UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K
 
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO 
Commission file number 1-9999
XYZ COMPANY
(Exact name of registrant as specified in its charter)
New York
 
22-2222221
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)
2 Main Street, New York 00000
 
202-555-2222
(Address of principal
executive offices)
 
(Registrant's telephone number,
including area code)
Securities registered pursuant to Section 12 (b) of the Act:
Class A Common Stock - $1.00 Par Value
 
New York Stock Exchange
Class B Common Stock - $1.00 Par Value
 
New York Stock Exchange
(Title of each class)
 
(Name of each exchange on which registered)
Securities registered pursuant to Section 12 (g) of the Act:
None
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes: x            No: o
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes: o            No: x
 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes: x            No: o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes: x            No: o
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer: x
Accelerated filer: o
Non-accelerated filer: o
Smaller reporting company: o
 
 
(Do not check if a smaller reporting company)
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes: o            No: x
 
The aggregate market value of the Registrant's Class A Common Stock held by nonaffiliates was $5,000,000 based on the closing price of $100.00 per share on February 1, 2010 as reported on the New York Stock Exchange. The aggregate market value of the Registrant's Class B Common Stock held by nonaffiliates was $4,000,000 based on the closing price of $100.00 per share on February 1, 2010 as reported on the New York Stock Exchange.
 
The number of shares outstanding of $1.00 par value Class A Common Stock as of November 22, 2010 was 50,000.
The number of shares outstanding of $1.00 par value Class B Common Stock as of November 22, 2010 was 40,000.
 
DOCUMENTS INCORPORATED BY REFERENCE
 
Portions of the Registrant's definitive Proxy Statement for the Annual Meeting of Shareowners (Proxy Statement) to be held January 10, 2011, to be filed on or about December 31, 2010, are incorporated by reference into Part I and Part III of this report.

** Should document information and entity information be in separate [Table]s? **

** The concept dei:EntityCommonStockSharesOutstanding is a duplicate of the concept us-gaap:CommonStockSharesOutstanding **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
CONSOLIDATED BALANCE SHEETS
XYZ COMPANY, Inc.
December 31,
(dollars)
ASSETS

*

 2010 2009
CURRENT ASSETS
Cash and cash equivalents 11,000 10,000
Restricted cash 1,000 1,000
Short term investments 1,000 1,000
Accounts receivable, net of allowance for doubtful accounts of $1,000 and $1,000 29,000 29,000
Inventories 4,000 4,000
Prepaid expenses 8,000 8,000
Other 2,000 2,000
Total current assets 56,000 56,000

*
NONCURRENT ASSETS
Property, plant and equipment, net 9,000 9,000
Other noncurrent assets (1) 82,000 82,000
Total noncurrent assets 91,000 91,000
Total assets 147,000 147,000
LIABILITIES AND EQUITY

*

 2010 2009
CURRENT LIABILITIES
Accounts payable and accrued expenses 7,000 7,000
Current portion of long-term debt 22,000 22,000
Other 26,000 26,000
Total current liabilities 55,000 55,000

*
NONCURRENT LIABILITIES
Accounts payable and accrued expenses, noncurrent 1,000 1,000
Long-term debt 19,000 19,000
Other noncurrent liabilities (2) 32,000 33,000
Total noncurrent liabilities 52,000 53,000
Total liabilities 107,000 108,000
Commitments and contingencies (Note G)

*

*
STOCKHOLDERS' EQUITY
Preferred stock, Class A, $1 par, 10,000 shares authorized, issued and outstanding; redemption abount $5,000, liquidation preference $10,000, conversion basis Tincidunt cursus est 5,000 5,000
Preferred stock, Class B, $1 par, 10,000 shares authorized, issued and outstanding; redemption abount $5,000, liquidation preference $10,000, conversion basis Sollicitudin lacus 5,000 5,000
Common stock, Class A, $1 par, 60,000 shares authorized, 50,000 issued and outstanding; conversion basis is Ullamcorper vel sollicitudin lacus 10,000 10,000
Common stock, Class B, $1 par, 50,000 shares authorized, 40,000 issued and outstanding; conversion basis is Mauris tincidunt cursus est 10,000 10,000
Additional paid in capital 1,000 1,000
Treasury stock, share value $1, 10,000 shares, restrictions are Cursus est ullamcorper vel sollicitudin lacus (2,000) (2,000)
Retained earnings 7,000 7,000
Stockholders' equity attributable to parent 36,000 36,000
Stockholders' equity attributable to noncontrolling interest 4,000 3,000
Stockholders' equity including portion attributable to noncontrolling interest 40,000 39,000
Total liabilities and stockholders' equity 147,000 147,000

(1) Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.

(2) Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.

