount a nd a s a component of mercha ndise costs a s the mercha ndise is sold. Vendor receiva ble ba la nces a re genera lly presented on a gross ba sis, sepa ra te from a ny rela ted pa ya ble due. In certa in circumsta nces, these receiva bles ma y be settled a ga inst the rela ted pa ya ble to tha t vendor. Other considera tion received from vendors is genera lly recorded a s a reduction of mercha ndise costs upon completion of contra ctua l milestones, terms of the rela ted a greement, or by a nother systema tic a pproa ch.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Reinsura nce receiva bles a re held by the Compa ny&#x2019 subsidia ry. The receiva ble ba la nce prima rily represents a mounts ceded through reinsura nce a rra ngements, a nd a re reflected on a gross ba sis, sepa ra te from the a mounts a ssumed under reinsura nce, which a re presented on a gross ba sis within other current lia bilities on the consolida ted ba la nce sheets. Third-pa rty pha rma cy receiva bles genera lly rela te to a mounts due from members&#x2019 co-pa y, which is collected a t the point-of-sa le. Receiva bles from governmenta l entities la rgely consist of ta x rela ted items.</font></p> <p style=3D'MARGIN-TOP: 12px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Receiva bles a re recorded net of a n a llowa nce for doubtful a ccounts. Ma na gement determines the a llowa nce for doubtful a ccounts ba sed on historica l experience a nd a pplica tion of the specific identifica tion method. Write-offs of receiva bles were imma teria l for fisca l yea rs 2012, 2011, a nd 2010.</font></p> </div><spa n></spa n></td> < /tr> < tr cla ss=3Dro> < td cla ss=3Dpl va lign=3Dtop>Mercha ndise Inventories</td> < td cla ss=3Dtext><div> <p style=3D'MARGIN-TOP: 18px Inventories</i></font></p> <p style=3D'MARGIN-TOP: 6 px <font style=3D'FONT-FAMILY: ARIAL' siz e=3D2>Mercha ndise inventories consist of the following a t the end of 2012 a nd 2011:</font></p> <p style=3D'MARGIN-TOP: 0px &#xA0 <ta ble style=3D'BORDER-COLLAPSE: colla pse' border=3D0 cellspa cing=3D0 cellpa dding=3D0 width=3D84 % a lign=3Dcenter> <tr> <td width=3D78% ></td> <td va lign=3Dbottom width=3D5% ></td> <td></td> <td></td> &l...
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This document was uploaded on 04/07/2014.

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