Accounts Receivable, Net
Accounts receivable, net, consisted of the following as of January 31:
|
| | | | | | | |
| 2012 | | 2011 |
Trade accounts receivable | $ | 433.9 |
| | $ | 363.0 |
|
Less: Allowance for doubtful accounts | (5.5 | ) | | (4.2 | ) |
Product returns reserve | (5.8 | ) | | (10.6 | ) |
Partner programs and other obligations | (27.5 | ) | | (29.8 | ) |
Accounts receivable, net | $ | 395.1 |
| | $ | 318.4 |
|
Allowances for uncollectible trade receivables are based upon historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with problem accounts.
The product returns reserves are based on historical experience of actual product returns, estimated channel inventory levels, the timing of new product introductions, channel sell-in for applicable markets and other factors.
Partner program and other obligations are primarily related to partner incentives that use quarterly attainment monetary rewards to motivate distributors and resellers to achieve mutually agreed upon business goals in a specified time period.