** Many balance sheet line items tie to detailed disclosures; Cash ties to cash flow statement; Equity ties to statement of changes in equity **

** Parenthetical information in labels is information, not labels **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
CONSOLIDATED STATEMENT OF OPERATIONS
XYZ Company, Inc.
Year ended December 31,
(dollars)

*

 2010 2009
GROSS PROFIT
Revenues 10,000 10,000
Cost of revenues 1,000 1,000
Gross profit 9,000 9,000

*
OPERATING EXPENSES
Operating costs and expenses 1,000 1,000
Selling, general and administrative expense 1,000 1,000
Provision for doubtful accounts 1,000 1,000
Gain (loss) on disposal of assets (1,000) (1,000)
Other general expenses 1,000 1,000
Total operating expenses 3,000 3,000

*
Other operating income 1,000 1,000

*
Operating income 7,000 7,000

*
Nonoperating income 1,000 1,000
Interest and debt expense (1,000) (1,000)
Income from continuing operations before equity method investments, income taxes, extraordinary items, effects of accounting changes, and noncontrolling interests 7,000 7,000
Income from equity method investments 1,000 1,000
Income tax expense (1,000) (1,000)
    Income from continuing operations including portion attributable to noncontrolling interests 7,000 7,000
Income from discontinued operations, net of tax, including portion attributable to noncontrolling interests 1,000 1,000
Income before extraordinary items and cumulative effect of accounting changes 8,000 8,000
Extraordinary gain, net of tax, including portion attributable to noncontrolling interests 1,000 1,000
Income before cumulative effect of change in accounting principle 9,000 9,000
Cumulative effect of change in accounting principle, net of tax, including portion attributable to noncontrolling interests 1,000 1,000
Net income including portion attributable to noncontrolling interest 10,000 10,000

*
BREAKDOWN OF NET INCOME
Net income attributable to parent 9,000 9,000
Net income attributable to noncontrolling interest 1,000 1,000
Net income including portion attributable to noncontrolling interest 10,000 10,000
EARNINGS PER SHARE
Basic earnings per common share 1.00 1.00

** Net income ties to statement of changes in equity **

** Contains multiple 'layers' of income and expenses, many of which may not be shown, but their is common structure **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
CONSOLIDATED STATEMENT OF CASH FLOWS
XYZ Company, Inc.
Year ended December 31,
(dollars)

*

 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
Proceeds from customers 20,000 22,000
Payments to suppliers and employees (10,000) (11,000)
Net cash flow provided by operating activities 10,000 11,000

*
CASH FLOWS FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
Proceeds from sale of property, plant and equipment 20,000 20,000
Payments to aquire property, plant and equipment (10,000) (10,000)
Net cash flow provided by investing activities 10,000 10,000

*
CASH FLOWS FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS
Proceeds from issuance of long-term debt 20,000 20,000
Repayment of long-term debt (32,000) (32,000)
Payment of dividends (8,000) (8,000)
Net cash flow provided by financing activities (20,000) (20,000)

*
Net cash flow provided by discontinued operations 10,000 10,000
Effect of exchange rate on cash (9,000) (10,000)

*
Net change in cash and cash equivalents 1,000 1,000
Cash and cash equivalents, beginning balance 10,000 9,000
Cash and cash equivalents, ending balance 11,000 10,000

** Cash amount ties to balance sheet **

** Cash concept on balance sheet and cash flow statement should be the same??? **

** [Roll Forward] must be proven to properly reconcile **

** Issue of whether exchange gains is part of changes or part of roll forward **

** Payment of dividends is NOT the same as Dividends on the statement of changes in equity **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
XYZ Company, Inc.
Year ended December 31,
(dollars)
(Reconcilation of amount) Preferred stock, Class A Preferred stock, Class B Common stock, Class A Common stock, Class B Additional paid in capital Treasury stock Retained earnings Stockholders' equity attributable to parent Stockholders' equity attributable to noncontrolling interest Stockholders' equity including portion attributable to noncontrolling interest
Balance, December 31, 2008 5,000 5,000 10,000 10,000 1,000 (2,000) 7,000 36,000 2,000 38,000
Net income (loss) - - - - - - 9,000 9,000 1,000 10,000
Dividends - - - - - - (9,000) (9,000) - (9,000)
Balance, December 31, 2009, as previously reported 5,000 5,000 10,000 10,000 1,000 (2,000) 7,000 36,000 3,000 39,000
Correction of prior period error - - - - - - 1,000 1,000 - 1,000
Change in accounting policy - - - - - - (1,000) (1,000) - (1,000)
Balance, December 31, 2009, restated 5,000 5,000 10,000 10,000 1,000 (2,000) 7,000 36,000 3,000 39,000
Net income (loss) - - - - - - 9,000 9,000 1,000 10,000
Dividends - - - - - - (9,000) (9,000) - (9,000)
Balance, December 31, 2010 5,000 5,000 10,000 10,000 1,000 (2,000) 7,000 36,000 4,000 40,000

*

(Reconcilation of shares outstanding) Preferred stock, Class A Preferred stock, Class B Common stock, Class A Common stock, Class B
Balance, December 31, 2008 10,000 10,000 50,000 40,000
Sollicitudin lactus - - - -
Balance, December 31, 2009 10,000 10,000 50,000 40,000
Sollicitudin lactus - - - -
Balance, December 31, 2010 10,000 10,000 50,000 40,000

*

** Each equity account ties to balance sheet **

** Net income ties to statement of operations **

** Need to consider prior period adjustments of retained earnings due to accounting error or change in accounting policy **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and cash equivalents policy

Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.

Receivables policy

Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede. Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.

Inventories policy

Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus.

Debt policy

Pellentesque condimentum commodo wisi. Fusce gravida, ligula a placerat placerat, leo erat euismod lectus, et lacinia justo libero non pede. Vivamus ac velit vel magna nonummy pretium.

Revenue recognition policy

Nulla facilisi. Aliquam viverra risus vitae ante. Sed rhoncus mi in wisi.

** Policies are associated with balance sheet line items or income statement line items many times **

*

NOTE B. PROPERTY, PLANT AND EQUIPMENT POLICIES

*

 Valuation basis Depreciation method Estimated life Dispositions
Land Mauris tincidunt cursus est NA NA Nam non tortor non
Machinery and equipment Mauris tincidunt cursus est Sed elementum feugiat augue 20 Nam non tortor non
Furniture and fixtures Mauris tincidunt cursus est Mauris tincidunt 10 Nam non tortor non

** Classes of property, plant and equipment tie to disclosures **

** US GAAP Taxonomy has no [Table] for breaking out PPE policies **

** [Axis] and [Member]s here should be the same as those in the disclosures **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE C. INVENTORIES

*

 2010 2009
Finished goods 1,000 1,000
Work in progress 1,000 1,000
Raw materials 1,000 1,000
Other 1,000 1,000
Total inventory, net 4,000 4,000

** Total inventory ties to the balance sheet **

** Could be modeled as [Member]s of an [Axis] or modeled as individual concepts **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE D. PROPERTY, PLANT, AND EQUIPMENT DISCLOSURES

*

 2010 2009
Land 1,000 1,000
Machinery and equipment, net 2,000 2,000
Furniture and fixtures, net 6,000 6,000
Total property, plant and equipment, net 9,000 9,000

** Total property, plant and equipment ties to the balance sheet **

** Could be modeled as [Member]s of an [Axis] or modeled as individual concepts **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE E. MATURITIES OF LONG-TERM DEBT

*

 2010
Current 22,000
2012 1,000
2013 1,000
2014 1,000
2015 1,000
Thereafter 15,000
Total long-term debt 41,000

** Total maturities ties breakdown of debt instruments and to the balance sheet (sum of current and noncurrent portions) **

*

NOTE F. LONG-TERM DEBT INSTRUMENTS

*

 2010 2009
Mauris tincidunt cursus est, 10% cursus elit sem, April elit tincidunt tincidunt, collateral mincidunt 30,000 30,000
Mincidunt est, 12.5% cursus elit sem, October elit tincidunt tincidunt, collateral mincidunt 11,000 11,000
Total long-term debt 41,000 41,000

** Total debt instruments ties breakdown of maturities and to the balance sheet (sum of current and noncurrent portions) **

** Dimensional aggregation of line items must foot to total **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE G. COMMITMENTS AND CONTINGENCIES
Commitments

Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede. Nulla sit amet nibh. Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est.

Contingencies

Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nam non tortor non leo porta bibendum. Morbi eu pede. Nulla sit amet nibh. Sed elementum feugiat augue. Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede.

Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede. Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus. Mauris tincidunt cursus est. Nulla sit amet nibh. Sed elementum feugiat augue. Nam non tortor non leo porta bibendum. Morbi eu pede. Mauris tincidunt cursus est. Proin elit sem, ornare non, ullamcorper vel, sollicitudin a, lacus.

Loss Contingency Accrual for Litigation

*

 2010 2009
Loss contingency accrual, at carrying value, beginning balance 1,147,000 1,148,000
Provision 6,408,000 400,000
Payments (2,208,000) (401,000)
Loss contingency accrual, at carrying value, ending balance 5,347,000 1,147,000

** Balance sheet points to this, but there is no numeric "tie" to balance sheet **

** Loss accrual [Roll Forward] must be proven to properly reconcile **

** Contingencies presentation and Loss contingency accrual [Roll Forward] are separated for presentation purposes but they do relate to one another **

** Loss accrual [Roll Forward] and contengency [Table]s are tied together by the Loss Contingencies by Nature of Contingency [Axis] (this may not be built correctly) **

*

Part II
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XYZ Company, Inc.
NOTE H. NONMONETARY TRANSACTIONS

*

 2010 2009
Mauris tincidunt cursus est 100,000 200,000
Nulla sit amet nibh 100,000 200,000
Nam non tortor non leo 100,000 200,000
Total 300,000 600,000

** Total nonmonetary transactions ties to nothing **

** Dimensional aggregation of line items must foot to total **

*